Evening star. [volume], August 04, 1954, Image 1

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

Image provided by: Library of Congress, Washington, DC

                
Weather Forecast
Cloudy with scattered showers tonight and
tomorrow. Low tonight 68. (Full report,
plus resort forecast, on Page A-2.)
Temperatures Today.
Midnight 77 6 a.m 71 11 a.m 85
2 a.m 74 8 a.m 76 Noon 86
4 a.m 72 10 a.m—B2 l p.m 86
An Associated Press Newspaper
102 d Year. No. 216. Phone ST. 3-5000 «* WASHINGTON, D. C„ WEDNESDAY, AUGUST 4, 1954-SIXTY-EIGHT PAGES. SCENTS
S3OO Million Aid for -Allies
Is Restored by Conferees
After Eisenhower Protests
Half of Reduction
In Measure Erased
With Record Speed
By J. A. O'Leary
House and Senate conferees
today restored half of a S6OO
million cut in the administra
tion’s foreign aid bill within an
hour after President Eisenhower
had spoken out vigorously
against the Senate reduction.
Acting with unprecedented
speed, the conferees agreed on
President Will Push Atomic Pool Plon
Without Reds. Poge A-2
a ceiling of $3,054,568,000 on the
new money to be authorized for j
the coming year. This is half- j
way between the original House
total of $3.3 billion and the Sen- !
ate total of approximately $2.7
billion. j
It is still up to the Senate Ap- j
propriations Committee to decide
in the separate foreign aid ap- |
propriation bill whether all of j
the amount authorized will ac
tually be made available.
Committee Has Voted Cut.
The House Appropriations
Committee has already voted to
scale the new money down to
$2.8 billion.
If the Senate accepts the com
promise reached by conferees to
day on the authorization bill,
the Senate Appropriations Com
mittee may allow $3 billion in
stead of $2.8 billion in the sepa- ;
rate money-bill.
The House also has voted to
continue available an unobli
gated balance from last year of
$2.3 billion, so that the Foreign
Operations Administration actu
ally will have about $5 billion to
spend in the coming year.
The conferees also quickly
agreed today on the Knowland
amendment, expressing this
, country’s opposition to the seat
ing of Red China in the United
Nations.
Less than 24 hours earlier, the
Senate voted, 45 to 41, to slash
the foreign aid ceiling figure to 1
$2.7 billion.
The conferees from both
houses lost no time in reaching
the compromise this morning be
cause the appropriations com
mittee was waiting to find out
what the final ceiling would be
before acting on the separate
money bill.
Remain in Session.
The conferees were still in ses
sion this afternoon deciding how
to distribute the -smaller cut
among the several classes of
foreign aid. The conferees also
have left for settlement a Senate
amendment fixing next June 30
as the expiration date for the
FOA as a separate agency. Ad- j
vocates of this amendment want l
military aid moved into the Pen- i
tagon and economic aid into the
State Department.
Gen. Eisenhower had protested
at his news conference that the
Senate cut goes too deep and
wuold hurt us badly.
Gen. Eisenhower recalled that
the administration originally
asked for what it considered the
minimu mneeded for foreign aid.
The President said the House cut
this by SIOO million and he did
not object.
Would Build Confidence.
Gen. Eisenhower said he
wanted the foreign aid funds to
help our friends build up confi
dence.
He said that if the Senate
knew what the Kremlin was try
ing to do, he did not think there
would be so much resentment
about what we are trying to do.
In the Senate last night. Sen
ator Long, Democrat, of Louisi
ana, started out with a mo
tion to cut about $1 billion,
but this failed, 48 to 38.
Democrats, led by Senator;
George of Georgia, saved the !
administration from this deeper j
cut. On this vote 23 Democrats |
and the Independent. Senator !
Morse, joined 24 Republicans in !
opposing the deep cut. Twenty
Republicans joined 17 other
Democrats in supporting Sena
tor Long. ,
When Senator Long followed I
up with the smaller cut to $2.7 j
billion, however, he picked up
a number of recruits and car
ried that motion, 45 to 41.
Twenty-six Democrats and 19
Republicans supported it, while
28 Republicans, 12 Democrats
and the Independent voted
against.
