Evening star. [volume], May 31, 1951, Image 1

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

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1 at !| ■
An Associated Press Newspaper
Late New York Markets, Page A-ZT. _ —■■ —- '
99th Year. No. 151. Phone ST. 5000 ** WASHINGTON, D. C., THUKSDax 31, 1951—SIXTY-EIGHT PAGES.5 CENTS
._____ - -—--— -;-——— --— •
Big 3 Challenge Russians to Hold
Ministers' Meeting Here July 23;
Sherman Hits M'Arthur Attitude
* 0 _
■ 4
Identical Notes
Sent to Moscow
In Paris Impasse
ly the Associated Press
PARIS, May 31.—The United
States, Britain and Prance chal
lenged Russia today to accept a
four-power Foreign Ministers’
meeting in Washington July 23
“in the interests of strengthen
ing peace.”
The three Western powers sent
identical notes aimed at breaking
Text of United States Note to the Soviet
Union. A-5
the deadlock over what world ten
sions the four Foreign Ministers
should discuss. The four-power
deputies have been trying to do
that in Paris since March.
The American, French and Brit
ish deputies here handed the notes
to Soviet Deputy Foreign Minis
ter Andrei Gromyko at their 64th
meeting on a top-level conference
agenda. Copies also were handed
over to the Kremlin in Moscow
by the Western Ambassadors.
When the Western deputies in
Paris handed the note to Mr.
Gromyko, he said he would trans
mit it to Soviet Foreign Minister
Andrei Vishinsky. His only com
ment was a brief remark that
there wpre "factual inaccuracies”
in the note, read to him by the
American deputy. Ambassador at
Large Philip Jessup.
Soviet Stand Blamed.
The notes blamed lack of agree
ment on an agenda on the 8oviet
insistence that the Big Four
should discuss the North Atlantic
alliance and the establishment of
United States bases in Europe.
The Soviet Union contends that
the Atlantic pact is a major cause
of international tension. The
West rejects this claim.
The new notes point out that
the Western powers proposed on
May 2 that there be three alterna
tive agendas. One of these has
become known as the “split agen
da” because it contains both the
West’s and Russia’s wordings, side
by side, on the question of arma
ments and armed forces.
The notes contend that agree
ment could have been reached on
this "split agenda” except for
Russia’s demand that the Atlantic
pact be discussed. The West holds
it is ready to attend a Big Four
meeting on the basis of this “split
agenda” or on either of the other
two alternative agendas.
(The State Department said
in a statement accompanying
release of the notes that it be
lieves any one of the three al
ternative agendas offered the
Russians would “provide a
reasonable” basis for a confer
ence “if it is indeed the desire
of the Soviet government to
hold a meeting of the four
Foreign Ministers.”)
Peace Held Objective.
The notes declare it has been
and remains the view of the three
Western governments that such a
meeting is desirable in .the interest
of strengthening peace, described
as the constant objective of West
ern foreign policy. The notes
add:
The Western governments for
their part consider that the
measure of agreement achieved
on an agenda makes possible a
meeting of the four foreign min
isters which would permit discus
sion, among others, of all topics
proposed by the Soviet govern
ment in the exchange of notes
preceding the Paris conference
and on the 5th and 7th of March
at the outset of that conference.
Tire Western governments art
prepared to attend a meeting ol
the four foreign ministers ir
Trr_j__a. __ L._l_l___ on
MOOlLUlgWU MtgUUUUg VU U U1J At!
They are prepared to participate
in such a conference not only or
the second agenda, but also or
either of the two other agendas
The texts of three agendas are
enclosed.
MacArthur's Goodst
49 Tons of Them,
Catch Up With Him
By th« Associated Press
NEW YORK, May 31.—Gen
MacArthur’s worldly goods caughi
up with him today—49 tons oi
them, including three private auto
mobiles.
Also aboard the naval transpor
C. C. Ballou, which docked at th<
Brooklyn Army Base, were 4:
pieces of baggage belonging to thi
MacArthurs.
