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Evening star. [volume] (Washington, D.C.) 1854-1972, December 12, 1951, Image 1

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Weather Forecast
Mostly sunny with high near 42. Partly
cloudy tonight with low of 28 in the city
and 22 in the suburbs. (Pull report on
Page A-2.)
Midnight, 38 6 a m. ...36 11 a.m. ...40
2 a.m._38 8 a.m. ...36 Noon -_a.-40
4 a.m. ...36 10 a.m. ...38 1 p.m. ...30
Late New York Morkets—Pogc A-45.
Guide for
Amusem’ts, A-42-43
Classified _. C-5-10
Editorial _A-16
Edit’al Articles, A-17
Financial A-45
Lost and Found, A-3
An Associated Press Newspaper
99th Year. No. 346. Phone ST. 5000
Home Delivery. Monthly Rateg: Evening and Sunday. SI. 75; 51 r’Ti'MTQ
Evening only. $1.30; Sunday only. 45c; Night Pinal. 10c Additional. ** VjAjIv -L O
Naster Denies Shakedown Story,
Is 'Afraid'to Answer One Query;
Truman Sees McGrath, Hoover
Witness Accused
Of Call to Caudle
By Cecil Holland and
George Beveridge
Bert K. Naster today denied he
ever demanded any money from
Abraham Teitelbaum in connec
tion with Mr. Teitelbaum's tax
Naster. a Florida businessman,
was one of two men named by
McGrath Takes Back and Forward Oath
With Latin Flourish. Page A-3
McGrath Soys Zenith Wasted $50,000
Fee by Hiring Finnegan. Page A-3
Smyth and Three Others Indicted on In
come Tax Fraud Charges. Page A-4
Mr. Teitelbaum in his charges of
a scheme to shake him down for
$500,000 under threat of prosecu
tion in his tax troubles. Mr.
Teitelbaum, a Chicago attorney,
said Naster and Frank Nathan
told him they were connected with
a Washington "clique.”
Testifying before the House
Ways and Means subcommittee
Investigating tax scandals, Naster
said he first met Mr. Teitelbaum
in Florida last summpr and flatly
refused to answer a question about'
what he had heard of Mr. Teitel-:
baum prior to that meeting. His
counsel said Mr. Naster had "cer
tain personal reasons that make
him fearful of answering this point
at this point.”
“Do I understand you to say you
are in physical fear of answering
the question?” asked Subcommit
tee Counsel Adrian W. DeWind.
"Yes sir,” Naster replied. *
Accused of Inventing Story.
Earlier Naster was accused of
"inventing” a story that he put in
a long-distance telephone call last
summer to T. Lamar Caudle In
connection with obtaining build
ing materials.
Mr. De Wind charged the wit-j
ness with “inventing” the story i
since Mr. Caudle’s own testimony!
before the subcommittee. Mr.j
Caudle told the subcommittee he
received a telephone call from
Naster last summer, the night be
fore he left for Europe, asking
him to meet Henry W. Grune- :
wald, a mysterious Washington ,
figure whose name also has been
linked in the alleged shakedown
atory. Mr. Caudle, who was fired
as Assistant Attorney General in
charge of the tax division, testi
fied that Naster gave him no rea
son why he should meet Mr.
Grunewald and said he had re
fused to do so.
Naster insisted his telephone
calls to Mr. Caudle arose from
difficulties he had encountered in
getting copper and steel for tin
industrial plant. He said Mr.
Grunewald had suggested to him
some sources of supply in Europe
might be available and he called
Mr. Caudle to ask him to get in
touch with Mr. Grunewald and
learn what they were.
Testimony on Passport.
Mr. De Wind read from Naster’s
testimony in a closed session in
which the Florida businessman
had said his only business trans
actions with Mr. Caudle had been
in connection with his efforts to
obtain a passport to go to Europe
Previous testimony by Mr.'
Caudle and Nathan had touched'
upon Mr. Caudle’s efforts to as-|
Bist Naster in obtaining a passport
owing to the fact that Naster was
Evening Star Stations, will
broadcast a recorded tran
script of today’s testimony be
fore the House committee in
vestigating the tax scandals,
from 8:30 p.m. to 9:30 p.m.
still under parole from a tax-fraud
Naster testified he first met Mr.
