Evening star. [volume], June 21, 1950, Image 1

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

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Weather Forecast
Partly cloudy, scattered thunderstorms
and high in mid-80s today. Partly cloudy
tonight, low 68. Tomorrow some cloudiness.
(Pull report on Page A-2.)
Midnight, 73 6 am. :._72 11 am. ...W
2 am. ...72 8 am. ...74 Noon_80
4 a.m. ...72 10 a.m. ...81 1 p.m. ...79
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An Associated Press Newspaper
98th Year. No. 172. Phone ST. 5000 ★★
WASHINGTON, D. C., WEDNESDAY, JUNE 21, 1950—FIFTY-TWO PAGES.
City lau Datlrary. Dally and Bandar. *110 a Monui. »m«b ft r prVTS
•uadaya. *1.30. Nicht Pinal Edition, tlJO and *1 40 act Month «* i S>
U. S. Sees Plot
To Halt Contacts
In East Europe
Romania Blasted
In Note for Asking
•Recall of Attache
By Garnett D. Horner
The United States charged to
day that a “deliberate and cen
trally-directed policy” is being
carried out in Eastern Europe to
Interrupt this country’s diplo
matic relations with the Soviet
satellite countries there.
The charge was made in a note
to the Communist government of
Romania. The note officially re
pudiated the “alleged justifica
tion” for Romania’s demand for
the recall of an assistant Army
attache from the American Lega
tion there.
The State Department said the
attache. Capt. Herschel Hutsin
piller, is being withdrawn from
Bucharest “in conformity with
customary diplomatic practice” as
a result of the Romanian demand.
Dumped Ammunition.
The Romanian regime declared
Capt. Hutsinpiller persona non
grata as the result of his dumping
what the State Department said
was a "small quantity” of out
dated small arms ammunition in
a lake near Bucharest.
The State Department said that
Romanian authorities “artificially
exaggerated and distorted” the
Incident as the basis for a new,
'•virulent” propaganda attack
against the United States.
In the bristling note to Ro
mania made public today, this
Government charged:
The Romanian Government’s
action is not really based upon the
incident or upon the conduct of
Capt. Hutsinpiller, but is a part
of a deliberate and centrally-di
rected policy, being carried out
throughout Eastern Europe, to in
terrupt the normal conduct of
diplomatic relations between the
United States and the states of
that area.”
Press Officer Michael J. Mc
Dermott of the State Department
told reporters he would rather not
name the director of the “de
liberate policy.” The reference
obviously was to Russia, which
appears to be striving to tighten
the iron curtain around its satel
lites.
Retaliation Uncertain.
Mr. McDermott left unanswered
questions about possible retaliatory
action against Romania. The note
indicated that the situation is
Setting close to a complete break
i diplomatic relations with Ro
mania, although apparently no
such drastic step has been decided
upon as yet.
American diplomats have faced
increasing restrictions in several
Eastern European nations recent
ly. Relations were broken with
Bulgaria in February.
The note to Romania said bit
terly that its exaggeration of the
ammunition-dumping incident as
the basis for new propaganda at
tacks on this country is “illustra
tive of the conduct of diplomatic
relations by the Romanian gov
tmment.”
The attacks started on June 6
when the official organ of the Ro
manian workers’ party (Com
munist) published a letter by a
janitor of the American Legation’s
service attache’s office. The jani
tor described the dumping into a
lake of what he called “four cases
and a small sack containing am
munition for a pistol and auto
matic weapons.”
Press Takes Up Campaign.
The Romanian press as a whole
then took up the “government
inspired” campaign, the State De
partment said, relating the inci
dent to trials of the past few
years in which the American and
British diplomatic missions were
accused of spying and subversive
activity.
The State Department said the
Incident involved the disposal of
“a small quantity of outdated am
munition” left over from the sup
plies of the United States mili
tary representation on the Allied
Control Commission for Romania
that was withdrawn in December,
1947.
Romania demanded Capt. Hut
sinpiller’s recall on June 14, after
saying in its first complaint to the
American Legation about the in
cident on June 9 that it would
“leave it up to the United States
Government” to decide what to do
about Capt. Hutsinpiller.
