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Evening star. [volume] (Washington, D.C.) 1854-1972, February 28, 1952, Image 1

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100th Year. No. 59. Phon. BT. MOO ta.qjlnt.taW .gfit, W^Attai « CENTO
Morris Allotted
$450,000 for
Cleanup Drive
Salary Will Be $15,000;
Truman Takes Money
From Emergency Fund
By George Beveridge
President Truman has given
Newbold Morris a $450,000 ex
pense account to finance his anti
corruption inquiry through next
June 30, it was disclosed today.
A Budget Bureau spokesman
said an order by President Tru*
man, which authorised the allow*
ance, also set Mr, Morris’ salary
at $15,000 a year,
The allocation, taken from the
President’s Emergency fund,
technically was made to the Jus*
fiee Department, The reason for
this is that Mr, Morris will eon*
duet his seareh for wrongdoers in
Government as an assistant to
Attorney General MeGrath,
Agencies Ordered to Help,
Today's disclosure was the first
word of either Mr, Morris’ salary
or how much financial support he
would get from the White House.
Mr, Truman already has directed
all federal agencies to make avail*
able any information and help he
Salvadore Andretta, Justice
Department administrative officer,
told a reporter no breakdown was
available on specific uses to which
the 1450,000 will be put.
Mr. Andretta said he did not
know how much money would be
available to Mr. Morris In the next
fiscal year, starting July 1. He
added, however, that the 1450,000
will cover costa of setting up the
Investigation, as well as day-to-day
operating cost*.
Must Pay Own Way.
Thus, the monthly average of
$112,BOO available to the cleanup
alcuth may not for the next four
month* represent later operating
"The Morris operation," the
Justice Department official mid,
"will have to stand on Its own
feet financially and pay Its way,"
This, he said, will include re
imbursing the Oeneral Bervicc*
Administration for space rented
In the old Washington Post Build
ing, as well as furniture, reim
bursing other agencies for Fed
eral employes on loan and paying
all other expenses,
Budget Bureau officials said Mr.
Truman signed the budget alloca
tion order late yesterday.
HtafT NUII Not Chosen.
While a skeleton staff is In
operation at Mr. Morris' new base
of operations, the New Yorker
still has not lined up top aides
for the inquiry. He told reporters
last week that he was planning
tentatively for a total staff of
about 180 persons.
As a first step Mr. Morris plans
Wsend questionnaires to top offi
cials of Government, seeking de
tailed Information about their
sources of Income. He has indi
cated the forms may go out next
Judiciary committees of both
the House and Senate still are
deadlocked on President Tru
man's request to give Mr. Morris
broad powers to subpoena wit
nesses and documents.
Meanwhile, the House judiciary
subcommittee Investigating the
Justice Department has ended its
long search for office space, and
is setting up a base of operations
in a Capitol Hill hotel.
Speaker Rayburn broke a long
House precedent and granted the
Investigators permission to rent
non-Govemment-oWned space in
the George Washington Inn, only
a few steps away from the House
Office Buildings.
Chairman Chelf, Democrat, of
Kentucky, said his group hoped to
be in the new quarters this week.
Aga Khan Flies to Riviera
NEW DELHI. India. Feb. 28. <*).
—The ailing Aga Khan. 74. spirit
ual leader of the Ismalll Mos
lems, left his sick bed here to
fly to Nice on the French Riviera,
He is recovering from a heart at
tack suffered In Dacca. He was
carried aboard the chartered
plane on a stretcher.
Late News
New Nunan Case Cited
Senator Williams, Republican,
of Delaware told the Senate to
day the Government once was
moving for criminal prosecution
of a Miami (Fla.) man, claim
ing he owed 1792,094 In taxes,
but dropped the case after for
mer Revenue Commissioner
Joseph Nunan entered It as an
_ (Earlier Story on Page A-It.)
Landlady Tells How
To Rent Rooms Fast
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tiB'i N*. I iMfM mriivm,
Unions to Consider Postponing
Natural Gas Strike Set Monday
Leaders Agree to Consult Membership
In Effort to Avert Nation-Wide Tieup
Union representatives said to
day they are "seriously consider
ing" postponement of a strike
set for 12:01 a.m. Monday which
threatens to choke off natural gas
supplies to Washington and
nearby areas.
