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Cloudy, high in upper 80s today, chance of evening shower. Cloudy tonight, low 72. Tomorrow cloudy, cooler. Full report on Pafe A-2.) Midnight, 71 6 a.m. —72 11 a.m. —74 2 a.m. —71 8 a.m. —72 Noon-76 4 a.m_71 10 a.m. .--74 1 p.m. .—77 Lote New York Morkets, Poge A-25_ Guide for Readers After Dark_B-8 Amusements ..A-22 Classified _.C-4-10 Comics_C-12-13 Crossword_C-12 Editorial _A-14 Edit’l Articles, A-15 Finance _A-25 Obituary _A-28 Radio _C-ll Sports_C-l-4 Woman’s Sect. B-3-6 An Associated Press Newspaper 98th Year. No. 229. Phone ST. 5000 ** WASHINGTON, D. C., THURSDAY, AUGUST 17, 1950-SIXTY-FOUR PAGES. SSB&. Daily and 8unday. $1.20 a Month; when 6 a? /''rrvyTTFC! ■lit Pinal Edition. $1 HO and $1.40 per Month. •* JL O 30.000 KOREAN REDS OPEN ALL-OUT DRIVE 3 Give Details Of Lt. Shimon's Wire-Tapping 2 Policemen Tell . About Assignment To Job in 1947 By Don S. Worren Wire tapping operations by Po lice Lt. Joseph W. Shimon while he was chief investigator for United States Attorney George Morris Fay, today were detailed by three witnesses at a two-hour open hearing before a Senate in vestigating committee. Two were policemen formerly assigned to the staff of Lt. Shi mon and a third was the head of a recording device concern. The stories they told paralleled gen erally their accounts of the same incidents at earlier and closed sessions of the committee. Precinct Detective James G. Bryant and Pvt. John McHale ap peared before the Pepper subcom . mittee to testify they were as signed in 1947 by Lt. Shimon to tap the phones of the plane build er, Howard Hughes, at the May flower and Carlton Hotels during a Senate War Investigating Com mittee inquiry of Mr. Hughes’ war contracts. Tells of Loaning Devices. The third witness, Joseph Tait of the United States Recording Co., 1100 block of Vermont ave nue N.W., said he had many times in the last 10 years loaned record ing equipment to Lt- Shimon. More testimony on his earlier story that a “strange man” once placed a $1,000 bill on the desk of Lt. Shimon at his office at the courthouse came from Officer Mc Hale. Pvt. McHale said Lt. Shi mon had pocketed the bill. Pvt. McHale said this occurred in August, 1947, about two days after the conclusion of the Sen- j ate inquiry into the Hughes con tracts. As the incident was described by Pvt. McHale, the unidenified man went into Lt. Shimon’s office and the door was closed. He was not in there more than five min utes and when he came out, the j witness said, “Lt Shimon came j over and placed a $1,000 bill on ■ my desk. He then picked up the $1,000 and inserted it in his wal let.” The witness said he did not say anything, but added, “I was all eyes.” Tells of Conservation. Pvt. McHale also told of a con versation about payments to Lt. Shimon with William J. Nolan, formerly associated with Lt. Shimon in a used-car business. He testified that Mr. Nolan had told him “Shimon never worked on a wire job and not get at least $1,000.” Pvt. McHale said that shortly before Lt. Shimon went on his honeymoon, he had heard the of ficer “at least 20 times” tell real estate dealers that he had $19,500 in cash for a house. Senator Darby, Republican, of Kansas, pressed Pvt. MsHale about the $1,000 bill matter and the witness repeated his story, adding: “I’ll say this: He was always well heeled.” Other Hearings To Be Held. Chairman Neely of the Senate District Committee asked what was Lt. Shimon’s motive in dis playing the $1,000 bill to Pvt. Mc Hale. “He was always the braggadocio type,” Pvt. McHale answered. He added, “When he placed the $1,000 on my desk, he was about to say something but clammed up. (Continued on Page A-6, Col. 1.) Russian Indicted In Atom Spy Plot By the Associated Press NEW YORK, Aug. 17.—A Fed eral grand jury today indicted: Anatoli H. Yakovlev, former Rus-: sian vice consul in New York, on espionage conspiracy charges. Yakovlev, now believed in Rus sia, was indicted with Mr. and Mrs. Julius Rosenberg, New York ers previously arrested by the FBI. United States Attorney Irving H. Saypol, who announced the in-1 dictment, said the three conspired with Harry Gold, confessed atom spy for Russia; David Greenglass, Mrs. Rosenberg’s brother, and Ruth Greenglass, his wife. The indictment charged that beginning about November 1, 1944, and up until as recently as last June 16 the Rosenbergs and the Russian, also known as “John,” conspired with the Green glasses and Gold, and others not known to the grand jury. Mr. Saypol said the conspiracy “in the main centered around a plot to obtain secretive and classi fied data and information con cerning the atom