AO1
TTIHIIE WdD ES HUD TDD US WE IE Hi
(
-
-imiuTilii
Ppiss i bil HV' '.P--: 0 w-; Ru les ne!C;ai use-pf - -yla rkef - Jitters
I
Soviet Still Acts Friendly
DesDii
OEORGI MALENKOV was
J his place over a month
foreign policy. It's apparent
4ppear friendly and conciliatory to the West.
When Malenkov was thrown out of his job on Feb. 8
the West that this signaled the adoption o. a much
is prediction was bolstered
ky the general interpretation of!
Soviet Foreign Minister Molo-
jv's speech of that same day.ruary circumstances Molotovs
is warlike. The fact that Molo- statement on H-Bomb develop
lov's address was followed im- ment seems to fit into this pat-
hediately by an anti-Western
pilitary tirade by Soviet Mar-
fial Ivan Ko
ev added
jtress to this
oppression.
In - addition
here were
fther facts in
he changes of
feb. 8 and 9
thich looked
t the time to
e ominous,
receding the
lalenkov dis-
Whitney
hissal there
ad been a drumfire in the So-
tfet press on the theme that de
felopment of Soviet heavy in
justry must have absolute and
(jlative priority over light in
ustry. It appeared this meant
bore stress on economic war
Iotential including arms indus
:ies. The changes involved the
Emotion of two men closely
ociated with Soviet military
rowess Former Minister of
)efense Marshal Bulganin and
amous war leader Marshal
Jeorgi K. Zhukov, who took
lulganin's place as minister of
efense when the latter became
h-emier. This seemed to pve
ml
he new setup the aspect of a!raeni iito oi xugosiavia.
'war cabinet."
Different Perspective
Given this ; background it's
lot unnatural-that many com
mentators on the February
jhanges tended to lose sight of
Several important facts:
1. The Molotov speech of Feb.
I did devote considerable space
b the theme of Communist rey-
llution and expansion and to
ire and brimstone against U.S
preign policies, but it also de
(oted a great deal of space and
tress to the possibilities of
-jeaceful coexistence of capital
sm with communism and in
jluded some pretty strong pleas
h this direction.
2. When there are internal
hifts in the U.S.S.R. which re
teal conflicts within the leader
hip and give the outside world
he impression of weakness, it is
tremlin practice to try to coun
teract this with statements
fcressing Soviet military hitting
ower and strength. Shortly
fter Soviet . Police Chief Lav
enty Beria was arrested in
B53, Premier Malenkov an
lounced the U.S.S.R. had the
In Short. . .
Unveiled: The Falcon, newest
Ur Force guided missile with
fci electronic brain enabling it
b strike its target no matter
low the target maneuvers.
Sank: Ten small warships in
l Nationalist air strike which
:attered a Communist flotilla
l Amoy Bay, a short distance
om the Nationalist-held island
utpost of Quemoy.
Sent Home: All members of
le Czechoslovak and Romanian
igations in Sweden, after 11
aspects were jailed in an espi
tiage investigation.
'RiTREMSNX sji
SECOND BATTLE
r ' - - ' --- - - T" :r- 1 1 m M mm 1 I I mm Ml m ft: WW. m.. W B r-" w - - .!
e Malenkov s
By TOM WHITNEY
Associated Press Foreign Staff Writer
ousted as Soviet premier
ago but so far there are no signs of big changes in Soviet
that for the present the Kremlin wishes to continue to
hydrogen bomb and. even set
one off to prove it. In the Feb-
item of "smokescreen" or "dis
traction technique.
3. The talk in Moscow about
greater emphasis on heavy in
dustry right now conceals the
fact the Kremlin never in fact
reduced by a large margin its
overwhelming emphasis on this
branch of the Soviet economy.
Continuity Apparent
In actual fact, events since
Malenkov's dismissal show that
far from precipitate change in
foreign policy in the direction
of belligerence the Russians are
maintaining a strong line of
continuity with previous policy.
Several developments illustrate
this:
The Soviet press was quick to
pick up an Iowa suggestion for
exchange - of farm delegations
between the U.S.S.R. and the
United States. This is certainly
not a major policy development,
but it is not what one would
expect' if the Russians werdvolved in a long and exhausting
planning to intensify their anti
American campaign to the pitch
of the last months of Stalin's.
era.