Caudle in December, 1950, through
Naster said he discussed with
Nathan how to get a passport so
he could go to Europe on business.
He said Nathan told him he had
"a friend” in Washington who
(Continued on Page A-3, Col. 1.)
Mince Pie Represents
Gifts of Wise Men
Mince pie become the traditional
Christmas pie because the ingredients
represent the gifts of the Wise Men.
The crust represents gold, the spices
myrrh ond the
aroma frankin
Ai for Christ
mas gifts, one
•f the bast
routes to eco
nomical buying
is through the
"miscellaneous for sale items in Star
Classified. The Star offers more classi
fied selections than the three other
Washington newspapers combined.
And if you want to sell outgrown toys
•r other gift items, do it by placing a
classified ad in The Star. Phone
Sterling 5000. Call today to place
your Sunday ads and avoid a rush as
tha 2 p.m. Saturday deadline op- ,
proaches. I
Tom Clark Informed of Caudle
'Indiscretions' in '45, Pa per Says
Attorney General Said to Have Received
F6I Data Before Tax Aide's Nomination
By tH* Associated Press
CHARLOTTE, N. C„ Dec. 12.
iThe Charlotte News said today
Ithat Tom C. Clark, then Attorney
General, was advised by the FBI
of “indiscretions'’ by T. Lamar
Caudle as United States Attorney
in North Carolina before Mr.
Caudle’s nomination July 18. 1945,
to be an Assistant Attorney Gen
During House hearings in Wash
ington yesterday, it was brought
out that there was certain “derog
atory information,” supplied by
the FBI. in the Justice Depart
ment’s file on Mr. Caudle. Joseph
C. Duggan, an assistant attorney
general, spoke of it as only a
"scrap.” Its nature w-as not dis
closed in the hearings.
The News said the House Ways
and Means Subcommittee, investi
gating tax scandals, had known
of this for some time. It quoted a
committee source, not identified,
as saying one reason the commit
tee had not explored it more fully
,was that the committee did not
wish to “embarrass” Mr. Clark,
who is now a Supreme Court Jus
(Justice Clark was not imme
diately available in Washington
for comment.)
Mr. Caudle technically was nom
inated for Assistant Attorney Gen
eral by the late President Roose
, velt. He was ousted a few weeks
ago by President Truman for “out
side activities.”
The News said it got the story
|of the FBI report from James H.
! Montgomery, jr„ a former FBI
agent in Charlotte, who told it
j “reluctantly.” Mr. Montgomery
now is associate judge of the
Richmond (Va.) Juvenile and Do
jmestic Relations Court.
The News story said:
"Montgomery said that he was
assigned to make a routine inves
! tigation customary , in such ap
pointments. He said the written
.report showed that Caudle ad
mitted that he had been ‘indis
creet,’ that ‘somebody kept putting
presents in his automobile’ when
it was left in a Charlotte parking
lot; that he had occasionally used
a hotel room reserved by an old
friend, Keith M. Beaty, when Fed
eral Court was in session here;
that he had made a trip to New
York with Beaty in connection
with one of Beaty's business en
terprises; that he had written a
letter for Beaty on official sta
tionery when his friend was seek
ing a beer distributorship.”
The House inquiry already has
brought out that Mr. Caudle re
ceived discounts on automobiles
and other favors through Mr.
Beaty, operator of a Charlotte
taxi cab Arm who has been hav
ing tax troubles.
The News quotes Mr. Mont
gomery as saying "there were
other things in the report, but I'm
not willing to trust my memory
(See CAUDLE, Page A-10.) I
Grand Jury Summons
Young, Rosenbaum in
RFC Influence Probe
Mink Coat Matter
Likely to Come Up
In Testimony Today
E. Merl Young and Joseph H.
Rosenbaum, who figured in the
mink coat episode disclosed by a
congressional investigation of the
Reconstruction Finance Corp.,
were called before a District grand
jury today. The grand jury has
been investigating questions in
volving perjury and other matters
referred to it last April by the
Senate subcommittee which
looked into influence in RFC
Mr. Rosenbaum, a Washington
lawyer who at one time repre
sented applicants for RFC loans,
carried a bulging folder of papers
into the Jury room.