After making the slash, the
Senate passed the bill 67 to 19.
Malone Move Loses.
The Senate shouted down
without a roll call a motion by
Senator Malone, Republican, of
Nevada, to cut off American
aid to all countries, including
Great Britain, that have recog
nized Red China.
Senator George, ranking Dem
ocrat on Foreign Relations,
joined Chairman Wiley in fight
ing both of the Long economy
moves.
Burma Rebel Raid
RANGOON, Burma, Aug. 4
(jP)—Two hundred Burmese
rebels made a surprise attack
last night on a police station
at Syriam. 12 miles from Ran
goon. looting the station armory
and treasury and carrying off 10
prisoners.
East Germany Grants Asylum
To Bonn's Missing Spy Chief
British Reveal Distrust of Dr. John
Caused Ban on Secrets Months Ago
Py the Associated Pres*
BE \ Aug. 4.—Communist
Premi Otto Grotewohl told the
East German Parliament today
that Dr. Otto John, West Ger
man security chief, has been
granted political asylum in the
Soviet Zone.
Dr. John disappeared into the
East Sector of Berlin on July
Former Nozi General to Be West Ger
man Spy Chief. Page A-5
20. The West German govern
ment has taken the official posi
tion that he was kidnaped, prob
ably while drugged, or lured into
the Red zone.
An official British source in
Bonn today said British authori- j
ties cut Dr. John off from their !
intelligence secrets about 10
months ago. The action, the
source said, was “due to an in
creasing conviction on our part
that Dr. John was unreliable.”
He declined to say whether the
British informed West German
leaders of their suspicions. West
German Interior Minister Ger
hard Schroeder has said that he
had no reason to suspect Dr.
John before his disappearance.
Dr. John first obtained his
post in 1950 largely on the rec
ommendation Os the British
with whom he had worked
during the last year of the war.
On his return in June from a
visit to the United States, he
stopped in London for consulta
tions with British intelligence of
ficials. The source said he was
received and entertained by
them, but was given no infor
mation.
U.S. and Britain Plan
Flexible Defense Pact
For Southeast Asia
Treaty Would Contain
Promise to Protect
General Area in Attack
By James E. Roper
The United States and Great
Britain are aiming at a South
east Asia defense treaty that
would allow the allies great
flexibility in deciding when and
how to invoke the pact.
Under this formula, the allies
probably will not draw a precise
U. S. Hesitant to Give Wor Pledge if
Formosa Is Attacked. Poge A-2
| line and promise to go to war if
; the Communists step across it.
: Instead, the allies expect to
j promise to protect a general
| area—an area that might be de
fined differently as circumstances
j vary.
Although a formal treaty
writing conference is at least a
montn away, American and Brit
ish diplomats have made con
siderable progress in working
out detailed proposals.
Security Pledge Urged.
They agree that the treaty
should pledge member nations
to regard Communist aggression
in Southeast Asia as a threat to
their own security—a threat to
be met by each country as it
deems appropriate under its own
constitutional processes.
This would be similar to the
wording in the mutual defense
treaty among the United States,
Australia and New Zealand. It
can be regarded as milder than
the clause in the North Atlantic
Treaty which pledges each mem
ber to regard an attack on one
as an attack on all.
The NATO pact precisely de
fines the area covered, but the
new treaty is likely to apply to
a general area such as Southeast
Asia—and the wording may
mean different things to differ
ent countries under different
conditions.
The treaty will avoid defining
I “aggression.” Armed invasion
l across national boundaires pre
sumably would be regarded as ag
j gression barred by the treaty, but
nothing is expected to be said
1 about whether internal revolt or
j unarmed political subversion is
j to be classified as aggression.
Flexibility Provided.
The lack of preciseness in the
treaty will give its members flex
; ibility in deciding what to do
under various circumstances that
might develop. The United States
i for instance, would not be pledg
ed to any specific retaliation—
such as war—if Communists in
filtrated and. through nominally
peaceful means, won control of,
say, Cambodia.
On the other hand, the United
States—if it wished—could make
quite a fuss over such a develop
ment. The United States prob
ably even could cite the treaty
to argue that such Red action
constituted aggression for practi
-1 cal purposes.