bomb project at Los Alamos, N. Mex.” If convicted, the defendants are subject to the death penalty, Mr. Saypol said. Gold and the Greenglasses are named as co conspirator* but not as defendants. Truman Urges $120 Million Cut In Federal Highway Funds Letter to Chavez Cites Korean Expense; District Area Projects Involved in Bill President Truman today urged Congress to cut $120 million from the annual Federal-aid highway program, as the Senate prepared to vote Tuesday on a $1.24 billion measure that includes funds for the District and the Washington Baltimore parkway. The President called for the reduction “in view of the rising costs of the defense program as now contemplated.” Increases proposed by a Senate committee, he said, would Be “inconsistent with defense spending needs.” In a letter to Senator Chavez, Democrat, of New Mexico, Senate public works committee chairman, he wrote: “I believe it is essential that the amounts provided in the bill for the Federal aid program be reduced at least to the level of $500 million, originally recom mended in my budget message, and that amounts earmarked for secondary roads be reduced at least to the level of $150,000 con tained in the bill passed by the House.” The Senate committee has re ported out a measure proposing increases totaling $120 million in National Banks Win Appeals Test in Battle Over D. C. Tax Rate Board Ruling Involves $600,000 in Claims By Nine Institutions Nine national banks In the Dis trict today won the latest round in the long tax rate controversy with District assessing authori ties. In a decision involving some $600,000 in claims by the banks, the Board of Tax Appeals—of which Lawrence Koenigsberger is sole member—ruled the banks are entitled to be taxed at 4 per cent of gross earnings, less interest paid depositors. The District has been taxing them at the rate of 6 per cent, with no deduction permitted for interest payments. Both Sides Claim Legal Backing. The controversy has been going on for several years. The banks contended they should be taxed at the lower rate and the District insisted on the higher. Each side asserted it is backed up by court rulings. On May 8, the Tax Appeal Board made findings of fact and conclusions of law in the cases of banks other than national banks, holding they were entitled to the lower rate. Today, it reached a similar con clusion with regard to the Ana costia National, Columbia Na tional, Hamilton National, Liberty National. Lincoln National, Na tional Capital, National Metro politan, Riggs National and Sec ond National Banks. The cases involved the fiscal years 1946 through 1950. District Uncertain on Appeal. The exact amount to which each bank is entitled cannot be stated immediately, Mr. Koenigs berger said. Assessor Edward A. Dent said he did not know yet whether the District would appeal the decision of the courts. Similar claims by the trust companies are pending before the board. Some of the appeals ruled on today involved questions besides the tax rate. Among these was whether the assessor rightfully included in gross earnings fees received by the banks for ration banking under OPA, and for cash ing United States War Savings bonds; included profits on the sales of bonds and other securities without deducting losses on such sales, and whether the assessor was right in holding that banks could not deduct from their gross earnings the expenses of main <See BANK TAX, Page A-3.) the $500 million annual highway allotment outlay proposed by the Budget Bureau and the President. The House bill carries a $570 million figure. Funds allocated by the Senate bill to the District of Columbia for each of the two years are $3,681,000. This Federal aid is to be matched by District revenues on a formula carried in the meas ure. For work on the Washington Baltimore Parkway the Senate Public Works Committee inserted a proviso that $3 million should be available as soon as the high way bill becomes law. Administration leaders in the Senate planned to call up the bill today, if possible, during a lull in debate over the 1950 war powers bill on which the Senate has agreed to vote Monday. The President also recommend ed other changes as follows: A requirement that Federal aid funds be limited to the Federal road system rather than used for local or county roads which are not a part of that system. Retention of the present match (See H$GHWAY, Page A-5.) U. S. to Support Prices Of Major Crops in '51 At 90 Pet. of Parity Bronnan Decides to Keep Maximum Props to Encourage Big Output By Ovid A. Martin Associated Press Staff Writer The Government will support grower prices of major crops in 1951 