U. of 0. Library
Eugene, Oregon cOhP
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l)raM
IT
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Rubber. Cobalt
Controls Also
Established
55 Materials Essential
For Defense Purposes
Go Under Hoarding Ban
WASHINGTON - UP) - The gov.
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i ii inn iteareetMtaan '
CPL. ROBERT S. GRAY, twice wounded Korean marine veteran,
it pictured above shortly after he was notified he had been
choien to replace General Dwight Eisenhower at grand marshal
of the 1 95 1 Pasadena Tournament of Roses. Gray is a nephew
of William T. Evans Jr., and cousin of Ty Evans of Roseburg. He
worked in Roseburg during the summer of 1948, shortly before
he enlisted in the marine corps. Special guest of Cpl. Gray for
the occasion will be Roseburg't Sonia Fett, who, with her parentt,
Mr. and Mrs. Sig Fett, left today for Medford to take a plane
for Pasadena.
Medics Under 50, Not Yet
Registered For Draft, Told
To Sign Up On January 15th
WASHINGTON (API Virtually all of the nation's physi
cians, dentists and veternarians lest than 50 years old and not
already registered must sign up for the draft on Jan. 15.
In the Day's News
By FRANK JENKINS
Dispatch from Kansas City this
morning:
' Urgent defense problems in the
Fr East, in Europe and on the
rnme front forced President Tru
man to cut short his Chris'mas va
cation today and head bark to
Washington for top level confer
en es."
Tough. But I know a number o(
Cis who had to cut short their
Cruistmas furloughs and I know, a
lot more who didn't get any Christ
mas furloughs at all.
including quite a few in Kcrea.
This one is from Washingir.n:
'CIVILIANS working in the ex
ecutive branch of the federal gov
ernment numbered 2,160,000 on De
cember 1."
Let's see. A I recall it that is
more than we have in all o'. our
armed services. It looks a little
topheavy to me. I wonder how it
looks to (he boys in the frozen fox
holes in Korea.
Let's skip to L.A.:
"An alcoholic haze over Los Ar
geles (mixing, presumably with fie
(Continued on page four)
Trainmen To O.K. Wage
Pact, Publication Says
CLEVELAND UP) General
chairmen of the Brotherhood of
Railroad Trainmen probably will
approve reluctantly a new wage
settlement for their members, the
union's official publication says.
The chairmen meet here next
Thursday to discuss a Washington
proposal grading wage increases
for members of the railroad in
dustry's four big operating unions.
Own Medicine For Reds
Arm Underground Groups,
Aid Sabotage In Russia,
Satellites, Solon Urges
WASHINGTON (API Senator Wiley IR-WisJ urged
today that the United States provide arms, sabotage materials,
money and encouragement to underground groupt intide Russia
and Communist sat-:!ite countries. o
Wiley, second rising Repub-1
lican on the siate foreign rela
tions committee, said that Russian
and Com msnisP leaders have been
trying for many years to "foment
revolutions within the western na
tions." Now, he added. America
and other nations should give the
Communists "a taste of their own
vile miicine."
"All we need to stir up plenty
of trouble in Russia. China and j "may be squeamish" abouOsuch
elsew here i some daring leader-! bold steps because they tear it
sh i." Wilcv said. "A counter-rev-; might "provoke the Ikissians,"
olulionary program asainst Com-i Wiley told a reporter wlhere is
munism would not rot a drop "i nothing that will provoke Russia
the bucket compared with the bil- j more than our own weakness, our
lions we now spend." ' pussyfooting and our stupidity.
The Wisconsin senator proposed , "The time is overdue for us to
that America set up a world-wide j stop following a mere panlywaist
revolutionary movement against i diplomacy a mere wordv voice
Communism patterned upon "the of Amerira program. Hand gren
Cominfnrm the Communist In- ades talk louder than hand ap
ternational." plause."
Draft director Lewis a. Her
shey, who announced the medical
call-up last night, estimated some
210,000 medical men must register.
