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Weather Forecast Guide for Readers Sunny, high 88 today. Pair, low 72 tonight. . . — T . a.* Tomorrow fair and warmer. (Full report Amusements.- A-12 Lost and Found on Page A-2.) Classified— B-8-12 Obituary- A-10 Temperatures Today. Comics-B-14-15 Radio TV—- B-13 Midnight„74 6 a.m. ..72 11a.m.-81 • Editorial- A-8 Sports — A-13-15 2 a.m. _.73 8 a.m.-73 Noon -84 Edit’l Articles-A-9 Womans 4 a m. ..72 9 a m. ..75 1 p.m. ..86 Finance- A-17 1 Section-B-3-5 Late New York Markets, Page A^17.__ _ An Associated Press Newspaper ^_ 99th Year. No. 211. Phone ST. 5000 ** WASHINGTON, D. C., MONDAY, JULY 30, 1951-THIRTY-FOUR PAGES. 5 CENTS Both Sides Agree Fighting Will Go On During Talks Negotiators Still Deadlocked on Korea Buffer Zone Issue By th« Associated Press U. N. ADVANCE HEADQUAR TERS, Korea, July 30.—Allied and Red negotiators bargained more than 3 hours in sultry Kaesong today, but made no progress toward ending the shooting in Korea. Instead, they agreed that the war would continue while they talk. As they reached this un derstanding Allied warplanes smashed at the Red Korean cap ital of Pyongyang in one of the most determined air assaults of the war. The negotiators remained dead locked on the problem of a buf fer zone to separate the opposing armies if and when a cease-fire agreement is reached. A U. N. spokesman said: “The final solution is hoped for. That doesn’t necessarily mean it is in the immediate offing." Meet Again Tonight. They will tackle the same thorny question when their 15th session opens tomorrow at 11 a.m. (9 p.m Monday, EDT). The U. N. communique said Gen. Nam II, chief Communist delegate, “stated it was also his definite understanding that hos tilities would continue during the current armistice sessions.” Gen. Nam was replying to an earlier “clarifying” statement by Vice Admiral C. Turner Joy, senior U. N. delegate. It was the first official hint of any prior misunderstanding on this point. In today’s session, an eyewit ness said. Admiral Joy used a slightly different approach “to penetrate what might be a lan guage barrier. It might have some clarifying effects.” Admiral Joy gave a detailed analysis of the Allied and Com munist proposals for a military di viding line across Korea. Want 38th Parallel Line. The Reds want a zone 12% miles wide along the 38th Paral lel, prewar political boundary be tween North and South Korea. The Allies want a 20-mile-wide zone along the present battle lines. Most of these lines are in side Red Korea, on the average about 20 miles north of the 38th Parallel. Admiral joy asKea me rceas ior comment on the U. N. proposals “so that the final solution to this item may reflect our mutual views.” The Red reply took 1 hour and 1 minute, and left the situation Just where it was before. Brig. Gen. William P. Nuckols, U. N. briefing officer who attends the sessions, said Nam merely repeated what he has said before, the 6ame words, but in different order. Today’s session lasted 3 hours and 8 minutes, longest uninter rupted meeting since the talks began. Gen. Nuckols said Admiral Joy’s statement concerning a final solution was “another invi tation to the Communists to con sider the U. N. stand on the buffer zone.” Seems Tired and Restless. He said Gen. Nam listened to Admiral Joy’s statement with “considerable interest.” Then Gen. Nam read his own lengthy statement and Gen. Nuckols said, “I got the impres sion Nam II did not read his statement with the same drive (See TRUCE. Page A-3.) Three U.S. Planes Lost In Pyongyang Raid By the Associated Press U. S. 8th ARMY HEADQUAR TERS, Korea, July 30. — United States warplanes blasted the North Korean capital of Pyong yang through rain today in one of the most determined air as saults of the Korean war. It was not the war’s largest raid, a 5th Air Force announce ment said, but it was pushed home with vigor. Two Marine Corsairs collided in the rain clouds and were lost. The Air Force said an F-51 Mustang exploded after it was hit by intense small-arms fire “just north of the battle lines.” Fires and explosions in the Pyongyang area sent up smoke columns that merged with rain clouds and prevented accurate assessment of damage. B-29 Superforts blasted three Red supply centers in North Korea—Chinnampo and Kyomipo in the west and Hamhung on the east coast. Air Force planes made 405 in dividual flights in the Pyongyang attack. The number of Marine planes participating was not given. Weather forced other planes tc turn back with their bombs rockets and jellied gasoline, pre venting