%\\z Mtimim Sfef
V V J V V WITH SUNDAY MORNING EDITION \^/
Whether American intelligence
leaders shared the reported
Bhtish suspicions of Dr. John
could not be learned. During
his visit to Washington, the Ger
man conferred with Allen Dulles,
director of the Central Intelli
gence Agency (CIA), and with
other intelligence officials there.
Other allied officials in Bonn
disclosed today that Dr. John
was involved in a bitter contro
versy with American and British
intelligence officials in Germany
before he disappeared.
Dr. John considered Nazi-like
elements as the greatest danger
to the young Wes* German re
public and concentrated his work
on them, the officials said. Dr.
John was a member of the anti-
Nazi resistance movement during
the war and a participant in the
1944 plot against Hitler.
American and British intelli
gence official? took the view that
the Communists, rather than the
Nazis, should be the main tar
get of intelligence work inside
West Germany, these officials
said.
The East German radio an
nounced last night that Red
state security police had rounded
up a “large number” of persons it
said had been spying for the
West German and American
“secret services.” That broadcast
did not mention Dr. John by
name, but as head of the Bonn
government’s internal security
service he knew the identities of
hundreds of persons sending in
formation from East Germany to
the West.
Baby Hurled in River
Is Rescued, Father
Pulled Out After Leap
Young Parent Is Held
On Charge of Assault
. Witl| Intent to Kill
An 18-year-old youth was
charged by police today with
throwing his 4-month-old son
into the Anacostia River from
the 60-foot-high South Capitol
Street Bridge and diving, in after
him.
Both the youth, William
Christal, colored, of the 1100
block of New Jersey avenue
N.W., and the baby, Anthony
Thomas, were pulled from the
water by two fishermen. The
baby was treated for shock at
Casualty Hospital.*
Charged with assault with in
tent to kill Christal was under
mental observation at District
, General Hospital.
Several Persons Saw It.
Several witnesses told police
they saw a man toss what ap
peared to be a bundle far over
the Southwest bridge rail toward
the bridge tender’s house.
One of them, T/Sergt. George
D. Macfarlane of the Armed
Services Police, said he saw the
man jump in after the object.
Unable to stop him, Sergt. Mc
farlane called District police.
When the man was * taken
ashore, five or six policemen were
required to restrain him.
Rescuers Identified.
The fishermen credited with
saving the pair are Leon Palmer,
51, colored, of 1367 Half street
S.W., and Paul Thornton, 25,
colored, of 106 M street S.E.
Police said the man was sep
arated from his common-law
wife and that last night he took
the baby from its hpme at 308 L
street S.E., and was not seen
: again until the bridge incident
: at 10:45 a.m. today.
Haile Selassie Home
ADDIS ABABA, Ethiopia, Aug.
i 4 </P). —Emperor Haile Selassie
1 arrived back in his capital city
by special plane yesterday from
his visit to the United States
and Europe.
Boys' Extra-Shirt Trick Fails;
2 Seized in Yoke Robbery
Two youths wearing five shirts
for camouflage purposes were
collared by a policeman early to
day and identified as yoke rob
bers by two victims.
Police said one youth had on
three shirts. His companion
wore two. They changed outer
shirts between jobs, trying to
elude pursuers who might have
a description of them, officers
said.
The precautions were useless.
Pvt. M. E. Lohr of No 12 pre
cinct picked them up on sus
picion. He didn’t know they
were wanted until he called his
station to report arresting them.
The boys are 15 years old,
Records of 26
Woodner Firms
Ordered Seized
Capehart Acts
After Questions
On Check Deposits
By Hector McLean
Chairman Capehart of the
Senate Banking Committee to
day ordered seizure of the rec
ords of 26 companies controlled
by lan Woodner, Washington and
New York architect-builder.
He acted after Mr. Woodner,
testifying at the committee’s in
vestigation of Federal Housing
Administration scandals, failed
to give a satisfactory explanation
of at least $167,000 in checks de
posited to the credit of members
of his family.
Mr. Woodner denied it was a
“violation of the law’’ to build
a 1.139-unit Woodner Apart
ment-Hotel at 3636 Sixteenth
street N.W. in two sections di
vided by a one-inch space.