The announcement was made
by O. A. Knight, president of the
CIO Oil Workers’ Union, after he
and representatives of two other
union groups had conferred for
nearly three hours with Federal
Mediation Chief Cyrus 0. Chlng.
While mediators were attempt
ing to avert the strike, the local
gas company was notified that the
Federal Power Commmission had
approved an order which will add
$000,000 to its annual operating
Represents Employes,
Mr, Knight's union, which is
meeting today, represents cm*
ployes of two companies which
supply gas to the Washington ©as
Light 6o, The companies are
among several scores of ell and
gas companies Involved In a wage
dispute with the 61© and the
AFL and independent unions,
Mr, Knight said that he and
officials of the AFL and hide*
pendent unions would meet again
at 2 p m to "give serious eonsid^
eration to Mr, Chine's request
that we postpone the strike set
for Monday for one week."
Negotiations Deadlocked.
The strike threat—Nation-wide
In scope—stems from a deadlock
betwen the CIO Oil Workers’
Union and major oil and gas
producers. The local gas com
pany Is not directly involved In
the dispute between some 2,200
pipeline workers In West Virginia
and the corporation which sup
plies all natural gas to this area.
The union has set Monday as the
strike deadline all over the coun
Others taking part In the medl
atlon session with Mr. Chins were
J. J. McKenna, representing a
group of independent unions, and
O. V. Clover, representing various
AFL unions in the gas and oil in
To Consult Members.
The three union officials after
consulting with their members in
the field will decide whether to
postpone strike action which they
estimate would affect 375,000 em
ployes of the oil and gas industry
over the country. About 3,300
workers of gas producing and pipe
line companies are involved in
that portion of the dispute which
threatens to choke off Washing*
ton's gas supply,
The gas is pumped In from
Southern West Virginia and last*
pm Kentucky to Washington Oas
Light Co, facilities here and dis*
tributed to some 800,000 customers,
Mr, ChiHg also scheduled a 8
p m, meeting with representatives
of the companies involved in the
Nationwide dispute,
Wholesalers Increase Rales.
The 1800,000 increase in the
Washington Oas Light §©.'s an*
nuai operating costs became eer*
tain when the federal Power
Commission authorised whole*
saiers to increase their rates.
The Atlantis Seaboard Corp.
of Charleston, W, Va-, which sup*
plies natural gas to Washington
and Baltimore had already notl*
fled the Washington Oas Light
Co. that if the Federal Power
Commission acted favorably, high
er rates for natural gaa would go
into effect here March 7.
Action of the FPC bolster* the
position of the gas oompany in
its application to the Public Utili
ties Commission for a 15 per oent
Increase in rates to consumers.
Hearings on the rate Increase will
resume before the PUC tomorrow.
Oas oompany officials, mean
_<Hre OAS, Page A-3.1_
Message by Truman
Tonight to Appeal
For Red Cross Funds
Nttwork Showi Stt;
Nation-Wide Drivo
Aims at $85 Million
The IRR million Nation-wide ap
peal of the American Red Cram
will be launched officially tonight
In a campaign program to be
carried on radio and television
A message by President Truman
will climax a dramatic show en
titled. "Answer the Call." slogan
of the 19R3 drive. The President
will be presented from the White
House by E, Roland Harrlman.
president of the American Na
tional Red Cross.
Locally, the program Is sched
uled as follows: Station WOL,
110:15 p.m.: WMAL, 10 p.m.: WRC,
110:35 p.m.: WTOP. WWDC and
WASH-FM, 10:30 p.m.; WMAL
TV and WTTO-TV. 10:30 p.m.,
and WNBW-TV, 11:05 p.m.
Vignettes on Program.
Four dramatic vignettes featur
ing Red Cross services will be in
cluded in the program, with stage
and screen personalities Including
Jessica Tandy. Hume Cronyn,
Dane Clark, Jackie Cooper and
Charleton Heston. Music will be
under the direction of Meredith
Willson, who has written an origi
nal score for orchestra and chorus.
Thousands of volunteer work
ers in the Capital area drive al
ready are embarked on the Red
Cross appeal. The drive got off to
a head start by beginning solici
tation last Monday.
Reports at campaign headquar
ters. 1515 L street N.W., indicate
that many solicitors already have
covered part of their assignments,
it was reported.