what might have beer one of the biggest fighter-bombei raids of the war. North Koreans fled today froir major hills northeast of Yanggu Allied troops battled to the cresi of the hill mass at the climax o: 5 Vi days of bitter fighting. Adjoining hills, linked into de fenses of the main mountair mass, and dominating the easterr ^pont for miles, fell yesterday. Britain to Send Cabinet Mission Tolran to Discuss Oil Settlement Decision to Send Group Led by Lord Privy Seal Made After Harriman Consultations By the Associated Press LONDON. July 30. — Foreign | Secretary Herbert Morrison an nounced today that Britain will send a cuoinet mission to Teheran to discuss an oil settlement with Iran. He told the House of Commons the mission will be led by Richard Stokes, Lord Privy Seal, and added: ‘It is not expedient fori me at this moment to say any thing further on this matter.” 1 Morrison explained the decision came about as a result of consulta tions with W. Averell Harriman,; Presideni Truman's special envoy now in London. Mr. Morrison said there still are some points to be cleared up be fore the mission can leave for the Iranian capital. Mr. Harriman boarded a United States Air Force plane tonight to! return to Teheran. He said he will see Iranian Premier Mossa degh immediately on his arrival tomorrow. Mr. Stokes accom panied him to the London airport. Mr. Morrison said the British government and the Anglo-Iranian Oil Co. ‘ have been ready at every stage to meet the legitimate aspi rations of the Persian (Iranian) people. “We have every sympathy with the natural desire of the Persian people to control their own mineral resources,” he said. While Britain is ready to accept the principle of nationalization, Mr. Morrison explained, she will not accept a one-sided violation of an agreement. “We aie entering a new era in the development of Middle Eastern oil,” he said. Dispatch of a mission headed by a cabinet minister reportedly was agreed to by Iran as a basis for reopening discussions over na tionalization of the Anglo-Iranian Oil Co.’s $1.4 billion properties. Heretofore the Iranians have said they would deal only with oil company officials and not the British government. A spirit of optimism prevailed both here and in Teheran that Mr. Harriman had brought about an atmosphere in which the ex _(See IRAN, Page A-2.)_ Enemy's Buildup Increases War Peril, Marshall Declares Secretary Warns Conflict May Spread Due to Soviet Actions By the Associated Press Defense Secretary Marshall has warned Congress that “the ene my’s buildup” is increasing the danger of an all-out war. Secretary Marshall left no doubt he was referring to Russia as the enemy, and to reported Commu .nist buildup of troops and sup plies in Korea and elsewhere. The Defense Secretary testified before a closed meeting of the House Appropriations Committee w'hich released part of the testi mony today but deleted other por tions for security reasons. The .committee is considering the ad ministration’s $60 billion military budget proposal for the year which started July 1, 1951. Truman Sees Threat. President Truman, in a speech in Detroit Saturday, warned of Communist buildups for war “around the world.” The Presi dent said the free nations must have men and munitions on “hand—ready for any emergency.” Secretary Marshall testified Fri day before the Senate Appropria tions Committee that the United States will have about 400,000 troops in Europe next year. Later he exDlained in a letter to Chairman Richards of the House Foreign Affairs Commit tee that the 400,000 figure in cludes 340,000 ground forces and 60,000 Air Force personnel, cov ering supply and supporting troops as well as combat units. Senator Sparkman, Democrat, of Alabama said tooay one of Gen. Eisenhower’s goals is the eventual withdn wal of all Amer ican ground forces from Europe. Recently Toured Europe. Senator Sparkman was one of nine members of the Senate For eign Relations Committee who conferred with the North Atlan tic defense commander on a re cent inspection trip to Europe. Gen. Eisenhower was quoted by the Alabama Senator as hav ing told the group ? wants to build Europe’s ground forces to the point where no United States troops will be needed except those assigned to American air units, j Secretary Marshall told the foreign relations group last week that this goal is a long way away, He said by 1953, however, some concrete thought can be given toward attaining it. Appearing before the House Ap propriations Committee, Secretary Marshall was asked by Represen tative Mahon, Democrat, of Texas