Youngs Operate Florida Motel.
Mr. Young, a former RFC ex
aminer who became an “expedi
ter” in recent years and hdd en
tree into the White House, was
ready to testify later today. Mr.
Young and his wife Lauretta, a
former White House stenogra
pher. now operate a motel near
Miami, Fla.
While the mink coat matter;
seemed likely to be discussed at;
today’s grand jury session, the
questioning of the two witnesses
was expected to cover other fields.
Mr. Young told reporters he was
asked to bring certain records of
the Lustron Corp. and the R. L.
Jacobs Co. For several years after
the war Mr. Young was an official
in each of those companies and
received a salary of about $18,
000 from each. Both companies
obtained RFC loans in recent
A Senate subcommittee which
last spring investigated “favorit
ism and influence” affecting RFC,
described Mr. Young and Mr.
Rosenbaum as part of a “web of
influence” relating to RFC activi
ties and including Donald S. Daw
son, an administrative assistant
to President Truman.
Young Says Loan Was Repaid.
Subcommittee hearings disclosed
that Mr. and Mrs. Young re
ceived a ro^al pastel mink coat
which was paid for by Mr. Rosen
baum. The coat came from a
New York furrier who was a client
of Mr. Rosenbaum and who some
years previously had applied for
an RFC loan.
While waiting to go Into the
juryroom today. Mr. Young said
the mink coat transaction was in
the form of a loan. He declared
that he has repaid the entire
$8,540 to Mr. Rosenbaum and that
“I have notes to prove it.”
Justice Department attorneys
said the separate questioning of
Mr. Young and Mr. Rosenbaum
might take all of today and part
of tomorrow.
Picasso Brings $3,500
LONDON, Dec. 12 (/P).—Pablo
! Picasso’s well-known painting,1
“La Nicoise," showing simul
taneously the profile and full face
of a woman, was sold at an art
(auction today for £1,250 ($3,500).
I The buyer was anonymous.
Egypt Is Considering
Calling Ambassador
Home From London
Cabinet Is Reported
Decided to Let Every
Citizen Possess Arms
ly tK# Associated Pres*
CAIRO. Egypt.. Dec. 12.—Acting
Foreign Minister Ibrahim Farag
Pasha announced today Egypt is
considering the recall of her am
bassador from London but so farj
has reached no decision.
Cairo newspapers reported
earlier that the cabinet had de
cided to bring home Ambassador
Abdel Fattah Amr Pasha “as a
protest against British aggression
in the Suez Canal Zone.”
The same reports said the cabi
net last night also had decided to
“severely punish” Egyptians col-!
laborating W’ith the British and to
permit all citizens to possess arms.
Farag told newsmen the Foreign
Ministry’s legal department is pre
paring a memorandum on diplo
matic relations with Britain and
"nothing has been decided pend
ing completion of this memo
Egypt Threatens Break.
Egypt has been threatening to
'break off diplomatic relations with
Britain since the British army de
stroyed a village outside Suez city
last Saturday to make way for a
military road. Recall of the am
bassador would be a step short of
a complete cut in diplomatic ties.
(In London, officials at the
Egyptian Embassy said they ex
pected the recall order to arrive
sometime today. Officials at the
British Foreign Office said they
had no notification of the reported
Egyptian action.
(Sources in London said if
Egypt does recall her Ambassador,;
Britain could be expected to take
similar action. Both Embassies1
then would be headed by charges
The newspaper A1 Misri said
Britain may keep the Ambassador,
Sir Ralph Stevenson, in Cairo “al
though tradition has it that a
country in Britain’s position should
reciprocate and recall her Ambas
sador, too.”
Other Decisions Listed.
A1 Misri listed these further de
cisions by the cabinet in last
night’s session:
1. Egyptians collaborating with
the British "will be severely pun
2. All citizens of Egypt “may
possess arms on condition that
the ministry of the interior be
3. Houses will be built for fam
ilies whose homes were destroyed
in building the road The British
said the action removed a hiding
place for guerrillas menacing
military traffic.
A British military spokesman
said last night that “actual com
pensations have been worked out”
for occupants of the razed village.
The British had promised to pay
Ambassador Stevenson handed
a memorandum to Farag yester
day explaining Britain’s views on
the razing of the village.