Mercury to Greet
Advent of Summer
By Climbing to 80s
Summer makes its debut in
Washington today and there’ll be
plenty to talk about—the weather,
that is!
The temperature will climb to
the mid-SOs this afternoon, accom
panied by a full-fledged dose of
Washington’s sticky, drippy sum
mer humidity.
Just to make sure the day is a
typical summer one, the forecaster
predicts scattered thunderstorms
for late afternoon.
Officially, the summer solstice
will arrive at 7:35 p.m. The fore
caster pointed out spring was
pretty hot this year with a record
M degrees registered on May 6.
U. S. Now Is Depression-Proof,
Tobin Tells Geneva Conference
America Will Never Again Have Experience
Of Early 30s, Labor Secretary Believes
•y th« Aisociottd frit
GENEVA, Switzerland, June 21.
—Secretary of Labor Tobin said
today the United States has elim
inated the cause of depressions
by its economic and social legis
lation.
“I do not believe we will ever
again experience a major depres
sion such as we had in the early
thirties,” Mr. Tobin told the In
ternational Labor Conference.
“We are confident of our abil
ity to avoid a major depression
because of the great advances we
have made in social and economic
legislation since 1933. The sup
ports we put under our economy
in these years stood us in good
stead in 1949.
"They will be equally helpful in
protecting our economy against
a serious recession in the years
ahead.”
He mentioned as bulwarks ol
the American economy old-age
and survivors’ insurance, free pub
lic employment services, unem
ployment insurance, insurance of
bank deposits, minimum wage and
hour legislation, agricultural price
support and the development of
resources such as the TVA.
Mr. Tobin told the labor, in
dustrial and Government leaders
gathered here that “real earnings
and the standard of living of
American workers is now higher
than ever before, about 40 per
cent above prewar levels.”
The recession of 1949, he said,
was the “first significant test of
the stability of the postwar Amer
ican economy.” He said the test
had been met successfully and
expressed the belief that the Amer
ican economy now is able to
“assure economic stability to a
substantial degree.
“Any persons or nations who
make their plans on the basis of
an expected economic collapse in
the United States are doomed to
disappointment. We are deter
mined to remain strong and
free. * • •
“We have joined with other
countries in a common effort to
maintain world prosperity and
freedom. We are prepared to co
operate with all peace-loving na
tions.”
Chief of Daily Worker
Defies Committee in
Stormy Word Battle
Philip Bart Even Refuses
To Give Original Name
j Or Admit Red Activity
By Robert K. Walsh
Philip A. Bart, general man
ager of the Communist news
paper, the Daily Worker, and the
House Committee on Un-Ameri
can Activities today staged a
tumultuous tug-of-war that failed
to get answers to almost 30 ques
tions.
The 48-year-old former or
ganizer for the Communist Party
gave freedom of speech and pos
sible self-incrimination as reasons
for refusing even to tell his orig
inal name. He also refused to
disclose whether he ever recruited
Americans for study at the Lenin
Institute in Moscow.
“This committee is only trying
to smear me and send people to
jail as it has done in the past,”
he shouted as the hearing came
to a stormy close.
Assailed by Representative.
Representative Walter, Demo
crat, of Pennsylvania, presiding at
the hearing, angrily pounded his
gavel and retorted:
“If you thought as much of the
United States Constitution as you
say you do, you would be eager
to help this committee to learn
the names of alleged Americans
who went to Moscow to study how
to hurt this country.”
The committee later today was
to question Marcel Scherer, for
mer leader of a left-wing labor
union, about his reported associa
tion with Dr. Joseph W. Weinberg.
The committee last year accused
Dr. Weinberg of having turned
over atomic secrets to a Russian
agent in California where Dr.
Weinberg was a nuclear physicist
at the radiation laboratory in the
University of California.
Bart Claims Citizenship.
Bart, accompanied by his attor
ney, Abraham Unger, of New
York, got off tb an early start in
defying the committee. After
stating that he was bom in War
saw in 1902, he flatly refused to
tell what his name was before he
legally changed it about 15 years
ago.