Dr. Richard L. Meiling, director
of: medical service for the de-
fense department, said about 13,
000 doctors will be needed to care
for the military establishment of
3,500,000 now being planned.
Dr. Meiling grouped doctors in
to four priority classes. Nearly all
those in the first priority group,
he said will probably be called
within the next six months. They
are men who received their train
ing at government expense in
the world war two training pro
gram, or who were deferred to
complete their education, and
served less than 90 days.
They are among 21,000 doctors
registered in the first medical call
last Oct. 16.
Dr. Meiling said the second prior
ity group embraces doctors with
the same qualifications as the first
group, but who served between
90 days and 21 months. He pre
dicted some of them will be called.
They also are registered.
The third group contains doctors
who did not serve in world war
two, or since.
In the fourth group are war
veterans.
These two groups are the ones
who must register Jan. 15.
Dr. Meiling said only aliens and
doctors who are regulars in the
armed services or who are re
serve medical officers will not
have to register next month. Gen.
Hershey immediately sent tele
grams to all state selective ser
vice directors alerting them for
the Jan. 15 registration.
AUTHOR WEDS NO. 3
NEW YORK UP) Author
John Steinbeck and Elaine Ander
son Scott were married Thursday.
She was divorced last week from
actor Zachary Scott. It was Stein
beck's third marriage.
Declaring "there is scarcely a
family in Russia that hasn't had a
member or relative liquidated or
forced into slave labor," Wiley said
both that country and Communist
China would he fertile fields for a
"commando-type pWgram of psy
chological and revolutionary pene
tration." Conceding that some Americans
Established 1173
Reds Launch Attack; U.N.
Enemy Gains
High Point
In One Area
U.S. Air Units Continue
To Deal Destruction
In Series Of Sweeps
TOKYO UP) Massed Red
manpower drove United Nations
forces back up to 10 miles today
in the eastern sector of the Korean
warfront.
There was skirmishing all along
the defense line.
General MacArthur said two Red
regiments seized hih ground
northwest of Oron, 35 miles inland
from the Sea of japan coast and
about 10 miles south of Parallel
38.
Another thrust rolled allied
forces back southeast of Yongpo,
13 miles due east of Oron.
MacArthur said the Reds were
active in almost all sectors across
Korea's waist.
Korean Reds were in the fore
front of the enmy action. Behind
them were hordes of Chinese. Mac
Arthur estimated Thursday that
more than 1,350,000 Reds Chi
nese and North Korean were
poised in Korea and Manchuria to
strike allied forces.
U. N. warplanes struck the en
emy all along the frigid front and
at his supply Tines from Manchuria.
Observation planes spotted camou
flaged vehicles in the forward
areas.
While the lid was screwed little
tighter on new.s in Korea by the
allied command, the Red radio at
Pyongyang broadcast that United
Nations forces had suffered losses
of men and war materiel in the
Kangwon area on Dec. 24 and 25,
"According to a part of the war
records, our forces Inflicted about
320 casualties upon the enemy
forces and captured about 110
troops in l-he said -acnon,' the
radio said.
MacArthur quoted the enemy re
port in his communique.
Jets Hit Russian Planes
U. S. Far East air forces and
fifth air force fighters and bomb
ers kept plugging at the Commun
ists near the red front. Towns har
boring enemy men and supplies
were blasted in North Korea.
Speedy American jets knocked
down one Russian made MIG-15
and damaged (wo others in en
counters in far northwest Korea,
near Manchuria. All American
planes returned safely to their
bases.
Navy planes of task force 77
went back into action for the first
time since the evacuation of the
east coast port of Hungnam was
completed on Christmas eve. They
destroyed 27 buildings occupied by
Red troops and damaged 67 others
along the Mlh parallel.
Marine Corsair pilots operating
on the Korean west coast reported
they destroyed more than 100 build
ings with bombs, napalm and
rockets.
Lt. Gen. Matthew B. Ridgway,
U. S. Eighth prmy commander, ex
pressed "complete confidence in
the ultimate success" of the United
Nations effort in Korea.