at maximum levels permitted by law. That level is 90 per cent of parity. Parity, a standard far measuring farm prices, is declared by law to be equally fair to pro ducers and those who buy their products. The Government could drop the supports to 85 per cent ot parity next year. But because of the international situation, Secretary of Agriculture Brannan has decided to keep sup ports high to encourage big crops. Announcement Due Soon. First formal announcement of a 1951 support program may come within a few days for wheat. The winter wheat portion of this grain crop will be seeded in the fall. Hence, the department | will announce the support pro gram soon to encourage increased ] plantings over this year's crop, j Other crops to be supported at the 90 per cent parity rate include | cotton, corn, rice, tobacco and i peanuts. Formal announcement of rates for these crops may not come until after the first of the year, because they are not planned until next spring. Higher Goals Expected. The current wheat support rate averages $1.99 a bushel at the farm. Next year’s rate is likely to be above $2, because the parity price probably will be higher. Parity prices rise and fall with corresponding changes in prices farmers pay for goods and services. In all likelihood, the Govern ment will set higher production goals in 1951 for cotton, corn, rice and peanuts as well as wheat. It is anxious to maintain reserves for possible spread of the Korean war. This year’s wheat and cotton crops are falling below govern ment production goals. But large reserves from past crops will pro vide ample supplies until 1951 crops are harvested. -- Dr. Koo Flying Back Here TAIPEI, Formosa, Aug. 17 (JP). —Dr. V. K. Wellington koo left by plane today for his post in Washington as Nationalist Chi nese Ambassador. Sex Offenders to Be Prohibited From Forfeiting Cash Collateral In a move apparently aimed at a closer check on sex offenders, the Police Department soon will be directed by Municipal Court judges to prohibit collateral for feitures at the precincts on sex charges. This would require persons charged in such cases to appear in one of the court’s two prospective 1 agencies for a preliminary hear |ing. Either the Corporation Coun sel’s office or the United States Attorney’s office then would be able to decide whether the case was serious enough to go in court, or whether it could be dropped outright or collateral forfeitures allowed. The judges also decided at a | meeting late yesterday to instruct police to require a $300 cash col lateral or a $500 bond in sex of fense cases, it was learned. Chief Judge George P. Barse refused to comment on any as pect of the meeting at the close of the two-hour session. It was understood from a re liable source, however, that Police Supt. Robert J. Barrett would re ceive a directive along tnese lines within a few days. The move was believed intended to end the frequent practice whereby persons have been allowed to forfeit relatively low collateral at precincts on certain disorderly conduct charges which actually involve sexual misconduct of some lesser degree. In a recent meeting, it was re called, the judges decided to ask Congress for a new law raising the maximum penalty for dis orderly conduct from 25 days in jail or a $30 fine to 90 days orj a $100 fine. Congress Eyes Labor Day for Adjournment Senate Seeks to Clear Final Hurdles; Myers Gets G. 0. P. Support By J. A. O'Leary A move to wind up this session of Congress by Labor Day was gaining momentum today. For the first time since the fighting started in Korea, Senate leaders of both parties were ex pressing hope the remaining "must” bills may be disposed of by an early date. Observers never have doubted the ability of the House to finish its work before fall. The Senate, because of its liberal debating rules, is always the bottleneck in the closing weeks of a session. Hurdles Must Be Cleared. Here are the hurdles to be cleared before the lawmakers can go home for the election cam paign: Home-front economic controls —Passed by the House and scheduled for a Senate vote Mon day. Taxes—Senate will take up next week the President’s $5 billion emergency revenue-raising bill, substituting it for excise tax cuts the House had voted before the Korean crisis made it necessary to abandon these reductions. Social Security Vote Due. Social Security liberalization— Due for final Senate approval to day or tomorrow, following House adoption of the conference report yesterday. Appropriations — Passage by both houses of an emergency sup plemental bill, carrying new de fense funds, and adoption by both houses of a conference report