The Ballou, arriving fron
Tokyo, also carried the private
tutor of Gen. MacArthur’s soi
Arthur. English-born Mrs. Phylli
Gibbons, four members of Gen
MacArthur’s Tokyo honor guard
and four dogs belonging to Gen
MacArthur and his staff.
Mrs. Gibbons was met at th
pier by Mrs. MacArthur and 13
year-old Arthur.
The four honor guard soldier
were: Sergt. Paul Dorsey of Dalla:
Tex., the general’s baker for fou
years; Sergt. Anthony H. Rickeri
Albany, N. Y.; Warrant Office
George Yont, Fresno, Calif., am
Warrant Officer Lionel E. Martin
a New Jersey resident.
k
The Formosa Story: * ,
Events in Korea May Cause
Revival of Chiang's Power
Lush Isle Seen Key
To Final Ouster of
Communists in Asia
By Frank H. King and
Spencer Moosa
TAJPEH, Formosa, May 31.—
Formosa—is it just a catchbasin
for American millions, or does it
hold a key to the defeat of com
munism in Asia?
Here on this beautiful island
of cloud-topped mountains and
lush productive valleys waits a
fighting army of hundreds of
thousands of men under Gen
eralissimo Chiang Kai-shek. They
give the impression they are de
termined one day to return across
the China Sea to their mainland
home to give battle to the Com
munists.
Whatever the answer to the
riddle of Formosa, the lean Gen
eraassimo nas reiusea to De writ
ten off in the war against world
communism. In December, 1949,
when Chiang fled to Formosa for
his life, the future of Nationalist
China seemed hopeless. But to
day few will dispute the possibil
ity of a Nationalist comeback.
What brought about this change
in the fortunes of Chiang? A Na
Reds Battle Furiously
To Halt Allies 13 Miles
From Two Strongholds
U. N. Forces Again Win
Control of Reservoir;
2 Enemy Jets Downed
•y Vm AjMciatad Pnw*
TOKYO, May 31.—Red troops
fighting with renewed fury halted
American advances today if miles
from the Commuiilst Korean
strongholds of Chorwon and
Kumwha.
Other United Nations forces re
gained control of the 275-foot high
Hwachon Dam with comparative
ease.
Across the 125-mile Korean
front, Allied forces slogged through
the mud for slow gains or fought
off sharp attacks.
Twelve Red jets tried an attack
of their own on United States
B-29 Superforts. Eight F-86
Sabre jets cut in with the usual
result — two Russian-type jets
downed and one damaged. The
B-29s, unharmed, went ahead with
their bomb runs on a Northwest
Korea rail bridge.
Battle Lasts AU Night.
The stiffest fighting swirled
against American spearheads on
the western and west-central
fronts pointed at Chorwon, and
around Inje on the east-central
sector.
Chinese units pitched a fan
tastic counterattack at dusk yes
fAr/lav o rro inet Amoriaanr In + VtA
hills around Yonchon, 13 miles
southwest of Chorwon. In a
night-long battle the Reds pushed
the doughboys off the ridges and
shoved them back 1,000 yards.
At dawn today the Americans
leaped to the attack. By noon
they had regained their positions
on the road to Chorwon.
Frontline officers estimated at
least two Chinese divisions stood
between the Americans and that
Red stronghold, 60 miles north ot
Seoul.
Yonchon itself, said Associated
Press Correspondent John Ran
dolph, is a no-man’s-land. Amer
icans patrol it by day, Chinese
by night.
Attack Begun Prematurely.
The Chinese started their first
spring offensive prematurely April
22 to keep the Allies away from
Chorwon. At that time U. N.
forces were 4 miles away.
One of the announced objec
tives of the current Allied coun
teroffensive is to force the Redt
into another premature attack
During such offensives the Chi
(Continued on Page A-5, Col. 6.)
U. S. Casualties in Korea
' Rise to Total of 67,427
L American casualties in th<
| Korean war have reached 67,421
' based on notification of next ol
; kin, through last Friday, the De
* fense Department announcet
• today. This was 611 above th<
■ total a week earlier.