$9,984,300 Mortgages.
Mr. Woodner received two
FHA-insured mortgages on the
property totaling $9,984,300.
The FHA law specified that no
single project and it’s mortgage
could exceed $5 million.
Senator Capehart, Republican,
of Indiana, and William Simon, |
council for the committee’s in
vestigating staff, delved deeply
into construction of The Wood
ner. asking if the two units had
not been separated solely to
avoid the FHA mortgage limit.
Mr. Woodner insisted that the
one-inch division filled with
“soft calking material,” “much
better” utilized the site than
would have construction as a
single unit.
Nevertheless, Mr. Woodner
conceded, a common hall runs
through both buildings on each
floor and they are operated un
der a single management.
Projects Analyzed.
Mr. Simon led Mr. Woodner
through an analysis of mortgages
and construction costs on 24
projects built under the now-ex
pired FHA section 608 program
for construction of apartment
housing.
In addition to the Woodner,
there were nine others in the
Washington area. The other
projects were in New York and
Ohio.
Total construction costs were
3more than S4O million—some
$600,000 less than the value of
the insured mortgages.
The Washington area proj
ects were: ,
Rock Creek Plaza, Inc. (the
Woodner); Fayette Court. Inc.,
Alexandria; Inwood Corp., South
east Washington; Terrace Corp.,
Southeast Washington: Shipley
Park Corp., Southeast Washing
ton.
All of these, Mr. Woodner tes
tified, he has sold within the
last two years at a profit.
Those Still Owned.
Those which he still owns,
through various corporations,
are:
Columbia Heights, Section 4
Inc., Arlington; Jonathan Wood
ner, Inc., Northeast Washington;
Ruth Woodner, Inc., at the same
location; University Hills Inc.,
Prince Georges County near the
University of Maryland, and
Huntwood Corp., a Negro apai t
merit project in Northeast Wash
ington.
As today’s hearing closed, Sen
ator Capehart warned Mr. Wood
ner he would be called for further
testimony in Chicago when the
committee goeS on tour, and
perhaps will be quizzed again
here when the committee returns
in October.
Mr. Simon showed Mr. Wood
ner five checks made out to his
wife Ruth—from whom the
builder said he separated late in
I 1949 —totaling $36,000.
Mr. Woodner did not give a
specific answer to Mr. Simon’s
demand to know why the checks
were credited to Mrs. Woodner’s
account in the Corn Exchange
Bank of New York. .
They were deposited, he said,
(See HOUSING, Page A-5.)
Malta Governor Named
LONDON, Aug. 4 (JF).— Maj.
Gen. Robert Edward Laycock,
British chief of combined opera
tions from 1943 until he retired
from the Army in 1947, was
named as Governor and Com
mander-in-Chief of Malta yes
terday.
colored, and live in the District.
They were turned over to juve
nile authorities.
Persley O. Gaddy. 22. of 315
Franklin street N.E.. said he was
yoked by two youngsters about
2 a.m. who robbed him of 50
cents, at Fourth and Evart
streets NJE.
A half-hour later, Vincent A.
Alden. 39, of 2824 Twelfth
street N.E.. reported he fought
off two boys who attempted to
yoke him at Twelfth and Nemon
streets N.E., some 10 blocks from
the first attack.
Pvt. Lohr picked up the pair
about a block from the scene of
the second assault.
' '
v %n3§|
MR. VICE-PRESIDENT,
Two Contractors Tellj
Os Paying Lowry;
He Denies Stories
SSOO Reported Given
Union Aide After Loss
On Fort Belvoir Job
By Miriam Ottenberg.
Two contractors today told the
House Anti-Racketeering sub
committee they made payments
to Robert B. Lowry, one of the
top painters’ union officials here,;
and Mr. Lowry promptly denied J
getting any money from either 1
of them.
The subcommittee, looking
into allegations that Secretary-
Treasurer Lowry and other of
ficials of District Council No. 51,
Brotherhood of Painters, Deco
rators and Paperhangers of
America, AFL, have extorted
bribes from painting contractors
for special favors, heard:
1. LoUis M. Bell, president of
the Allstate Contracting & Dec
orating Co., of Chicago, say he
gave Mr. Lowry SSOO in Decem
ber, 1951, because he was losing
money on his Fort Belvoir job
and needed good men to finish it
in a hurry.
