A-4 •• THE EVENING STAR, Washington, D. G ’ TBCaSBAT, AUGUST t, IMt PlmMm * *3 £ ifcj*y[ * MR EstlH 111 l n| yj I I 1| K ; wmMi/j elp ' ■ ,Ijf*■ a ahmh&mb gS”, i jS ■Kliißr//FSBSKi^aMNßßßßßW^^^^!lsPNriwlSp*iidlf^lip«r^di3| THE TH/RD AVENUE 'EL' COMES DOWN NEW YORK.—A huge crane lowers the first section of track and ties out of the Third avenue elevated railroad as demolition of the ol&. landmark begins. Workers with acetylene torches cut the section out to fit a truck. It wifi be hauled to a wrecker’s yard for further dismantling.—AP Wirephoto. U.S. Reserve Rate Rise Seen Curb on Inflation Br the Associated Pren The Eisenhower administration was described today as embarked on a concerted policy of re straints on credit lest prices, fairly stable for two years, may otherwise start climbing. "The business boom is getting pretty exuberant,” said one high official. "It's the consensus ol the economic and financial side of the administration that the Government should exert some effort to keep it orderly." The latest in a series of credit curbs was announced yesterday Effective today, 4 of the 12 Federal Reserve banks raised the rate they charge member banks which borrow from them. The Chicago, Boston and At lanta banks raised the charge called the discount rate—from 1% to 2 per cent. Cleveland jumped from 1% to 2y« pei cent, highest in 21 years. Not since 1948 had a Federal Re serve bank increased its discount rate by half a percentage point in one step. In Cleveland, Donald S Thompson, vice president of the Federal Reserve Bank there, said the higher rate was felt appro priate "for this area under present conditions.” Retail sales in the area were reported much higher than the national aver age, causing fears of overex tended credit. The area, the Fourth Federal Reserve District, includes Ohio and parts ol Pennsylvania and Kentucky. Increases by the other reserve banks are expected to follow soon. This move, designed as a curb on inflation, followed closely the tightening of down payment and mortgage terms on Govern ment-insured housing loans last Saturday. Also, the Federal Re serve Board and the comptroller of the currency have dispatched letters to banks cautioning Chowders TASTE \|J GOOD! iBSSHB against over-liberal terms on n auto purchases and other in ti stallment credit. The Govern _ ment also has tightened up on ” credit buying of stocks. 3 - The discount rate has been y 1% per cent since last April and May. when the Reserve banks 8 raised it from 1%. Another boost h was generally expected, but not 'f until later—and not by differ cjing amounts in the Federal Re el serve cities. That hasn’t oc curred since World War 11. Vari ations are based on a bank’s t'appraisal of the money supply ?-|in its area. 2 A bank increases, its legal re e serves by borrowing from its s regional Reserve bank. Since the borrowing bank is required to - keep (20 in reserve against every - (100 loaned out, the money it n receives from the Reserve bank d means that it can lend five t times that amount to business it men. Each loan made to a business it man also has a multiplying ef n feet, because the ordinary bor rower usually writes a check 3. which is deposited in a second e bank. The second bank's re d: serves are thus increased, and - also its lending power. This may T ! Easy now to reduce still enjoy good food! K magical new dressing makes y salads tasta^ better...yet is £ absolutely non-fattening! fV d ' COMTA/AJSONLY - f /CALDRJE f>£R S&2WA/G J -yp ffl I QOMPAAQD ro 6O OUOM£S / .// WR Erea/chDgess/ng!/ */j I Salads won’t help you lose weight il fl \ you xiot fattening dressing! No wonder / j women are thrilled with amazing new f f Frenchette Dressing. It’s delicious I i ■ but absolutely non-fattening! ml . > W Frenchette contains less than 1 f ca lorte compared to 60 fattening cal ories in every spoonful of French W ? dr easing. Yet Frenchette makes salad K f taste better! It’s easy to reduce this ***4 new way.,.and atiU enjoy good food! i / * r' —v-1 ( ( HOME-MADE. RJU/OA BEATS FKEft/CH VGESS//UG) I| Igjlijl J/A/ EVEAY TASTE r£ S r J/\jM *4 ' J .Frenchette’a “home-made” flavor Er •*?!thrills your latte ... but won’t add an ounce to your weight. So don’t use high-calorie salad dressings. Save cal |W ones with delicious 1-calorie French* ette. Get Frenchette non-fattening Mm, Dressing at grocer’s. Win praise for B \l9®Fr§nehetfe I non-fattmning I PMSSfMO POt SALADS j continue through a long series of loans and deposits, each rep resenting an expansion of credit. Member banks recently have been borrowing as much as (8001 million a week from the Reserve institutions, although the level i dropped to (395 million in the . week ended July 27 By making it most costly to i borrow, the Reserve banks hope to discourage what one official i called “excesses’’ of borrowing— l sometimes for speculative pur s poses—without unduly tighten ■ tag up credit for legitimate busi-1 • ness needs such as building up ■ stocks for Christmas business. Officials have been concerned j ’ over the