Gas (Company Meeting.
Among the.meetings scheduled
by the general business division
is one for 100 management rep
resentatives and Red Cross kev
men of the Washington Gas Light
Co. at 3:30 p.m. tomorrow In the
gas company auditorium.
General Campaign Chairman
Oeorge A. Garrett will speak. E. J.
Boothby, president of the gas
company, will preside.
Standard Oil Co. Esso plant
workers at South Capitol and M
streets are scheduling hourly Red
Cross meetings beginning at 0
a.m. tomorrow, according to Wil
liam J. McManus, chairman of
the general business division.
ruvn to D8 nnown.
The Red Crow film. "Disaster
Strikes," will be shown at these
meetings. . Other Esso employes
will attend similar gatherings In
the Standard Oil Building, 301
Constitution avenue N.W., to
The Red Cross drive In the
commercial department of the
Chesapeake and Potomac Tele
phone Co. opens tomorrow with
an employe broadcast beginning
at 1:30 a.m. The official Red
Cross campaign film. "Red
Cross Report 1903." will bo shown
to commercial department key
men starting at 9 a.m.
Other Oeneral Business Division
campaign events include k meet
ing by William Courtney, of the
New England Mutual Lire Insur
ance Co. for general agents of
local life insurance company of
fices who are serving as volunteer
Red Cross key man, at 18il0 p.m,
Mrs, Milton C. Coboy, an area
chairman for the Residential Di
vision, will meet with her Red
Cross captains and solicitors at
1:90 p,m, tomorrow In her home,
4440 Garfield street N.W,
Knowland Described
By Owen Lattimore as
China Lobby Member
'Senator From Formosa'
Reference Brings Uproar;
Witness Rebuked
Owen Lottimore net off An
uproar In a Sonata committee
today with the etatement that
Senator Knowland, Republican,
of California li a member of the
“China lobby" and hae been
called "the Senator from For
moaa." Senator O'Conor, Dem
ocrat, of Maryland eaid the
remark wai "uncalled for, un
becoming and belittling."
By Robert K. Wolih
Owen Lattimore charged at a
Senate subcommittee Inquiry to
day that the Truman administra
tion bows to the China lobby In
supporting ‘‘a driftwood govern
ment on the beaches of Formosa."
He asserted that Secretary of
State Acheson has been “intl
Mclntrney Reveals Justice Deportment
Investigated Lattimore. Page A-22
midated” and that the State De
partment is the “prisoner of some
of its most intemperate critics."
The Johns Hopkins University
professor, who Is a Far Eastern
affairs expert, began a third
rugged day in the witness chair as
the Senate Internal Security sub
committee sought his views on this
country’s policies relating to the
Chinese Nationalists and Korea.
81de Trip Fatd For.
The questions turned suddenly
to whether he ever received pay
from any foreign government. Mr.
Lattimore protested that he could
not give a yes or no answer. He
reported that while traveling
through Russia In 1936 his ex
penses on a side trip to Leningrad
were paid by the Soviet branch
of the Institute of Pacific Rela
tions. He explained that In Rus
sia the branch was really a part
of the government.
He also told the subcommittee
that he once was employed by a
British Importing and engineer
ing company, and traveled exten
sively In China. He also worked
at one time for a British sews
paper in China and on another
occasion traveled In Mongolia
under a grant from the Royal
Geographical Society of Great
Britain, ho said.
The subcommittee, in Its search
for any evidence of Communist
influence on American foreign
policy, Is particularly Interested In
(Bee LATTIMORE, Page A-33.)
Appeals Court
Upholds Collazo
Death Sentence
2 Avenues of Aid Still
Open to Puerto Rican
In Blair House Slaying
By Howard L. Dutkin
The United States Court of Ap
peals today upheld the District
Court conviction of Puerto Rican
Nationalist Oscar Collaao, who
shot and killed a White House
guard in an attempt to assassinate
President Truman.
