__ ■■ " . 1 111 .. ”■ An Associated Press Newspaper 99th Year. No. 349. Phone ST. 5000 S ** WASHINGTON, D. C., SATURDAY, DECEMBER 15. 1951—TWENTY-EIGHT PAGES Home Monthl* Rates: Ev«nln« and sunn.,. «■«« k PFNTS __«___’ * O.U, .MJ. jl vv aj.lv j. j. XJXVJXXX JTXHJXJO. Evening only. $1.30; Sunday only. 46c; Night Final. 10c Additional. * V^-CjIN l O Britain to Begin Paying on 1946 Loan From U. S. Control of Foreign Exchange Eased To Help Pound By th« Associated Press LONDON, Dec. 15.—Britain an nounced today she will begin pay ing off both interest and prin cipal of her multi-billion-dollar postwar American and Canadian loans on December 31. A treas ury announcement said the gov ernment had decided not to take advantage of its right to post pone payment of the interest on both 1946 loans. The United States loan totaled $4,350,000,000 —$3,750,000,000 of which was new money made avail able to Britain and $600 million of which was in lend-lease goods which reached England after the end of World War n. The Canadian loan totaled $1, 185,000,000. On December 31 Britain will pay the United States $51.5 million on the principal of her loan and $87 million as interest. Her payments to Canada will total $14 million against the prin cipal of the Canadian loan and $23.7 million interest. Exchange Controls Eased. Earlier today, Britain eased her iron-handed control over the buying and selling of foreign mon ies with the aim of restoring world confidence in her own weakened currency. The Bank of England author ized private individuals to trade British pounds for foreign money —including the dollar — subject only to a government limitation on the prices. For 12 years the bank itself has handled all dealings in other cur rency—always at the official ex change rates. The changes affect only the me chanics of exchanging pounds '< sterling for other currencies. The i Government will retain its rigid . controls over what Britons may buy abroad and in what quantities. , Thus there will be no increase . in British spending in the United States or elsewhere, although im- J porters and exporters will now be 1 able to take some advantage of ' fluctuations in exchange rates. 1 The action, which relaxes but does not end exchange control ! restrictions, was regarded as a small first step by Britain to let the pound find its real value on the money markets of the world. 1 The Bank of England is an agency 1 of the British government, which 1 has been sorely troubled financially 1 and which may seek more United States money aid next month. 1 Exchange Market to Reopen. 1 The official dollar value of the , British pound remains at $2.80 and the official price of gold re- | mains pegged at $35 per fine ounce. Dealers buying or selling foreign , monies for immediate use (spot) , will be able to swing their prices ( anywhere between $2.77 and $2.83 —getting the best price they can. , Dealers buying or selling foreign monies for later use (forward) will be able to vary their prices still : more. The only limitation is that they cannot buy or sell at prices which the international monetary fund would deem unreasonable. An official bank statement an nounced that the foreign ex change market will be reopened in London Monday for dealing both in spot and forward currencies. It has been closed since 1939. In New York yesterday heavy selling in the pound—based on re valuation rumors from London— sent the pound down nearly 6 cents, to $2.74%, for one-month futures, while three-months’ de liveries closed at around $2.71 %. The Federal Reserve Bank of New York, as agent for the Bank of England, held spot sterling at around $2.79%. The rumors also were reflected in sharp price fluc tuations in the world rubber, tin and cocoa markets. Canada Abolishes Controls. Canada suddenly abolished her 12-year-old foreign exchange con trols last night. The action means that Amer icans or other foreigners can invest there without any bans on retriev ing either capital or profits, and Canadians can spend their money abroad where and how they please, without government permission. Canada thus became the first nation to junk financial bans im posed to aid the war effort and recovery. She joins the United States and Switzerland—neither of which limited foreign exchange —as the world’s only countries with fully .free currencies. Mack Reaches Rangoon RANGOON, Burma, Dec. 15 {IP). —Representative Peter Mack, Democrat, of Illinois arrived here late today on his solo ’round-the world good will flight, 48 hours behind schedule. His plane de veloped magneto trouble 150 miles out of Calcutta Thursday and forced him to turn back. Ceiling Falls on Carolers SAN JUAN DE LOS MORROS, Venezuela, Dec. 15 {IP).