March Of Dimes
Cost Under Attack
OAKLAND, Calif. UP) The
March of Dimes, refused a city
permit for its annual funds cam
paign, planned appeals to the city
council ami, possibly, to the com
munity chest.
The Oakland Public Charities
commission refused to approve the
campaign, scheduled Jan. 16, rul
ing that administrative and cam
paign costs of the National Founda
tion for Infantile Paralysis were
excessive.
Mrs. Daisy P. Winsor. commis
sion vice president, said letters
from the National Foundation
showed a "$3,000,000 differential"
between contributions received antl
money spent fighting polio.
Other commission members said
they had no argument with the
local (Alameda County) chapter;
it's what the national foundation
did with its 50 percent spljt of lo
cal funds.
The .drive here raised $154,361 in
1950.
Commission Secretary Arthur B.
Green said local campaign costs
and administrative expensed) to
taled about 18 percent "not un
reasonable." Dan Marovich, regional director
of the March of Dimes, said he
was immf aOthe
ruling.
commission
SABOTAGE SUSPECTED
WASHINGTON tP) Fire
caused $250,000 estimated damage
Thursday night in a building oc
cupied by Schutlig anQCompany,
which has been making electrode
equipment for the government "
Police started an investigation of
the possibility of sabotage. l.eon-
ard A.Schuttig, head of the firm
said the plant was manufacturing
electronic equipment but rtt)of i
"serret nature."
ROSEBURG.
DOG RESCUES DOG
Hound's Head
In Can 4 Days;
Rabbit Inside
CHARDON, O. (."Pi Queenie,
a beagle hound, and her insepar
able pal, Blackie, Hist a dog, were
missing four days from a hunting
jaunt with their master, George
Lambert.
Then two small boys spotted
Blackie whining and obviously
worried. He led them to Queenie,
lying in the brush, her head firmly
wedged in a five-gallon can.
The boys took Queenie on a sled
to the home of Harley Smith, near
by. Smith snipped open the can and
freed Queenie, hungry but still all
right.
At the bottom of the can was the
explanation: a live half grown rab
bit was crouched there, just out
of Queenie's reach.
They freed the rabbit, too.
Holdup Attempt
At Riddle Fails
A holdup man who entered the
Southern Pacific's main line sta
tion at Riddle Thursday at 4:30
p.m. was foiled in his attempt to
rob the place and left hurriedly.
According to Southern Pacific of
ficials and police reports, the man
entered the station and asked for
a Western Union blank.
Station agent A. E. Hayes was
out at the time, but Fred Cornel
ius, a clerk, and Lloyd Russell of
Canyonville, a customer sending
a telegram, were present.
When handed the telegram
blank, the thug drew a gun and
said, "This is a stickup."
He ordered Cornelius to stand
facing the wall and likewise held
Russell under surveillance.
Cornelius attempted to convince
the man the station agent had
locked the safe and there was
np money.
About that time liayes returned
to the station and started to enter
by a side door. The holdup man
ordered him to put up his hands,
but, acting quickly, Hayes rushed
out the door and headed up town.
The holdup man rushed outside
in pursuit, but apparently realiz
ing the "jig was up," got in a
parked car and fled.
Oleo Fight About
To Be Resumed
WASHINGTON UP) The but-ter-oleo
fight is about to resume
again.
Rep. August H. Andresen (R
Minn) said today he will introduce
legislation to prohibit sale of col
ored margarine.'
He told a reporter there are "fla
grant violations of the law, ef
fective last July , which ended the
64-year-old federal taxes on mar
garine and stipulates that restau
rants serving margarine must
n.ake this plain to customers.
Restaurants and other public eat
ing places are required to display
a card saying that margarine is
being served. In addition, the mar
garine must be in triangular pats
or each pat must be labeled to show
its origin.
But Andresen reported:
"I went into three restaurants,
all within a stone's throw of my
office up here at the capitol, and
all were serving oleo at butter.
