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WEATHER FORECAST Partly cloudy with moderate temperatures tonight and tomorrow. Low tonight 36. (Full report on Page A-2> Temperatures Today Midnight 40 6 a.m 39 Uam 44 2am 39 Bam 42 Noon 47 4 a.m—4o 10 a.m 43 1 p.m 61 104th Year. No. 40. Banks Checking s6oo,oooCredit To Loan Concern Coastal Finance Accused by SEC of False Statements By DONALD B. HADLEY Financial Editor of The Star While Washington bankers to day sifted the scrambled affairs of Coastal Finanoe Corp. to de termine chances for recovering; between (600.000 and (800,000 they lent the Silver Spring small loan firm, the Securities and Ex-' change Commission accused Coastal of false and misleading; statements. Bankers seemed to feel that prospects were bright for com plete repayment of (1.635,000 which the firm borrowed from them and banks in New York, Philadelphia and other cities, but were said to be concerned about filing of a petition for in voluntary receivership in Balti more Federal Court by two Washington minority stockhold ers yesterday. Wants Rights Protected It is understood the bankers want to be sure their rights are protected if the receivership goes through and they say privately they think it will. One of the leaders at the conference at Riggs National Bank this morn-! ing said receivership actually was the only way that company affairs could be unraveled in his opinion. ’Washington area banks taking part in the discussions included:; Riggs National. Suburban Trust Co., National Savings & Trust Co., the Bank of Commerce. Munsey Trust and Clarendon Trust. The banks participated In a rotating <yedit arrangement which originally totaled $2,645,- 000. The SEC’s charges outlined in an order suspending the firm's Regulation A exemption for a stock offering last August will be aired February 28 at a com-; mission hearing to determine whether the suspension shall be come permanent. If the SEC's avidence stands up, the per manent suspension might be of little moment, but the evidence would become available immedi ately for yse in court action by l stockholders or creditors. i Charges Listed The charges center on state- ( ments made in a company pros- , pectus offering 5,669 shares of class A common stock to present holders for (28.50 a share on the j basis of one new share for each . six shares held last Agust 5. The commission charges: 1. That the circular states [ that Coastal appraised assets , purchased by it from Gateway Finance Co. of Pittsburgh at (275,032.92 for loans receivable and (2,693.08 for fixtures, where as no appraisals were made by the Coastal management in ac- i cordance with the normal and ] customary techniques followed in i the loan industry. i 2. That the circular states i past-due loans which are con- I sldered by the company to be , uncollectible, are written off on | or before June 30 and Decern- ] ber 31 of each year and that the company charges against cur rent Income as provision for bad debts such amounts as are be lieved to be adequate, whereas in fact, the company did not write off all past-due loans known to be uncollectible and the charges against current in- Continued on Page A-5, Col. 1 BULLETINS Strikers Reject Plan BALTIMORE, Feb. 9 UP).— Baltimore Transit Co. workers today turned down by a vote of 1,952 to 24 a company offer of a 13-cents-an-hour boost spread over two years. The action assured continuance of the 11-day-old tieup of buses and trolleys. (Earlier story on Page A-31.) Bridge Costs Cut Bureau of Public Road of ficials have been able to save from $500,000 to $600,000 on proposed cost pf the Jones Point bridge over the Potomac by revamping plans, a House District subcommittee was told today. SHOP (Tltr §tar FOR ALL YOUR FOOD NEEDS Today and every Thursday in the pages of The Star—Washington’s biggest ond foremost grocery ad vertising medium—you will find the widest variety of food bar gains, items and specials at prices designed to stretch your budget dollar further. . Remember, for all your week end and week-long food needs—for a greater variety of quality foods at prices you can’t afford to overlook. SHOP THE STAR FIRST BEFORE YOU BUY %he Ibrning Star Phone ST. 3-5000 ★★ WASHINGTON, D. C., THURSDAY, FEBRUARY 9, 1956—SEVENTY-TWO PAGES. '/ S| Hyf 1111 SpßlSp 118 : Bili BiraH 1 . | 9 Bf| Wm MSB if wTf W ' V 'W M WM Mjm Hu W ■fTI • , ’ r : wgi jjSSsj l . ■ Mr JB : Jk, Eli JbH Hrv P. > Mr ■ Kr BBf "‘"Pf \-• / -■« m : L&aMl v v . „ K * , Jr AGAINST ELECTED SCHOOL BOARD—Richmond.