Deaths now total 11,413, includ
, ing 9,487 Army men, 115 in th<
' Navy, 1,636 in the Marine Corpi
‘ and 175 in the Air Force. Thi
total killed in action is 10,127
s The wounded totalled 45,889 o
which 37,040 were Army, 54t
r Navy, 8,269 Marine Corps and 3
’> Air Force.
r Of 11,411 reported missing ii
1 action, 10,635 were in the Army
, 83 In the Navy, 271 in the Marini
Corps, and 404 in the Air Force.
♦ J
AP Writers Size Up
Question of Formosa
Formosa, an island ona-third the size
of Kentucky, is a big question mark in
the debate over American policy in Asia.
Associated Press correspondents have
sized up the political and military
aspects of the island in a two-port
series af which this is the first. Mr.
King is an Associated Press general
executive. Mr. Moo so heads the Asso
ciated Press Bureau at Taipeh.
tionalist official put it this way:
“Don’t quote me, but Stalin and
Mao Tze-tung (the Chinese Com
munist leader) have been our best
allies.” ,
The Korean war, President Tru
man’s assignment of the United
States 7th Fleet to neutralize
Formosa, the Chinese Red inter
vention in Korea, and other inter
national events have led to the
upturn in Nationalist prospects.
Chiang’s Formosan stronghold
now seems on firmer footing than
it ever has been.
mu. rt— A_—__ — -1
iiib wuiwu wvawu mmuvvu
Economic Co-operation Adminis
tration is spending $56,000,000 in
Formosa in the current fiscal
year. More is to go into military
(Continued on Page A-4. Col. 1.)
Most AF Tactical Units
Available to Europe,
Finletter Declares
Secretary Opposes
'Frittering Away' of
Bombers in China
ly Hm Aiuciattd Prau
MINNEAPOLIS, May SI —Most
of the Air Force’s tactical units,
now numbering more than 60
groups, will be available to the
North Atlantic treaty defense
force. Air Secretary Finletter said
today.
In an address before a Chamber
of Commerce meeting here, Mr.
Finletter also:
1. Expressed opposition to any
idea of "frittering away” parts of
the strategic bomber force in ex
tension of the Korean war to
China—a position also expressed
by the Air Force chief of stafT,
Gen. Hoyt Vandenberg, in his re
cent testimony to Senators inves
tigating Gen. MacArthur’s ouster.
2. Said that despite progress in
building a long-range bomber
force around the B-36 and still
newer types of heavy bombers the
United States must continue to
have overseas bases for strategic
attack with its medium bombers.
Future Is No Guarantee.
3. Said “We are making sub
stantial advances in the field of
guided missiles and other methods
of improving our air defense sys
tem,” but United States air de
fense now and “for the future
insofar as we can predict with
reasonable certainty, is incapable
by itself of guaranteeing us im
munity from enemy atomic at
tack.”
4. Warned that “unless our es
timates are incorrect, the Com
munists have a very substantial
tactical air force” being converted
from old piston-engined planes to
jets.
(A tactical air force is com
posed of light bombers and
fighter-bombers, used to give
support to ground forces and to
attack targets close to the bat
tlefront. It does not include the
interceptor fighter planes of the
Air Defense Command nor the
medium and heavy bombers of
the Strategic Air Command,
although such planes are some
times used on special tactical
missions.)
“When we are talking of tactical
air,” Mr. Finletter said, "we are
talking about the battle of Europe,
(See FINLETTER, Page A-3.)
New York Price War Slashes
Values 36% Below Monday's
Sy *h« Associated Pratt
NEW YORK, May 31.—A wide
open price war flared with re
, newed vigor in big department
stores here today.
. Prices were slashed as mucb as
| 36 per cent below those that
1 existed Monday.
Shoppers eager for bargains
; jammed three-deep around a
; housewares counter.
I Macy’s big Thirty-fourth street
' store erected ropes to guide lines
j of customers to order-takers.
The price-cutting, that ftarted
t Tuesday when Macy’s posted re
ductions on nationally-advertised
, merchandise that was price-fixed
, under “fair trade” laws, spread to
! many other articles today.
Competitors matched or under
\ I
cut the lower prices, only to have
Macy’s make further markdowns.
