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Section_B-3-5

An Associated Press Newspaper

99th Year. No. 8. Phone ST. 5000 S ** WASHINGTON, D. C., MONDAY, JANUARY 8, 1951—THIRTY-FOUR PAGES. Home Delivery. Monthly Rates; Evening and Sunday. *1 50; ST P.p.MTS Evening only. S1.10; Sunday only. 45c; Night Final. 10c Additional. « x

Offers Program ToBuildStrength Of Free World

Message Stresses Defense of Europe As Vital for U. S.

By Joseph A. Fox President Truman today warned

of the “deadly challenge” of com- munism as he gave Congress a

10-point program of legislation to build the strength of the free world, and coupled with it a plea for national unity and an indict- ment of isolationism.

Delivering his annual message on the State of the Union to a

Plane Output Rising to 10 Times Rate of Last June. Poge A-4

joint session of Senate and House of the new 82d Congress, the Pres- ident declared:

“All free nations are exposed and are in peril. Their only security lies in banding together. No one nation can find protection in a selfish search for a safe haven from the storm.

"Strategically, economically and morally the defense of Europe is' part of our own defense. That is why we have joined wuth the countries of Europe in the North Atlantic treaty.”

That was his plain answer to criticism of American foreign pol- icy.

The President sketched his leg- ; lslative program only in broad, outlines, explaining that the gaps would be filled in by succeeding; messages—principally the eco- nomic and budget messages which will be forthcoming in the next week.

Lists Legislation Needed.

Making it clear that the Fair Deal is not to be neglected—de- spite the fact that the adminis- tration must cope with reduced majorities in both Senate and House as the result of the No-: vember election, the President; listed the following as the “main subjects” on which legislation will be needed for the vast mobiliza-; tion effort: j

1. Appropriations for the mil-; itary buildup.

2. Extension and revision of the Selective Service Act.

3. Military and economic aid for the rest of the free world.

4. Revision and extension of authority to expand production and stabilize prices, wages and rents.

5. Improvement of agricultural laws to encourage production for the defense effort.

6. Improvement of labor laws, to insure stable labor-manage- ment relations and provide for steady production.

7. Housing and training of de- fense workers, and full use of all manpower.

8. Increasing the supply of doc- j tors, nurses and other trained medical personnel critically need- ed for defense.

9. Aid to States for elementary and secondary schools.

10. Major increases in taxes.

Still Hopes for Peace. While, however, stressing a pre-

paredness effort that contem- plates such production goals as

50,000 planes and 35,000 tanks annually—if needed—the Presi- dent continued to hold out hopes of peace with Russia, but without appeasement.

But he warned “we will fight, if fight we must, to keep our free- dom and to prevent justice from being destdoyed.”

“The Soviet rulers have madei it clear that we must have strength as well as right on our

side,” he said. “If we build our

strength—and we are building it; —the Soviet rulers may face thei facts and lay aside their plans to1 take over the world.”

In the message, which was

broadcast, televised and beamed to many countries overseas by the Voice of America, the President told Congress the task ahead is as grave as any faced in history.

Asserting that the economic

(See MESSAGE, Page A-6.)

$2 Billion Navy Bill Introduced in House

By the Associated Press

A new $2 billion Navy ship- building program, including a so- called super aircraft carrier, was

outlined today in a bill introduced in the House by Chairman Vin- son of the House Armed Services Committee. Mr. Vinson said the bill bore the approval of both the Defense Department and the Budget Bureau, and could be con- sidered an “administration bill.”

The new program contemplates major additions to the combat fleet.

In addition to the carrier, au-

thority is provided for construc- tion of more than 80 vessels, and for modernization and conversion of 250 existing ships.

Mr. Vinson said the Defense Department wants to start work on the program at once. He al- ready had introduced a separate bill for a 60,000-ton carrier.

Text of President's Message The text of President Tru-

man’s state of the Union mes- sage follows:

Mr. president, mr. SPEAKER, MEMBERS OF

THE CONGRESS: This 82d Congress faces as

grave a task as any Congress in the history of our Republic.

