Evening star. [volume], September 16, 1952, Image 1

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

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Weather Forecast
Sunny, high in low 80s today; clear and
cool tonight, low of 54. Tomorrow, fair,
high near 80. (Full report on Page A-2.)
Temperatures Today.
Midnight 71 6 a.m. __62 11 a.m. __76
2 a.m ...67 8 a.m. _.62 Noon 78
4 a.m. __6s 10 a.m. __72 1 p.m. -.79
Lote New York Markets. Page A-21.
100th Year. No. 260.
Truman Criticizes Eisenhower
In Speech Assailing 'Pullbacks 7
Who Fight His Health Program
Philadelphia Talk
Blasts Advocate of
'Do Nothing' Policy
By Joseph A. Fox
Star Staff Correspondent
PHILADELPHIA, Sept. 16.
President Truman today scored
the “pullbacks” opposing his na
tional health program and took a
plainly worded slap at Gen. Eisen
hower, who has joined critics of
the administration’s advocacy of
“socialized medicine.”
He did not mention the G. O. P.
presidential candidate by name.
Addressing the anual meeting of
the American Hospital Association
Text of Truman's Speech on Nation's
Health Problems. Page A-6
in Convention Hall here, Mr. Tru
man recalled the unsuccessful
" fight of the past seven years to put
across his plan for meeting “very
expensive” medical costs against
an opposition that wants “to stand
still with things as they are, or
even move backward."
“Even now,” he continued, “they
seem to be advocating the amazing
proposition that Government
should' have nothing to do with
health except for ‘locally admin-
Truman Renews Plea
For Blood Donations,
Says Supply Is Low
By the Associated Press
President Truman issued a
new appeal today for blood
donations, saying the reserve
supplies are dangerously low.
In his speech to the Amer
ican Hospital Association, the
President asserted:
“The supply of blood needed
for our troops in Korea, for
the patients in your hospitals
here at home, for civil de
fense reserves is dangerously
low. I appeal again to every
American to give blood if he
can.”
lstered indigent medical care pro
grams.”
“That’s about like saying we
don’t need any form of social se
curity except the county poor
house. These people really want
to go back to the horse and buggy
days.”
Tax Factor Omitted.
President Truman’s plan, based
on the principle of compulsory in
surance financed by a payroll tax,
was attacked in a statement Sun- ,
day by Gen. Eisenhower. He said
that “experience has shown that
American medicine outstripped
the world on a volntary basis, and
on that basis—plus voluntary in
surance plans, together with lo
cally administered indigent medi- i
cal care programs for those un
able to participate—the needs of
Americans will most adequately
be met.”
Mr. Truman did not mention
specifically the compulsory tax
feature, which has stirred the ire
of the American Medical Associa
tion and other critics in and out
of Congress, but pointed out that
he has invited alternative pro
posals to his plan from the pull
backs.
The issue recalled that he has :
had a special commission studying 1
the issue for the past year, in an
effort to get additional recom
mendations. i
Cites Advances.
i
Mr. Truman discussed, at some ,
length, the advances made in ,
medical care, declaring “we now
have the highest standard of
health in our history. Life ex- \
pectancy has never been so high'; ;
the occurrence of communicable<
disease has never been so low.” ;
Citing gains, he said the hos
pitalization program of the Vet- |
erans’ Administration has been <
advanced “beyond what anybody <
thought would be possible.”
Despite the “pullbacks,” Mr.
Truman said, the Government;
has gone ahead, and in the past
year, “we were able to meet the :
needs of 18 million Americans—:
one in eight of our population—
wno required hospital care.”
A Federal-aid program for
construction of hospitals to be
owned and operated by the people
of local communities, the speaker
continued, went into effect in
1946, and more than 1,800 proj
ects for hospitals, health centers
and other medical facilities have
been approved.
Mr. Truman also stressed that
progress is being made in the
field of medical research, with
the Federal Government support
ing about a quarter of all that
is done in medical schools.
President Truman was greeted
by Pennsylvania’s Republican Gov.
John 8. Fine and Joseph S. Clark,
Democratic Mayor of Philadelphia,
when his special train arrived at
the Chestnut street station at
10:45 am.
A small crowd was on hand at
the station, and employes of a
nearby office building gave the
President a paper shower as he
drove by, but there were few spec
faun’s on his 10-block ride to the
convention site, and barricades the
police had put were unnecessary.