Here are latest prevailing prices,
compared with the fixed prices:
Electric toaster, $15 against $23;
electric mixer, $29.65 against for
mer $46.50; summer-weight suits,
$21.94 compared with $29.95;
vacuum cleaner, $70.63 against
$89.95; a best-selling novel, $3.13
against $4.50.
Other reductions hit nylon hose,
girdles, pillow cases, sheets and
various cosmetic items.
Some prices were reported drop
ping so steadily that sales per
sonnel were consulting a cashier’s
cage to get the latest quotation,
before making a sale.
4
Says General's
Debates Held
Up Operations
BULLETIN
Admiral Sherman concluded
his testimony in the MacArthur
controversy at 1:28 p.m. today
and Chairman Russell of the
Joint investigating committee
announced that Secretary of
State Acheson would be called
at 10 a.m. tomorrow.
By Cecil Holland and
George Beveridge
Admiral Forrest P. Sherman
said today that operations in Ko
rea had been made difficult by
Oen. MacArthur’s “lack of re
sponsiveness to the obvious inten
tions’’ of directives sent to him
and “a tendency to debate and in ,
certain cases to criticize.”
He gave the testimony during
a second round of questioning by
U. N. It Reported Ready to Blockade Red
China if It It Essential. Page A-30
the joint Senate committee inves
tigating the MacArthur contro
versy.
In other testimony, the Chief of
Naval Operations said:
1. Oen. MacArthur considered
last December, after the Chinese
Communists attacked, that the
“best solution would be to arrange
armistice on best terms available
as soon as possible.”
2. The deterioration in Korea
at that time had increased so
greatly the possibility of a general
war that the Joint Chiefs of Staff
instructed all field commanders
“to take action to increase their
readiness without creating an at
mosphere of alarm.” As a result
of this directive, Admiral Sher
man revealed, the Mediterranean
Fleet got under way and went to
sea.
Kremlin Could Stop War.
3. The Kremlin could call off
the war in Korea if it wanted to,
but the United States is not suffi
ciently strong at this time to in
duce the Soviet leaders to take
such action.
4. In a series of “gloomy” mes
sages last December, Gen. Mac
Arthur sent the joint chiefs a
warning that steady attrition
“leading to final destruction could
reasonably be contemplated” for
the U. N. forces and raised the
question of the possible need of
evacuation.
5. The American fleet in the
Mediterranean would be “one of
the most effective instruments” to
combat a Russian land and air
drive through the Middle East.
6. This country's military posi
tion is improving rapidly and
"time is on our side” in building
up forces to resist Communist ag
gression.
Morse Brings Up Question.
Admiral Sherman’s testimony
on the difficulties experienced
with Gen. MacArthur was given
while he was being questioned by
ocuttwi muiac, xvcpuuucaii, Ul
Oregon. The Senator said the
hearings and documents that have
been introduced showed two
things: 1. that Gen. Mac Arthur
and the Joint Chiefs differed on
the strategy that should be fol
lowed in the Korean war, and, 2.
that Gen. MacArthur had a way
of “always making it clear” to
his superiors that while he was
carrying out their orders he was
not in sympathy with them.
In reply, Admiral Sherman
said:
“I would rather reply to that
particular question in an afflma
tive manner by saying that
throughout this period the con
duct of affairs was made difficult
by a lack of responsiveness to the
obvious intentions of the direc
tives that were transmitted out!
there and a tendency to debate!
and in certain cases to criticize.”
Truman Directive Recalled.
Senator Morse brought out that
it was during this critical period
last December that President
Truman issued a directive that
field commanders should be
guarded in their public statements
and that matters dealing with
(Continued on Page A-3, Col. 1.)
VERY SORRY, SIR,
BUT THEY GIVE
///, US THE BOOT
ALONG WITH
SHOESTRING f
Dennis Cardinal Dougherty, 85,
Dies After Celebrating Mass
Service Marked
61st Year of His
Ordination
fty the Associated Press
PHILADELPHIA, May 31
Dennis Cardinal Dougherty, 85
year-old prince of the Roman
Catholic Church died today at
9:15 a.m. (EST) at his residence.