Policeman Leslie Coffelt was
killed ahd two other White House
policemen, Donald T. Hirdnell ahd
Joseph Downs, were wounded on
November 1, 1660, at the Stair
Only two possible avenues ef
help are now open to ©ellaso If he
Is to avoid the eleetrle ehalr=
the Supreme Court or presidential
An appeal to the Supreme Uourt
was expected, This Is a normal
procedure In cases Involving the
death sentence,
Galdsboreiigh'B Point Upheld,
A companion of Collaao's In his
attempt to storm the White
House, Orlsello Torresola, was
slain by Pvt. Coffelt.
The appellate court in its opin
ion today held that the trial
Judge, the late T. Alan Oolds
borough, was right In instructing
the Jury that conditions in Puerto
Rico which, It was said, had In
flamed Collaso and Torresola, had
nothing at all to do with the case
on trial.
The appellate court held:
"The law permits purposeful
killing for certain carefully lim
ited reasons, or motives, principal
among them being self-defense
But, If a killing Is Intended and
none of the established legal ex
cuses for purposed killing Is
6leaded, the motive of the killer
i wholly immaterial."
Jury Challenge Cast Aside,
The court also pointed out that
although Torresola actually did
the flaying, Collaao, as a co
conspirator, was equally guilty
under the law.
The court also cast aside con
tentions that the grand jury was
Illegally drawn and that the trial
judge Improperly restricted the
cross-examination of a Govern
ment witness.
The question of cross-examina
tion restriction centered about the
testimony of Secret Service Agent
Joseph J. Kills.
The agent had testified that no
threats were made to Collaao In
his presence.
Wanted Him Questioned.
Later, with the jury excused,
Mr, Ellis testified to an Incident
at Emergency Hospital, where
Collazo had been taken, in which,
he said, Maj. Robert J. Barrett,
then police chief, cursed Collazo
and asked him "Why don't you
tell the man (Mr. Ellis) the truth"
about the Nationalist Party angle.
Mr. Ellis declared he did not feel
that this construed a threat.
The defense wanted to question
Mr. Ellis about the Incident before
the jury In an attempt to Impeach
his credibility as a witness. Judge
Ooldsborough refused this request
and, on appeal, the refusal was
cited as reversible error.
But the appelate court upheld
Judge Ooldsborough, saying that
Mr. Ellis had good grounds for his
belief that Maj. Barrett's remark
was not a threat and that "the
question proposed . . . was of too
remote a pertinacy to the credita
bility of the witness to have been
The appellate opinion was writ
ten by Judge E. Barrett Pretty
man and concurred In by Judge
Charles Fahy and retired Judge
Kimbrough Stone.
i 1 'i
Navy Is Waist Deep
In Drive on Waste;
Belts to Be Shorter
>y th« Allot la ltd Prm
NEW YORK. Peb. 28.—'The
Navy, which until now has
made all Its enlisted men’s
baits 46 Inches long, said to
day It will begin saving 836.
000 a year by making half
the belts for their dungarees
or work clothes 6 inches
At the suggestion of a tex
tile technologist. Louis Oar
barlnl of Brooklyn, the Navy
said it discovered that half
its men were cutting off and
discarding more than 6 inches
of their belts to make them
the proper else.
Prisoner Finally Freed From Jail
19 Months After His Acquittal
Sy th« AiiMlaMd Nil
BROOKSVILLE. Pit.. Feb. 38—
Sheriff Sim L. Lawman today re
leased a man held In Hernando
County Jail here 18 months after
he was acquitted of a murder
No formal charge had been
placed against David Reese. 38,
colored, during that time,
Sheriff Lowman said Reese had
been held on verbal orderi of Cir
cuit Judge Fred R, Xoeker ae "an
accessory and witness" In the ease
of Willie Timmons, 88, another
On July 80,1800, Judge Hooker
direeted a verdict of Innocent for
Reese in the staying of Seavey
i k
0. Livingston, who was helping
Sheriff Lowman during a bootleg*
glng raid.
Timmons, eo*eharged with
Iteese, was convicted of flrst*de*
tree murder, Last week the State
Supreme Court ordered this sen*
tenoe set aside and directed that
Timmons be sentenced for man*
Sheriff Loman explained he had
planned to ask Reese's releaee at
the term of circuit court opening
However, State Attorney J, W.