He said he is a naturalized
citizen.
Other questions he refused to
answer were his father’s name,
the circumstances under which he
changed his name, other Commu
nist Party positions he held in
addition to the Daily Worker of
fice and organizational activities
in the 1930s in Pennsylvania, Illi
nois and Ohio.
Committee Counsel Frank S.
Tavenner showed him a photo
static copy of a passport applica
tion signed by “John William Fox”
in 1932. He asked the witness
whether the application contained
his signature and whether the
photograph was his picture. Mr.
Bart refused to identify the ap
plication on the grounds of possi
ble self-incrimination.
Capt. Burke Nominated
For Rank of Rear Admiral
President Truman today nomi
nated Navy Capt. Arleigh A.
Burke for promotion to rear ad
miral.
Capt. Burke headed a unit in
the Navy Department which is
said to have drawn up much of
the material in which Navy offi
cers criticized unification policies
in testimony before the House
Armed Services Committee last
year. Admiral Louis Denfeld was
ousted as Chief of Naval Opera
tions as an aftermath of those
hearings.
When a Navy promotion board
was considering captains for pro
motion to rear admiral earner
this year Capt. Burke was at first
passed over but later the board
was reconvened and his name was
added. It was from that promo
tion list that Mr. Ttuman drew
his name today in sending the
nomination to the Ssnate.
Hurley Charges Aired
By State Officials in
Talks With Governors
Jessup Handles Questions
On Former Ambassador
In Closed Session
By Gould Lincoln
Star Staff Correspondent
WHITE SULPHUR SPRINGS,
W. Va., June 21.—Secretary of
State Acheson and other top
officials talked in secret session
yesterday with Governors’ Con
ference members concerning for
mer Ambassador Patrick J. Hur
ley’s charges against the depart
ment.
The attitude of the department,
it was learned, seemed W toe that
Gen. Hurley indulged In a tem
permental blow-up earlier this
week when he asserted that the
department shielded an employe
he said had given secret docu
ments to Communist army leaders
in China. 4
That employe, according to Gen.
Hurley, was John S. Service, a
key figure in the Amerasia case.
Jessup Handles Questions.
Ambassador-at-Large Philip
Jessup, who accompanied Secre
tary Acheson to the session at
which the Governors conferred
with State Department officials
on many issues, handled questions
about the Hurley charges.
The impression left by the an
swers was that the department
officials did not believe Gen. Hur
ley’s charges were to be taken too
seriously, it is understood.
Further,, it was learned that
Secretary of State Acheson’s ap
pearance before the Governors,
both in open and secret session,
left good impressions and impres
sions not so good.
Gov. Lausche of Ohio, a Demo
crat, was emphatic in commenting
that Mr. Acheson had impressed
the Governors most favorably.
Lane Also Impressed.
In this, Mr. Lausche aligned
himself with Gov. Lane of Mary
land, also a Democrat, who pre
sided over yesterday’s round table
on foreign affairs.
The Maryland Governor de
clared that Mr. Acheson had ‘‘sat
isfied ” him completely on the
question of security and he was
sure that other Governors felt the
same way about the Secretary.
There were other Governors,
however, who took a contrary
view. Mr. Acheson’s critics, while
agreeing that the Secretary of
State was himself clearly a loyal
and capable public servant, said
they considered him too much
inclined to take a rosy and opti
mistic view. They pointed out
(Continued on Page A-3, Col. 1.1
81 Loyalty Files
Found Intact,
Tydings Says
Justice Dept. Inquiry
Refutes McCarthy, v
Senator Declares
By Cecil Holland
Senator Tydings, Democrat, of
Maryland said today charges that
State Department loyalty records
in 81 cases under investigation
have been tampered with and
skeletonized “are not sustained by
the facts.”
The charges were made by Sen
ator McCarthy, Republican, of
Wisconsin.
Senator Tydings told reporters
that at his request the Justice
Department had investigated each
file “to ascertain if the McCarthy
charges were true."