Mr. Truman registered as a
“delegate” to the convention, then
Inspected exhibits before joining
some of his hosts in a preluncheon
reception.
He is due back in Washington
at about 5 pm.
Phone ST. 5000
AFL Supporter of Eisenhower
Appears to Have Deserted Him
Gray, of Building Trades, Declares Taft
'Disheartened' Him in Announcing Backing
By James Y. Newton
Star Staff Correspondent
NEW YORK, Sept. 16—Gen. Ei
senhower’s presidential campaign
today apparently had lost the sup
port of a powerful labor leader.
The man who indicated he was
climbing off the Republican band
wagon was Richard Gray, presi
dent of the AFL Building and
Construction Trades Department
and one of the federation’s most
influential figures.
Mr. Gray said he was “tremen
dously disheartened” by the re
marks of Senator Taft, Republi
can. of Ohio, last week in an
nouncing his active support of
Gen. Eisenhower. He said particu
larly distasteful to him was the
Senator’s statement that he and
the general saw eye-to-eye on the
Taft-Hartley Labor Relations Act
and that the general did not favor
repeal. The labor unions have
waged a five-year fight for repeal
of the law they contend is unfair.
Decision Next Week.
A month ago Mr. Gray an
nounced his support of Gen.
Eisenhower, saying the Democrats
had not sincerely fought for Taft-
Hartley repeal, and that the little
they had done was ineffective.
At the time he described himself
as a life-long Democrat.
Mr. Gray today did" not say
he would work for Gov. Stevenson.
But he did say he would go along
with the decision of the AFL con
vention here when it decides next
week whether to make a presi
dential indorsement and who it
will be.
The defection of Mr. Gray left
Gen. Eisenhower virtually with
Truman Sees Scheme
To Crash Labor if
Republicans Win
President Charges Plot
Was Hatched at End of
War by Reactionaries
By a Staff Correspondent of TH« Star
NEW YORK, Sept. 16.—Presi
dent Truman said today that
“special interests are already
grinding, their axes for a fresh at
tack on labor in the event of a
Republican victory” in November.
Mr. Truman gave this warning
in a message to the American Fed
eration of Labor convention here.
Joining him in attacks on the Re
publicans and their presidential
candidate. Gen. Eisenhower, were
three administration speakers.
These were Secretary of Labor
Tobin, Mutual Security Adminis
trator Averell Harriman and Fed
eral Security Administrator Oscar
Ewing.
The President said “a definite
plot was hatched” at the end of
the war “to smash, or at least
cripple, our trade union move
ment in a period of postwar re
action.”
Accuses Politicians.
He said the “conspiracy” was
developed by a group of politicians
working with reactionary employ
ers. These men, he added, were
confident the unions could be beat
en down as they were after World
War I.
But the conspiracy largely was
thwarted by the Democrats after
the Republican conspirators had
succeeded in enacting the Taft-
Hartley law.
Mr. Truman called on the AFL
to help elect the Democratic can
didates and thus make sure repeal
of the Taft-Hartley law and
preservation of the rights of labor.
Secretary Tobin, in a speech
handed out by the Democratic Na
tional Committee, assailed Gen.
Eisenhower and the Republicans
as the party of reaction. He said
that under the Taft-Hartley Act
the growth of the labor movement
had been negligible. He added
that repeal of the law was “a mat
ter of life or death” for the labor
movement.
Refers to Taft.
Mr. Tobin said the voters, be
fore they will put faith in Gen.
Eisenhower’s statements about a
housecleaning in Washington, “are
going to want to know how much
housecleaning (he) has done in
the Republican Party.”
The Secretary said that Gen.
Eisenhower, in siding with Sen
ator Taft. Republican, of Ohio, on
the matter of opposing Taft-Hart
ley repeal, showed that he was no
friend of labor.
He pointed out that Senator
Taft said his only difference pith
Gen. Eisenhower on foreign policy
was one of degree.
“It is a question of degree,” Mr.
Harriman said. “It is a question
i of whether we are going to look
: after the security of the country
and we can have that only one
way. And we can’t have that se
i curity the Taft way.
Soviet Gen. Petrov Dies
I MOSCOW, Sept. 16 (A*).—The
: Moscow press today reported the
i death of Maj. Gen. Alexei Petrov,
44. The announcement said he
i had served throughout World War
H at the front in command posts.