Death, apparently the result of
a stroke, came to the cardinal only
a brief time after he had cele
brated mass marking the 61st an
niversary of his ordination to the
priesthood.
He was the dean of the church
in the United States and had
served as archbishop of Phila
delphia since 1918.
The short rotund cardinal,
despite his advanced age, con
tinued to carry out the duties of
his high office to the moment of
his death.
After celebrating mass as
(See DOUGHERTY. Page A-20.)
Navy Dismisses Off icei
After Bitter Attack
On Truman Policies
Sherman Reveals Action
On Letter to Supporter
Of China Nationalists
Admiral Forrest P. Sherman,
chief of naval operations, dis
closed in his testimony yesterday
on the ouster of Gen. MacArthur
that the Navy has just dismissed
a lieutenant (j. g.) who wrote a
letter vehemently criticizing ad
ministration policies and support
ing Gen. MacArthur’s views.
The officer was Lt. William H.
Evans, Edgewater, Md., and he
called a press conference today
In which he declared that his
views are shared by “an over
whelming majority” of fighting
men in the Far East.
Alfred Kohlberg, an importer
and chairman of the board of
the American-China Policy Asso
ciation of New York, was present
at the press conference in the
Mayflower Hotel.
Mr. Kohlberg is a long-standing
critic of the administration and
booster for Nationalist China. Last
September he charged that Pres
ident Truman had in his posses
sion a list of 150 Soviet atomic
spies but none had been arrested
In April of last year, Mr. Kohl
uci£ oaiu iic uau uccii
“Communist data” to Senator
McCarthy. Republican, of Wiscon
sin, to aid in the campaign against
the State Department, which Sen
ator McCarthy charged was rid
dled with Red influence.
The letter was not given out at
the press cnoference but was
printed by the Chicago Tribune
today. It contained deletions
marked in the printed text by
dashes, and was dated “March 16,
1951. fighting zone, east coast
of North Korea.” It said:
"Keep up the good work. 1
just received your questions to—
Dean Acheson. I post your open
letters for all the officers on the
ship to read, and they feel the
same way as I do.
“Now that the time for a Jap
anese peace treaty is nearing, for
the love of God, let’s keep our
pro-Communist and pro-Soviet
State Department from again put
ting tlie interests of Soviet Rus
sia or the pro-Soviet United Na
tions above the welfare of the
United States.
Offers “Sensible” Jap Treaty.
“I greatly fear that the—Dean
Acheson clique will allow Soviet
Russia to retain Southern Sakha
lin and the Kurile Islands because
the—or—Roosevelt (Alger Hiss)
gave them to Russia. To hell with
the Yalta betrayal. The Jap
anese peace treaty should be
signed on American terms, as we
(See LIEUTENANT, Page A-«.)
I
—AP Photo. !
DENNIS CARDINAL
DOUGHERTY.
| ■ ' . ' j? '
Iranian Oil Seizure
Is Already Effective,
Officials Tell British
Teheran Observers See
Little Hope of Solving
Nationalization Dispute
By the Associated Press
TEHERAN. Iran. May 31.—
: Iran’s critical oil dispute snarled
itself into a still tighter knot to
day as the government told Brit
ain it plans to go ahead with na
tionalization of its giant British-!
controlled oil industry at once. It
gave the Anglo-Iranian Oil Co.;
five days to make any sugges
tions.
A memorandum to the giant
British-controlled oil company
last night left little hope of any
solution to the problem, in the
opinion of British observers here.
The memorandum was handed
the oil company’s local representa
tive, N. R. Seddon, by Finance
Minister „Mohammed Ali Varasteh
at the first meeting of a company
official and a government min
ister since Iran passed the na
tionalization law a month ago.
Three-Man Board to Take Over.
The note, outlining "regulations
for execution” of the nationaliza
tion law said a three-man govern
ment board was going to Khuzi
stan Province, site of Anglo
Iranlan’s operations, to run the
nationalized industry.
An unconfirmed report in top
diplomatic circles said National
Economy Minister Amir Alai would
be chairman of the commission
and that the group would go to
Khuzistan within the next five
days.