2. Philip Vassilaros, of the
Vassilaros Contracting Co., of
New .York, read from a record
showing he gave Mr. Lowry SSO
in August, 1951. Mr. Vassilaros
said he paid the money to
“straighten out assessments” be- i
cause he was using his own New
York men on a Maryland bridge
painting job.
Denies SSO Was Bribe.
Mr. Lowry was called to the
front of the crowded committee
room to confront Mr. Vassilaros.
Asked to identify him, Mr. Vas
silaros said, “I .wouldn't be defi
nite. This was a five-minute
interview.”
Mr. Vassilaros denied that the
SSO was a bribe. He said he paid
money to the Baltimore local
also to clear his men with the
union.
“That’s procedure,” he said. “I
don’t know if it’s legal or not.”
Mr. Lowry told the committee
he had never seen Mr. Vassilaros
and added, "He didn't identify
! me.”
| Then, before Mr. Bell was
j called to the stand, Representa
i tive Hoffman, Republican, of
Michigan, asked him if he ever
got SSOO from Mr. Bell.
“Absolutely not,” Mr. Lowry
replied.*
Statements Recalled.
Mr. Hoffman proceeded to re
call every statement made so
; far that Mr. Lowry had received
money. He mentioned contrac
tors who said they had paid Mr.
Lowry and Archie B. Moore,
former union business agent who
has testified to splitting bribes
with Mr. Lowry to get evidence
to throw him out of the union.
“Are these gentlemen all mis
taken?’.’ Mr. Hoffman asked Mr.
Lowry.
“They’re mistaken about me,”
replied the witness.
“You think they paid some
body else?” Mr. Hoffman pur
sued.
“I don't know what Moore
did.” ventured Mr. Lowry.
“Is it mistaken identity or
(See RACKETS, Page A-3.)
—— %
Distillery Swept
By $3.5 Million Fire
i • By the Associated Press
PEKIN. 111., Aug. 4.—Fire ap
j parently ignited by lightning
during a violent thunderstorm
destroyed 42,000 barrels of whis
ity and several buildings of the
American Distilling Co.’s 61-acre
plant near Pekin early today.
A1 Weston, office manager, es
timated the loss at between $3.5
million and $4 million.
Towering flames Visible for 12
to 15 miles raged for more than
four hours before fire depart
ments of eight communities
brought them under control.
McCarthy Row Bound to Affect
G. O. P., Eisenhower Asserts
Won't Give Stand on Censure Move;
Backs Marshall as Model Patriot
President Eisenhower said to
day that the McCarthy contro
versy going on in the ‘Senate in
evitably will affect the Republi
can Party, but he declined to
evaluate the effects.
The President told a news
conference he thought it would
McCarthy Threatens to Cite Eaves
droppers. Page A-4
Text of President's Remarks on Gen.
Marshall. Page A-5
i be unbecoming for him to give
any particular opinion before
the Senate makes up Its mind
about the move to censure Sena
tor McCarthy.
He emphasized that the deci
sion is the Senate’s business. But
he added that anything that di
vides the Republican Party does
concern him and that he must
try to avoid it.
The President’s comment came
as Senate leaders were working
on the problem of getting a six
member committee to investi
gate the censure charges against
Senator McCarthy. The leader
ship hoped to be able to an
nounce the membership df the
committee late today.
Praises Marshall.
At his news conference, the
President also declared that Gen.
George C. Marshall always has
typified to him all that one looks
for in an American patriot.
This comment came in re
| sponse to a question asking what
he thought of a letter by former
Secretary of War, Harry Wood
ring, made public by Senator
McCarthy, which alleged that
Gen. Marshall “Would sell out
his grandmother for personal
advantage.” Mr. Woodring
served in the late President
Roosevelt's cabinet in the late
19305.
Reviewing Gen. Marshall’s
half century of service to his
country, the President said he
thought it a sorry reward for
any one to say that Gen. Mar
shall was not a loyal and fine
American but served only to ad
vance his personal ambition.