—A church ceiling fell on a group of 20 chil dren rehearsing Christmas carols here yesterday, killing six girls and a boy and injuring 10 other young sters. i Britain Recalls Envoy Fired On By Czechs During 'Spy' Chase Secret Police Claim He Was Cought With Woman Exchanging Cash for Military Data By Hre Associated Press LONDON, Dec. 15. — Britain called home today a British diplo mat whom the Czechoslovak secret police fired on last night during a purported “act of espionage” in a forbidden zone of Czechoslo vakia. Prague radio claimed that the diplomat, Robert Neil Gardner, and a British Embassy typist. Miss Daphne G. Maines, were caught red-handed exchanging money for secret military information. Miss Maines was shot and slightly wounded and Mr. Gardner was bruised in a cloak-and-dagger chase while trying to escape in a British Embassy automobile, the Czechs said. The Foreign Office said it had Czechoslovakia’s assurance that Miss Maines would be allowed to leave the country as soon as she is discharged from a Prague hos pital. She had been due for re assignment, the Foreign Office re ported. Czechoslovakia handed the Brit ish Embassy a note demanding that Mr. Gardner be recalled and quit the country before 6 p.m. Prague time tonight. The Foreign Office announced Government Fearful Of Steel Strike, but Bans Automatic Rise Tells Industry Increase Under Capehart Rider Can Be Used to Boost Pay By the Associated Press PITTSBURGH, Dec. 15.—The possibility of a Nation-wide steel; strike New Year’s Day is a matter )f grave concern in Government circles today. But at the same time. Economic Stabilizer Roger L. Putnam in formed the steel industry that any lutomatic price increase based on i wage raise would not be per nltted. Mr. Putnam said yesterday in Vashington he told the industry hat if it is entitled to increased trices under the Capehart amend nent the proceeds can be used for >age boosts in current negotia ions. Voicing the Government’s con :ern of a strike possibility were wo ace Federal mediators, Clyde Mills and Walter A. Maggiolo. Ifter taking a quick look at the irogress of contract talks here be ween the CIO United Steelwork ers and United States Steel Corp., hey declared: “The possibility of a steel strike >oses a very serious situation be :ause of the economic effect it vould have, in addition to its effect on our defense effort. There s great concern over the possi lilities of a work stoppage.” The union’s contract with Jnited States Steel and most >ther steel producers expires at nidnight December 31. A strike :an begin immediately after that. The mediators conferred pri vately with Vice President John K. Stephens of United States Steel ind Steelworkers’ President Philip Murray, then headed back to Washington to report to Cyrus S. Stoing, chief of the Federal Me diation Service. Army Officer Arrested In Hit-and-“ Death An Army captain was arrested sarly today in the hit-and-run death of a Fairfax man. Virginia State police said War ren Frederick Judy, 21, of Box iOO-L, Alexandria, was struck and killed shortly after midnight an No. 1 highway about 4 miles south of Alexandria. Shortly afterwards, police ar rested Capt. Herbert Richard Schlighting, 35, of the 17th Train ing Company, 4th Engineer Bat talion, Fort Belvoir. He was charged with manslaughter and hit and run. He was released under $5,000 bond pending a court hearing December 28. Police said a lookout was broad cast for the hit-and-run car from a description given by witnesses. A Virginia State trooper spotted a car with one damaged headlight and placed the driver under ar rest. [at noon that the diplomat would set out from Prague by automobile this afternoon. A Foreign Office spokesman said Britain would not comment on the Czechs’ charges until it had received a full report from its Embassy. The Czechs sent a formal note of protest saying Mr. Gardner and Miss Maines were caught Thurs day night in "a military area northeast of Prague which was clearly marked out-of-bounds.” This is how the Czechoslovak official news