Hunter, who prosecuted the ease,
instructed the sheriff last night
to release Reece after the Tampa
Tribune ealled attention to his
long stay In fail without charge,
, /
_What li Thli, a Holdup^_ _
Senator Russell Enters Race
For Presidential Nomination
Southern Leaden Oppoied to Truman
Are Expected to Rally Behind Georgian
Senator Russell of Oeorgia to
day became a candidate for Presi
dent, calling himself "a Jeffer
sonian Democrat who believes In
the greatest degree of looal self
The Oeorgia Senator, who op
posed President Truman at the
lettle te Vile (III That Could lar Forty
Presidential Choice. Fsfo A 5
(lionhowor Ltaden in South Ley Claim
to lloctorol Majority. Pegs A-j
1949 convention, tossed hie hat
Into the ring In response to an
appeal from the Oeorgia Demo
oratto Executive Committee, whloh
called on him In the Senate Office
Building this morning.
Later in the day ho will receive
another delegation of Florida
Democrat! who want to back him
in their State.
Senator RueaeU’e announce
ment fives Southern leaders op*
posed to President Truman a
rallying point. Most of these anti
Truman Southerners have been
oool toward Senator Kefauver of
Tennessee, the only previously
announced Demooratie candidate,
even though he eame from a
Southern State.
The extent to whloh the Rus
sell candidacy will hurt President
Truman if he decides to run again
will depend on whether Senator
Russell agrees to stay in the race
as an Independent In the event
Mr. Truman is renominated,
Four ears ago Senator Russell,
(See RUSSELL, Page A-B.)
House Group Heirs
Report by Acheson
On NATO Conference
Session Is Expected
To Set Off Fight on
Foreign Aid Funds
By Garnett D. Horner
Secretary of State Acheson to
day reviewed in detail before the
House Foreign Affairs Committee
the progress toward European
unity and the buildup of North
Atlantic defense forces achieved in
recent international conferences.
Chairman Richards told report
ers after the committee met with
No Now Troops Going to NATO Till Con
gress Acts, Lovott Assorts. Pago A-6
Mr. Acheson in closed session for
nearly two hours that he believed
the Secretary had done “a won
derful job” in the NATO session at
Lisbon and Big Three meetings in
But Mr. Richards added that
the question of whether or not
the degree of unity achieved in
Europe is sufficient to justify the
United States going forward with
the huge military aid program still
is to be resolved.
Fund Action Pending.
He said this will be one of the
principal questions before the
committee In considering Presi
dent Truman's forthcoming re
quest for a $7.9 billion mutual se
curity fund, expected to go to the
Capitol In about two weeks.
In speaking of European unity,
Mr. Richards said that "basically
they are getting somewhere, but
they are not at the end of the
He added that Mr. Acheson
"realises as well as we do that
we are not out of the woods yet"
In regard to European solidarity
and the NATO defense buildup.
He pointed out that "a lot of
parliaments" still have to pass
on the European army proposal
and funds to finance the projected
SO divisions for Oen. Elsenhower'!
defense force by the end of this
Took Time by Fereleek.’
Mr. Richards asserted, however,
that Mr. Acheson and the other
American delegates at the NATO
meeting "took time by the fore
lock In a very admirable way and
brought home some real big ones."
Mr, Acheson returned yesterday
from the Lisbon conference which
decided on a formula for merging
Oerman unite into the European
army, and set a $100 billion budget
for Western European defence.
Neat Monday Mr, Acheson will
testify at a closed session of the
Senate foreign Relatione Com
He will make a radio and tele,
vision speech to the Nation at
$110 pm, tomorrow on NBC and
Mutual radio networks, and Du*
mont-TV, It Is to be carried again
#y NBC-TV at llill p,m, and
rekroadeaet at liilO p m, by ABO,
Police Raiders Seize
Suspect Called City's
Biggest Dope Peddler
'Ptftr Rabbit' Arrested
In Triple-Lock Home;
Nine Others Held
A series of raids by police and
Federal narcotics agents last night
netted a man described as the
largest dealer in illegal drugs in
the District.
Joseph Smith, alias Peter Rab
bit, 34, colored, of the 1300 block
of West Virginia avenue N.E., was
taken into custody after police
entered his home through a door
bearing triple locks.
He was accused of illegal posses
sion and sale of drugs. The raids
culminated several days of un
dercover work, during which time
agents bought 17 capsules of
heroin from Smith, police said.
Three Other RaMs.