The Soviet press has taken an
exceedingly conciliatory atti-
"fww VV. . m
Day to day developments in
AID: Report
More for Asia
Returned from a 30,000-mile
tour of free Asia, Foreign Aid
Director Harold . Stassen said
this week the administration's
requests for all foreign aid
spending in the next fiscal year
will be held to 3 billion dol
lars.
This compares with a total of
more than five billion dollars
made available for the current
year.
Stassen's remarks came at the
same time President Eisenhower
People
Excitement in Moscow
A fur-hatted young Russian
appeared at the high iron gates
of the British Embassy court
yard in Moscow this week, and
there suddenly whipped out a
pistol and blasted the Russian
guard in the chest. .
Racing across the 30 yards
which separate the front door
of the embassy mansion from
the gate, he shoved aside a Brit
ish guard and vaulted up the
broad stairs to the second floor
where the living-quarters of
British Ambassador Sir William
and .Lady Hayter are located.
Minutes later he was forcibly
disarmed by two husky mem
bers of the embassy staff.
Sir William refused any of
ficial comment, but Moscow
diplomatic observers were in
clined to attach no political sig
nificance to the incident They
dismissed it as the individual
action of a person presumably
mentally disturbed.
Atmnmndm, PhilaJmlphim Smmdmy Bmlltim
OF GETTYSBURG
Ouster
and Nikolai Bulganin put in
there were many predictions
more belligerent attitude
the Soviet Union, in the impres
sion they sometimes give of very
sharp change, obscure the actual
strong continuity in policy to
wards the outer world regard
less of persons who execute it.
This is probably particularly
true at the present time when
policy is not being determined
by any one person but by a
group among whom Khrushchev
and Bulganin are the leaders.
Khrushchev a Gambler
The impression prevails that
Khrushchev may be a man who
is much more inclined to gamble
and take risks than ex-Premier
Malenkov. In the long run this
might have considerable effect
on Soviet foreign policy should
he become an absolute dictator
on the Stalin pattern. For the
present at least Khrushchev is
not this and it seems probable
his colleagues in the Soviet
leadership might put the brakes
on him should he get too brash.
Of course it might well be
that neither Khrushchev nor his
colleagues would be averse to
seeing the United States get in-
conflict with Communist China
provided they were certain
the Soviet Union could stay out
of it. One is bound to wonder
at the current juncture of affairs
whether the Kremlin does not
see in such a conflict the solu
tion of its foreign affairs prob
lems. From Stassen
submitted to Congress a For
eign Operations Administration
report covering activities in the
last half of 1954.
The report showed that the
total value of military aid the
United States has shipped to
free world countries now stands
at 10 billion dollars. Its main
point was that with recovery in
Europe, there has been a sig
nificant speedup of foreign aid
to Asia "where communism is
stepping up its efforts of ex
pansion."
When the administration's
new foreign aid requests hit
Congress next month, even if
they are at the level Stassen
mentioned, they are likely to
run into serious difficulties.
. Chairman Byrd (D-Va) of the
Senate Finance Committee, for
example, has said he will try to
end foreign economic aid next
July 1 except for a "reasonable
amount" of technical assistance
Quote
Secretary of State Dulles,
in testimony before a Sen
ate committee considering a
bill, to extend the reciprocal
trade law and give the
President additional tariff
cutting powers: "The Trade
Agreements Act symbolizes
a willingness of the world's
greatest economic unit to
follow a self-interest that is
enlightened by a decent re
gard for others whose des
tiny has become inevitably
interlocked with our own."
CRYSTAL
The Market and the Investigator
163
162,
161
Start of hearings
160
159
158
1S7
156
1SS
754
153
15Z
151
150
FEB. 25 23 MAR1
JT. Sharpest gain
Ar ' in fifteen years
STOCKS
U- I 1 4 1 11 t U U 1 I L
SEN. J. WILLIAM FULBRIGHT, Democrat of Arkansas, in caricature against the AP Average of
60 Stocks, which give ample testimony of the dizzy market since the senator's "friendly study"
began: the attainment of an all-time high, the sharpest break in five years, and the biggest
rise in a single day in 15.
CONGRESS: Ike Wins
Tax Cut Beaten
Forty-five Republicans and
five Democrats joined forces this
week to defeat a Democratic
proposal to cut income taxes
900 million dollars a year and
give the Eisenhower adminis
tration its biggest round in the
battle over taxes.