—Calvin Haley, former members of the Arlington School Board, details his support of the Moncure bill to abolish Arlington's elected school board at a legislative hearing today. Looking up at Mr. Haley is Robert A. Peck, former chairman of Arlington’s County Board. Sitting next to Mr. Peck are Mrs. Leone Buchholz, Arlington County Board member, and Mrs. Sue Dickinson, Arlington teacher (right).—AP Wirephoto. 300 From Arlington Jam Hearing on School Bill Foes and Backers of Moncure Repeal Testify Before Virginia Assembly By ALEX R. PRESTON Star Staff Correspondent RICHMOND, Feb. 9—A member of the Arlington School Board told the Virginia legislature today that his group "mis understood what the State had in its mind” when the board moved toward integrating county schools. James G. Stockard, the board member, made the statement before a joint House and Senate Committee hearing on the bill by Delegate Frank P. Moncure of Stafford to abolish Arling ton’s elected school board. More than 300 supporters and opponents of the Moncure bill crowded into the House of Dele gates chamber to witness the proceedings. Most of the 140 members of the legislature also attended. Chairman Roy B. Davis of the House Privileges and Elections : Committee said after the hear ing that it will be next week, at; [the earliest, before action is taken on the Moncure bill, i Comes to the Point Mr. Stockard was quick to get to the crux of the issue that ap parently prompted Mr. Mon-, cure to move to abolish the! elected school board in Arling ton. He had this to say about the board’s announcement of January 13 that it intends to Integrate some county schools, providing State law allows: "It Is clear that we in Arling ton have misunderstood what the State had in its mind and; that the State may have mis understood what we have done. ... we also feel sure that any[ action which would develop fur-: ther misunderstanding would not be in the best interest of Virginia as a whole.” Chief criticism of the school board’s integration policy an nouncement centers on the claim that it violates a fundamental; principle of the Gray Cornmis-; sion program which advocates say was designed to avoid forced mixing of the races in class-; rooms. Under the Gray planj the initiative to integrate would ■ be left to parents but some have interpreted the Arlington action as the school board taking the | Initiative. j 1 Complies With Plan The school board felt It was; complying with the Gray plan,! • school officials said, because the! Arlington proposal was designed; Continued on Page A-30, Col. l! Major Mexican Quake Jolts Los Angeles Area EL CENTRO, Calif., Feb. 9 </P) —A powerful earthquake cen tered south of the border in Mexico rocked Southern Cali fornia as far north as Los An- Igeles today, causing widespread [but minor damage in two coun ! ties. [ Water mains burst, windows and plaster cracked, small fires started and buildings swayed in the border counties of San Diego [and Imperial. Seismologists gave the quake’s magnitude as 6.8 on a scale which rates the largest ever re corded at 8.6 This compares with 7.6 for a shock which killed 14 persons In Tehachapi, Calif, in 1952, and 6.3 for the 1933 Long Beach shock, which killed [many more. No deaths or Injuries were re ported from this morning’s quake, heaviest along the bor der In 15 years. In the border town of Calex ico in the lush Imperial Valley. Police Patrolman Pete Figueroa ! War Refuge Being Sought For Congress Steps have been taken looking toward establishing a center away from Washington to which Congress can repair in case of ’imminent attack on the Capital.' . The Supreme Court likewise ! has such a project under con [ sideration. Speaker Rayburn confirmed j today that a report on possible .relocation centers for Congress has been received from the Of fice of Defense Mobilization. But he said nothing has been done [about it as yet. Relocation centers have al ready been established for ex ecutive agencies which must op erate to maintain the continuity of the Government. A place 1; distant from Washington has also been set up to which the President can go. But Congress .up to now has taken no part in [such planning. I [ Mr. Rayburn said the report ’ of the ODM has been received by a congressional committee con- I sidering the project. It was ■ learned the committee consists i‘of the leadership of Congress: lithe Speaker and the Minority [Leader of the House and the : Majority leaders of the Senate. Lt Gen. Willard S. Paul, as [sistai.t to the director of the [ODM, said several sites had been, [suggested to Congress at the re-: [quest of the legislative body. [ He also said Chief Justice; Warren had called on ODM for; [a similar survey for a relocation site for the Supreme