Observers noted the memoran
dum specified that all employes of
the "former oil company” would
“from this date (Wednesday) be
recognized as employes of the
ITronion NaHonol Oil On ”_a anv
ernment body.
Apparently Iran recognizes yes
terday as the date of the turn
over.
British Ambassador Protests.
Other developments in the
swiftly changing scene:
1. British Ambassador Sir Fran
cis Shepherd delivered a strong
protest this morning to Foreign
Minister Bagher Kazemi against
expulsion orders delivered to two
British journalists. There were
reliable reports that Iran has got
ten up a list of other journalists
it considers undesirable and may
issue more such orders.
2. There were also reports that
Iran may ask Britain to withdraw
her consul general in Khuzistan
as a protest against him person
ally.
3. Reliable informants said the
(See IRAN, Page A-3.)
A
Pilot Killed When Jet
Explodes and Crashes
In Prince Georges
Woman Dives to Ground
With Four-Leaf Clover
30 Yards From Impact
An Air Force jet fighter plane
;xploded in midair and crashed in
Elames near T. B., Prince Georges
bounty, shortly after 11 a.m. to
day.
The pilot, whose name was with
held by Air Force officials until
his family could be notified, was
killed instantly.
iilled instantly. The Thunderjet
plane had taken off from An
drews field only a few minutes
before the crash. The pilot was
attached to the 121st Fightei
Squadron.
Mrs. Laura Lederer, whose homi
is on Route 5. about a mile fron
T. B., witnessed the crash. Shi
said she had been hanging clothe
in her yard and had just stoopei
auah f A niitlr a f Anr i on t aIaiia
when she heard the roar of th
approaching jet.
Mrs. Lederer said she looked ui
and saw the plane almost at tree
top level. She dived to the ground
Just then, she said, there was ai
explosion and small fragments o
wreckage showered around her.
The plane crashed into tree
about 30 yards from her homi
and burst into flames.
The fire set off the plane’s ston
of machinegun ammunition. Foi
more than rn hour shells were ex
ploding intermittently. Police kepi
spectators at a safe distance.
Some fragments of the plant
were fouhd more than 150 yards
from the spot where it hit the
trees.
Mediterranean Command
Urged for U.S. by Sherman
By th» Associated Press
Admiral Forrest Sherman said
today he regards it “quite impor
tant” that an American head the
Atlantic pact naval command in
the Mediterranean.
British officials have contended
that a Briton should head the
combined naval forces operating
in the area to protect Gen. Eisen
hower’s right flank in Europe.
Admiral Sherman, Chief ol
Naval Operations, came out foi
an American commander in re
sponse to questions at the Senate
inquiry into the ousting of Gen
MacArthur.
Senator Saltonstall, Republican
of Massachusetts asked if it isn’t
“very important” that a United
States admiral command the
combined fleet.
“Yes, sir,” Admiral Shermar
replied, “I think it is quite impor
tant, because the forces in that
area would be predominantly
Amoriron ’*
Gen. Clark's Son Wounded
In Last Korean Offensive
The Army announced today that
Capt. William IX Clark, an in
fantry officer and son of Gen. and
Mrs. Mark W. Clark, was wounded
in action during the last offensive
of the United Nations forces in
Korea.
Capt. Clark, who has been in
Korea for the la9t few months and
who commanded a rifle company
in the 2d Division, suffered a com
pound fracture of the right knee
as a result of gunshot.
Gen. Clark is chief of the Army
field forces with headquarters at
Port Monroe, Va. He and Mrs.
Clark, the Army said, have r-een
notified of the injuries to their
son. Capt. Clark, 26, was grad
uated from the Military Acad
emy in 1945.
Israeli Plane Downed
DAMASCUS, Syria, May 31 (IP)
—A Syrian district governor said
today two Syriran Air Force planes
shot down an Israeli plane aftei
it had penetrated 4 miles within
Syrian territory in Southwest
Deraa. The governor of Deraa
said the plane fell in flames 1
mile within Jordan territory.