on the omnibus bill containing the regular 1951 budget. Internal security—Both houses are trying to get a decision be fore suiting on some type of law to curb subversive activity with in the United States. Myers Outlines Plans. Acting Majority Leader Myers said Congressional floor managers arc trying to complete the pro gram by September 2, the Satur day before Labor Day. “We have a lot of important things to do, but that's what we are aiming at now,” he said. This followed earlier reports that Republican Senators Taft of Ohio and Wherry of Nebraska would co-operate with the Demo crats in trying to dispose of all major business within two weeks. No firm decision has been reached yet on whether to ad journ until after the November elections, or to take a series of three-day recesses. Senator Wherry said he is cer tain a big majority in the Senate wants to get through by Labor Day, and that a majority of the Republicans will co-operate to that end. Senator Taft said one sugges tion under discussion calls for re cessing from Labor Day until October 12 or 15, when another recess could be taken until after election day unless important new business develops by mid-October Late News Bulletins Tax Boost Approved The Senate Finance Com mittee today unanimously ap proved President Truman’s “first installment” $5 billion tax boost, to help finance the Korean war and to arm Amer ica against Communist aggres sion. (Earlier Story on Page A-3.) Gl Allowances Approved Senate and House committees today approved legislation to provide quarters’ allowances for privates first class and corporals in the Army and similar grades in the other services. The leg islation would provide from $85 to $125 a month, with the man himself paying $40 of the total. Propaganda Unit Set Up The State Department today announced establishment of a national psychological strategy board to make plans for propa ganda “to cope with various types of emergencies that might possibly arise.” The board in cludes representatives of the State and Defense Departments, the Joint Chiefs of Staff and the Central Intelligence Agency. Dulles to Return to U. N. John Foster Dulles announced after a conference with Presi dent Truman today that he would return to the General Assembly of the United Nations as a member of the American delegation next month. He said this would preclude him from seeking the Republican sena torial nomination in New York. Experts Doubt Reds Will Order Attack on Yugoslavia This Year Survey Shows Little Desire for War Among Soviet Satellite Nations By th« Associated Press BELGRADE, Yugoslavia, Aug. 17.—Chances of a Russian inspired invasion of Yugoslavia this year have been discounted by Western power military stra tegists on the basis of a survey which be^an soon after the first shots were fired in the Korean war. This information came from two responsible officials who dis closed separately results of their own investigations and conclu sions by their superior officers. Piecemeal reports leaking out from inside the Iren Curtain thus far have shown little desire for war in the satellite nations bor dering Yugoslavia. In fact, theie are some signs that a Soviet or der to fight Yugoslavia might boomerang into widespread oppo sition and perhaps levolt. A general survey was ordered immediately after the North Ko rean attack because the Western 'powers wanted to know how far they could become commit ted in Asia without risking u»cn security ' as they now have on the European continent. Inside Yugoslavia the survey | found there Is plenty of prepared ness but little evidence that the country and leaders expect a Balkan war. On top of this, there has been a marked decline in reported bor der incidents recentiy. When Russia wishes to apply pressure on the government of Premier Marshal Tito, these border inci I dents increase. Reports of Western observers here emphasized that a Commu nist invasion such as that in South Korea would not have the same advantage of surprise in Yugoslavia. Tito has one of the best armies on the continent out side Russia. Three Polish Officials At Embassy Here Ask For Political Asylum Ignore Recall Orders From Red-Dominated Warsaw Government The Minister, Counselor and second secretary of the Polish Embassy have appealed to the State Department for asylum in this country after defying recall orders from their Communist dominated government. The department said today it was studying requests for asylum received from Minister Janusz Zoltowski, Counselor Stefan Rog ozmski and Wladyslaw Nizinski, second secretary. Only Two Still on Job. Only Ambassador Josef Win iewicz and Commercial Counselor