rapid rise in bank' ' credit extended to consumers.! ’ The total expanded by about (1 billion in the first half of this year, mostly in installment ’ credit on auto purchases. Total \ consumer credit outstanding it j at a new high and auto easy ' payment credit has gone to new . peaks for the last six months ; in a row. . Controller of the Currency Ray . M. Gidney recently wrote all national banks that bank exam . iners hereafter will «n»ke re ■ ports on each bank's consumer ■ lending. The situation is not - alarming. Mr. Gidney empiia- I sized, but in some areas banks ■ have “loosened” credit to a de- I gree not previously considered ’ standard. PTA Asks Yefo Os Bill lo Raise School Fares The District Congress of Parent - Teacher Associations still hopes that President Eisen- ' hower's veto will kill the bill l now on his desk that would raise transit fares for District school 1 children, John B. Gilliland, 1 president of the association, said 1 today. ' Mr. Gilliland sent a telegram to the President yesterday, urg- l tag him not to sign the bill. I In the telegram, he pointed ! out that If fares should be In- ' creased from 3 to 10 cents, as 1 the bin provides, many children would suffer. Since a large ! number of childreff go home for l lunch, due to school overcrowd- 1 tag, it pointed out, a child would 1 have a pay as much as 40 cents 1 a day If the maximum fare was 1 set. i Some members of the organ- 1 lzation favor a moderate fare increase, Mr. Gilliland said. Five 1 ' cents has been suggested as a 1 reasonable figure by some. Hie PTA is afraid, however, that the Public Utilities Commission, which would determine the rate under the new bill, would fix the rate at the top figure. The “old going rate,” accord ing to Mr Gilliland, was one , third the amount of the adult j fare. An Increase to 10 cents would bring it to one-half the present fare. Mr. Gilliland said be under stood school authorities of the | Catholic archdiocese of Wash ington were considering asking parents of parochial school chil dren to urge the President to! ! veto the bill. i No action has been taken yet {ion this, according to Monsignor John 8. Silence, director of the I Department of Education of the 1 archdiocese. Monsignor Spence said, however, that “the school authorities of the archdiocese are likewise cognizant of the burden such a bin would place on the parents, particularly >i those who live in the suburbs.” I ■j : POLICE SWEAT OUT i FATE OF 2 BILLS ALONG WITH HEAT Policemen are sweating out more than the heat on street corners these days. They are waiting for the President to sign the two b a settlement. The union struct ;, for 25 cents more an hour foi I operators and 31 cents for me : chanics who were making (1.9 C ; and (2.03 respectively. They alsc i were insistent on a costly new pension plan. At one juncture of negotiations I the company offered 10 cents an hour and (5 a month additional |on pensions. 1 Joining the long talks were Mr. Holden and Mr. Mc- Cutcheon. The union forces were significantly bolstered by O. D. Zlmrlng, general counsel of the union’s international and head of the Midwest Labor Bu reau which functions in labor arbitrations. Mr. Zimring has been labor’s representative in several Capi tal Transit arbitrations, notably that of 1949 which yielded the union a 10-cent hourly increase. His presence in the present pic ture played up the possibility of this dispute finally going to ar bitration, too. Under the provisions of the - tne District in gross receipts tax i r revenue. ** i - Another loss Is the $l,lOO a month normally collected from i the company tn gasoline taxes i ias a result of bus operations. , An unknown quantity is the , - sales tax revenue loss. Depart ment store sales were reported • up for the month of July as i against those for the same month * ) last year. But restaurant opera ' tions during July were reported down as much as a third. ' District officials said com ■ plaints also have been heard ’■ from many liquor store dealess ■ that their sales are down. If ’ this condition is widespread, the loss in sales tax revenue could - be considerable. 1 The cost to the District could I be even greater, it was pointed ! out, if there was provision for . paying policemen for overtime t work, besides the work on their ■ normal days off. For the first i 21 dayp of July, a total of 27,614 hours overtime besides the days t off tost, had been worked by the - police force. If the men were i paid for this time, the bill would > total $69,587. act of Congress, the Commis sioners can enter into a contract e with Capital Transit for the year . prior to the date the company . must relinquish its franchise, s This ts what the Commissioners il hope to achieve in their talks v with both sides. 