After killing this plan, the
POLITICS: More Advice
Shifts Recommended
A "broad reorganization" of,but instead make cr0P Purchase
the federal government's 104
lending, insuring and guaran
teeing agencies was recom
mended by the Hoover Com
mission this week. j
In its continuing series of re
ports, the Commission on Gov
ernment Reorganization headed
by the former President said
federal loans, guarantees and
insurance now amount to 244
billion dollars. Advice from
the commission was that some
of the agencies handling this
money be abolished, and others
put under combined federal-
private operation with higher
charges to make them self-supporting.
Among the agencies the com
mission recommended shifting
to private enterprise under
government control were the
Federal Housing Administration,
which insures housing loans of
millions of home buyers, and
the Rural Electrification Ad
ministration. The, commission proposed that
the government cease making
COURTS: Provoo Freed
"Oppressive Delay" (year-old former San Francisco
Once convicted and sentenced! S!r " j pounds he
to prison for the rest of his life
on charges of treason during
wartime, John David Provoo
became a free man this week.
Last August his conviction
had been reversed by an appeals
court on the grounds the gov
ernment had wrongfully tried
him in New York instead of
Maryland and that the judge
had wrongfully admitted certain
evidence.
This week Federal Judge
Roszel C. Thomsen m Baltimore,
presiding at what was expected
to be a second trial, dismissed
the indictments against the 38
GAZING
All-time lugh
2 -J 4 7 8 3 .10 11 14 IS
Senate went down the line for
the White House by proceeding
to pass on a voice vote a bill
extending present corporate in
come and major excise tax rates
for another year from April 1.
The legislation went back to
the House, which approved the
tax rate extensions but added a
provision which would have re
duced the tax bill of every tax-
I price support loans to farmers
contracts, ai price support lev
els, leaving it up to the farmer
whether he wished to sell his
crop to the government or to
private buyers.
The report said this would
make no change in the farmers'
price support situation, but
would relieve the . government
of managing many .thousands of
small loans. With a government
contract to purchase the crop in
hand, the commission said, the
farmer would be able to borrow
on his crops up to their price
support worth from private
banks.
According to the commission
these recommendations and oth
ers would result in annual sav
ings to the government of about
200 million dollars.
In a vigorous- dissent, com
mission member Rep. Chet Holi
field (D-Calif.) said that if car
ried out the recommendations
"would make it harder for
American citizens to buy homes
or to get loans for their farms
or businesses."
nay iccu uciucu me ngni oi a
speedy trial within the meaning
of the 6th Amendment. He said
the government's "deliberate
choice for a supposed advan
tage" in trying him originally in
New York caused "oppressive
delay and damage to the de
fendant.
Further prosecution would
violate the fundamental prin
ciples of justice and fairness
which we must apply even in
the case of these charged with
the most heinqis offenses," the
judge continued.
Provoo's indictment and trial
grew out of one of the strangest
cases of World War IL He was
at Corregidor when that bastion
fell to the Japanese in 1942.
The government charged Pro
voo shaved his head and donned
the robes of a Buddhist priest,
greeting the conquering Japa
nese with offers of his service.
At the New York trial two years
ago he was convicted of offering
to aid his captors, informing on
and causing the execution of a
fellow prisoner, and of willfully
broadcasting propaganda for the
enemy.
Testimony at hearings preced
ing Judge Thomsen's dramatic
move brought out that the Jus
tice Department arranged with
the Army to have Provoo trans
ferred from Ft. Meade, McL, to
Ft Jay, N. Y'for discharge in
the fall of 1949 because of a
"more liberal" setup in New I
York and because the chief fed
eral judge in Maryland had
been antagonistic to Justice De
partment lawyers.
U.S. Atty. George Cochran
Doub, who has said the govern
ment considered Provoo's case
the most important treason trial
since Aaron Burr's, .was away
when Judge Thomsen's decision
was handed down. There was no
immediate word on whether an
appeal would be made. If so, it
could be taken directly to the
Supreme Court.
in Senate
payer and dependent by $20
each. :
In bitter debate which pre
ceded the Senate showdown,
opponents of any tax reduction
at this time called the Demo
cratic proposal "nonsense and a
hoax." It was a compromise be
tween the House measure and
no cut at all, providing for a
$20 reduction for a large group
of taxpayers next year, plus $10
for each dependent except a
spouse.