The actions you take will be watched by the whole world. These actions will measure the ability of a free people, acting through their chosen representa- tives and their free institutions, to meet a deadly challenge to their way of life.

We can meet this challenge foolishly or wisely. We can meet it timidly or bravely, shamefully# or honorably.-

I know that the 82d Congress will meet this challenge in a

way worthy of our great heri- tage. I know that your debates will be earnest, responsible, and to the point. I know that from these debates there will come the great decisions needed to carry us forward.

At this critical time, I am glad to say that our country is in a

healthy condition. Qur demo- cratic institutions are sound and strong. We have more men and women at work than ever be- fore. We are able to produce more than ever before—in fact, far more than any country in the history of the world.

I am confident that we can succeed in the great task that lies before us.

We will succeed, but we must all do our part. We must all act together as citizens of this great republic.

As we meet here today, American soldiers are fighting a bitter campaign in Korea.

We pay tribute to their cour- age, devotion and gallantry.

Our men are fighting, along-

side their United Nations allies, because they know, as we do, that the aggression in Korea is part of the attempt of the Russian Communist dictator- ship to take over the world, step

I by step. Our men are fighting a long

way from home, but they are fighting for our lives and our

! liberties. They are fighting to protect our right to me* here today—our right to govern our- selves as a free nation.

The threat of world conquest by Soviet Russia endangers our liberty and endangers the kind of world in which the free spirit of man can survive. This threat is aimed at all peoples who strive to win or defend their own freedom and national in- dependence.

Indeed, the state of our Nation is in great part the state of our friends and allies throughout the world. The gun that points at them points at us, also.

The threat is a total threat and the danger is a common danger.

All free nations are exposed and all are in peril. Their only security lies in banding together. No one nation can find protec- tion in a selfish search for a safe haven from the storm.

The free nations do not have any aggressive purpose. We want only peace in the world- peace for all countries. No threat to the security of any nation is concealed in our plans or programs.

We had hoped that the Soviet Union, with its security assured by the Charter of the United Nations, would be willing to live and let live. But that has not been the case.

The imperialism of the Czars

(Continued on Page A-6, Col. 2.1

Conscript Veterans Into Enlisted Reserve, Official Urges House

Better Program to Tell Officers Whether They Are Needed Also Asked

By George Beveridge Brig. Gen. E. A. Evans, director

of the Reserve Officers Associa- tion. urged Congress today to draft World War II enlisted vet- erans into reserve units to over- come problems of building a strong reserve force.

His lecommendation was made at tne opening of a House Armed

Draft Rejection Rate Shgws Slight Rise During November. Page A-6 ___

Services subcommittee investiga- tion of often-criticized reserve policies. In addition, he urged that to meet immediate needs:

1. A more adequate program be set up to tell reservists whether they will be needed under current plans for partial mobilization.

2. That the present ceiling of 73,500 reserve officers in training- pay status be lifted to allow auth- orized reserve units to fill officer vacancies.

Enlistment Problems Serious. Gen. Evans told the committee

that reserve units, which must be ready in case of all-out war, are having serious enlistment prob- lems “because the average in- dividual prefers to take his chances on Selective Service and, quite frankly, doesn’t mind tell- you so.”

To overcome this situation, he said, men currently deferred from the draft could be brought into the reserves through Selective Service.

This was the first time that use of the draft for such a purpose has been advocated.

Gen. Evans said he has dis- cussed this situation with Selec- tive Service Director Lewis B. Hershey and that “he expresses a keen interest in the proposal.”

Men Would Have To Train. The ROA official said that

draft-deferred students and men with dependents, as well as

veterans, might be selected for reserve duty, to be subject to call if their units were called into active duty. Should they fail to maintain reserve training, he pro- posed, they would be subject to immediate call through the regu- lar draft.

“Our personal preference for

(See RESERVES, Page A-4.)

4,500 Workers Strike At Fairchild Aircraft Plant in Hagerstown

Dispute Over Wage Scale Causes Walkoutof Men Making 'Flying Boxcar'

By lh« Associated Press

HAGERSTOWN. Md., Jan. 8.— Some 4,500 production workers1 went on strike today at Fairchild1 Aviation Division, sole producer of the Air Force C-119 Packet, famil- iarly known as the "flying box- car/’

Milling pickets swarmed around a car and threatened its occu- pants in a tense moment at plant No. 2, the main assembly line 3 Vi miles north of Hagerstown.