Justice Department Letter Cited.
He added he had received from
the department a letter saying:
1. The flies are intact.
2. The flies have not been
“raped, tampered with or skele
tonized” as charged by Senator
McCarthy.
3. All material turned over by
the Federal Bureau of Investiga
tion to the State Department is
contained in the flies.
Senator Tydings heads a Senate
Foreign Relations subcommittee
investigating Senator McCarthy’s
charges that the State Depart
ment has harbored Communists,
fellow travelers and security risks.
Files Are at White House.
The group currently is studying
loyalty flies in 81 cases that Sen
ator McCarthy said would support
his charges. The flies in these
cases were made available to the
subcommittee by President Tru
man and are being examined at
the White House.
At the time the flies were made
available about two months ago,
Senator McCarthy said they had
been tampered with and would
not provide a full answer to his
charges.
Senator Tydings said the Jus
tice Department letter was signed
by Peyton Ford, assistant to the
Attorney General, and that he
understood FBI agents had con
ducted the examination of the
flies to see if they had been tam
pered with or stripped of impor
tant material.
Peurifoy Testifies in Secret.
Senator Tydihgs made the an
nouncement after the subcom
mittee had'held a two-and-a
half hour closed session with
Deputy Undersecretary of State
John E. Peurifoy.
The Senator refused to reveal
what Mr. Peurifoy discussed ex
cept to say that his testimony
dealt with pertinent parts of the
investigation. Mr. Peurifoy has
overall direction of State Depart
ment security and loyalty proce
dures.
Senator Tydings acknowledged
that Mr. Peurifoy had discussed
(See COMMUNISTS, Page A-3.)
Late News
Bulletins
House Posses Rent Bill
A six-month extension of
Federal rent control was ap
proved by the Honse this after
noon, 174 to 145. The Senate
also must ratify the confer
ence report before it roes to the
President. The bill rives cities
the option of extendinr the
control another six months on
January 1.
Hatch Act Changes Voted
The Senate today approved,
42 to 32, a bill amendinr the
Hatch Act to allow Federal em
ployes in nearby Maryland and
Virrinia to participate in local
party politics. The bill, which
now roes to the White House,
also rives the CivU Service Com
mission the authority to assess
lesser penalties than outrirht
dismissal in ease of minor Hatch
Act violations.
Woman Uses Scissors to Repel
Boy, 14, Trying to Attack Her
A young Falls Church housewife
yesterday used a pair of scissors to
put to flight a 14-year-old boy
who forced his way into her home
and attempted to assault her, po
lice reported.
The boy, whose home is in Ar
lington, was captured by the
woman’s husband, who turned
him over to police. The boy was
charged at Fairfax with assault
and attempted carnal knowledge
and was released on $1,500 bond
pending a hearing tomorrow in
Juvenile Court.
Slightly wounded in the left
chest by the scissors, the boy was
treated by Dr. Emanuel Newman,
Falls Church.
Police said that Mrs. Carlyn
Adkins. 24, of 201 Nicholson street,
Falls Church, and the boy, both
gave this account:
Mrs. Adkins, in shorts and
blouse, was sitting in her back
yard about 3:30 p.m. when the
boy approached and asked if she
wished to subscribe to a morning
newspaper.
She aakl bo. The boy wandered
off, but in a few minutes came
back and suggested perhaps her
husband would like to subscribe to
the newspaper. Mrs. Adkins again
told him that they did not wish
to buy the paper.
Again he left. Mrs. Adkins
went into the house to do some
sewing. In a few minutes there
was a knock on the front door
and she rose, sewing in hand, to
answer it. She thought it might
be one of her two children. With
out saying anything, the boy
pushed her into the living room
and a scuffle started.
“He just stared at me and
grabbed my arm,” Mrs. Adkins
said.
As the struggle continued Mrs.
Adkins screamed and struck at
the boy with the scissors. When
the scissors struck his chest, the
boy fled.
Her husband. R. E. Adkins, a
builder, working a block and a
half away, heard a woman scream
ing and rushed home, police re
ported. He caught the youth walk
ing along a road toward Lee boule
vard.