He added that he could not
j
Two Flee Blazing Auto
That Hit Gasoline Pumps
Prince Georges County police
are seeking two men who fled
from a car that plowed down
two gas station pumps and burst
into flame in Largo, Md., last
night.
Folice said the clothing of one
of the men appeared to be on
fire as he ran from the scene of
the crash at Central avenue and
Largo road.
Police Pvt. Paul R. Porter said
the car had a screw driver in the
j ignition indicating it had been
| stolen.
Police said a witness, identi-
I fled as Jobe Lanehart, of Land
| over, saw the car burst into
i flames immediately and two men
j rush from the scene after the
auto crashed into the filling sta
tion.
Heavy Selling Checks
Bull Market in Stocks
By the Anociated Pres*
NEW YORK. Aug. 4.—One of
the heaviest waves of selling of
the year interrupted toe bull
market in stocks today, sending
prices of some aircrafts, steels
and rails down $2 or more.
| The high-speed ticker tape ran
as much as 4 minutes behind
! floor transactions, so great was
' the flood of sell orders that
| poured in from over the country.
Volume mounted quickly and
promised to pass the 3-million
share mark for. the day. Some
I market analysts had expected a
break because the market has
* been climbing so rapidly.
House on H Street
The “1718 H Street” club has been sold,
but “The Family” still has an interest in
historic Washington building. See Mrs.
Selwa Roosevelt’s story on
Page B-l.
New York Markets, Pages A-26-27
imagine any one he had ever
known of whom such a state- ;
ment would be less true than of
Gen. Marshall.
Discusses Campaign.
Turning to the' congressional
campaign this fall, the President
said that for him the principal
issue will be whether an indi- j
vidual candidate has done his
best to put over a program for
the benefit of America.
In discussing effects of the Mc-
Carthy controversy on the Re
publican Party, the President
emphasized that party respon
sibility heads "up in the Presi
dency.
The individual who is Presi
dent capnot escape party respon
sibility, Gen. Eisenhower said.
But that does not mean that he
approves of everything in his
party, he added.
The important thing is a legis
lative progfam of action for
permanent value to the country,
he emphasized. He said the
! long-term effects of his White
House incumbency would be
judged in that way.
Not Planning to Delay Trip.
But of course, Gen. Eisen
hower added, the kind of contro
versy going on in the Senate now
is going to affect the party,
although he could pot evaluate
exactly what that effect would
be.
The President told a questioner
he did not believe the prospects
of the Senate staying in session
beyond mid-August to act on the
McCarthy censure move would
delay his plans for going to Den
ver for an extended stay around
August 15.
Gen. Eisenhower said he was
I not entirely clear about the
matter, but it would seem to him
that if the House adjourned and
the Senate stayed on for just
the one purpose, there would be
no reason why he and his staff
could not follow out the pro
grams they had set up for them
selves.
After establishing his summer
(See McCarthy, Page A-4.)
Mother, 70, Helps
Son Escape Fire
A 70-year-old woman and her
son lost all of their possessions
i in a fire at their home early
; today after she set a ladder
against the house making his
escape from the second floor
! possible.
Firemen reported the house of
Mrs. Mary E. King, 4619 Ditt
mar road, Arlington, was a tom
j plete loss, but had no estimate
' of the amount of damage.
When the mother and her son
Benjamin got outside they could
i not account for their favorite
; cat, John, Mr. King went back
inside the flaming two-story
frame building to search for the
cat. The fire spread so rapidly
he was unable to get nut. Mrs.
King propped a ladder against
a second-floor window so he
could escape.
Mr. King owns more than a
i dozen cats.
The Kings did not have elec
■ tricity, but used candles and
lamps for illumination.
Colombia Re-elects
President Rojas
By »h* AtsocioUd Pr*u
BOGOTA. Colombia. Aug. 4.—•
Gustavo Rojas Pinilla was re
| elected President of Colombia
1 last night by the National Con
stituent Assembly.
Gen. Rojas received 66 votes
against eight for ousted Presi
dent Laureano Gomez, now in
! exile in Spain. Both are Con
: servatives.
The President was elected for
a four-year term starting Au
-1 gust 7.