W\t fuming
\ ✓ J v y WITH SUNDAY MORNING EDITION ,
** WASHINGTON, D. C., TUESDAY, SEPTEMBER 16, 1952—FORTY-SIX PAGES.
out support in the top echelons
of organized labor. AFL Vice
President William L. Hutcheson
" is a life-long Republican and a
1 Taft man. Vice President Wil
’ liam McFetridge, head of the
, Building Service Union, supported
\ Gov. Thomas E. Dewey four years
’ ago. But neither has come out
j for Gen. Eisenhower this time.
General Speaks Tomorrow.
Eisenhower supporters have been
turning on the heat to prevent
'an AFL indorsement of Gov.
Stevenson. One of the most active
'in this respect is Harold E.
\ Stassen.
j Gen. Eisenhower will address
| the labor convention tomorrow.
| Mr. Stassen, it was learned, tried
| to arrange an “intimate” break
: fast meeting between the general
! and top AFL leaders. He was told,
,an AFL spokesman said, that
[ whatever the general had to say
he should say it before all the
’ convention delegates.
Gov. Dewey in a speech yester
day urged the convention not to
. be “impetuous” and indorse Gov.
i Stevenson. He pointed out the
AFL “didn’t do so well” the only
! other time it gave blessing to a
. presidential candidate —in 1924
: when the federation supported
the third party candidate of the
' elder Senator Robert LaFollette.
In his own gubernatorial cam
: paigns, Gov. Dewey pointed out
rather bluntly to the labor dele
; gates, he had won handily despite
AFL opposition.
However, signs were increasing
that the AFL would indorse Gov.
Stevenson after his speech to the
convention next Monday.
Eisenhower to Fly
East for Major Talk
To AFL Tomorrow
Address by Candidate
May Make or Break
Him in Campaign
By Crosby S. Noyes
Star Staff Correspondent
ABOARD THE EISENHOWER
SPECIAL, Sept. 16.—Gen. Eisen
hower leaves his campaign train
parked on a Minnesota siding to
day to fly back to New York for a
major labor policy speech before
the American Federation of Labor
convention.
As of last night, there was no
definite word and few hints about
Excerpts From Whistle-Stop Talks Made
by Eisenhower. Page A-4
Morse Deloys Text of AFL Talk Until
Eisenhower Speaks. Pago A-3
Stevenson Continues to Work on Speeches
He'll Make on Tour. Pago A-5
the position the G. O. P. candidate
will take on the issues which may
make or break him in his bid for
the presidency.
He will leave the train in St.
Paul for the labor speech, to be
delivered m New York at 11 a.m.
tomorrow. Tomorrow night he
flies back to rejoin the train at
Rock Island, 111., to continue
his high - powered Midwestern
speaking tour.
Calls for Consistent Farm Plan.
As his train moved into Minne
sota this morning, Gen. Eisen
hower issued a call for a con
sistent farm program. Before a
crowd of about 3,000 at Albert Lea,
the general accused the Democrats
of putting the farmer “in the mid
dle” by conflicting price control
and agricultural aid programs.
He said farmers were “caught
in the middle” last fall when the
Office of Price Stabilization threat
ened to clamp price controls on
hogs at the same time the Agricul
ture Department was saying the
oversupply of hogs would prevent
any price increases.
“As for the Republicans, we will
be consistent,”, Gen. Eisenhower
said.
In the course of a 14-hour day
(See EISENHOWER, Page A-3.)
Kefauver Plans to Work
'Vigorously' for Stevenson
By the Auociatad Fret*
Sentor Kefauver telephoned
Democratic National Committee
headquarters from France today
to say he’ll be back in the United
States next week ready to conduct
a vigorous campaign for the party
ticket.
“I want to work vigorously for
the election of Gov. Stevenson and
Senator Sparkman," Senator Ke
fauver said.
The Tennessee Senator’s cam
paign swing will start October 2
with speeches at Centerville and
Cedar Rapids, lowa.
Then he’ll tour through South
Dakota. Washington, Oregon, Cal
ifornia, New Mexico, Pennsylvania,
Michigan. Ohio, Illinois and Con
necticut, in most of which he won
presidential primaries.