Flove me^
1 LOVE My
[balcony/1
Record Pork Supply Expected
To Send Prices Down Next Fall
Beef Also Will Be Abundant Then,
Agriculture Department Forecasts
■y th« Atsociated PfUl
Near-record If not record peace
time supplies of pork next fall and
winter were indicated today by an
Agriculture Department report.
The big volume should be ac
companied by a down turn in
pork prices from the summertime
peak.
The report of increased pig pro
duction comes on top of an earlier
department forecast of larger
slaughter of cattle next winter
than last. Together, they add up
to considerably larger meat sup
plies for consumers.
Today’s report estimated the
1950 spring pig crop at 60.079,000
head, an increase of 3 per cent
over last year's spring crop of
58.426.000.
The 10-year (1938-48) average
spring crop was 55.191,000 head
and the largest of record was 74.
223,000 in the war year of 1943.
Last December the department
predicted a spring crop of 62.5
million head.
The 1950 fall crop was fore
cast at 39 million, an increase of
5 per cept pw last year’s fall
crop of 37,2®ro6o head. Thus the
combined 1980 spring and fall
crops would be 99.079,000. com
pared with 95.688.000 last year.
70-Group Air Force
Voted by Conferees
In Compromise Bill .
Army Strength Is Set
At 837,000, Air Arm
Limited to 502,000
House and Senate conferees to
day agreed to authorize the Air
Force to build up to 70 groups.
The provision is contained in a
compromise version of an Army
and Air Force bill authorizing
strengths for the two services.
Congress would have to appropri
ate money before either could
reach the stated strengths.
Th Air Force long has sought
a 70-group authorization, but the
Administration has opposed it.
Last year, Congress appropri
ated funds for a start toward the
70-group program, but President
Truman impounded the money
and held the air arm at 48 groups
in his budget message last Janu
ary.
Army Strength Set at 837,000.
Senator Chapmaan, Democrat,
of Kentucky, reported that the
conferees also agreed the Army
should have an overall strength of
837,000 and the Air Force 502,000
officers and men.
The Senate had struck from the
House bill a section allowing the
air arm 70 regular regular groups,
22 separate squadrons and 61 re
serve groups with supporting and
auxiliary units.
The compromise version states
that the Air Force shall have an
authorized strength not to exceed
70 groups and such separate
squadrons, reserve groups and
supporting units as may be re
quired.
24,000 Aircraft Authorized.
It also authorizes 24,000 aircraft
or 25,000 air frame tons aggregate
of serviceable aircraft—a provi
sion recommended by both the
Finletter Commission and the
Joint Congressional Commission
on Air Power.
The bill authorizes the Na
tional Guard to have an overall
strength of 600.000 officers and
men. It also sets the Army Or
ganized Reserve Corps at 980,000
officers and men. The Air Force
was authorized to have 27,500
regular officers and Air Na
tional Guard of 150,000. A ceiling
of 500,000 on the Air Force Re
serve also was included.
The bill authorized the Army,
Navy and Air Force to continue
the procurement, research and
development of guided missiles
and states that such funds as ap
propriated for that activity shall
remain available until expended.
Thieves Get Light Haul
LONDON, June 21 (JP).—A gang
of London’s thieves got a light
haul today; a truckful of feathers
and artificial flowers, worth $1,960,
driven away from a millinery shop
in the Soho. '
Measure Widening
Social Security Setup
Goes to Conference
Larger Pensions and
Increased Coverage
Are Voted by Senate
By J. A. O'Leary
Larger pensions for nearly 3
million old persons and the prom
ise of greater security for millions
of others in the future moved a
big step nearer reality today.
Approved by the 8enate last
night, 81 to 2, the new social se
Sonoto Social Security Provisions Com
pand With Froiont Low. Fago A-l
curltr bill has reached the final
step of ironing out differences
with the House over details. Its
enactment at this session is re
garded as a foregone conclusion.
Highlights ef Senate Version.