Arrested with him were Warren
Francis Williams, 38, colored, of
the 1100 block of Eighth street
N.W., and Pearl Harriett Wood
ward, 33, colored, of the West Vir
ginia avenue address. She was
released later by United States
Commissioner Cyril S. Lawrence.
In three other raids last night,
ponce arrested seven other per
sons, all colored. All those arrest
ed were charged with violating
the narcotics laws.
The raids came as two separate
Investigation! were being made
into the narcotics traffic In the
District—one by the special Dis
trict crime grand jury and the
other by the Senate District
Crime subcommittee.
The raid on Smith's home came
at ft:30 p.m. yesterday. Police
and Federal agents converged oh
the home and were able to enter
the front door before the three
locks on the door could be tripped.
A police officer rushed upstairs
and found Smith standing In a
bedroom nude. Detectives said
Smith ran Into a bathroom and
attempted to flush a capsule down
the toilet, but was unsucceaaful.
Herein in Basket.
Police said they found traoes
of heroin in a wastebasket. They
also found a pillow slip crammed
with unused numbers books, they
Although Smith is unemployed,
police said they found Mil in his
possession and added that he la
the owner of a new list Suick
Smith was arrested on a United
States marshal's ssarsh and ten
ure warrant mads out for "Joseph
•mith, alias Peter Rabbit,"
Commissioner Lawerenee set
bond at 110,000 sash for Bmith and I
Williams and continued their eases i
to Marsh II, The ease eieinst i
Mist Woodward was dismissed be
leuas, the oommSsioner ruled, she i
intend the horns after the raid I
and waa not subject to the ssarsh l
and ssiiurs warrant. i
r A
Public Health Experts
Indorse Fluoridation
As Aid Against Decay
Dtny It Will Causa
Any 'Objactionabla'
Tooth Discoloration
By Jamei E. Roper
Experts from the Public Health
Service, fighting off hostile ques
tioning, told a House committee
today that fluoridation of drink
ing water will reduce tooth decay
without oauslng "objectionable”
discoloration of teeth.
Dr, H. Trendley Dean, dlreotor
of the National Institute for Den
tal Research, said fluoridation ol
water as planned in the District
would oause slight fleoks on thi
rear teeth of up to IB per cent ol
Washington children, but that this
would not be objeotlonable so
Por more than two hours, Dr
Dean and his health servloe asso
ciates testified in bite and pieoei
amid hostile questioning from
Vinoent K. Kleinfold, oommlttei
counsel, and questions from Repre
sentative Miller, Republican, §
Nebraska, an opponent of fluorida
Experts Differ.
Today’s testimony was the latest
in a bewildering series given dur
ing the past two weeks by expert
witnesses both pro and eon. The
experts have differed sharply on
whether fluorides should be aded
to the water supply.
The committee, a special group
set up to survey chemicals In food,
is studying whether fluoride In
drinking water harm certain per
sons even though It can cut tooth
decay, as the American Dental
Association stated today, up tc
two-thirds among young children,
Widespread fluoridation of wa
ter was recommended by Dr. Dean
and the other Public Health Serv
ice wlthesses—Dr. Francis A,
Arnold. Jr., Isadora Zlpkln and
Assistant Surgeon General Bruce
Representative Miller set the
tone of the session early when he
interrupted Dr. Forsyth, who was
relating statistics to accuse him
of putting "useless . . . silly in
formation In the record.”
At another point Representa
tive Miller stated that the Wis
consin Department of Agricul
ture had advised fanners against
feeding fluorides to sows. He
"Maybe we are being more care
ful with hogs than with humans.
I don't know what effects this
fluoride has on pregnant women.”
The dental association state
ment came from Dr. J. Roy Doty,
former research biochemist and
now secretary of the association.
Mottling Expected.
"The association Is sincerely
convinced that no pathological
conditions will result from proper
fluoridation,” Dr. Doty said, In
testimony prepared for delivery
before the committee.