Court. ; Harold B. Willey, clerk of the [court, said several places had' [been suggested. He said the court !has the project under consider ation but that no action has been ! taken. i said. “We go hit a little hard. ■ Downtown store windows were i broken and there were many re • ports of merchandise strewn about and bottle goods broken. [[There was no major damage.” j In Holtville, also in the Im [perial Valley, Policeman Bill Herring termed it “really heavy,” i He said (here was a minor fire and a water main broken. < Mexicali, Mexico, just across the border from Calexico, was i Jolted, too, but there were no : immediate reports of major damage. i If the quake«centered south of i Mexicali it would be in sparsely settled Mexican country, with : only occasional small farming I communities. Dr. Charles Richter of Cali fornia Institute of Technology i estimated the distance of the quake center at 240 miles south east of Pasadena. The seismo graph recorded the first wave of . the heavy quake at 1:33.24 a.m. i (Pacific Standard Time). AFL-CIO Plans Senate Fights To Concentrate Fire On 11 Key Seats By JAMES Y. NEWTON Star Staff Correspondent MIAMI BEACH, Feb. 9.—AFL CIO political leaders decided tentatively today to concentrate efforts in this year's election campaign on 11 key Senate seats and to work for defeat of eight incumbents, all of whom are Re publicans. Among those marked for the hardest labor opposition was Senator Goldwater, Republican of Arizona, frequent critic of union participation in political affairs. The leaders of the AFL-CIO Committee on Political Educa tion also discussed a 1956 budget of from (2 million to $2.5 million for political education and di jrect contributions to various campaigns, including that for the Presidency. Some labor offi cials expressed the hope the budget could be set as high as ;$3 million. Other G. O. P. Targets The discussions here were tentative and largely Informal. COPE leaders decided to leave specific candidate indorsement recommendations and financing matters to a small committee to be appointed by AFL-CIO Presi dent George Meany. The whole political committee will act fin ally on those recommendations at Its next meeting, probably around May 1. In addition to Senator Gold water, the sentiment at the COPE meeting was to work for the defeat of Senators Duff of Pennsylvania, Capehart of In diana, Thye of Minnesota, Welk er of Idaho, Wiley of Wisconsin, Mlllikin of Colorado and Butler of Maryland. In most cases, the labor leaders believe they will be successful. The AFL-CIO will work for the re-election of Senator Morse, Democrat of Oregon, and will keep hands off the Ohio sena torial contest which shapes up jas a race between Senator Bender, Republican, and Gov. Frank Lausche, Democrat, neither 'of whom Is regarded as a friend |by the labor leaders. There was disagreement among the AFL-CIO leaders over Sena [tor Kuchel, Republican of Cali ifornia, with some sentiment for See LABOR. Page A-12 Pakistan Planning Soviet Trade Pact KARACHI, Pakistan, Feb. 9 UP). —Pakistan announced today an agreement to negotiate a trade agreement with Soviet Russia. | The decision was announced after seven years of persistent Soviet attempts to woo Pakistan into full trade relations with the 'Kremlin. Until now Russia had [only succeeded in arranging a 1953 barter agreement under which Pakistan swapped raw [jute for Soviet wheat. There was no indication, how ever, that Pakistan would con sider abandoning her role in the Western-supported Baghdad Pact or the Southeast Asian Treaty Organization, both targets of Soviet opposition. v In an interview with Pakis tani newsmen in Moscow earlier this week, Soviet Premier Bul ganin said a Moscow-Karachl trade pact "would have positive significance." But he added pointedly, "the Soviet Union cannot be Indifferent to certain military blocs such as SEATO jor the Baghdad Pact.” All 7 Missing Week In Antarctic Rescued Navy Trying New Tack To Win Elusive Recruit By L. EDGAR PRINA Choice of duty . . . assignment to a ship or base without morale-busting days or weeks of waiting in a "receiving” station ... duty with buddies ... character and career guidance. These are just some of the things a Navy recruit may expect today as the seagoing service, no longer the stern “Dutch uncle” of yore, pursues a solicitous, “big brother” approach toward the young men it counts on to man the ships and planes of the fleet Although the Navy has been convinced for some time that a happy, well-adjusted individual makes a better sailor, It has re cently learned, through scientific studies made by private research groups, this important