There was no violence, however. The police reported “everything! orderly.”

The company and the CIO- United Auto Workers failed to agree on a new contract after long negotiations. The company offered a flat increase of 12 cents an hour in the wage scale, which starts at $1.27. The union demanded an end to the “merit” wage scale now in force, asking Instead a series of automatic raises.

Sound Truck Used The old contract expired at

midnight. The strike started at 7 a.m.

A throng of pickets shuffled along U. S. 11 across from Plant No. 2, where the division’s offices are. The pickets were jammed in a thick line.

A union sound truck came along proclaiming that the strike was 100 per cent effective at all four of the division’s plants here. The crowd of pickets cheered.

Close behind the truck was a private automobile, driven by a well-dressed man as yet unidenti- fied. He had two women passen- gers. The car drove close to the picket line. A couple of pickets jumped up on a fender to avoid being bumped.

Driver Threatened Seven or eight men moved out

of the crowd toward the car. “Drag ’em out,” a section of the

crowd yelled. One of the men in the crowd

drew back as if to hit the driver. The driver spoke to him earnestly for a few seconds. He jumped in the car, locked the doors from the inside, and drove off.

Traffic was almost blocked for more than a mile along the high- way.

The strike made about 5,200 workers idle, most of them busy on

1 (See STRIKE, Page A-6.)

U. S. Bows to Hoover Report With 3 Forms, Each in 4 Copies

The Government lent an ear to the Hoover Commission report today — particularly that part which disclosed that it costs $10 to process a purchase of $10 or

less. 1

Jess Larson, General Services Administrator, announced today a simplified and cheaper way to handle Government purchases of $10 or less. It’s almost like rip- ping off streetcar transfers, and goes like this:

A combined purchase order, in- voice and voucher comes in

pocket-size booklets. Each set of forms consists of an original and three carbons, thus eliminating one, or usually two, documents in the present long purchase order.

The employe making the pur- chase fills out the form. The seller signs the original, which is sent in for prompt payment with one of the carbons which is a re-

porting and accounting copy. One carbon is left with the seller for his records and the final carbon Is

| a memo for the agency’s use. I

V — .. ..— ■■ -I_

}

Meat Controls Will Be Tried, Valentine Says

Rationing Probably Will Follow Price Curbs, He Declares

Alan Valentine, economic sta- bilization administrator, has promised that “as soon as we can

well make a try” at controlling meat prices, "and it will be a big try.”

Price control of meat probably will be accompanied by rationing, he indicated.

He said he had not come on a single man in the industry "who

Livestock Association President Disagrees on Meat Controls. Page A-17

feels that, without strict ration- ing and probably subsidies, meat prices can be controlled, really controlled.”

His statements were made in an interview with the United States News and World Report, a weekly magazine published here.

His statements in the article came while Washington waited for a decision on the proposal that would require all business con- cerns to give 30 days’ notice before raising prices. The effect of this plan, advanced by Michael V. Di Salle, price director in the ESA, would be to freeze all prices for that period.

Loss in Production Feared. Mr. Valentine is reported to op-

pose such a step, while Charles E. Wilson, head of the Office of De- fense Mobilization, who has top authority in such matters, is said to favor it.

Mr. Wilson said today he hoped there would be a decision some time this week. He said he has been trying to ascertain the facts in the matter which he described as “highly complex.”

He minimized reports of fric- tion between Mr. Valentine and Mr. Di Salle. He said there are bound to be differences of opinion in anything that affects the econ- omy as the freeze proposal would affect it.

In the magazine interview, Mr Valentine said he was doubtful oi the wisdom of general price and wage controls now because they might hurt production.

“The loss to production,” he said, “might more than offset the gain in control of inflation.”

It was disclosed also today that Mr. Valentine has ordered speed in building up the agency's staff to a size where it will be able to deal with the knotty problems before it.