Highlights of the 8enate ver
sion would:
Increase retirement benefits by
100 per cent in the lowest brackets
and by 60 per cent for higher
paid workers covered by the Fed
erald old-age and survivors’ in
surance system.
Add about 10 million wage earn
ers to the 35 million now covered
by the system. Most of the new
ly covered will be self-employed
individuals, domestic servants and
some farm laborers, but not farm
owners.
Before passing the bill the Sen
ate adopted a resolution directing
its Finance Committee to make a
report next year on even more
far-reaching changes in the plan.
The committee was ordered to
consider the feasibility of a uni
versal plan that would give every
individual a security allowance at
65, to be financed ‘on a pay-as
you go basis.
Base Raised te 13,600.
The only important change the
Senate made in the bill yesterday
was to accept the House provision
to base both payroll taxes and
pensions on the first $3,600 an
individual earns each year. At
present, the tax is collected only
on the first $3,000. At the present
rate of 1 Vi per cent, this will mean
a tax increase of $9 a year for
those who earn $3,600 or more a
year.
The two who voted against the
bill are Senators Butler of Ne
(8ee SOCIAL 8ECURITY, A-8.)
Irish Baby Weighs 17 Pounds
BRAY, Ireland, June 31 1/P).—
This Irish seaside resort claimed
a record for heavyweight new
born babies today. Bray’s entry
is Michael Kineh, 17 pounds, three
ounces. He was born to 34-year
old Mrs. Mary Kineh, wife of a
bus conductor.
Administration Backs
Bargaining Rights for
U. S. Employe Unions
Mitchell Tells House Unit
Presidential Order Would
Be Better Than Legislation
By Joseph Young
The administration today gave
its approval to a proposal to give
virtual collective bargaining rights
to Federal employe unions.
Testifying with the clearance of
the White House and Budget Bu
reau. Chairman Harry B. Mitchell
it the Civil Service Commission
told a House Civil Service sub
committee that the administration
favors such a move.
However. Mr. Mitchell said such
a program could best be accom
plished by a presidential executive
order rather than by legislation.
Hearing on "Little Wagner Act."
The subcommittee is holding
hearings cm the "Little Wagner
Act” bill for Federal employe
unions, sponsored by Representa
tive Rhodes, Democrat of Pennsyl
vania.
The bill would require all de
partments and agencies to confer
with employe representatives on
all types of working conditions.
Including adjusting of grievances,
appeals, granting of leave, promo
tions, demotions, rates of pay and
reductions in force.
The bill also provides that agen
cies shall recognize the right of
unions to solicit membership, col
lect fees or dues or carry on any
lawful activity "without intimida
tion, coercion, interference, or re
prisal.”
Won’t Oppose Legislation.
While favoring a White House
order to bring this about, Mr.
Mitchell said the commission
would not oppose legislation to
this effect if Congress felt it was
the best way of achieving these
objectives.
Mr. Mitchell suggested amend
ing the bill to limit the union ac
tivity in Federal offices to off
time working hours. He said
this is usually the practice of
private industry.
The legislation also contains a
provision to permit agencies to
suspend employes without pay for
30 days in emergency cases, such
as incidents of theft, mental
aberrations and the like.
Legionnaire Installed, Dies
RENS8ELAER, N. Y., June 21
(JPl. — Robert R. Smith, 40,
slumped over in the commander’s
chair last night immediately after
being installed as head of the
Fort Crailo Post, American Le
gion. Coroner Anthony E. Matera
said he had died of a heart ail
ment.
Truman Suggests
Cutting Presidency's
Work Day in Half
President Truman today told a
group of New York college stu
dents doing political research that1
he wished they could find out how
the presidency could be put on an
eight-hour day.
Chuckling, Mr. Truman said
his working day was now about
IS hours.
His visitors took the request
under consideration.
The collegians—live in number
—were part of a group who have,
been getting actual experience in
political activities under auspices
of the Democratic 8tate Commit
tee of New York as part of their
college studies.
They were brought to Wash
ington today by 8tate Chairman
Paul K. Fitspatrick and Dr. Jose
phine M. PisanL professor of
political science of Queens College.