Supporters argued in vain
that it would distribute the tax
burden more evenly, push up
purchasing power and actually!
increase revenues by withdraw -
ing some tax relief given cor -
porations and stockholders last;
year.
There were predictions that
House spokesmen would put up
a strong last-ditch stand for
their plan. The chances for suc
cess, however, , did not appear
strong.
Hearings
"Point of Order"
The fourth investigation of
iu j r ,,
wm a honorable
discharge of Army dentist Ir -
ingrCMUegdn nW!linmgl0n
this week, and before it was an
hour old it had some of the as
pects of the tumultuous Army
McCarthy hearings of last
spring.
Sen. McClellan (D-Ark), chair
man of the Senate Investiga
tions subcommittee, started with
an explanation of the proceed
ings and a charge the Army had
once offered and then pulled
back some pertinent informa
tion. Then Sen. McCarthy (R-Wis),
now only a member rather than
the chairman, raised the famil
iar "point of order" to suggest
the investigation try to deter
mine why President Eisenhower
issued what McCarthy called a
"blackout order" silencing ad
ministration officials on a meet
ing which took place last Janu
ary. McCarthy insists that those at
this meeting "successfully con-
t t...
and acted to instigate "an in
vestigation of McCarthy."
McClellan, after some fire-
wv,xM cuuvlo petroleum products for years
for a broadened inquiry would i J
be taken up at a closed session.
Some 25 witnesses have been
lined up for the Peress hearings.
McClellan says he wants to
learn why the Army promoted
the dentist to major and then
honorably discharged him a
year ago apparently "in disre
gard" of a "considerable amount
of derogatory information."
Sidelights
Giacomo Gracciolo couldn't
resist the appeal of a waterside
bench in Detroit's Civic Center
Park. Daydreaming under the
spell of the warm sun, he
dropped off to sleep. Then he
dropped off into the river.
Workmen who saw him splash
ing about hauled him out.
Spring fever had claimed its
first victim.
Yes, it IS possible to sell an
icebox to an Eskimo. Frank H.
Whaley, touring the United
States for the Alaska Visitors
Assn., says Eskimos who worked
for the Navy at Point Barrow
after World War II bought
many electric refrigerators and
deep freeze units. And when the
Navy moved out, taking along
the source of electric power, the
Eskimos simply set the refrig
erations units out in the open
air.
(AU.RighttRettrved.AP Ntwtjtaturet)
Rise of Dividends
Sho
ws
By J. M. ROBERTS
Associated Press A'eici Analyst
i
T LOOKED for a while this week like the question of
whether stock prices are
by "Who threw the overalls into the Wall Street
Chowder?"
But after a bad break on Monday, one of the worst in
many years, the market showed some comeback ability.
Most of the witnesses before r
Sen. Fulbright's investigating
committee had testified to their
faith in the long bull mar
ket as justified by the country's
economic condition. But one or
two said it was dangerous. Most
of them also welcomed the in
vestigation,
but Secretary
Humphrey of
the Treasury,
said it was
the dangerous
thing.
The . "ev
erything is all
right" group,
when the
break came,
accused the
investigators
of being re-
Robert!
sponsible, and of undermining
public confidence in the state
of the nation. Sen. Fulbright
replied that he was still con
ducting his hearirrfes on an ex
ploratory basis, without seeking
to prove any preconceived opin
ion. He just wants, he said, to
be sure that everything is really
all right, and if things aren't
airtight, to see to it that Con
gress doesn't miss its obligation
to apply corrective measures in
time.
Uncertainty Results
k . r
A good many observersjbuy more. Actually, however,
thought that right there the, people with entirely inactive
senator had pointed to the
cause of the jitters. If there was
a possibility that Congress
would start remaking the rules,
nuuuuy .nev wnai course 11
wouia laxe, ana uncertainty
was the result
Market analysts themselves,
for the most part, seemed to
take the break in prices as one
of those shakeouts which occurs
from time to time in any bull
market.
President Eisenhower, point
ing out at his weekly news con
ference that any group dealing
I j f.A ..4: ...ytv maninnhtmn t i.
ipiutccu wiui great cauuun, saiu
j knQWS of nQ particular hase
jof fte committee tudy which
has not been conducted in
manner.