There was nothing to show it was
not butter.
"I called the proprietor in each
case. All admitted they were vio
lating the law, but all of them said
everybody ese was doing it.
"In the District of Columbia, for
example, I would estimate that
three-fourths of the restaurants are
serving qjeo without proper identi
fication." ,
The Minnesotan laid this was
most prevalent in the small eating
places and was not generally prac
ticed in the big hotels and larger
restaurants.
U.S. Strength Will Bon
Attack, Rayburn Says
BONHAM, Tex. UP) The
United States intends to make it
self so strong that foreign countries
will be 'afraid to attack it, said
House Speaker Sam Rayburn.
o He said the U. 9. intends to do
ie)i regardless of cost.
While the U. S. is planning to
become the world's strongest na
tion, Rayburn said, "Every leader
is doing all he can to bring world
peace.'
The Weather
O Cloudy today with occasional
rain tonight and Saturday.
Highest ttmp. for any Dec- .
i Lowest temp, for any Dec.
Highest temp, yesterday
Lowest temp, last 24 hrs. .
Precip. last 24 hours
Precip. from Dac. 1
Defic. from Dee. 1
.4.J5
m :
23.31
precip. from Sept. 1
Sunset today, 4:4F-Vm.
Sunrise tomorrow. 7:41 a.m.
fit
OREGON FRIDAY, DECEMBER 2f. 1950
Truman Says
Hoover Speech
Isolationism
President's View Backed
By Morse; Dulles To Join
Debate In Talk Tonight
WASHINGTON UP) Presi
dent Truman's comment that the
nation is going to steer clear of
isolationism set the stage today
for Republican John Foster Dulles
to join the "great national debate"
on foreign policy.
Mr. Truman Thursday pinned
the isolationist label on former
President Herbert Hoover's pro
posal to concentrate on Western
Hemisphere defense until Western
Europe demonstrates it has the will
and ability to meet Communist ag
gression. Dulles, announcing In advance
Uiat he agrees with much Mr. Hoo
ver said, is scheduled to state his
own views tonight (8 p. m. EST)
in an address at New York to the
American Association for the
United Nations. Dulles, advisor to
Secretary of State Acheson, said
however, he would express a view
point "somewhat different" from
Hoover's.
The State department has made
plain it expects Dulles to support
the basic administration policy of
collective security through the
North Atlantic pact.
Guy Gabrielson, Republican na
tional chairman, said the former
New York senator had consulted
neither congressional Republican
leaders nor the GOP national com
mittee. He said Dulles therefore
would speak either as an individ
ual or as Acheson's advisor, but
not for the Republican party.
Morse Backs Truman
Senators Sparkman (D-Ala and
Morse ,R-Ore) lined up In Mr.
Truman's corner regarding the
Hoover speech, but Senator Wat
kins (RUtah) said: "I completely
disagree with the President."
Watkins added: "It's not isola
tionism at all, but realism. The
President is trying to answer Mr.
iioover wan a smear word iso
lationism and it is not a very
dignified thing for the President of
the United States to do.
"Mr. Hoover said In effect that
our supposed European allies are
running out on us. Let the Presi
dent answer that. Let him tell the
American people what the nations
of Europe are planning to do in
the way of defending themselves."
In agreeing with Mr. Truman,
Snarkman called Hoover's pro
gram "a throwback to isolation
sim which completely disregards
what has happened in the last 25
yea rs."
Morse said: "I think the Presi
dent is entirely right in summariz
ing the Hoover speech as basically
a proposal to return to isolation
ism in America. "
Shortly before Mr, Truman's
slatcment, Senator Butler (R-Neb)
put out a statemen calling Hoo
ver's "masterful address ... a
welcome breath of fresh air."
"We have not enough manpower
to keep the peace all over the
world even if we tried." Butler
said. "We have seen that dem
onstrated in Korea.