fact: An American youth’s attitude toward the military is condi tioned more by what his friend or relative in uniform thinks of his particular service than by any other single factor. This has led the Navy to undertake a program of internal; public relations and to do more th(.n it ever has to see that the wants and wishes of its person nel are sympathetically con sidered. Carries More Weight When a recruit completes his basic training today, he is not only 11 pounds heavier (on the average), he carries more weight l with the personnel officer. He is asked to state his choice for specialized schooling or other assignment. The matter is given Easier Credit Is Urged For Gl Home Loans Br th< Associated Preaa A return to no down-payment terms for GI home loans and im mediate easing of other Federal restraints on home buying credit were recommended today by a House subcommittee. It denounced as excessive and outrageous the premiums charged by some commercial lenders to make loans on low interest gov ernment-insured home mort gages. ! The House Banking Subcom mittee report foresaw a sharp ; slump In home building unless curbs imposed last July 30 are rescinded and other credit re straints relaxed. The subcommittee, headed by Representative Rains, Democrat of Alabama, cited reports that applications for Federal Hous ing Administration insurance on small homes last November were down 40 per cent from Novem ber, 1954, For the same period, it said, Veterans' Administration home appraisal requests were down 36 per cent. Sharp Decline Feared "These are omens which can not be passed over lightly, the subcommittee said. "Unless mortgage conditions show an unexpected rapid im provement, a sharp decline in housing starts and real estate activity is indicated in the early months of 1956, and such a de cline could have a serious effect not only on the home-building industry but on the entire economy.” The report said the Eisen hower administration apparent ly shares this concern in view >f recent action raising from 25 years the maximum term Whales Wary of Baring Their Hearts To Dr. White's Coronary Explorers Dr. Paul Dudley White, Presi dent Eisenhower's heart consult ant, radioed last night that he has lost the first round in his effort to wiretap a whale’s heart beat. Dr. White is leading a paity off the Mexican Californian coast. The expedition was or ganized to record the heartbeat of a California gray whale. The findings are expected to shed new light on the mysteries of the human heart. The scientists sent a small boat after a large female whale and her calf and the pother at-1 tacked the boat, staving in its side. The National Geographic So ciety, sponsoring the trip, today reported receiving the radio gram from Dr. White saying he is still optimistic. Formidable Foe “We have chased many whales, some of them 50 feet long," Dr.; White reported. “Our people are i gaining a new respect for the! California gray whale. They have chosen four adjectives to describe them: Elusive, sagaci ous, formidable and wary." One of the expedition’s small boats put out on Tuesday from the mother ship, the Dorado, and approached a large female whale with her recently born calf. Suddenly, the mother whale turned and struck the boat. careful study and. if the request is at all consistent with "the needs of the service,” it is honored. No more does he need fear that a request for duty aboard, an aircraft carrier in the Pacific will bring automatic assignment to a destroyer in the Atlantic— j a state of affairs many Navymen suspected was normal procedure [ in the past. The same close attention is; paid a request by a recruit that he be assigned to duty with a i buddy. In either case, the seaman is; sent directly to his new duty! post in all but exceptional in- j [stances. And even should hej stop off at a receiving station, he almost always knows where ' he is destined. Back of this latest topside em- j phasis on the Individual sailor.; his welfare and problems, is ai , serious personnel situation. The ; Navy is now resorting to the | j Continued on Page A-12. Col. 1 for FHA-insured and VA-guar l anteed home loans. But it added . that this action was not enough, 1 and recommended "that the ad t ministration immediately remove t the Increased down payment imposed last July.” i Assail Discount Rate 1 The subcommittee was sharply > critical of mortgage discounts It ■ said are being charged by com - mercial lenders, particularly in | the Far West. The practice is to make loans 3 at a discount, or premium, which' s penalizes the borrower a per ; centage of the face value of ■ his loan. The subcommittee