The papers were full of statis-
Dates
Wednesday, March 23
National Health Forum,
New York City.
Thursday, March 24
National Science Teachers
Assn. convention, Cincin
nati. Friday, March 25
Birthday (88th), Arturo
Toscanini.
Monday, March 28
American. Academy of
General Practice conven
tion, Los Angeles.
BUSINESS: Booming Oil
Reserve Increases
teserve Increases
.Plenty of gasoline for your
car, and an abundance of oil for
your furnace ... no shortage
to come,
That's the conclusion vou
could draw this week from thelsum;Ption. tha would take care
-..11.-
latest authoritative survey
the nation's oil and gas re
sources.
The study, sponsored by the
American Petroleum Institute
and the American Gas Assn.,
covered U.S. oil and gas reserves
m 1954. It showed- that
1. The nation's underground
reservoir of known crude petro
leum and natural gas increased
WELLS PUT DOWN IN
U.S. OIL AND GAS FIELDS
n
'THOUSANDS
zs
L
l I , L
. M I r-
r
m5 7 '43 SI 'S3 &
Soundness
too high might be superseded
tics showing that prices- of
stocks had not risen as far and
as fast as other prices in recent
years, and pointed out that the
market was still highly selec
tive. Department store, airline
and other stocks which boomed
in 1946 on the release of war
stored demand were still in
many instances not up to the
levels they attained then and
later lost when buying leveled
off.
Another facet of the situation
was that dividends also have
been going up for two years
along with the market, al
though many corporations were
1 being very conservative about
their rates.
Real Function
Theoretically, it is this matter
of dividends about which the
real function of the market re
volves. Theoretically, it is not a
place for buying and selling pa
per, but a place where the cor
porations come to gather to
gether the savings of millions of
people into chunks of money
sufficient to finance the nation's
business.
Theoretically, if the money
put into stocks is truly invest
ment, stockholders shouldn't
worry about market prices at
ail except when they want to
'portfolios get worried about the
value of their holdings when
; there is talk of insecurity in the
market Then things becin to
nappen akin to a run on a bank.
Accusations of Politics -
Everybody fears that too
much speculation in the market
will give it an unhealthy hue
and so arouse such uncertain
ties. That's the chief thing the
banking committee is looking1
into now. It wants to see
whether government restric
tions on credit operations are
sufficient, and whether specula-
;- -. -f f'-i im
likely to trap small investors. .
Some supporters of the Re-
publican administration also. ae
cuse the committee of playing
politics with the economy and
of trying to make it appear the
nation's prosperity is not as
sound as it looks. The Demo
crats did have a lot to say about
a "depression" during the 1954
congressional, campaign, but
now admit for the most part,
that things are on the rise. They
don't back down, however, from
their thesis that what the Re
publicans do for the economy is
done for big business, not for
people.
All this and more is mixed up
in the stock market investiga
tion, and there's only one thing
you can be sure of. At any given
moment you can find an expert
to prove just about anything
you want to about it.
i for the nth year in a row. de-
5pue recora consumption.
2. Knewn resources of rmH
oil on Dec. 31, 1954, were at an
all-time high of more than 29 Vx
billion barrels a gain of nearly
616 million over the year be
fore. At current rates of rnn-
jo the nation's petroleum needs
OI,fri a Inn.t 1ft -.
imji, i jrccus, even ii no
new sources were discovered.
3. Reserves of natural gas at
year-end totaled more than
211 trillion cubic feet a gain
of 263 billion in 12 months.
Increased known supplies of
natural gas and crude oil were
the result of intensified hunting
for new sources. The industry
spent billions on geological sur
veys, new leases and costly
drilling. All told, 52,815 wells
were put down in proven or
potential . U.S. oil fields, an all
time record for a single year.'
Of these, 29,175 produced oil
and 3,880 natural gas. One-third
or 18,715 were written off as
non-producers or "dry holes
and abandoned.
Many American companies
stepped up their efforts to find
new oil fields in foreign coun
tries. It was a global hunt, ex
tending from Borneo and Aus
tralia to Iraq, Saudi Arabia,
Iran, Egypt, Palestine, Turkey,
France, Germany, Italy and in
this hemisphere Canada, Vene
zuela and Peru.
Oil men say supply in the
United States is catching up
with demand. But in Europe,
consumption is rising fast giv-,
ing promise of new and wider
markets. -
1
j..
r t