December Delay Explained. Mr. Valentine said in the in-

terview that a freeze of prices and wages in December would not have been a good thing because the agency did not have the staff to handle complaints. This, he said, would have resulted in “a build up of ill feeling and impairment of production because we couldn’t cope with the situation.”

"I hope definitely we will be able to cope by mid-1951, if neces- sary,” he added. “In fact, we will be ready to cope by the first of March, I think.”

The present automobile price roll back expires March 1. Mr. Valentine was asked whether it would not be necessary to have a wage policy by then.

"We may come up with one

(See CONTROLS, Page A-5.)

Graham Reported Chosen For High Defense Post

By th« Associated Press White House officials said today

President Truman has chosen Dr. Frank p. Graham for an im- portant defense post.

These officials, who asked not to be named, told a reporter the former Democratic Senator from North Carolina soon will be named to a position in the or-

ganization of Charles E. Wilson, director of defense mobilization.

Mr. Truman originally was re- ported to be planning to appoint Dr. Graham as director of the National Science Foundation, created by Congress to promote scientific research. However, it was learned that Dr. Graham's name was not among those recommended to the President by Dr. James B. Conant, chairman of the Foundation Board.

Bulletin Wherry Seeks to Delay Sending Troops to Europe

Senate Republican Floor Lead- er Wherry of Nebraska an-

nounced he will introduce in the Senate this afternoon a resolu- tion seeking to put that body on

record against sending American ground troops to Western Eu- rope until Congress lays down a

policy on the subject. The an-

nouncement was contained in Senator Wherry’s comment on the President’s message.

(Early Story on Page A-S.)

State of the Union

White House Opposes Raise In Federal Salaries This Year

But Administration Won't Object Strongly If Congress Favors New Round of Boosts

By Joseph Young The White House is against

any Federal pay raise this year, it was learned today.

Administration officials said It is felt that current circumstances do not justify another round of Government salary pay boosts.

However, this does not neces-

sarily mean that the administra- tion will strongly oppose a Fed- eral pay bill should Congress lean favorably toward enactment of such legislation.

When the House and Senate Civil Service Committees ask the administration for its official views on the legislation, they will be informed that a Federal pay

boost “does not conform to ad- ministration policy at this time.” top officials disclose.

However, if it becomes apparent that Congress intends to vote a

pay raise anyway, the administra- tion will suggest that any pay boost be accomplished within the framework of the Classification Act. This would call for a selec- tive pay increase according to the particular grade, rather than a

flat across-the-board pay boost for employes.

Federal pay raise sponsors in Congress say that it remains to be seen how much White House op-

! position to a Government pay

(Continued on Page A-2, Col. 2.1

Republican Senators Pick Bridges to Head 1952 Campaigning

Will Succeed Brewster; Townsend Re-elected Finance Chairman

By J. A. O'Leary Senator Bridges of New Hamp-

shire today was named by a con- ference of Republican Senators to direct the Republican campaign for Senate seats in 1952.

He succeeds Senator Brewster of Maine, under whose direction the Republicans made a net gain of five seats in 1950. The make- up of this committee changes every two years because of a party rule that it must be composed of Senators not up for re-election in the next campaign.

The Republican conference also le-elected former Senator John Townsend of Delaware as finance chairman for 1952. Others ap- pointed to the campaign group are Senators Cordon of Oregon, Dwor- shak of Idaho, Hickenlooper of Iowa, Mundt of South Dakota, Schoeppel of Kansas, Case of South Dakota, Dirksen of Illinois and Welker of Idaho.

Morse Asks to be Excused.

Senator Morse of Oregon was

slated for a place on the Cam- paign Committee, and his name

was on mimeographed lists pre- pared before the conference. He

(See CONGRESS, Page A-12.) j Falls Church Traffic Death Is City's First in 10 Years

A 21-year-old Arlington man was killed early today when his car skidded off Lee Highway in Falls Church and hit a telephone pole. >

Falls Church police said Ernest Edward Bryant of 1124 South Fifteenth road, suffered a broken neck. He was alone in the car. He was taken to Arlington Hospi- tal where he was pronounced dead.