"We have bought a lot of
friends, but now we find they are
not fighting friends "
GRAPE KILLS BOY
DAYTON, O. UP) - A two-year-old
Cleveland boy, Aubrey
vannoy Jr., choked to death on
grape as the train oa which he was
a passenger neared Dayton.
Efforts to revive him with an in
halatnr at a hospital here failed.
Repeal Of Racial Discrimination Laws
Will Be Requested Of Oregon Legislature
By PAUL W. HARVEY Jr.
SALEM UP) Four laws
which discriminate against Ne
groes, Indians, Japanese and Chi
nese might be wiped off the pages
of Oregon's law books after they
have been there a long time.
Governor Douglas McKay and
State Labor Commissioner W. E.
Kimsey will ask the legislature to
repeal them. They think repeal
would bring about better racial
feeling.
The oddest of these laws was
passed in 1903. It provides that the
state labor commissioner shall re
port every two years on the num
ber of Japanese and Chinese in the
stale
It requires him lo list every
member of these races, whether
j they are married, how much wards of the federal government.
14 money they earn, how they spend i And that includes almost all Indi
"it i it, and their social and sanitary ' ans.
(J) hahita, O, Ties marriage W passed In
i rfriniy lime a rrpun wn m inwi, iijfuiun wmit-i-n, uiaiij 111-
made umier this law was in t!8. diant, Negroes, Chinese or Hawaii
It was made by former Labor Com-1 ans. The legislature will be asked
missioner C. H. Gram, and con-i to repeal Ihe whole law.
tamed 105 pages of verytmtllj This lew hat been violated thnu
pnnt. I sands of times. Some of our most
Forces
Forest Research Told
Douglas Fir Gives Way
To Pine In Areas Where
Dry Weather Prevails
"Much of southwest Oregon especially the South Umpqua
drainage area above Tiller, large parts of the Rogue drainage,
and even parts of the Klamath plateau represents some of the
most productive forest lands in the United States."
This optimistic view was expressed to members of the Rose
burg Rotary club Thursday noon at the Hotel Umpqua by G. Lloyd
Hayes, leader of the Siskiyou-Cascade research center, Roseburg.
He has done extensive research in forestry.
Flagg Denies
Rates Boost
To Phone Co.
SALEM tP) Public util
ities commissioner George H.
Flagg refuted today to grant the
Pacific Telephone and Telegraph
company an I percent increase
in itt Oregon ratet.
Flagg diimiutd the c e nv
pany's application, which would
boost rates $2,920,000 a year.
The matter, however, is e x
pected to end up in the courts,
Fletcher Rockwood, Portland,
company attorney, said during the
recent hearings before Flagg that
the company would go to court if
Flagg dismissed the case.
During these hearings, Flagg
said, the company failed to show
that the rate increase would be
just and reasonable.
The company submitted its side
of the case, but opponents of the
increase didn't have to give their
case.
Flagg said that the company now
is earning 5.5 percent on its in
vestment. The company asked that
'a return of 7( percent be al
lowed. "We have been very fortunate
in Oregon in holding utility rates
at a low figure, due first to a
tremendous amount of refinancing
at greatly reduced figures, and to
a greatly increased volume of busi
ness," Flagg said.
"How much longer the line can
be held is becoming more doubtful
every day.
"Every telephone instrument on
Ihe Pacific system in Oregon pays
taxes of more than $28 a year
a sum larger than the average to
tal cost of exchange service not
too many years ago. Other costs
are mounting, and any further in
creases of any substantial nature
will most certainly result in higher
rates.
"The telephone company has
made some very substantial say
ings in operating casta, and it is
hoped that they will continue to
strive for new economies."
Juveniles Admit Theft
From Farm Bureau Store
Three Roseburg juveniles, ages
12, 13 and 14, yesterday admit
ted breaking into the Farm Bureau
Co-op Exchange at Washington
street and the SP tracks late Tues
day night, reported Chief of Po
lice Bairtf.
The store reported four wrist
watches and approximately three
dozen pocket knives missing. City
police who are investigating the
burglary recovered three of the
wrist watches and five pocket
knives.