said in some "horror cases" the dis count W'as as much as 10 per t cent. t Such a discount would mean . that a borrower negotiating a j ) SIO,OOO home mortgage loan ac ; tually would receive only $9,000 . In cash, although he would pay interest on the full SIO,OOO. - The practice has the effect of l raising the interest return to ■ lenders. Terming guaranteed ; interest of 4’a per cent "a fair rate for a virtually riskless in i vestment.” the subcommittee . recommended establishment of ; some form of control over “un reasonable and abusive dis -5 counts.” ! Gen. Harmony. Named '] TOKYO. Feb. 9 (/P). — Maj. • Gen. John W. Harmony, chief • of staff for United States Army : forces in the Far East, today ; was appointed chief of the pro visional military advisory group ; •in Korea. He replaces Gen. I. D. White, who held the post in, addition to his chief duty as l United States Bth Army com- 1 i mander. • bashing in its side. No one was! ■[hurt, but the boat was wrecked ■ and limped back to the Dorado s.where it is now being repaired ■ The accident is not expected to [interfere with the expedition's i program. i Dr. White’s procedure for ob . taining whale electrocardiograms t is this: Two electrodes are shot . into an adult whale, either by i hand harpoon, shoulder harpoon [ gun or crossbow. The harpooners [work from small open speedboats ! ! carried by the Dorado. Heartbeats Broadcast Wires leading from each small "harpoon head are attached to a sea sled designed and built by [ the Douglas Aircraft Co. Aboard the sleds is automatic telemeter ’ ing and transmitting equipment 1 capable of sending the impulses of the whale's heart up to 5 miles. The receiving sets and , actual electrocardiographs re main on the Dorado, although .[the expedition also Is equipped .I to work on the beach if that [proves more desirable, i Tlie lightly harpooned whales tow the sea sled by insulated wires; a matter of 4 or 5 minutes is all that is required to make an adequate tracing of the heart actions. To recover the sled and tele metering equipment, the speed boats try to pick up a line trail ing behind the sled, and by put- Metropolitan , Edition New York Markets, Pages A-34-35 WMAL—RADIO— TV 5 CENTS B| ■ jflS LT. DON M. SULLIVAN Sighted Missing Plane Reds Charge 'Brink' Policy On Balloons MOSCOW, Feb. 9, ((P).— The ’Soviet Union today accused the jufflted States of carrying out a: ! “brink of war” policy in the re lease of weather balloons over Russian air space. In a full-scale news confer ence at the Spiridonovka Palace, j Foreign Ministry Press Chief Leonid Ilyichev declared that ithe balloons carried apparatus which did not take meteoro logical data but was for aerial jreconnaissance. j He declared the balloons con stituted a menace to air navi gation and ground inhabitants | and added: | "All such attempts by Ameri can military organs are an at tempt to conduct a policy of ‘to the brink of war’ which has been condemned by peoples." i Refer* to Dulles’ Article The Soviet press chief was referring to a statement at tributed to United States Sec retary of State Dulles in a Life [Magazine article. Mr. Ilychev briefly reviewed Soviet protests but did not men tion the fact that the United States handed its answer to the Soviets’ latest protest yesterday. (The United States, re sponding to the Soviet pro test, yesterday ordered a halt to the launching of United States weather balloons from West Germany and Turkey, j Balloons there will be grounded pending a study of whether j they have been flying over Russia. (Before taking this action j the United States Govern ment promised in a concilia- I tory note to keep the balloons from flying over Soviet ter ritory. It also offered to tell the Russians about the balloon program’s safety features. In addition, the note sought to enlist Soviet co - operation, asking the Russians to return . any scientific instruments the balloons might have para chuted to Soviet soil.) "These balloons were made in; the United States,” Mr. Ilyichev said. "Look at them if you care to ” Apparatus Displayed By his side on the counter were pieces of apparatus, including a radio transmitter. Mr. Ilyichev said the balloons were "launched by American military organs” from West Ger many and “states bordering the See MOSCOW. Page A-5 [ting on a strain, either pull out the harpoon heads or break the wire connections. Dr. White is the eminent Bos ton cardiologist who attended President Eisenhower after his heart attack last fall. Dr I White has emphasized that his current expedition with the Na tional Geographic Society has nothing to do with the Presi dent’s heart. Clue