Dr. Doty said fluorides In the
strength recommended may cause
an unobjectionable form of tooth
mottling "In a small percentage of
children.” He clearly felt that
the decay-preventing effect of
fluorides far outweighs this con
He said that dental scientists
"safely anticipate a reduction of
60 to 65 per cent In the number
of cavities ordinarily expeoted in
a given age group, If that group
hae been drinking fluoridated
Dr. Doty reoommended further
controlled etudy of the effects of
fluoride and promised thet "any
reported effect will receive atten
The oommittee decided to hear
testimony from representatives of
the Association of Stan and Ter
ritorial Health Officers. The com
mittee also Invited the American
Medical Association and the Amer
ican Public Health Association to
•end witnesses, if they wish,
For neat Thursday, the commit
tee arranged to hear Dr. Kenneth
Maxey, chairman of a national
Research Council Committee that
, >
Capital Transit
Boosts Dividend
To $1.40 a Share
Directors Say Increase
Is Within 63/4%
Allowed by PUC
By Donald B. Hadley
Directors of Capital Transit Co.
today increased the quarterly divi
dend on company stock to 30 cento
a share, compared with 3ft cents
paid previously, thereby putting
the stock on an annual dividend
basis of §1.40 a share,
t "The new dividend payment
Establishes a policy which tha
company will endeavor to main
tain and comes within and is iesc
than the per cent return al
lowed by the Public Utilities Com
mission on the company's rata
base," the company announced
after Its monthly board meeting,
"The new payment is within tha
range of dividend payments paid
by other loeal public utility com
panies and is payable April 1 ta
holders of reeord Afareh 18,1888,"
the statement added,
Neeond Development,
Tire announpement of today'!
dividend Increase eame as tha
week's second development re
lating to transit affairs. In an
address on Tuesday, 4, A, 1,
Broadwater, president of the tran*
sit company, told the Washington
Board of Trade that unless the
company la allowed a higher net
Income the only alternative would
be municipal ownership.
Mr. Broadwater declared also
that he favors a further distri
bution In the form, of a special
dividend from the company's re
maining surplus of mure than 14
million and emphatically declared
that ht favored an Increase In
the annual dividend rate to tl.&O
a year.
"In my opinion this positively
must be done If transit In Wash
ington Is to continue under pri
vate ownership," he said.
Glddlngs Elected.
The company's statement today
alio announced the election of B.
Cleveland Olddlngs as a member
of the board of directors in plaoe
of Floyd W. Akers, who resigned.
Mr. Olddlngs has been with the
company elnce 1043 and has
served as vice president elnce
1947. He la in chafge of publio
relations for the company.
Company officials Indicated that
the resignation of Mr. Akers, who
Is widely known in Washington
business circles, was not connected
with the Broadwater address
"Mr. Akers’ resignation waa
mailed to the eompany some time
late last week and waa reoelvad
on Monday, the day before Mr.
Broadwater delivered hie address,"
they said.
Turner Elected to Poet.
The company also announced
that Richard W. Turner was elect
ed assistant secretary of the com
pany, In addition to retaining his
responsibilities as superintendent
of Investigations and adjustments.
The appointment of Ralph Powell
recently as secretary left the posi
tion of assistant secretary vacant.
'Mr. Turner formerly was an
assistant to Mr. Powell. Louis E.
Wolfson, chairman of the board,
presided at today s board meeting.
The transit company created a
furor in January when it de
clared a $2.50 bonus dividend
from its surplus, while application
for a fare Increase was pending.
This took some $2.5 miljlon from
the surplus fund, leaving it at
about $4 million. The bonus
amounted to $10 on the old stock
before it was split and followed
the split by about six weeks.
Have Realised $17.50.
When the group of Florida
businessmen, headed by Mr.
Wolfson. bought controlling in
terest In Capital Transit Co. more
than two years ago, they paid
about $20 a share, since then and
before today's action, regular
dividends and the special bonus
payment from surplus last month
have returned $17.50 of the orig
inal Investment to Mr. Wolfson'g
group. «
This has happened while the
company has been pleading lack
of revenue. It obtained a fare in
crease last month, characterized
by company officials as “disap
pointing." The Increase added 10
cents to the weekly pass, bringing
the price to $2.10.
Denies Secret Meeting.
Meanwhile. Capital Transit de
nied that it had approached other
local bus companies in an secret
meeting last month to get re
actions to a proposed metropolitan
transit operating authority, such
an authority would buy up the
companies and operate it as a
government function.
Mr. oiddlnga said that a meet,
lng was held with the other
(fl<g TRANSIT, Pate A-l,)
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