whether the likelihood of all-out war must still be considered. “I think it is continuing and ifrom the viewpoint of the enemy’s buildup, it is increasing,” Secre tary Marshall replied. His elabo ration of this statement was de leted from the public record. He said he was “deeply con cerned” that Russia apparently — (See MARSHALL, Page A-2.) i House Group Meets Tomorrow on Pay The House Civil Service Com mittee today scheduled another executive meeting on Federal pay raise legislation for 10 a.m. to i morrow. The group previously had set the meeting for Thursday, but decided on tomorrow when it was determined most members could attend the earlier session. The committee has held five oi six executive sessions during the past few weeks on the pay meas ure, but has not yet reported a bill. However, the committee ha< tentatively agreed on a temporary two-year pay boost for classified and postal employes. A tentative agreement on a $42C postal pay raise has been reached by the committee, but the group has not yet decided how much the classified salary increase should be. i The Senate Civil Service Com mittee has approved an 8.4 pei cent Federal pay raise measure 'Senate action, however, is not ex ted for at least a month. Controls Law Extended Until Next July as House Votes Approval Truman Signature Expected Despite Lack Of Strength in Bill BULLETIN Congressional action was com pleted today on legislation con tinuing price and rent controls until June 30. This sent the compromise measure to President Truman. House passage was by roll call vote. | _ By Robert K. Walsh The compromise economic con trols bill awaited final action in Congress today and reluctant sign ing by President Truman tomor row, but the subject was far from closed. mi__ _jii. _ J.U.i. xnc xxuuoci niKii uvvuv uvwhvv and few dissenting votes, was ex pected to approve the price-wage rent - credit - materials control measure which the Senate adopted last Friday after agreement, by House-Senate conferees. Congressional leaders who saw President Truman today told him that they expected to have the controls measure on his desk this afternoon but there was no in dication if Mr. Truman would sign the bill, according to Speaker Rayburn. It is generally believed that Mr. Truman would sign the bill but at the same time issue a state ment pointing out the measure does not meet administration pro posals. By signing it he would avoid ending all controls tomor row midnight. i Both Speaker Rayburn and Senator McFarland of Arizona, the majority leader of the Senate, praised the bill as it emerged from conference. Calls Bill Workable. “It is a better bill than I thought we’d get at the begin ning,” the speaker said, adding, "frankly, I think it is a workable biU.” The speaker pointed out again that neither opponents nor sup porters had been able to get all they wanted. Senator McFarland said. “I think the control bill now is bet ter than either the Seante or House versions.” The congres sional leaders told the President their plans for pushing ahead with other legislation including the big appropriations bill, taxes, foreign aid and arms. Speaker Rayburn said that the House expected to take up the multi-billion arms bill next Mon day. House Banking Committee (See CONTROLS, Page A-3.) Typhoon Misses Manila MANILA, July 30 (JP).—A ty phoon that hit northeastern Lu zon roamed out into the China Sea today, most of its force spent in climbing over a 9,000 foot mountain range. It missed Manila by more than 250 miles. No casualties have been reported. Connally Assails Scheme to Send Help to Asia Urges Concentration On Building Defenses In Western Europe By J. A. O'Leary Chairman Connally of the Senate Foreign Relations Com mittee today criticized adminis tration plans for spreading economic aid to Asia and other parts of the world instead of con centrating on building up the de fenses of Western Europe in the pending $8.5 billion foreign aid bill. William C. Foster, economic co operations administrator, was tell ing the committee how the $2.3 billion earmarked for economic aid will be distributed georgraphi questioned the wisdom of allocat ing “hundreds of millions” to Asia and other areas outside of Europe. Before today’s hearing began, a threatened delay in passage of the foreign aid bill was averted when the Foreign Relations Com mittee agreed to let the Armed Services Committee join in the remainder of the hearings and in voting on the bill. Members of the Armed Services group had threatened to seek separate jurisdiction of the bill later if denied a chance to meet