agency reported it in a dispatch monitored here: “The note describes how a man entered a military area . . . The man took a package from the ground and placed another in its stead. “At that moment he was chal lenged by a guard and immedi ately attempted to escape to a car with extinguished lights. Our guards stopped the car by firing at it and caught the man, to gether with a woman who had been waiting for him in the car. “The package was dropped and it was established that the pack age he placed there contained 40, 000 crowns (about $1,000) in bank notes, placed in a food tin.” Jury Charges Carroll Failed to Pay Taxes on $1.8 Million Bet Fees Two Indictments Name St. Louis Gambler Under Internal Revenue Code By th« Associated Press KANSAS CITY, Dec. 15. — A Federal grand jury yesterday re-; turned two indictments against Gambler James J. Carroll, charg ing he failed to file income tax returns on betting payments total ing nearly $2 million. Carroll, of St. Louis, was known for fears as a betting commission er. There were reports in July, 1950, he had quit his betting and xlds-making activities. The first Indictment of 101 eounts listed persons who had won horse race and election bets from Carroll totaling $1,813,160. It was i Nation-wide list of bettors. In in indictment of three counts Carroll also was charged with fati ng to transmit returns reflecting those payments for 1948, 1949 and 1950. The Indictments will replace ;wo Informations filed by the United States District Attorney March 28. Carroll was charged with failure to report payments pf $52,688 in 1948 and 1949 in the two informations. The Indictments invoked a sec tion of the Internal Revenue Code which requires: 1. That all persons making pay ments of “fixed and determinable income” to other persons of more than $600—other than those on which taxes are withheld by em ployers—are required to report those payments individually to the Internal Revenue processing divi sion. 2. That all such payments must pe listed collectively and reported annually to the division. The grand jury action ended an Investigation whidh began in April. More than 125 witnesses were questioned in that time. All pounts of the indictment are clas sified as misdemeanors. Salary Board Limits New Bonuses to $40 By Auociatad Pm* Employers who want to start giving a Christmas bonus to salaried workers may do so, but only up to $40. The Salary Stabilization Board, which has jurisdiction over pay of people on salaries, has ruled bonuses may be “cash or in kind.” They may be paid irrespective of whether it was the company’s practice to do so in previous years. The Wage Stabilization Board, which controls wages, ruled simi larly last month. Train Hits Car, Kills Couple VENICE, Fla, Dec. 15 UP).—A Seaboard Air Line passenger train hit an automobile near here yes terday, carrying it a quarter of a mile and killing both occupants. They were Robert Shelter, 18, and his wife. Martha, 17, a Venice couple married only three months. Red Light Is Welcome Sight— Hacker Flees to Foil Holdup For once, a red traffic light was a welcome sight to a District cab driver early today. The light, at Twentieth and K streets N.W., stayed red long enough for Cabbie George W. Richardson, colored, to leap from his vehicle, which he said had been commandeered by a holdup man, and dash into No. 3 police precinct at 2014 K street N.W. The suspect, Henry Berkley, 29, colored of 2112 M street N.W., was arrested in the cab within 10 minutes after Mr. Richardson had raised the'alarm. Patrol Wagonmen C. E. Mennick and Henry F. Ruth arrested Berk ley a few blocks away. According to police, Mr Richardson picked Berkley up shortly after midnight on Seventh ’ 4 street between S and T streets N.W. They quoted Mr. Richardson as saying he was directed to go to first one address and then an other by his fare who seemed to have trouble in making up his mind. Suddenly, according to the cabbie, Berkley thrust his hand in his pocket and said, “give me the wheel or I’ll blow your brains out.” Berkley started to drive but soon after was stopped by the traffic light, which allowed Mr. Richardson to leap from the vehicle and report to police. Municipal Judge Andrew Howard today held Berkley in $2,000 bond for the grand jury on charges ol robbery and unauthorized use oi an auto. f ' .).