Wake Island Hit
By Typhoon; 600
To Be Evacuated
Buildings Destroyed;
Victims Sleep in
Grounded Planes
By tha Associated Press
HONOLULU. Sept. 16.—A rag
ing typhoon with winds up to 140
miles an hour lashed tiny Wake
Island yesterday, demolished liv
ing quarters and communications
and sent crashing over
the entire island.
Mountainous seas and torren
tial rains battered the island
which is only 15 feet above sea
level, all afternoon, subsiding only
late at night.
Air-sea rescue planes left Hon
olulu’s Hickam Field and Kwaja
lein this morning with food, water
and medical supplies for the 600
men, women and children ma
rooned on the coral speck 2,300
miles west of here.
The military transport Ains
worth was diverted from its course
about 700 miles southwest of Wake
and ordered to evacuate the
stricken residents and transients.
Scattered messages received here
painted a picture of devastation.
Injuries Only Minor.
An unidentified Civii Aeronau
tics Authority maintenance man
cranked up the radio of a
grounded plane and gave first de
tails of the disaster.
The only injuries reported were
comparatively minor: One man
with a broken leg, another with
fractured ribs.
Gordon T. Maxwell, a Pan
American Airways executive, re
ported to his San Francisco office
from Wake that all the company’s
facilities were destroyed. He said
no Pan American personnel was
hurt.
He said water covered the island
and marooned victims were sleep
ing in grounded planes.
During the storm, Mr. Maxwell
said, every one took refuge in
World War n underground Japa
nese gun emplacements and am
munition vaults.
Two air-sea rescue planes are
expected to reach the stricken
island today. The Ainsworth is
expected there tomorrow.
Water Supply Is Problem.
CAA dispatches sent via a
grounded plane’s radio requested
the removal of all but essential
personnel. The Hawaiian Sea
Frontier said that would mean
about 90 per cent of 600 employes
and family members attached to
the CAA, the Weather Bureau and
various airlines.
The most serious problem on
Wake is the disruption of its lim
ited water supplies. Restoration is
expected to take some time.
In Tokyo a spokesman said Pan
American has a stratocruiser
ready to take nurses, medical and
other supplies to Wake “whenever
we can get there.”
The plane and other Strato
cruiser standing by in Honolulu
are equipped to evacuate the in
jured.
Most of the buildings on the
shattered island are remnants of
wartime construction projects—
quonset huts and shacks. There
are only three solid stqpl and con
crete buildings. President Truman
and Gen. Mac Arthur held their
historic conference in one of them
in October, 1950.
2 Rescued After Boat Hits
Pilings and Sinks in Bay
By th« Associated Prut
SOLOMONS ISLAND, Md.. Sept.
16.—The skipper of a small cargo
boat and his deck hand were res
cued from Chesapeake Bay today
after their craft hit an obstruction
in the darkness and sank.
The rescued men were Capt. J.
C. Burton of Kinsale, Va., and H.
B. Pope of Baltimore.
Their craft, the Margaret Trav
ers, bound for Baltimore with
44,000 cases of canned beans, hit
some pilings near the mouth of the
Patuxent River used as a target
for testing planes from the Pa
tuxent Naval Air Station.
Capt. Burton and Mr. Pope said
the pilings had no warning lights,
although they are required by
marine regulations. '
Impact with the pilings knocked
the pilot house off the Margaret
Travers. Capt. Burton and Mr.
Pope clung to it while it drifted
dowffthe bay.
They were picked up by the
Virgie Garrison about 12 miles
south of Solomons Island.
The accident occurred about
1:45 a.m.
Suitor Storms Into Office,
Beats Up Rival and Wins Girl
By (ho Auociatad Frau
LONDON, Sept. 16.—Winifred
Haggerty, blond, beautiful and 21,
could not make up her mind
whether to marry Leslie Hook,
who worked in the same office, or
Laborer William Brooks.
She pondered for months.
Finally Brooks acted. He stormed
into Winifred’s office, swung her
around by the hair, and beat up
his rival, fracturing Hook’s skull.
He eventually was carried off to
jail after a fight with three police
men.
The fracas got Brooks 21
Wrong Turn?.
Spurt in Building Predicted
As Curbs on Housing Credit End
Realty Men Believe Many Businesses
Will Be Helped by Federal Reserve Action
By William A. Millen
A general business boom, espe
cially in the building industry was
forecast today by Washington real
estate leaders, following the lifting
of credit restrictions on new
housing.