jointly with Foreign Relations. Salty Language Reported. Chairman Connally is under stood to have felt strongly that the foreign aid bill was clearly a Foreign Relations ommittee problem and there were reports that in today’s clqsed session he made his position clear in salty language before acceding to the request of the Armed Services Committee. Mr. Foster testified today that $1.65 billion of the $2.3 billion of economic aid in the bill is Europe’s share. He was giving a breakdown of how the remainder will be dis tributed to Africa and the Near East, Asia and the Pacific area, when Chairman Connally broke in to question the ability of this country to go on witn economic aid on a world-wide basis. Mr. Poster said he had referred to the whole free world. Senator Connally said he had understood that the plan was to limit ECA to such aid as was needed to help build up Europe, “yet you are coming up here w'ith hundreds of millions for Asia.” The chairman said he thought ECA, like the shoemaker, should "stick to its last” by concentrat ing on strengthening Western Europe. Obeying Acts of Congress. Mr. Foster denied he had put any more emphasis on Asiq than on Europe and insisted ECA has only been carrying out acts of Congress, which included direc tions to aid China and other areas as well as Europe. Senator Connally said the United States cannot subsist it self if it has to help the whole free world, and pointed out that the finance committee was meet ing in a room nearby trying to find new sources of revenue. Senator Green, Democrat, of Rhode Island, also questioned Mr. Foster as to why ECA has not in sisted that European industries whose profits have been increased as the result of American aid were not required to pass some of those profits to their employes in better wages. jvesinclions irnneun. Mr. Foster said the future plans of ECA contemplate steps in that direction. He said it was difficult in the earlier stages of the Marshall Plan to attach re strictions to the aid while the industries were being restored. Secretary of State Acheson tes tified last week that the foreign aid program as a whole should continue at this year’s level of $8.5 billion for two more years, or a total of about $25 billion. Senator Smith, Republican, of New Jersey, wanted to know if that meant the current year quo ta of $2.3 billion as the economic share also would continue for two more years. Mr. Foster said he thought it would continue about at that level. Before the Foreign Relations Committee agreed to let the Armed Services Committee act jointly (See FOREIGN AID. Page A-3.) Van Fleet Orders U. N. Troops To Guard Against Red Surprise By the Associated Press UNITED STATES 8th ARMY HEADQUARTERS, Korea, July 30. j—Gen. James A. Van Fleet today ordered Allied troops to “main tain constant vigilance” against a possible Red assault while cease fire talks are going on at Kaesong. The 8th Army commander told his soldiers in a statement: “Every noe is hopeful that the conferences will come to a suc cessful and honorable end so that peace may be restored. No one is more tonscious of peace than the soldier.” But he added: “However, in spite of our hopes, every man must be alert at all times. We must not and will not permit this great United States to become a victim of a Commu nist ambush.” The general addressed his state ment to “members of the 8th Army, attached United Nations forces and Republic of Korea army.” * He said his recent promotion^to %>ur-star rank "pleases me gngt ly, not only from my personal standpoint, but from the fact that this army in Korea is recognized as a fighting force equal to that rank. My promotion is, in fact, a promotion for the 8th Army.” He said his Army must be vigi lant even though “admistice nego tiations are being discussed.” The general said “we are sure of the good faith under which the U. N. delegates are operating and we hope for the same from the Com munists.” Gen. Van Fleet added: “Our Army is stronger than ever. Our morale is high. To gether we will keep it the best fighting team the world has ever known, and I am sure ever? man will continue to give his best as he has done sc willingly in the past. “I am confident that this sea soned and combat tested Army can do anything that it is ailed upon to do. We can take great pride in the fact that we are alert to the situation and are always ready.” ™ Speedy Senate Action Passes D. C. Budget; Conference Tomorrow Measure Restores Cut Of TO% Voted by House In Federal Contribution By Don S. Warren The District’s biggest budget calling for an outlay of $138.4 million, was passed today by the Senate in a matter of seven min utes. It now goes to a conference with the House and the first meet ing of the House and Senate managers of the bill probably wili be held tomorrow. Every effort is to be made te speed final passage of the bill officials indicated, to a!d public assistance recipients whose check: have been held up by the delaj in handling the supply bill. The bill as drafted by the Sen ate subcommittee, headed by Sen ator Hill of Alabama, was ap proved without a single change and with only the briefest of ex planation by two Senators. One of the major changes in the Senate bill is to restore the Fed eral payment toward District ex penses to the full $12 million au thorized in the 194" revenue act The House had sliced 10 per cent or $1.2 million, off this total in ar ecenomy move. , AMi.il __ —-- vm>uubv>I( Other major changes from the House bill include: The addition of $130,000 too be gin a program of fluoridation ol the city's water supply as a mean: of preventing decay in the teetl of children. An increase of $100,000 over the $500,000 granted by the House ir payment to nine private hospital: for caring for the District’s in digent patients. The restoration of $250,000 tc funds for the Police Departmeni to permit continuation of the 5 day work week by providing foi pay for police who volunteer te work on a sixth day. An outlay of an additiona $100,000 over the House total foi Gallinger Hospital, mainly foi personnel to staff the new pediat rics-crippled children’s building. Increases in Personnel. And, an additional $82,000 foi scattered increases in personne for a variety of city agencies. Senator Hill told the Senate th< fluoridation program was to b< self-liquidating because the extn item was placed under the Watei Department budget which woulc hp flnnnpprl nut. nf wotpr cprvim rates. Senator Ferguson, Republican of Michigan, who has waged s campaign to slice 10 per cent of the personnel funds for all Gov ernment agencies, told the Senat< he was not insisting in such a cu in the District budget. He said hf was not doing so because thf pending bill was for a municipa operation and not directly associ ated with Federal outlays. Bill Was Held Down. In addition, Senator Fergusor told his colleagues that the Dis trict bill generally was held dowr to the levels of the 1951 appro priations as to the number ol city workers. He said he was noi in agreement on all items in the bill as it came to the Senate bui that he thought some of thesf issues could be ironed out in the conference with the House. As soon as the Senate hac passed the bill by voice vote Senator Hill won approval of s motion that the Senate insist or its amendments and ask for a conference with the House. Named as Senate conferees, ir addition to Senator Hill, were Democratic Senators O’Mahoney of Wyoming, McClellan of Arkan sas, and Neely of West Virginia and Republican Senators Fergu son and Wherry, of Nebraska. Busmen's Holiday Upset SELLINGE, England, July 30 (JP). — A London busmen’s mid summer outing—on a London bus —was broken up abruptly yest# day. The bus overturned ^ Witnesses Assail T ransit Service As PUC Opens Special Hearing Many Charge Use of Dirty, Obsolete Buses; Plans for Fare Increase Under Fire i Capital Transit Co.’s service to I the Washington public took a severe drubbing today in a hear ling before the Public Utilities ! Commission. PUC is investigating the “rea sonableness” of the company’s service. A slate of 12 witnesses representing the public had hard ly a good word to say for the com pany during today’s opening ses sion in the District building. Witnesses charged the company with operating obsolete, dirty and uncomfortable buses, providing too infrequent service, having dis courteous drivels and permitting extreme congestion at one ter :minal—Barney Circle. Almost everybody hit the transit ' firm’s proposal today for new fare increases. One witness even urged a decrease. A labor union spokesman ac cused the company of trying to “maximize profits at the expense of service.” Capital Transit officials waited in a group to answer the charges. Company representatives outnum bered the rest of the persons who turned out for the hearing. E. C. Giddings, company vice president, said two days will be required to present the company’s case. Most of the dozen witnesses who appeared at this morning’s session were spokesmen for civic organizations. Stanley Gewirtz, president o: • See SERVICE, Page A-2.) Ty Cobb, Frick Defend 'Reserve Clause' as Vital to Good Baseball House Hearing