Capital Transit
Local Control
Is Discussed
Secret Talks Held;
Wolfson Group to
Keep Its Stock
By John W. Stepp
Secret top-level conferences
looking toward relinquishment of
control by Louis S. Wolfson in
Capital Transit Co. are nearing
conclusion, it was learned today.
The discussions, which have
been in progress for several days,
are being held by the District
Public Utilities Commission
members and company repre
sentatives. So secret have they
been that the officials involved
have refused to disclose • even
where they are being held.
The public announcement on
the results of the conference, if
any, may be made later in the
day.
It was understood that the
commission-inspired proposal in
volves reshuffling the company
Board of Directors to give
greater representation to purely
local interests.
No Stock Sale Planned.
It was further understood that
no sale of transit stock or the
company itself is contemplated.
If a reconstitution of the di
rectors’ board comes about it is
uncertain what Mr. Wolfson’s
precise position in the company
would be. At present he is chair- > *
man of the Board of Director# - '
What obviously is in the com
mission's mind is a company di
f’rectorship which the commis
sion would feel more sympathetic
i to the community interests.
Since 1949 when Mr. Wolfson
bought control of Capitol Tran
-1 sit, the company’s financial
i practices have been challenged
I almost continuously by the reg
ulatory body, Congressional com
mittees and public spokesmen.
Investigations to date have
proclaimed the operations of the
Wolfson interests legal, but
criticism* has been directed
against the company. Chiefly
open to challenge has been a
free-handed policy of declaring
dividends since 1949. These
dividend declarations have suc
ceeded in whittling the com
\! pany's $8 million surplus down
i*o less than $3 million in the
| last five years.
Data Prepared for Court.
, The commission, after chal
:: lenging these policies in court,
: is even now preparing findings
: growing from its recent investi
gation to submit to U. S. District
Court for the District of Co
lumbia.
In the recent commission
hearings Investigating the com
pany’s financial policies ques
, tioning of transit officials heavily
implied that the directorate has
been dominated by Mr. Wolfson.
Since the millionaire Florida
investor bought controling in
terest in the company the 15-
i member board has been made
up largely of his business asso
| ciates.
The board is now composed of'
Cecil and Sam Wolfson, brother#
j of Louis Wolfson: Robert E. Har
vey, former vice president and
controller of Capital Transit, who
was brought into the company
by Mr. Wolfson and now is a
high official in another Wolfson
enterprise; J. A. B. Broadwater,
transit president, and Doran S.
Weinstein, transit executive vice
president, Elkin B. Gerbert, long
time business associate of Mr.
Wolfson.
James H. Flanagan, transit
vice president and controller,
hired by Mr. Wolfson from the
Public Utilities Commission:
Robert Baker, executive vice
president of American Security
& Trust Co., whose facilities are
used by the transit firm; Frank
E. Weakly, chairman of the di
, rectors board of Washington
. Properties; E. C. Giddings, an
! j other transit vice president and
. a holdover from the pre
. Wolfson transit management.
William B. Bennet. retired
; transit company vice president
secretary; G. Thomas Dunlop,
! retired attorney and former
. general counsel; J. Edwar<s
, Heberle, retired vice president
and controller, and Edward D.
j : Merrill, retired president.
I |
He Would Rather Be
k %
; An English Teacher
’ j ONE OF THE PEOPLE—J. C. (Joy)
Turner, president of Local 77 of the
Operating Engineers, is one of the
‘ new generation of labor leaders. How
he fits this description is told by Star
1 Staff Reporter George Kennedy on
page B-6.
THE NEW TAX LAW—If you’rn
retired, you moy not hare to pay in
come tax any more. Associated Press
Writer Charles F. Barrett discusses
this phase of the new tax law in an
other of his series on the law on
poge B-9.
Guide for Readers
! Amuse'nfs A-24-25 Lost, Fonnd .. A 3
Classified. C-6-14 Music A-23
• Comics - A-32-33 Obituary A-22
Cross-word A-32 Radio-TV A-30-31
Editorial A-18 Sports C-l-5
Edit'l Articles A-19 Woman's
Financial.-A-26-27 Section ...B-1-5
! Have The Star Delivered to Your
j Home Daily and Sunday
Dial Sterlinr 3-5000