Farag said the note claimed
destruction of the houses and con
struction of a road to the filtra
tion plant were "necessary meas
ures for military reasons and
would avoid further friction be
tween British troops and Egyp-;
tians there. i
Tax Prober Calls
For Removal of
Attorney General
Attorney General McGrath
and FBI Chief Edgar Hoover
met with President Truman at
the White House today amid
indications the President will act
I soon to counter tax scandal tes
timony flooding from Capitol
Representative Byrnes, Repub
lican, of Wisconsin, called today
;for the immediate removal of J.
Howard McGrath as Attorney
General. He said Mr. McGrath is
either “unwilling or incapable of
I providing the kind of leadership
; necessary to restore the confi
dence of the American people in
our principal law enforcement
Mr. Byrnes, a minority member
of the House Ways and Means
Trustees for Empire Studying Suit Agoinst
McKinney ond McHale. Page A-3
subcommittee investigating tax
scandals, made the demand in a
public statement following
lengthy testimony by Mr. Mc
Grath before the subcommittee
His demand came after Frank
E. McKinney, new chairman of
the Democratic National Com
mittee, told reporters after a
White House meeting that he
had advised President Truman
‘'something had to be done right
away” in connection with mat
ters brought out in the tax In
Mr. McKinney said President
Truman is "highly concerned” at
what he considers disloyalty to
him by some officials and Mr.
McKinney added:
"I'm inclined to think there will
be drastic action soon.”
Won’t Predict When.
Asked about Mr. McKinney’s
comments. White House Press
Secretary Joseph Short said today
he would not want to predict
"when” Mr. Truman would take
drastitc action.
When It was pointed out to Mr.
Short that his use of the word
"when” indicated that the Presi
dent was in fact contemplating a
new move, Mr. Short said he did
not intend to go beyond what he
had said.
The press secretary said again
that their had been no arrange
ments for the President to meet
Attorney General McGrath.
When it was pointed out that
President Truman had said Sun
day that one of his reasons for;
coming back from Key West was
to see the Attorney General and
some other people from the Justice
Department. Mr. Short said that
“I’ll let you know as soon as I
can when the appointment takes
Mr. Short said that "to the best
of my knowledge” the President
had not talked to Mr. McGrath j
since the Attorney General met
him at the airport Sunday.
McGrath Quizzed About Caudle.
The investigating subcommittee
yesterday questioned Mr. McGrath
at length about his attitude to
ward the activities of T. Lamar
Caudle, ousted Assistant Attorney
General in charge of the Justice
Department’s Tax Division.
In an obvious reference to this
phase of the probe. Mr. Byrnes;
said the Attorney General demon-1
strated during his testimony that
he failed to take steps to “un
cover what were at least gross in
discretions in the tax division of
his department” and that he "is
not deeply concerned today” with
what the subcommittee has un
Mr. Byrnes devoted a major
portion of his questioning yester
day to why the Attorney General
had failed to take personal action
on the Caudle matter.
At one point Mr. McGrath pro
tested that the King subcommit
tee, with its subpoena powers, had
a better means of exploring the
Byrnes Voices Amazement.
Mr. Byrnes expressed amaze
ment at this statement and point
ed out that Mr. McGrath had at
(Continued on Page A-10, Col. 1.)
' s 0
Allies Voice Fear for Prisoners
In Korea Under Reds' Proposal
Bulk Exchange Urged by Enemy Turned Down;
Refusal of Red Cross Inspection 'Excoriated'
ly th« Asiociottd Pre»«
MUNSAN, Korea, Dec. 12. —A
new Red plan for exchanging
prisoners of war and an Allied
compromise for supervising a
Korean truce with neutral observ
ers fell on cold shoulders today.
The United Nations command
expressed fears publicly for the
Clouds and Fog Stall Korean Air Activity;
War Virtually Halts. Page A-ll
Four Houst Members Find U. S Troops in
Korea "Best in History." Page A-ll
first time that the Communists
might not give up all the prison
ers they hold.
The fear was expressed in turn
ing down a five-point prisoner ex-(
change plan advanced today by
Communist negotiators at Pan
munjom. The Red proposal still
called for release of all prisoners.