Opens; Old Detroit Star Tells Of Trouble With Rule By Miriam Ottenberg Ty Cobb, one of baseball’s im mortals, today told the House j Monopoly subcommittee that if ball players were allowed to shop around for the highest salary, the wealthiest clubs would get all the | best players and the leagues would | be “lopsided.” Leadoff witness at the congres sional hearings on whether base ball should be exempt from anti trust laws, Cobb defended the “re ■ serve clause,” although it once kept him from shopping around for more money. Under the “re 1 serve clause,” the players are tied to the clubs that own them for l as long as the clubs want their 1 services. Cobb's testimony — a blend of ■ reminiscence and drawling cracks —was backed up by a detailed defense of the reserve rule by Ford Frick, president ol the Na . tional League and spokesman for big league baseball. liitn uApiams ivuuug. ! Mr. Frick declared that the “re ; serve clause” simply “reflects the I fact that the ball player offers ;j an unique and unusual service and that each individual club must j be able to depend on the avail ' ability of qualified personnel from : season to season so that the com petitive balance essential to the survival of baseball may be main ' tained.” ’ Mr. Frick said he could not see why there was all the furor about the reserve clause because it is basically a long term con tract, which is not unusual where distinctive personal service is in volved. The subcommittee drew from Cobb the story of his 1913 fight for a higher salary from the De troit Tigers. The story brought out that the late Frank Navin, then president and owner of the Tigers, refused to give Cobb a raise from $9,000 to $15,000 and (See PROBE, Page A-3.) Late News Bulletin Brothers Drown in River Two brothers were drowned today in the Potomac River at the foot of Bashford lane, Alexandria, when a wooden box on which they were floating upset. Alexandria police iden tified the victims as Leroy Mor ris Johnson, 11, and Lonnie Richard Johnson, 9, colored, of 419 North Pitt street, Alexan dria. The tragedy was wit nessed from the shore bjfttheir 7-year-old brother. Mich^w. U. 5. Plans Additional Tests of Atomic Bomb, AEC Chairman Says Legislation Seen Needed If British Want to Use American Proving Ground By the Associated Press The United States is plannin; more tests of the atomic bomb Chairman Gordon Dean of thi Atomic Energy Commission saic today. Mr. Dean declined to tell a new: conference, however, whether th: tests would be at already an nounced proving grounds or a some other place. There has been speculation that a new prov ing ground may be established ir the Aleutian Islands off Alaska. Mr. Dean said any first test o a British-made atomic bomb oi an American proving grounc would probably necessitate s change in the United States atom ic energy law. He was asked thi: direct question by a reporter: "Have the British made anj overtures about their first atomic test?” He answered: "If they have they did not make it to us. (The Atomic Energj commission)." Offers No Statement. Mr. Dean offered no statemeni that the British actually wer< planning any first test of ar A-bomb. But he did say: “It would mean a change in tlx ‘atomic energy' law to allow then to use one of our proving grounds.’ Mr. Dean added: “It would in volve a lot of problems ... I don’i see how a joint test could be con ducted without some kind of legis lative blessing.” In saying that the United State: is planning further tests of its own atomic weapons, Mr. Dear said “we are not quite ready tc give you the test sites and dates.’ He said the commission at one time or another had thought of test sites “in practically every part of the globe.” He did not amplify that statement. Asked why the same proving grounds cannot be used over and over again, he said that one of the reasons was the heavy logistics involved in faraway tests such as those at Eniwetok. Depends on Test Nature. He added: “It depends on what you want to test.” Mr. Dean said that “if it is something that does call for elab orate instrumentation and a big ‘bang’ ” such a test is held at a remote place. Otherwise, he added a test can be held “closer in.’ Then he said, “One of the con siderations also is hurting some body.” The chairman added confi dently: “We don’t test these things to see if they will go off. We know they will. We test them to deter mine improvements that might be incorporated.” He said that none of the weap ons so far tested by the jpnited States “has ever failed to so off.’ Transit Asks 15c Fare, No Tokens And $2.25 Pass Plea to PUC Cites $2 Million Increase In Operating Cost The Capital Transit Co. today asked the Public Utilities Commis sion to grant fare increases effec tive August 19. The company asked: 1. That tokens, now sold three for 40 cents, be eliminated. 2. That the weekly passes be increased from $2 to $2.25. 3. That the straight cash fare remain at 15 cents as it is now. The 3-cent fare for school chil dren, fixed by act of Congress since 1931, is unaffected by the request. The company has indi cated it would like an upward adjustment, how;ever. Pending before the Senate Dis trict Committee is a bill that would give the PUC power to set the school fare. Would Bring in $675,000. The petition to the PUC said operating expenses are expected to jump $2 million in the coming year. The fare increases asked today would bring in an additional $675,000 annnally. The request for a fare increase came as the PUC prepared to open a public hearing today on the •'reasonableness” of the service the transit company is offering to the Washington public. It also followed closely an an nouncement last week by Capital Transit officials that the company 10-Year Tabulation Of Capital Transit Fare Increases Following is a tabulation showing Capital Transit fare increases over the last 10 i years: Cash Tokens. Weekly Date. fare. pass, i July 30, 1941 10c 8 for 50c *1.25 I May 11. 1947 10c (none) 1.50 Oct. 31.1948 13c 3 for 35c 1.75 Ju!y 10. 1950 15c 3 for 40c 2.00 July 30, 1051 15c (none) 2.25 I (asked) The company’s net income for the last 10 years follows: 1941 _*1,308.969 1942 _ 1.748,991 I 1943 1.545.250 1944 1.565.225 i 1945 1,342.079 1946 914.527 I 1947 •90,631 1948 _ 390.065 1949 _ 332.432 1950*_ 905.857 19515 _ 925.262 •Net loss. ♦Beginning of new management. $Six months ending June UO. earnings the first half of this year were more than five times that of a year ago. Company Stresses Expenses. As its justification for fare in creases at this time, the transit company said its operating ex penses would increase despite its j efforts to reduce the cost of op eration and still render adequate | service. | The petition stated that the company was entitled to a return i for the fiscal year ending June 30, 11952, of not less than $1,885,000. I This is based on a “fair” return of inot more than 7Vi per cent applied ! to the rate base, which rate base [the company considers too low. The amount by which the com ipany will fail to earn the 7 Vi per [cent return will be “not less than [$1 million,” the petition continued. : Excepting its Maryland operations, | the petition said, the company will [need an additional $675,000 to get ! frVio 71/. nor rent rofnrn nw ifc T1ic_ Itrict operations. Firm Must Remain Stable. “It is in the public interest that the company should maintain its financial stability and credit,” the petition said, adding: “Any delay in the effectiveness of the fare changes . . . would be detrimental to that financial sta bility and credit and may impair the company’s ability to render adequate service to the public.” Capital Transit said the wage increases granted its employes following a three-day strike last month would add "more than $1.7 million” to its annual wage cost. The company said other oper ating expenses would go up an other $300,000. Of that sum, it explained, $226,000 is the addi tional electric power bill which the Potomac Electric Power Co. won earlier this year when it got ja rate increase from the PUC. Increases Were Forecast. Request for increases was fore cast when the transit company agreed to increase wages and other benefits in settling the re cent strike. The strike, called by Division 1689, AFL Amalgamated Associa tion of Street, Electric Railway j and Motor Coach Employes of — (See TRANSIT, Page A-2.) Featured Reading Inside Today's Star TALE OF TWO CITIES—Star Staff Reporter Alex R. Preston tells the story behind the campaigns of threa candidates seeking the Democratic nomination for two seats in the Vir ginia House of Delegates. His analysis of the primary race in the Staunton Waynesboro area appears on Page B-l. RUSSIAN AGGRESSION—A veteran British diplomat calls for co-ordinated "cold-war activity" to fight the dan ger of drifting toward communism through apathy and Russian propa ganda. The second of this series appears on Page A-7. CRIME IN AMERICA—The story cf the Cleveland mob—from rum-running to gambling to surface respectability— is reported by Senator Kefauur in today's condensation from hinew book on Page A-5. • < - '' I COULD MOT LOVE THEE, DEAR, 50 MUCH LOV'D I NOT HONOR MORE"/