The Federal Reserve Board yes
terday suspended its Regulation X
which limited credit the buyers of
new housing could obtain. Both
residential and commercial prop
erty are affected by the order,
effective today.
Frank J. Luchs, executive vice
president and treasurer of Shan
non & Luchs Co., reiltors, who is
also president of tho District Chap
ter of the American Institute of
Real Estate Appraisers, said:
“I feel that it is splendid that
we are getting rid of these onerous
controls and that we will now be
able onqe again to let the normal
law of supply and demand operate.
This means that the buyer and the
seller can set their own prices in
a free market. It should definitely
speed up the sale of new residen
tial property.
All Price Ranges.
“This will affect all price
ranges—the $25,000 home as well
as the $12,000 to $14,000 home.
A man buying a home for over
$24,000 has had to pay 50 per
cent in cash. The man buying
a $15,000 home has had to pay
over $4,000 cash. And that’s
been just as difficult for one as
for the other.
“I understand that the min
imum down payment in veterans’
cases will be 5 per cent by law.
But I know from actual experi
ence with mortgage bankers and
lenders that a larger down pay
ment will be required in most
cases. It is my opinion that, on
houses in the $12,000-to-$20,000
price range for veterans, a down
payment of at least 10 per cent
will be needed.
"The suspension of Regulation
X on commercial property will
open up considerable construction
of new commercial projects.”
Overdue, Says Carr.
Edward R. Carr, president of
the Washington Real Estate Board
and former president of the Na
tional Association of Home Build
ers, had this to say:
“It’s long overdue, and I believe
will help business materially. One
of the main things is people have
been waiting to see what is going
to be done. The mere fact of a
decision should be a stimulation.”
In making its anouncement yes
terday afternoon, the Federal Re
serve Board said; "Conventional
mortgage loans are, of course, still
subject to basic State and Federal
statutes governing real estate
loans by financial institutions.
The Labor Department advised
the board that, during June, July
and August, the number of hous
ing units started was below a sea
sonally adjusted annual rate of 1.2
million. The Defense Production
Act, as amended, required that
Regulation X he lifted when new
housing started in three consecu-
months in jail—and made up
Winifred’s mind for her. As soon
as Brooks left the courtroom to
begin his sentence, she announced
that he was the winner.
"He has shown he loves me even
if he showed it the wrong way,”
: she declared. Os the defeated
Hook, Winifred said, “He made no
attempt to get in touch with me
since he came out of the hospital.
1 1 don’t want a man who doesn’t
want me.”
. Commented Hook, “He can have
her."
tive months dropped below that
figure
Regulation X down payment re
quirements ranged from 5 per cent
on houses costing $7,000 or less to
40 per cent on those valued at
$25,000 or above.
In Effect Since 1950.
Regulation X had been in effect
since October, 1950. It set offi
cial limits on the amount of credit
which lenders could give in selling
homes and Commercial property.
The regulation applied only to
new buildings. A principal pur
pose of the regulation as well as
of credit restrictions on home sales
Involving Government loans or
guarantees was to prevent home
and commercial construction from
contributing to inflation.
Federal Reserve Board an
nouncement of suspension of
Regulation X was accompanied
yesterday by a Federal Housing
and Home Finance Agency order
which eased down-payment re
quirements on Government-backed
housing.
The net effect will be to per
mit a purchaser to buy a home
or commercial property on what
ever terms he can arrange with
out Government supervision or
regulation.
Regulation X could be put back
into force at some future time.
Congress has provided that it
could be restored if during any
three months the number of
housing units started went above
1.2 million on an annual basis.
Man Phones Police,
Then Kills Himself
Police efforts to prevent a 30-
year-old carpenter from carrying
out his threat to kill himself
failed early today.
The man, Luther W. Blanchard,
of 1607 Irving street N.W., called
police shortly after 1 a.m. and
announceed that he was going to
commit suicide.
Police dispatched a scout car
to the address he gave. Tenth
Precinct Pvts. Douglas M. Smith
and Hafry M. Blandy said they
were running up the steps to Mr.
Blanchard’s room when they heard
a shot. They found the jgjrpentor
-lying on his bed with a bullet
hole in the center of his fore
head. At his feet was a .22-caliber
rifle. Mr. Blanchard died an hour
later in Emergency Hospital.
A note written by Mr. Blanch
ard on the back of a bill of sale
for a 1952 automobile gave no
reason for his act. It assured
police no foul play was involved.