— “Mr. Republican” had his tonsils taken out yesterday. A hospital spokesman said Senator Taft, Re publican, of Ohio was resting comfortably, and expects to leave the hospital tomorrow. He’ll spend the holidays at his home here. i Forecast of 15 threatens New traffic Tieups Snow Gives District One of Worst Transit Snarls in Its History The coldest weather of the sea son faces the Washington area tonight in the wake of the win ter’s first snowstorm and one of the worst traffic jams in the city’s history. A frigid 15 is the Weather Bu reau's prediction for tonight. It Some of the Storm's Effects on the City Pictured on Page A-20 threatens more traffic woes for motorists caught unawares by the 3 inches of snow which yester day hit the area on the heels of the official forecasts. Freezing temperatures were ex pected by afternoon today as well. The weather experts pointed out 'Keep Cool' and Take Usual Precautions, Keneipp Tells Drivers District Traffic Director George E. Keneipp had an appropriate word of advice for storm-harrassed motorists today. Urging such precautions as tire chains, slower speeds and slower starts and stops to off set the danger of icy roads, Mr. Keneipp added a precau tion noteworthy in view of tonight's expected 15-degree temperatures. He advised: “Keep cool.” that some skid-producing snow would be melted off and dried up by that time. But less-traveled roads are due to acquire an icy covering by tonight, they warned. Paralysis Lingers. Tomorrow will be fair but con tinued cold, the Weather Bureau said. The mercury isn’t expected to go above 27. The paralysis caused by yester day’s storm still had not worn off early today. Downtown mer chants, prepared for what usually is the biggest shopping day of the lyear, reported crowds well below 'expectations during the morning, although they began picking up by midday. And, as for the storm tieup itself, transportation officials and thousands of ordinary citizens had personal testimony that it was one of the area’s worst. The storm began at 11:20 a m., catching the Weather Bureau by surprise. By midafternoon traffic officials had enough inkling of what was to come to cause thou sands of Government employes to be released early to get a head start home. But by then it was too late. And what followed won from fully qualified observers not the descrip tion “one of the worst,” but “the worst.” Buses Stranded Amid Cars. Automobiles were bumper to bumper on virtually all main ar teries, both within and outside the city. Buses and streetcar* were stranded amid them. And thousands of snow and rain-drenched citizens stood help lessly on street corners, vainly waiting for transportation that never came—or if it did arrive, was hours late. Washington police recorded more than 100 traffic accidents during the period of the storm. Luckily most were minor. Count less other accidents of the fen der-scraping variety doubtless were unreported. The police themselves were nearly paralyzed. Scout cars be came involved in accidents - and had to be towed in. All motor-1 cycle men were ordered off the streets, for their own protection. Fire Engines Hampered. Fire engines had difficulty an swering alarms—of which there were more than 70 from 11 a.m. to midnight. Fortunately, none proved of major importance. Airlines cancelled all out-bound flights and most inbound aircraft landed at Baltimore or other points. Buslines experienced de lays and many between here and Baltimore failed to make their runs. Most trains, however, kept to schedule, since the snow in the entire region except the mountains to the west was limited to about the same amount as here. Similar traffic jams occurred in other Eastern cities, where the storm also took traffic officials and the public by surprise. The Weather Bureau had pre dicted light snow for late yester day. But that was on the basis of a reported wind-speed of 30 miles an hour. When the storm was tracked approaching the area, on the way up from Texas, it was (Continued on Page A-2, Col. 1.) Japanese Group Plans Memorial to MacArthur By th« Associated Press TOKYO, Dec. 15.—A group of Japanese plan to build a memorial hall honoring Gen. Douglas Mac Arthur. Government officials and busi nessmen hope to raise a fund of $1,319,445 in Japan and the United States. The proposed hall would be ;rected on the site of the former general headquarters adjacent to she imperial palace in mid-Tokyo I