Zygmunt Litynski still are at their posts at the Embassy, according to the latest issue of the depart ment’s monthly diplomatic list. The Embassy is at 2640 Sixteenth street N.W. The latest defections bring to approximately 25 the number of Polish officials who have quit their government since 1946, electing to remain in the United States. Among them was Lt. Gen. Izydor R. Modelski, former Polish mili tary attache, who gave testimony before the House Committee on Un-American Activities on the ex istence of an espionage ring oper ating from the Embassy. Mr. Nizinski, who lives at 6630 Seventh street N.W., told The Star he resigned for “political reasons.” Told Envoy He Was “Fed Up.” "I told the Ambassador in a let ter of about two lines that I was fed up because Poland was be coming more and more under the thumb of the Soviet Union,” he declared. Mr. Nizzinski said he felt that after Russian Marshal Rokossovsky was placed in command of the Polish armed forces last November the situation became hopeless for Poland. Mr. Rogozinski and Mr. Zoltow ski appealed for permission to re main in the United States about two months ago. Mr. Nizinski filed his appeal earlier this month. Mr. Zoltowski, who is believed to be living in New York City, had acted as Poland’s top financial representative in the United States. Mr. Rogozinski’s address is listed as 1439 Spring ro£d N.W. European Nations To Study Churchill's Plans to Unify Armies Group Is Named, Agenda Set Up; British and Scandinavians Lose By the Associated Press STRASBOURG, France, Aug. 17. —The European Assembly's General Affairs Committee today overrode British Laborite and Scandinavian opposition and voted to take up Winston Churchill’s proposal for a unified European army to guard against Soviet aggression. The 28-member committee voted 19 to 6 with three abstentions to examine proposals for a Euro pean defense convention, a uni fied army and defense ministry. All 15 member nations of the Consultative Assembly—the lower house of the unofficial parliament —were represented in the vote. It broke a two-day deadlock and gave the go-ahead to further elaboration of Mr. Churchill's proposal made last week. Former French Premier Georges Bidault, chairman of the General Affairs Committee, disclosed the vote at a news conference. He refused to reveal which delegates opposed the committee’s final de (See EUROPE, Page A-5.) 1 Reds Bind and Slay 32 American Captives On Hill Near Waegwan Five Others Live to Tell Story to 1st Cavalry After Ridge Is Retaken By th« Associated Press WITH UNITED STATES 1st CAVALRY. Korea. Aug. 17.— Thirty-two American prisoners with hands tied behind their backs were shot dead today by Red Ko reans on a hill west of Waegwan just before a United States patrol | reached the spot. The Reds tried to kill 37 pris oners in all. But five lived to tell the story. They said the Com munists also massacred the wounded as they lay moaning on the ground. This was in the area that was bombed yesterday by 98 B-29s in the heaviest air raid of the war. Killing of prisoners in this fash ion is typical retaliation for such an assault. Bodies Found on Ridge. i The execution of the prisoners was on Hill 303, which was cap tured by the Reds this morning. Their bodies were found in a gulley recaptured by the 5th Cav alry this afternoon. The Ameri can prisoners were killed only two hours before troopers re-took the ridge. The Americans seized the ridge at 6:30 p.m. (4:30 a.m. EDT). The hill had been fought over for three days. Mowed Down by Gunfire. The 37 Americans were mowed down by bursts of gunfire. Three North Korean prisoners were taken after a sharp fire fight nearby. One of them was posi tively identified by an American survivor—Corpl. James Melvin Rudd of Salyersville, Ky.—as a member of the squad of killers. This prisoner denied he had taken any part in the action. Reg imental officers said he would be sent back with recommendation that he be tried as a war crimi nal. Corpl. Roy L. Day, jr., El Paso, Tex., looked at the North Korean prisoners in the back of a truck and said: “If you ask me, I think they should be shot just as they shot our men, rather than be given a trial. Or else we ought to string them up right now.” Corpl. Rudd, member of an 81 mm. mortar company, told the story like this “We were captured on the (See ATROCITY, Page A-3.) Teacher's Car, Driven 61 Miles, Kills Printer at 14th and Irving A District Junior High School teacher driving her new automo bile with only 61 miles on the speedometer struck and killed a pedestrian at Fourteenth and Irving streets N-W. at 7:45 a.m. today. The victim was Robert S. Dyke, 45, a printer, of 1471 Irving street N.W., who was crossing Irving street with a green light when he was struck, according to police. His body was hurled across the sidewalk and struck a liquor store on the corner. The car mounted the sidewalk and stopped near the body. Mr. Dyke was pronounced dead at the scene. Police said the automobile was driven by Miss Angeline E. An derson. 