222,000 Facing
Boosf in Medical
Insurance Here
20-70-Cent Increase
To Take Effect Sept. 1
To Help Ease Deficit
By George Beveridge
Rate increases of from 20 to 70
cents a month to the more tha*
222,000 Washington residents en
rolled in the District Medical So
ciety’s prepayment surgical serv
ice plan will go into effect Sep
tember 1. it was announced today.
At the same time, fees to doc
tors who provide service under
the plan will be paid on a pro
rated basis "until further notice."
officials said.
Dr. Prank D. Costenbader. presi
dent. said the two moves are nec
essary to provide "Immediate re
lief” from deficits incurred by
widespread service and "swift
public acceptance" of the plan
Effective September 1, he said,
rates for coverage under the pro
gram will increase from the cur
rent 80 cents to $1 a month for
individual contract* and from the
present $2 to $2.70 for those with
family contracts.
Administered by GHI.
The plan, sponsored by the
medical society, is administered
by Group Hospitalization. Inc.,
which enrolls Washington resi
dents for protection against hos
pital bills. Under the doctors'
plan, physicians' fees for surgical,
obstetrical and other services given
in hospitals are covered.
The new rate schedule applies
only to the medical plan, with no
Increases scheduled for subscrib
ers to the hospitalization plan.
In just over two years of the
plan's existence. Dr. Costenbader
said, more than 222,000 persons
have been enrolled, 'making it
the fastest growing Blue Shield
(voluntary medical insurance)
plan in the country." Thus far.
doctors have been paid more than
$1.9 million for their service.
The president said it is “now
necessary for the physicians to
assist the plan temporarily" be
cause the "great demand for serv
ices . . . has more than offset the
Income we have received from our
rapid growth."
Doctors Will Be Repaid.
Dr. Costenbader stressed that
the pro-rate plan for doctors will
be in the form of a loan from
them, however, and that it is the
"declared intention of the board
of trustees” to repay them “as
soon as the plan is able."
On the average, between 30 and
40 per cent of the established fees
set up for doctors will be withheld
under the pro-rata plan, officials
said.
While the plan has not yet
reached the stage of an actual
deficit, Dr. Costenbader said, there
has been an "operating deficit” of
about $20,000 a month for the last
three or four months. The result,
he said, is that the plan's reserves
have dwindled to the point that
an actual deficit would follow
without immediate action.
Enrollment Limits Applied.
One of the chief reasons for the
financial problem, the president
said, is that until the first of this
year there was no waiting period
for such "elective” operations as'
tonsillectomies and pelvic surgery.
This meant that persons could en
roll in the plan and almost im
mediately be eligible for free care.
Now, however, subscribers must be
enroled for at least 10 months be
fore being eligible for such bene
fits. The same limit applies to
obstetrical cases.
Another factor, he said, is that
such services as X-ray, laboratory
and anesthesia are covered by the
Washington medical plan. In
many cities, such services are con
sidered a part of the hospitaliza
tion insurance program.
The increases announced today
are the first since the plan began,
officials said.
Of the 222,000 persons enrolled,
about 44,000 have individual con
tracts. and about 178,000 are in
family contracts.
Expansion Will Be Studied.
The need for the rate increases
indicates there is slight chance of
extension of benefits under the
surgical plan in the near future.
Dr. Costenbader said, however,
that committees set up to study
extension "wUl continue to make
active plans.”
Dr. Costenbader said the ex
isting financial problems are “not
alarming” in light of experience
of other plans.
"After two years,” he declared,
"we have the experience and in
formation we need to place med
ical service on a sound financial
basis. For the first time, it la
possible for us to forsee reason
ably well the rate of utilization as
well as the cost of the services
the plan provides in relationship
to the charges paid by sub
scribers."
Reds Claim U. S. Germ Rian
MOSCOW, June 21 (JP).—Pravda.
Soviet Communist Party official
newspaper, claimed in an editorial
today that the United States
Senate has approved a bill pro
viding large funds for expanding
United States bacteriological war
far*.