The U. N. insists on a man-for-*
man exchange.
Excoriated on Red Cross Ban.
"The U. N. Command is con
cerned.” an official communique
said, "that premature agreement
on bulk exchange of prisoners be
fore adequate data is available
could result in sizable numbers,
not being recovered.”
Allied negotiators, the com
munique added, “excoriated the
Communists” for not letting the
Red Cross see how prisoners are
being treated and for refusing to
say how many prisoners they hold
and where.
The Reds have said they would
supply the information only after;
the Allies agree on a blanket ex
change. They kept this stand in
their five-point plan.
The number of Allied troops In
Red hands has been estimated at
from 98,000 to 139,000. The U. N.
says it holds between 120.000 and;
135,000 Chinese and North Korean!
The only new factors introduced
in the Red plan would be to ex
change prisoners in groups at
Panmunjom, the sick and wound
ed first, under joint Allied-Red;
Say It Would Take Month.
The Reds said it would take
them a month to deliver all
Brig. Gen. William P. Nuckols,
U. N. spokesman, said “the ques
tion of prisoners of war is being
held over our heads” to force I
what he called an undesirable
solution of the prisoner and truce:
supervision problems.
A U. N. spokesman said the'
Allies made “major compromises
and concessions” in their new ef-i
fort to break the 16-day deadlock
over how to supervise the truce.
The Reds said the U. N. conces
sions “were insufficient,” the Al
lied communique reported, but
agreed to study the offer.
The Allied proposal condition
ally accepted the Red idea of
teams of neutrals supervising the
truce, and also agreed to with
draw from some islands off the;
North Korean coast. The U. N.
Wounded 71-Year-Old Grocer
Routs Bandit With Pop Bottle
A 71-year-old grocer, wounded
in the left arm in an attempted
holdup, threw a soft drink bottle
at his fleeing assailant this morn
ing and then chased him down
the street.
The victim, Isadore Roesnblum
of 67 Tuckerman street N.W.,
Picture on Page A-2.
owner of the Rosenblum Market,
1139 Ninth street N.W., told police
the robber entered the store
shortly after opening time and
asked for cigarettes.
As the store owner made change
the man demanded all the money,
but Mr. Rosenblum, thinking his
action was a joke, pretended to
duck and the man fired. The shot
struck his arm.
The grocer picked up a soft
drink bottle and hurled it at the
assailant, who raced for the door.
The bottle crashed through a dis
play window. Mr. Rosenblum ran
out the door.
The man escaped and as the
wounded grocer returned to his
store, an employe of an adjoining j
store stopped him and applied a
tourniquet. Mr. Rosenblum was‘
taken to Emergency Hospital.
The bandit, described as col
ored and wearing a black leather
jacket, got no money.
Police Supt. Robert V. Murray,
en route to his office, heard the
police calls and went to the scene.
Within 30 minutes two suspects
had been picked up for question
I would keep Its troops on Islands
more than 3 miles from shore,
and withdraw from those closer
Heretofore the Allies have said
they would keep all the islands.
They have also insisted on joint
Allied-Red inspection teams.
The U. N. said it would make
concessions on these two points
if the Communists agree to (1)
military armistice commission
control of the truce teams. (2)
“freedom of movement over prin
cipal lines of communication
throughout all of Korea’’ for the
truce teams. (3) aerial reconnais
sance by neutrals. (4) rotation of
troops and (5) no rehabilitation
of air fields.
Chinese Maj. Gen. Hsieh Fang
did not object to military armistice;
commission control, but he did
protest the other four points.
Maj. Gen. Howard W. Turner
told him “you have conceded
nothing”; either accept the whole
U. N. plan or none at all. Hsieh
said he would think it over.
Both committees scheduled new
sessions for 11 a.m. Thursday (9
pjn. Wednesday, EST).
An airplane incident Tuesday
appeared to have been settled with
an acknowledgment from Gen.
Matthew B. Ridgway that a U. N.
plane bombed and strafed the Kae
song protected zone surrounding
Red truce team headquarters.
Gen. Ridgway blamed a pilot er
ror. He said he was “initiating
appropriate disciplinary action.” i
Alabama Trio Charged
In $800,000 Shortage
By th« Associated Press
Two men and a woman have
been arrested in connection with
shortages exceeding $800,000 at
the Thomasville (Ala.) Bank &
Trust Co., FBI Director J. Edgar
Hoover announced today.