The three juveniles also admit
ted taking Christmas presents
from under trees in two homes
last Saturday night. They were
remanded to juvenile court fol
lowing arraignment in justice
court.
But in the light of recent United
States in pi erne court opinion!, the
labor commissioner would be
slapped down quickly by the courts
if he tried to collect such infor
mation today.
Indiana Assail iarriert
Indian leaden want two other
laws repealed. These forbid Indi
ans from drinking liquor, and won't
let Indians marry white persons.
These Indians, who want equal
rights wilh whites, lay the Indi
ans should be subject to t h e
I while man's liquor laws. The ban
sale of liquor to Indians wat
passed in 1931. 0
But if stale law is changed so as
to let Indiai buy liquor, the sale
still would be banned by federal
law for all Indians who still are
304.50
Back Up
the statement was made in spite
of gloomy indicators, such as the
forestry, site rating system, which
points out that very little of the in
terior of southwestern Oregon rates
better than average in productive
ly potential of Douglas fir, and
mucn is Deiow average.
The reason for this teeming con
tradiction, Hayes related, lies in
the fact that sugar and ponderosa
pine can overcome dry conditions
and flourish in areas where the
mosilure-loving Douglas fir does
not thrive. Hayes consitleri the
South Umpqua drainage area above
Tiller to be the most promising
area for growing sugar pine that
is known anywhere. Seeds, how
ever, are hard to obtain.
"Ponderosa pine, although not
quite as impressive on the South
Umpqua as sugar pine, does ex
ceptionally well there, and even
better in other parts of southwest
Oregon, "Hayes said." It is being
planted widely by the forest ser
vice." Conclusions Submitted
Four conclusions were submitted
by Hayes on the basis of his re
search on southwestern Oregon
as an environment for growing
timber. They are:
1. "The west slope of the coast
range, from the Coquille river
northward, represents - aa good a
Douglas fir growing area as can be
found in Oregon.
2. From Little river northward
in the Cascades, average yields of
Douglas fir should be possible.
3. The South Umpqua and parts
of the upper Rogue river represent
the most promising area known for
sugar pine production.
4. Some exceptionally good areas
for ponderosa pine are scattered
over all of southwestern Oregon."
"Douglas and Jackson counties
represent a transition zone," said
Hayes. "The climate changes rap
idly from north to south and the
Douglas fir intermingles with, and
(Continued on page Two)
Board Appointed
For Parks Dept.
A four-man board of directors
was appointed Thursday by the
county court to administer the
newly formed Douglas county pub
lic parks department.
The four appointed are Frank L.
Taylor of Rcedsport for four
years; James H. Stoop of Drain for
three years; John P. Amacher of
Roseburg, two years, and H. J.
Hash of Canyonville, one year.
The duties of Ihe board are to
supervise Ihe acquirement, devel
opment and maintenance of park
lands. They are to handle negotia
tions for the sale or purchase of
lands for park purposes under the
supervision of the county court.
They are also to cooperate wilh
federal, state, county and munici
pal agencies in long range plan
ning for park and recreational
lands.
The directors will also appoint a
public works supervisor, who
will be the administrative and ex
ecutive officer of the department.
respected pineert had Indian
wives. Some of today's Indians
have white mates.
The other measure has been in
the constitutton since 1859, when
Oregon became a state. It says
the appoftionment of the. legisla
ture shall be based on the white
population only.
If the legislature voles to change
this provision, it would have to be
submitted to the ppl
Court Kayoet School Law
Oregon has had quite a history
in dealing wilh racial and re
ligious matters. Two yefts ago,
the legislature passed the fair em
ployment practices law.
But in 192Z, tne people, miring
the Ku Klux Klan warfare against
the Roman Catholic church, voted
; to nm.e all children go to public
scho.. The United States su
prenW court threw that one out.
In 1948, there wat a constitu
tional amendment on the ballot to
let Chinese hold mining claims. It
was approved by a small margin.