Coroner A. Magruder MacDon
ald issed a suicide certificate.
Alexandria Woman
Killed Under Track
Mrs. Mignon Mundy Johnson,
25, of 1333 Powhatan street, Alex
andria, was killed today when a
tractor-trailer backed over her
near Potomac Yards.
The accident occurred at Swann
avenue and Oakville street, Alex
andria. Mrs. Johnson had just
left the employment office of
Melpar, Inc., on Swann avenue,
where she applied for a job.
She was to return for an inter
view after lunch.
Alexandria police said Mrs.
Johnson apparently was crossing i
Oakville street as the Ihrge As
sociated Transport truck started
backing into the street.
Mrs. Johnson, a graduate of the
University of Alabama, was the 1
wife of Carl Oden Johnson, who is •
a dental student at Georgetown <
University. :
The truck was driven by Rich- ‘
ard Hamilton Prentice. 29. of the <
200 block of Sixty-eighth place, <
Seat Pleasant, Md. i
Guide for Readers
Fago Fagt
Amusements A-14-15 Lost and Found A-3
Classified —B-13-20 Obituary A-12
Comics B-22-23 Radio-TV B-21
Editorial .A-10 Sports A-17-19
Edit. Articles.. A-11 Woman’s
Financial A-21 Section B-2-6
Bobo Delivery. Monthly Rotes: Kvenlnt and Sunday. 51.75; S PTpMTQ
Iveninc only. SI.SO: Sunday only. 46c: Night Final. 10c Additional. ** V-EJlv A O
Six Marine Jet Pilots
Crash Into Hillside
One After Another
Leader's Instruments
Believed at Fault in
Korean War Tragedy
ly th« Associated Press
AN AIR FIELD IN KOREA,
Sept. 15 (delayed by censor).—Six
, United States Marine Panther jets
crashed one after another into
\ two mist-covered mountains in
’ South Korea last Wednesday, kill
i ing the pilots, United States offi
cers disclosed today.
| The jet fighters were part of a
; group of 21 returning from a com
■ bat mission in North Korea.
[ Skies were dark and murky.
The weather closed in over the
. squadron’s home base. The planes
l were ordered to land instead at
I an Air Force field.
Fifteen of the squadron landed
1 safely at the Air Force field.
Were Short of Fuel.
Informants said the other six
were led by a lieutenant, whose
' instruments apparently were
1 faultv.
The lieutenant radioed at dusk
! that he was over the Air Force
field and the six planes were short
of fuel. That was the last heard
‘ from the six.
Helicopter and Allied planes be
- gan a search next morning.
The search planes found the
, wreckage of the Panther jets Fri
’ day in rugged terrain between
Taegu and Pohang, north of the
temporary South Korean capital
of Pusan.
Five of the planes had crashed
into one mountain. The sixth had
sailed over the top of the moun
tain and crashed into another be
yond.
Air Force officers said five of
> the pilots, apparently flying in
! formation, had followed the flight
leaders to their deaths.
In Guerrilla Territory.
I Maj. Gen. Clayton Jerome, com
l mander of the Ist Marine Air
> Wing, said a board of inquiry had
investigated the crashes but its
• findings were not disclosed.
i One source said the jets crashed
t in guerrilla territory and helicop
r ters which tried to recover the
. bodies were shot at and were un
[ able to land. This was not con
• firmed officially.
t This source said paratroopers
. had to be dropped near the moun
• tain. The bodies were brought out
• by the paratroopers by land, he
added.
| In Washington the dead, all
! members of the Able Eagle Squad
[ ron, were listed as: Maj. Raymond
E. DeMers, 33, Genesee, Idaho;
Maj. Donald F. Givens, 29, Attle
boro, Mass.; Ist Lt. Alvin R.
Bourgeois, 27, Detroit, Mich., and
2d Lts. John W. Hill, jr., 25,
Moncks Corner, S. C.; Carl R.
LaFleur, 23, Pooleville, N. Y„ and
Richard Lee Roth, 21, Lock Ridge,
lowa.
Bandits Get $15,000
From Bank in Bronx
ly the Associated Pros*
NEW YORK, Sept. 18.—Two
men held up the Manufacturers
Trust Co. branch at 3015 Third
avenue, the Bronx, today and es
caped with an estimated $15,000.