He identified those arrested as:
J. Moody Drinkard, 47, president
of the bank; Mrs. Myrtie N. Mc
Crory, 48, cashier; and W. P.j
Stutts, 45, president of the Stuttsi
Lumber Industries, Inc., Thomas
ville, and a bank customer.
Mr. Hoover said warrants for|
the arrests were issued by the
United States commissioner at j
Mobile on the basis of a complaint
filed by an FBI agent.
The complaint charged Mr.
Drinkard and Mrs. McCrory with
making false entries in the bank;
records and Mr. Stutts with the)
misapplication of bank funds ini
violation of the Federal Reserve
Mr. Hoover said the FBI investi
gation indicated Mr. Stutts had
received the benefit of $700,000 of
the total shortage through illegal
extensions of credit.
Snow Flurries Herald
Below-Freezing Weather
Snow flurries hit the Washing
ton area this morning and the
Weather Bureau forecast the
beginning of a cold snap with
below freezing temperatures.
The forecast called for contin
uation of today’s cloudy, cold and
windy weather. It said the tem
perature will rise to about 42 by
the afternoon and drop to 28 in
the city and 22 in the suburbs to
The flurries of snow hit scat
tered Maryland areas such as
Waterloo, Laurel and Rockville
j around 7 a.m. today. There wasn't
enough to stick.
Cinder crews were ordered out
on Sideling Hill Mountain on
Route 40 in Western Maryland, a
main route west to Pittsburgh,
Columbus and Cincinnati.
The Weather Bureau said there
was a remote chance of further
flurries today.
Hunt tor Gunman
Goes On in Maryland;
D. C. Area Has Scare
Planes and Helicopters
Join Search for Ross,
Addict Wanted in Killing
A woman in Baltimore in
sisted today she could "posi
tively” Identify George Francis
Ross as a man who telephoned
for help from her home last
night after his automobile broke
down in the street outside. A
glass from which the man took
a drink has been submitted to
the FBI for fingerprint com
parison with the identification
record of the ex-convict.
More than 130 armed men con
tinued to search the woods near
Ellicott City, Md.. today for
George F. Ross, 27, a dope addict
wanted for the mtirder of a police
The manhunt was led by 100
FBI agents and 30 Maryland State
policemen in a wooded triangle
formed by the Patapsco River and
two highways—Routes 40 and 99
—in the western suburbs of Bal
A Marine twin-rotor helicopter
from Quantieo. Va.. was damaged
this morning in a landing near
search headquarters on Route 40.
A gust of wind upset the plane
as it settled in a field and one of
the rotors chewed into the fuse
lage. No one was injured.
Two other helicopters from
Quantico were hovering over the
hilly area today as a line of men
spaced at 50-foot intervals moved;
toward the river. The searchers
were equipped with pistols, rifles,
shotguns and portable radios.
Public Is Warned.
MaJ. William H. Weber, in
charge of the State police detail,
announced the search line" should
either produce Ross or eliminate
the possibility that he is still in
the area.”
Maj. Weber warned the public
to keep clear of the vicinity.
Washington as well as Balti
more police ran down several
false alarms last night and to
day as the search spread to ad
joining communities.
During the clay Washington
police ran down several “tips”;
from citizens who reported seeing
men resembling Ross in various
parts of the city. Two men were
questioned briefly and released, j
and another was detained for.
further investigation.
The latter was picked up near
the Shoreham Building after an
employe in one of the offices re
ported she had seen a man an
swering Ross’ description get off '
an elevator. Some 300 spectators
gathered around the building '
when police in squad cars an
swered the call and began a :
Police received other reports
that Ross had been seen in the
800 block H street N.W., the 1200
block of Eighteenth street N.W.,
the 1400 block of New York ave
nue N.E., and Brentwood road
and Rhode Island avenue N.E.
None of the latter investigations
produced a suspect.
Autos Patrol Area.
Several light airplanes returned
to the search near Ellicotc City
today, while scores of automo
biles patrolled the area and a line
(See ROSS, Page A-2.)