Police Chief E. H. Howe said Mr. Bryant’s death was the first traffic fatality in Falls Church in 10 years.

Neighbors on South Fifteenth road said that Mr. Bryant was a mechanic. He is survived by his wife, Owen.

Ambrose Enters Plea Of Guilty to One of 22 Fraud-Charge Counts

Others Will Be Dropped When Former Postal Official Is Sentenced

Harold F. Ambrose, resigned postal official who had ideas of making easy money through stamp speculation deals, today pleaded guilty in District Court to one count of a 22-count indict- ment charging fraud.

The defendant, 39, who had been employed in the Post Office Department 17 years and became a special assistant to the Post- master General, entered his sur-

prise plea before Judge Henry A.i Schweinhaut.

He was accompanied by his; lawyer, Edward Bennett Williams. Probation Office to Investigate. Assistant United States At-1

torney Harold Bacon immediately told the court the Government will drop the remaining counts when Ambrose is sentenced. The sentencing date has not been set pending a preliminary investiga- tion by the probation office.

The stocky, dark-haired former postal aide twice was indicted in the transactions in which he was

said to have handled up to $600,- 000 in funds given him by stamp speculators. He is alleged to have taken the money and promised to buy commemorative stamp issues which the speculators could in turn resell at a large profit.

The first indictment in 24 counts was returned last June. The Government, in its second

(See AMBROSE, Page A-3.)

Britain Calls on U. N. For New Truce Move, But Warns Red China

Peiping Told Break With Free World May Come if It Presses for Own Terms

By the Associated Press

LAKE SUCCESS. Jan. 8.—Britain called on the United Nations to- day to make another effort for a Korean cease-fire, but warned Red China that it might force a break

! with the free world if it insisted on acceptance of its own terms.

In a major policy declaration J Britain’s Sir Gladwyn Jebb at the

___

U. N. Moves Officially into Its Half- | Finished Manhattan Building. Page A-7 Commonwealth Chiefs to Discuss Kashmir

and Korea Today. Page A-4 Britain Urges Delay in Branding Red

| China as Korea Aggressor. Page A-3 i ___.

same time pledged British support as long as U. N. troops continue to fight in Korea. He spoke before the General Assembly’s 60-nation Political Committee.

Jebb backed the United States demand that a cease-fire must come before negotiations can begin on other problems.

Careful Consideration Urged. He warned the committee that

any decision it takes may result in a “complete cleavage between China and the free world" and said such a break would have a

“dreadful effect." For this rea-

son, he said, the U. N. should weigh its actions carefully.

“Look well before you leap is a wise maxim in foreign affairs,” Jebb said. “If we do leap we should all leap together.”

The,British delegate said there! can be no peaceful solution of j the Korean problem if the Peip- ing regime ignores the purpose of the U. N. action in Korea. He | expressed doubt that any results!

! would be achieved by a new cease-

fire effort, but said every effort should be made to find a peace-! ful solution.

“If a final break with China occurs,” he said, “it must be' clearly shown that it came about j through no fault of the United! Nations. A collective break with China will not help United Na- tions troops fighting in Korea, at least for the present."

Jebb said he favored a. seven-1 point proposal put forward by j Israel last week, calling for a! solution of the Korean problem; by stages. The first step would j be a cease-fire. Others would in- clude a progressive withdrawal of all non-Korean troops and elec- tions under U. N. supervision.

He said the U. N. should go on1

(See U. N., Page A-12.)_j

Municipal Court's Collections For'50 Hit Record $1,532,880

A record-breaking total of $1, 532,880.78 was collected in Munici- pal Court fines and costs during 1950, Chief Clerk Walter Bramhall said today.

The court, which consistently shows a profit, took in $161,421.32 more last year than it did in 1949.

Total cost of running the court in the fiscal year 1950 was $609,- 859, while the appropriation for the fiscal year 1951 is $668,000.

Money collected by the court Is turned ovefr to the District Col-

lector of Taxes, and then in turn is deposited with the Treasufy Department.

The 1950 receipts were ac-

counted for by $1,400,284.53 in fines from the court’s criminal di- vision and $132,596.25 in costs from the civil section.