I
Business Urges
Congress to End
All Controls
U.S. Chamber Official
Offers Alternate Plan
To Curb Inflation
fty the Associated Press
The United States Chamber of
Commerce urged Congress today
to wipe out the Government’s au
thority to control wages and
prices and adopt in their stead an
indirect program to combat in
flation.
Herman W. Steinkraus of
Bridgeport. Conn., president of
the chamber’s Executive Commit
tee, said in a statement prepared
for the House Banking Committee
that price controls can only ag
gravate the inflation problem by
stifling production and that the
present Wage Stabilization Board
is encouraging wage boosts rather
than controlling them.
In advance of his appearance
before the House committee, Mr.
Steinkraus said in another state
ment “it was a cheap trick on the
public” for James Carey of the
CIO to accuse business of trying
to bribe organized labor to end
price and wage controls.
Mr. Carey, the CIO’s secretary
treasurer, told the Senate Bank
ing Committee yesterday that big
business in effect has urged
unions to join in the effort to
scuttle wage-price controls and
then “share the loot.” He named
the chamber and the National As
sociation of Manufacturers.
Statement Called “Insidious.”
Mr. Carey said specifically that
the Westinghouse Electrical Man
ufacturing Corp. offered to give
its workers a 9-cent-an-hour
wage boost if the unions involved
would help persuade the Govern
ment to let the wage increase be
reflected m higher prices for
Westinghouse products.
Mr. Steinkraus called Mr.
Carey’s testimony "insidious” and
said there is “absolutely no
ground” for saying the chamber
'"proposed any such deal with or
ganized labor or anybody else.”
|Mr. Steinkraus added: “And Jim
|Carey knows that to be a fact.”
'He continued:
"Business knows that wages dp
not need to be controlled any
more than prices need to be con
trolled. Union leaders like Jim
j: Carey are doing a disservice to
11 the American worker by advocat
r ing that he accept further regi
.’mentation from the Government.”
i The chamber official, in his tes
) timony, urged that inflation be
. controled by six steps: (1) Maxi
. mum production, (2) reduced Gov
i ernment spending, (3) pay-as-we
■ go taxes consistent “with main
taining incentives to work and
1 produce,” (4) fiscal policies to
ucuuaiuic uic rcunai aem as a
source of inflation, (5) credit
[ curbs and (6) stimulation of per
sonal savings.
Wage Board Curbs Urged.
Both the House and Senate
Banking Committees are consid
ering an administration request
for extension and tightening of
the Defense Production Act, which
authorizes wage-price controls. It
is due to expire June 30.
A drive to limit the Wage
Board's authority to money mat
ters was started today with the
backing of Representative Mc
Connell of Pennsylvania, No. 1
Republican on the House Labor
Committee.
Under the present setup, the
18-member board can enter into
disputes involving non-economic
matters, provided the President
decides the dispute endangers the
defense effort and both sides agree
to let the board try to find a
settlement of the question.
Mr. McConnell said the fact
the board has power to go into
such non-wage disputes offers an
invitation to the disputants to by
pass the National Labor Relations
Board and the Federal Mediation
and Conciliation Service. He said
he saw no reason why the board’s
function could not be limited to
wages alone.
Economic Stabilizer Eric John
ston was invited to testify today
on the question.
---
Margaret Truman Gets
Bid to King's Dinner
By the Associated Press
LONDON, May 31.—Margaret
Truman has been invited* to dine
with King George VI and Queen
Elizabeth next Thursday. Buck
ingham Palace disclosed today.
The dinner, a private one, is for
King Haakon of Norway. He is
making a state visit to Britain
next week which coincides with
the vacation tour by the Presi
dent’s daughter.
Star Leads the City
In Classified Ads
There ore more then 357,000 fam
ilies in Washington and vicinity. And
these families place mere classified ads
- ■_i in The Sfor than
in any other
Washington
newspaper.
A d v e rtise in
W a s h i n gton's
largest classified
showcase. The
deadline far Sun
day ads is 2 p.ns,
Saturday. I u t
you can help
avoid a flood of
last-minute calls
by ordering your Sunday ad today.
Phone Sterling 5000.
4
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