3 Feared Lost After Crash
Of Jet in Bay Near Norfolk
By the Associated Press
NORFOLK, Va., Dec. 12.—A
B-40 jet plane from Langley Air
Force Base with three men aboard
plunged into Chesapeake Bay
near Thimble Shoal light today.
A Navy tug which was in the
area reported the plane sank im
mediately and no survivors were
Navy and Coast Guard planes
and surface vessels were sent to
the area.
U. S. Will Order
New 10 Pet. Cut
In Civilian Goods
Non-Defense Output
In 1952 to Drop to
Half Pre-Korea Level
By James Y. Newton
A new cut of about 10 per cent
'in materials for civilian produc
tion will be made when the Gov
ernment announces allocations of
scarce metals for the second
quarter of 1952, it was learned
The new cut, made necessary
by increasing demands of the
armaments program for steel,
copper and aluminum, means that
production of automobiles, elec
trical appliances and other civilian
“hard” goods, will be reduced to
nearly .50 per cent of the pre
Korea volume.
Government production officials
now are engaged in matching re
quirements of the military, de
fense-supporting and essential
civilian programs against the
total supplies of materials to be
available in the second 1952 quar
ter. Allocations of materials for
use in the April-through-June
quarter will be announced early
next month.
Bigger Cutbacks in Prospect.
A top Government official said
the metals supply situation win
be “very difficult” all during 1952.
In order to meet demands of the
defense program, the prospect is
that even deeper cuts in civilian
production will have to be made
in the July-through-September
quarter. That means the output
of automobiles, etc., probably will
be reduced to less than half the
pre-Korea rate.
And aside from the over-all
shortages of basic steel, aluminum
and copper, scarcities of some in
dividual items, such as copper
wiring and of metals like nickel,
may bring even more drastic cuts
in civilian goods output.
“We soon will be up against %
real guns-versus-butter situation
in nickel supplies.” the official
said, adding that it appeared
there would hardly be enough
nickel for the aircraft production
program alone.
Nickel Vital to Defense.
Among other things, nickel is
used in hardening steel for many
military items, automobile gears
and axles, and in pure form in
electronic equipment, radio and
i television tubes. The question
facing production officials is one
of how deeply to cut civilian
nickel allocations. It is probable
the military program could use
the country's total supply, most
of which is imported from
Mobilization leaders earlier had
hoped for improvement in the
aluminum supply situation late in
1952 when the output of new
plants will be coming in. However,
the dAnsion to expand the Na
tion's air strength to 143 groups
means the aircraft production
program will require all extra
aluminum that will be available.
The full impact of the stepped
up aircraft program will be felt
late next year.
An official said there "is nothing
but gloom” in the copper supply
outlook. The country imports most
of its copper and there is small
prospect of increasing the amount
coming in.
Steel Not as Dark.
The outlook for basic steel sup
plies was described by the official
as somewhat better than either
the aluminum or copper situations.
The output of steel will be stepped
up through 1952 as new mills come
into production. Steel production
is reaching record heights almost
Despite the additional cuts that
must be made in production of
civilian goods, the official said
shortages of various items are not
expected to develop until late next
year. Large inventories of goods
using metal, although greatly re
duced already, are expected to last
that long.
Automobile manufacturers were
allotted enough steel, aluminum
and copper to make 1.1 million
cars in the current quarter-year,
compared to a pre-Korea produc
tion rate of about 1.6 million a
Allocations set for the first three
months of 1952 will be sufficient
for producing an estimated 930.000
autos. By using scraps of inven
tory and through conservation,
the automobile industry may up
the first quarter output to 1,006,
000 cars.
The prospective 10 per cent cut **
for the second 1952 quarter means
manufacturers probably will be
given enough metals to make
about 840,000 automobiles.
Part of Saxon Cross
1,000 Years Old
Found in London
By tht Associated Press
LONDON, Dec. 12.—Discovery
of part of a 1,000-year-old Saxon
cross under a war-bombed church
near the Tower of London was
announced today.
The Church of England said
the cross was part of a grave
headstone 2 feet across, made of
sandstone and carrying traces of
pigment with ,$n inscription
which has not yet been fully de
The find was made during re
construction work on the ancient
city Church of All-Hallows-by

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