35, of 3253 Twenty-third street S.E., a teacher at Hine Jun ior High School. During the sum mer she works in the payroll divi sion of the District Recreation De partment at Sixteenth and La mont streets N.W. Miss Anderson told police she was driving her new car to work for the first time when the acci dent occured. Witnesses said she was driving south on Fourteenth street and entered the intersection with the green light and made a wide right turn into Irving street. Police said Miss Anderson told them she sounded her horn as she made the turn and then lost con trol of her car. She obtained her driver’s permit three months ago. Mr. Dyke’s death was the 40th traffic fatality of the year, as compared with 38 at this time last year. Enemy Divisions Only 15 Miles North of Taegu Pour Out of Area Blasted by B-29s During Big Raid By the Associated Press TOKYO, Friday, Aug. 18.^ Thirty thousand North Koreans opened a massive drive on Taegu on the Central Korean warfront yesterday. "the Reds poured through steep mountain passes 15 miles north of the South Korean emergency capital. They were east of the Naktong River. j Only two South Korean divi sions ■ stood between them and Taegu. South Koreans controlled the mountain pass roads. Gen. MacArthur’s headquarters omitted its midnight summary for the third consecutive day. A I spokesman said there was no ; change in the battle situation since the release earlier of an American 8th Army communique. Tells of Heavy Buildup. That release told of the heavy buildup of Communist forces in the Waegwan area and said the area is now the “most serious one” to United Nations forces in Korea. The Communists poured out of the area hit by B-29 bombers west of the river. They jumped off from an area between Wae gwan and Kunwi. I heir attack started a few hours after United States Marines and the 24th Infantry Division struck a new Allied blow at the 12,000-man Red bridgehead on the east bank of the Naktong River near Changnyong, 23 miles southwest of Taegu. The Marines had been pulled out of the south coastal area where they had made advances, on Chinju. They were ordered back 20-odd miles to the east and then shunted northward for j the Changnyong attack. ' The United States 25th In fantry Division took the Marines’ places in the coastal line just west of Masan, Southern port which is 27 airline miles east of Pusan. Most Serious Threat. It was on the North Central front, north of Taegu, that th® Reds were making their most dangerous threat, however. It followed a massed bombing attack by 98 B-29s yesterday which was aimed to slow the Red offensive. Leif^ Erickson, Associated Press correspondent, at 8th Army Head quarters in Korea said the North Koreans were attacking with between 25,00t) and 30.000 troops. In the path of the invaders were two South Korean divisions. Counterattack Launched. The sudden outburst to tha north developed after United States Marines and the United *>-ates 24th Infantry Division jumped off with a counterattack in the Reds’ Changnyong River crossing bulge in a bloody effort to drive the enemy back across the Naktong. The Marine-Army attack roared up a steep hill near Changnyong, 23 miles southwest of Taegu. The Changnyong fighting was the fiercest of the war. Don Whitehead, Associated Press correspondent, said the Marines advanced over a sav agely contested slope. He said it was the type of fight the Marines made in the Pacific in World War II. Jack MacBeth, Associated Press correspondent, reported from the 24th Infantry positions that the Army doughboys had reached their objectives. They are on the Marines’ northern flank. Mr. MacBeth reported the (See KOREA, Page A-5.) Stories Related To Page 1 News Relating to Korea. rexts of Official Reports on Fight ing in Korea. Page A-5 Old Timers in Korea Give Tips on How to Stay Alive. Page B-ll rNT Held Better Than Atom As Korea Weapon. Page A-4. Russian Grab of North Korea Seen if U. N. Forces Win. Page A-4 Hard-Won Four-Day Gains of Marines Given Up. Page A-4 Wiley Asks All-Out Effort to Keep Chinese Reds From Korea. Page A-2. Relating to Defense. rhird of Series on Development of the H-bomb. Page B-14. Low Ceilings Hinder Practice by D. C. Air Guard. Page C-ll five Area Army Bases Prepara for Trainees. Page A-2.).