One of the bandits leaped over
a 5-foot teller cage partition and
ran from cage to cage, scooping
up the money, police said.
The pair then fled in a green
sedan.
215 Ships Lost in Year
LONDON, Sept. 18
Register reported today that 215
of the world’s ships were lost in
disasters at sea during 1951.
America headed the casualty list
with 14 lost vessels. They to
talled 49,889 tons. The report
covered only vessels of 100 or more
tons. .
An Associated Press Newspaper
Court Upsets
10c Phone Calls
In Maryland
Increase Granted by
Utilities Board in
March Overruled
By fho Associated Press
BALTIMORE. Sept. 16.—Chief
Circuit Court Judge W. Conwell
Smith, in an opinion written for
release today, reversed the coin
box increase granted the Chesa
peake & Potomac Telephone Co.
by the Maryland Public Servica
Commission.
He added that a proper consid
eration of the case by the com
mission might have resulted in a
“reduction instead of an increase
in telephone charges.”
In a decision last March, the
PSC authorized the company to
boost coin-box charges from 5 to
10 cents, but denied increases in
charges for other telephone service.
The commission also fixed the
fair value of the company at sllß,-
279,156.
Appeal Is Expected.
Judge Smith said he under
stands his decision will be taken
to the Court of Appeals. It is ex
pected the 10-cent coin box charge
will remain in effect pending the
appeal.
The commission ruling granting
the increase had been appealed by
the city and the People’s counsel,
who wanted it wiped out, and the
telephone company, which thought
it inadequate.
Judge Smith said in his opinion
that the rate base was not sup
ported by “substantial evidence.”
He said the rate of return was
established without giving weight
to tax economy and tax advan
tage.
“If the telephone company were
competing with others,” he de
clared, “you may be sure it would
be availing Itself of all possible
economies in operation, including
tax economy.”
Advantage for Stockholder.
“That it does not adopt a finan
cial structure which will produce
such economies is due to the fact
that American Telephone & Tele
graph, its only stockholder, re
alizes a tax advantage from the
all-stock structure ...” the judge
found.
“The tax rate on American’s in
come is 17 per cent; on its divi
dends from CdcP, it is only 8
per cent. And It will continue to
be so, just so long as he commis
sion permits it.” said judge Smith.
A Public Service Commission
hearing on the C&P’s application
to boost residential service from
25 to 50 cents a .month, was re
cessed yesterday until September
25 after the company completed
its case.
The utility told the PSC its
present request for a temporary
increase to raise its income by
$830,000 a year is “ultra conserva
tive.”
New Rate Plea Planned.
W. Griffin Morrel, vice presi
dent, said the company will ask
for further increases in a futura
application for permanent rates.
He said the C&P is asking for
temporary increases now because
hearing on a permanent applica
tion would take too long.
Mr. Morrell cited recent wage
increases amounting to $2,400,000
a year and plant construction
costing S2B million as reasons for
boosting its monthly rates.
“The more people we serve the
more expensive it becomes to
serve each one,” Mr. Morrel ad
ded. He said the number of tele
phones has increased from 690,000
at the end of last September to
735,000 last July and that plant
investment for each has jumped
from $255 to $261.
Where Increases Would Go.
Lewis M. Smith, assistant vice
president, explained how the com
pany proposes to distribute the
increased rates sought.
Flat rate residential services in
the metropolitan areas and local
area exchanges in the counties
would be increased 25 cents a
month, and individual unlimited
service 50 cents.
U . S. Population Rises
6 Million in 2 Years
To 157 Million Mark
The population of the
United States stood at 157,-
269,000 on August 1, the Bu
reau of the Census reported
today. This represents an
increase of 254,000 over July 1.
The 1950 census listed the
population as 151,132,000.
Thus the population has in
creased 6,137,000 in little over
two years.
More States Sampled
On Political Opinion
ELECTION SURVEY—How will tfco
Mountain and Western States go la
November? Auociated Frew Writer
Douglas I. Cornell offers a preview
based on local newspaper opinion in
a story on pago A-4.
LITTLE THINGS—Life is mado up
of them and can bo mado boppior by
observing them to thair fullest. So soys
Carolyn Coggins m bar party-giving
series on pago B-4.
MORE MUTINY—The famous story
•f rebellion on the high seas is con
tinued in the serialization of Hormau
Week's book, "The Caine Mutiny,” on
Wl-7.