The highest receipts previously were recorded in 1946, when the court reported collections of $1,- 461,610.58.

The court has collected $8,115,- 771.28 since the beginning of 1945.

I

U. N. Rearguard Yields Wonju to

Advancing Reds Enemy Occupies City; Allies South of Osan, 28 Miles From Seoul

By Leif Erickson Associated Press Foreign Correspondent

TOKYO, Jan. 8.—Allied rear- guard forces yielded the ruins of Wonju to an overwhelming horde of Chinese and North Korean Reds today after a bitter holding

I action that bought precious time. Red troops entered the burning

| road and rail center as U. N. j forces withdrew to new positions.

The Allies had, fought fiercely

jfor the city, 55 in Up southeast of

Seven Areo Servicemen Reported os

Missing in Korean Combat. Page B-1 Gen. Lin Given Control of Four Provinces

in Central-South Chino. Page A-7

I Seoul, to buy time for the main body of U. N. forces to retreat southwest from Seoul on the road leading to the southeast port of Pusan.

Allies Give Up Osan. Associated Press War Corre-

spondent Tom Lambert reported in a delayed dispatch that the main forces yesterday had pulled back south of Osan, 28 air miles south of Seoul.

A later field dispatch reported the Chinese entered Osan today.’ It narrowed the gap between the Reds and the U. N. forces falling back in Western Korea.

Osan is 50 miles southwest of Wonju and on the main route from the burned and abandoned South Korean capital to Taejon and Pusan. It wras at Osan that the first American soldier to fight in the Korean war was killed last July.

210,000 Held at Bay. Wonjn's defenders battled Sat-

urday, yesterday and last night I to keep the Red hordes from I sweeping into the gateway city to the heart of South Korea. A web of roads led from Wonju into the interior.

Held at bay by the grim de- fenders were seven Chinese armies, possibly 210,000 men. and their Korean Red comrades.

Then the defenders abandoned the town and its airstrip. Allied warplanes strafed and fire- bombed Wonju after the with- drawal. An ammunition train was blown up.

United States 8th Army head- quarters said Allied casualties were light during the holding action. Headquarters said fight- ing continued in the Wonju area, east and west of the city.

One battalion counterattacked this morning, but pulled back after a brief fight. Planes at- tacked Reds on ridges on Wonju's flanks.

Battle to Bar Red Sweep. The Allied rearguard still was

fighting desperately to block the Reds from a southward sweep that would menace the main body of U. N. troops.

Gen. MacArthur’s summary, timed at 2:40 p.m. (12:40 a.m., EST), had reported U. N. troops north of Wonju had withdrawn, but gave no indication they had given up the city. About noon, a United States 8th Army spokes- man had said: “As of the early hours today (Monday) we still controlled Wonju.”

Gen. MacArthur’s summary said heavy casualties were inflicted on the Reds. It reported Allied troops had withstood heavy pres- sure on Wonju’s east side.

Reds Seen Digging in. The Communists had penetrated

the devastated city’s outskirts yes- terday only to be hurled out by a counterattack.

So fierce was Allied resistance that air observers saw Red troops digging in 2 miles east of the

(Continued on Page A-5, Col. 1.)

Featured Reading Inside Today's Star

LAND BOOM IN ARLINGTON— Star Reporter George Kennedy finds Arlington real estate dealers dizzy at the growth of Washington's bustling suburb across the Potomac. The latest in his community series appears on

page B-l.

PEACE OR WAR IN EUROPE— Veteran Foreign Correspondent Wil- liam H. Stoneman takes a brighter look at the world situation. If Europe and the United States play their parts, he predicts the Russian army will stay in its own back yard from now on.

First of a series of five articles on

page A-6.

THE CASE FOR HELPING CHIANG —A prominent Washington law pro- fessor re-examines our reluctance to make fighting allies out of the Chinese Nationalists in the light of recent developments. See page A-10.

ULINE QUITS ON THE CAPS- Washington's professional basketball team is going to be sold or disbanded. The directors of a local brewery are

thinking of taking aver the Caps, who have proved an expensive property ta their present owner, M. J. Uline. Details on Page A-14.