to Human Heart The only connection is a gen eral scientific one: By his studies Dr. White hopes to learn more about the operation and varia tions In action of mammalian: hearts of all sizes, leading he hopes, to greater understanding ol remaining areas of doubt about human heart action. For more than a quarter of a century Dr. White and his col leagues have successfully record ed the heartbeats of different sized mammals, from mice to elephants. A mouse’s heart beats 300 or more times each minute; that of the elephant, 30 or 40 times a minute. Off Alaska In 1952 Dr. White obtained an electrocardiogram of a small beluga whale. Its heart beat at only 12 to 20 times a minute Getting the heartbeat of the great gray whale will be the "payoff.” The gray whale Is one of the largest animals that ever lived. Taken Back To Base in Good Health BULLETIN The Navy said today all seven men who were aboard a plane downed In the Antarctic on February 3 have been reS ( cued and returned “safe and well” to the base at Little America. A message from the task force gave no details. By SAUL FETT Associated Press Staff Correspondent ABOARD USS ARNEB EN ROUTE TO NEW ZEALAND, Feb. 9 OP).—An Operation Deep freeze airplane missing since last Friday has been sighted from the air. All seven men aboard 'are "believed well.” ■j Rear Admiral George J. Dufek, i commander of the United States , Navy’s task force for the Antarc tic expedition, announced today ■the missing single-engined Otter 'had been sighted by a search plane. Admiral Dufek said the craft was spotted on King Edward Peninsula east of the Rockefeller ■ Mountains at latitude 77-32 south and longitude 154-10 west. I That is about 100 miles east of 1 Operation Deepfreeze’s main base at Little America V. The plane which found the downed aircraft was piloted by Lt. Don M. Sullivan of Alex andria, Va. The search plane, also an Ot ter, was unable to land at the site and headed back to £he base ! after messaging its findings. Ad ; miral Dufek immediately ordered ’ two helicopters to the scene. One j will be sent from a trail party base and the other will be car , ried by the icebreaker East Wind as close to area as possible. Those aboard the plane were: Lt. Comdr. Glen H. Lathrop, Costa Mesa, Calif.; Lt. Paul A. I Streich, California, Md.; Aviation Machinist 2/c John H. Floyd, jr„ [ Detroit, Mich.; Chief Surveyor .•George Moss, North Providence, R. I.; Construction Driver 1/e Roland Levesque, Beverly, Mass.; I Construction Driver 1/c Alvah G. Edwards, Lakebay, Wash., and 'Photographer 2/c Chester M. Stevens, jr., Salona, Pa. Missing Plane Sighted By Alexandria Pilot Lt. Don M. Sullivan, 28, pilot of a plane which sighted another missing nearly a week in Ant arctica. lives at 4 Sharon Chapel road, just south of Alexandria. He is married and has two sons. Lt. Sullivan, a native of Alexan dria. has been in the Navy 10 years. He received his wings in 1950 at Pensacola. Fla., after at tending Alexandria’s George Washington High School and *George Washington University for two years under a Navy program. His parents, Mr. and Mrs. Henry E. Sullivan, live at 3063 South Abingdon street, Arling ton. Lt. Sullivan’s wife, Virginia, said her husband left for the Antarctic November 14 aboard the USS Arneb. a supply ship. Before that he was an instruc tor at the Pensacola (Fla.) Naval Air Station. 'Copter Rescues All 8 After Venezuela Crash SAN JUAN, Puerto Rico. Feb. 9 (•4 3 ).—A helicopter today com pleted rescue operations, pluck ing five more Unit«d States Navy and Marine men from a north Venezuelan jungle-marsh clear ing where their Neptune patrol bomber was forced down Tues day. The helicopter took the officers and men to Port of Spain. Trin idad. where it had taken three others yesterday. All eight were reported unhurt. They were en route from Patuxent Naval Sta tion in Maryland to Antarctic on a rescue mission when their Neptune P2V lost power and made a forced landing. TRUMAN , M'ARTHUR BATTLE AGAIN NEW FURY—Former President Tru man soys he Fired Gen. Douglas Mac- Arfhur lor insubordination that threatened to bring on a third world wor. The general says his dismissal undercut the bottle against com munism. Page A 8. LITTLE KNOWLEDGE—In the field of heolth, a little knowledge isn’t dangerous It may save your life, says Dr. Peter J. Steincrohn in How to Stop Killing Yourself on The Star's Feature Page, (-24. Guide for Readers Amusements C-6-7 Business ..A-34-35 Classified . 8-16-23 Music B-12 Comics 8-26-27 Obituary B-14 Cross-word . 8-24 Rodio-TV ... 8-25 Editorial A-26lSports C-1-5 Edit'l Articles A-27 Womon's Feature Page 8-24 Section ...1-1-4