4 In addition to the question of wages and pensions to satisfy the r union, they must agree with the d company on an exact formula _by which the District govera - ment shall be liable for any it operating deficiencies, and must t. define in what way the company I. Is liable for tearing out street lt car tracks and repaving. City Can Decide ,r l The Commissioners arF in a k position to decide what wage ,r and pensions adjustments will ! ~ be made to the union, but are 0 responsible for any operating ° deficits resulting therefrom. w When these points with the union and company are satisfied, 18 the Commissioners must ascer “ tain what fare increase to re- II quest to meet the added labor ; costs. The Public Utilities Com-; e mission has said it could put j " through such an interim in- j s crease in five days’ time. Already faced with the pros- j ! pect of a deficit operation be-ji 1 cause of lost rides through the ] ‘ strike, the city heads must try|i r to balance fare boost against fur- j tber loss in revenue. Charter Revocation y Suspended over all these other j e problems is the still mystifying < meaning of what Congress in- j - tended In revoking the company j f charter. Bent on threshing out a con-, tract without recourse to the l ; courts if possible, the Commis- j •skmers have decided Congress meant the charter should die at the end of the year, when the franchise also is revoked. The Commissioners announced their interpretation after getting an informal opinion from Dis trict legal experts- They said they would proceed on that basis. Company officials, however, were awaiting an opinion from the company * counsel before de ciding to go along with the Com missioners’ reasoning. It was not (Mined in so many words by Congness whether the charter should be revoked im mediately or at the end of Capi tal Transit’s lasi year. If com pany attorneys hold that the re vocation is immediate, it might cause a court determination of what Congress Intended. Should it finally be ruled that the charter is cancelled at once, then it may be necessary for the Commissioners to ask for a receivership, since the company’s corporate structure might be ruled as non-existent. The Commissioners said they hoped to avoid such complica tions in the interest of a quick strike settlement. There is a difference of opinion among legislators who wrote the charter-revocation clause into l the Senate-House conference on the bill. Senator Morse, Demo crat of Oregon, who injected the idea into the conference, in sisted the charter wotfid die im mediately. But by his Interpretation, a receivership would not neces sarily follow. He believed the Commissioners could still con tract with the company for the one-year operation. This was meant as assurance that the company would not settle the strike directly with the union, and continue to operate as usual for the final year of Us life. Senator Morse indicated. On the other hand. Represen tative Hyde, Republican of Maryland, another conferee, said the intention of the bill writers assuredly was tc kill the charter j at the end of the operative year. He said the bill's invitation for the Commissioners to enter into a contract with the company was strong implication that the : charter would exist until the end nf th» rnnffßrt ivtvinH of the contract period. campaign. | NOTICE * * Processing and Finishing of » Eastman Kodak Color Films $ Kodochrome, Kodocoior and Ektachrome j* may be had at * It J I Sommers Camera Exchange ! \ 714 14th Street N.W. t J Washington, D. C. J ITTTTTTTTrTTTTTTTTTrTTTTTTTTTTTTTTTTTTTTTTTTT?l TTTTTTTTrTTTTTTTTTrTTTTTTTTTTTTTTTTTTTTTTTTT ? Slrouse Joins Chest Drive as Publicity Head Ben Strouse, vice preside* and general manager of Radio Station WWDC, will be Publicity Committee chairman for the Community Chest campaign this fall. E. K Morris, general campaign cJQairman, announced the Pub licity Committee members also as including: Charles D. Bishop, Station , WMAL-TV program manager; Joseph Goodfellow, Station WRC ! sales director; Burton R. Warner, advertising manager of Safeway ! Stores; Theodore J. Christensen. , head of T. J. Christensen Dis plays; George A. Crouch, zone manager for Warner Bros. The aters; Orville Crouch, Eastern* division manager of Loew’s Theaters. Also, Andrew F. Hillhouse, jr., 1 Solar Aircraft Co.; David Pol ! land, public relations consultant; 1 George Greene, Family and Child 1 Services; Charles Merrill, display | manager for S. Kann Sons Co.; ! John H. Kauffmann. assistant business manager of The Star; Bert K. Silvermann and Law rence Dobrow, Larabee Associ ates Advertising, and Sol Kullen. Kaufmann Press. '} Mr. Strouse joined the WWDC . staff in 1942 as sales represents . tive, after 13 years in advertising ! and merchandising in Baltimore | and Washington. He was ap pointed general manager in 1945. [i He is a former president of the ' Advertising Club of Washington, and is chairman of the Broadcast Industry Committee, Federal Re ports Council; a director of the Better Business Bureau, a mem ber of the Radio Executives Club of New York, and a director of ithe National Association of Radio land - TV Broadcasters. Mr. Strouse has been active in local Chest campaigns for sev eral years. He was chairman of radio participation in last year's Mtnnaiffn