The legislature submitted it to
the people as a goodwill gesture
toward our Chinese allies of
World War II.
ernment's defense production and
anti-inflation drives today:
1. Cut down sharply on the money
banks have available for lending.
2. Established firm controls
over supplies and use of natural
rubber and cobalt, two materials
essential in making hundreds of
kinds of civilian and defense goods.
3. Brought announcement of
plant for 13 regional wage-orice
offices.
Several agenciet figured in the
moves.
A Federal Reserve board order
to its 6,885 member banks called
for freezing $2,000,000,000 out of
the loan market.
The board said its action would
cut off a potential further increase
of $12,000,000,000 in the already
record-high volume of bank loans.
This is because banks could have
lent the $2 billion dollars over and
over again.
The Economic Stabilization
agency announced that it will open
13 regional offices "to handle price
and wage problems," a step ap
parently paving the way for
stricter controls expected later.
Ban Put On Hoarding
The National Production au
thority decreed that the U. S will
take over immediately as sole im
porter and distributor of natural
rubber. Since it already controls
synthetic production this move
puts the government in virtual con
trol of all rubber.
NPA announced this new move
only a few, hours after it had for
bidden hoarding of 55 essential
materials, including steel, lumber
and paper. An NPA spokesman in
terpreted the latter ban to apply
to newsprint.
The hoard's money freeze
means there will be less to lend to
business firms, or to individuals
who want to buy houses, autos,
television sets, furniture, stock
market securities, or anything
else.
There was nothing in the order
itself to raise interst rates for those
who manage to get loans. Neither
was there anything to prevent
banks from raising those rates.
although officials did not expect
a rate rise.
The baord's freeze was effected
by raising "reserve requirements"
the proportion of deposits that
member banks are required to
post with federal reserve author!
ties as non-lcndable reserves.
Reserve system member banks
account for the great bulk of U. S.
bank deposits and loans, although
they constitute a minority of the
nation's 15,000 banks. It is up ta
state banking authorities whether
to apply a similar freeze to the
remaining banks.
Crack-Down Holds Risks
The board's crack-down on its
members with a compulsory
freeze which will cut bank pro
fits by cutting their lending ca
pacity amounted to conceding
failure for board efforts to get
banks to hold down lending vol
untarily. The board took some Important
risks in ordering the crack-sown.
The most vital one was that
banks mi'ht dump on the market
government securities, in which
they have invested huge sums, in
order to get the extra cash they
will be required to post or to raise
cash for making loans that pay
higher interest.
Another risk was that many
banks might resign their member
ship in the federal reserve system
to aviod being caught in the freeze
and to take advantage of the easier
requirements on state banks out
side the system.
Chinese Seize American
Property, Bank Deposits
HONG KONG UP) Communist
China has seized all United States
property and frozen all U. S. bank
deposits, the Peiping radio said.
The Red premier-foreign minis
ter, Chou En-lai, announced the
seizure in retaliation for similar U.
S. action on Dec. 16. He called the
United States' action an "attempt
to loot the Chinese people of their
property."
(A high comme.ee department
official in Washington estimated the
seizures would total "considerably
less than $100,000,000." He said mo
U. S. property in China was seized
when the Reds took over in 1949.)
Sentiment here generally was
that the seizure pcrhap; would com
plete the driving from China of
missionary establishments, U. S.
oil companies and the American,
financed Shanghai Utilities Co.
Radio Spieler Ousted
For Crack At America
PARIS UP) A leftwing news
commentator on the nationalized
French radio. Pascal Copeau. has
been fired for his handling of the
news of the ambassador of a
United States ambassador to
Spain.
In his broadcast two days ago
he said, "and thus the United
Slates is going to be aceredited to
the Hitler across the Pyrenees."
Levity Fact Rant
By L. F Reizenttein
The confusion and hazard In
handling Christmat mail could
I have been due ta personal let-
ters tent from the Whit House
i and not yet made public.
EM