THURSDAY, FEBRUARY 15, 1951 Credif Tightening Ordered To Help Stabilize Prices WASHINGTON, Feb. 14—(W)-- The government today ordered 50 per cent cash down payments on a vast range of non-residential construction in a new credit tightening move to combat infla tion. Simultaneously, th e adminis tration threw out a broad hint that it will soon attempt to stab ilize food prices. Eric Johnston, economic stabil ization director, told the House Ways and Means committee that legislation will be submitted to Congress to "equalize and stabil ize" farm prices and industrial wages. Johnston's disclosure capped a series of protests from labor leaders, housewives an d others against soaring food prices. The stiff new credit terms for construction were set forth in an order issued by the Federal Re serve Board, effective tomorrow. It calls for half cash down pay ments on construction of ne w stores, - offices, hotels, banks, warehouses, garages, auto service stations, restaurants, theater s, clubs and "other new structures used for non - residential• pur poses." The same requirement applies to repair jobs, enlargement alter ation and reconstruction on exist ing commercial buildings if the cost of the improvement exceeds 15 per cent of the building's ap praised value. The order also requires that loans must be paid up in 25 years, with the principal paid off in in stallments rather than left for a lump sum payment at the end of 25 years. Exemptions are provided in case of schools, hospitals, chur ches, public utilities and "prop erty constructed for use by the government or any political sub division." Dulles Talks Pact With Australians, New Zealanders CANBERRA, Australia, Feb. 14 —(JP)--John Foster Dulles, special U. S. ambassador, starts talks with Australian and New Zea land officials tomorrow on a Jap anese peace treaty and the possi bility of a Pacific alliance similar to the North Atlantic pact. Dulles arrived today in a U. S. Air Force Constellation from Tok yo, where he announced Saturday that "provisional security ar rangements between the United States and Japan" had been dis cussed. • From carefully worded state ments issued by Dulles and Japa nese Premier Shigeru Hoshida at that time, it was apparent the United States• and Japan had agreed on the basic points of a defense agreement to be guaran teed by American power after a peace treaty is signed. Australia is expected to press the viewpoint that her security would be threatened again by Ja pan unless guarantees are given against a rebirth of Japanese mil itarism. Dulles told reporters on his ar rival that rearmament of Japan was not discussed during his talks in Tokyo. About 100 Communists, whose party was recently outlawed by parliament, demonstrated outside the United' States consulate in Sydney today, shouting "send Dulles _home" and "do not arm the Japs." Police, cheered by sev eral hundred spectators, arrested 30 men and two women on char ges of offensive behavior. Kappa Phi Membership Open. To Methodist Coeds Kappa Phi, an organization for Methodist or Methodist prefer ence women, will accept new members this semester. to get the names of eligible girls. Therefore they ask that any who wish to become members, or would like to know more about the organization, to call or see Betsy Porter in 7 McElwain be fore Thursday. THE DAILY COLLEGIAN, STATE COLLEGE, PENNSYLVANIA ROBERT FAST, left, President of Hat Societies council, and Homer Barr, president of Parini Nous, leading Tuesday night's song and cheer meeting for new freshmen on campus. Twenty-nine frosh attended the meeting. Lie Asks United Notions Plan A-Bomb Prohibition LAKE SUCCESS, Feb. 14 (W)—Secretary-General Trygve Lie called on the United Nations today to keep on working for prohibi tion of atomic weapons and regulation of armaments in spite of world' tension. He said efforts at political settlement and the regu lation of armament should go hand in hand. "In the preent state of tension in the world, with rearmament proceeding at a rapid pace on all sides, it may seem academic and even utopian to proceed with ser ious discussion and' planning on the regulation and reduction of armaments," Lie said. "I do not agree with this view. I believe the work of this committee should be looked upon as one of the vital undertakings of the United Na tions." "I have expressed the belief," Lie continued; "that progress of any kind toward agreement on the regulation and reduction of armaments would help to reduce political tensions and that efforts at political settlement and the regulation of armaments should go hand in hand. Clearly today - member governments must pro vide for adequate defense, but we should not for one moment lose sight of the ultimate goal." Lie spoke at the opening meet ing of a 12-member United Na tions committee set up by, the General Assembly last Dec. 13 to study ways of merging the work of the atomic energy committee and the commission for conven tional armaments. State To Tighten Absentee Vote Bill HARRISBURG, Feb.. 14—(R)--- Growing sentiment to tighten ab sentee voting privileges for ser vicemen stymied House action today on changing the 1951 pri mary date. Chairman W illi a m R. Mc- Millen (R-Indiana) said amend ments will be prepared for vot ing next week to exclude aux iliary services like Red Cross personnel from the right of cast ing a military ballot. "We want to confine absentee voting privileges in this bill strictly to members of the armed forces," said McMillen. "Such persons are out of the state be cause of orders which they have no alternative but to obey." In contrast, he. explained, per sons like Red Cross workers and war reporters are able to refuse an overseas assignment if they don't want to go. The Senate-passed absentee voting measure also provides for changing the 1951 primary elec tion date frdm Sept. 11 to July 24. Frosh Collegian Photo by Johnston Wants Tough Taxes Now WASHINGTON, Feb. l4—(R')— Eric Johnston asked Congress to day to enact "tough" new taxes immediately to help him stabilize the nation's economy by mid summer. Th e Economic Stabilization Chief urged the House Ways and Means committee to approve $lO,- 000,000,000 in new levies now and take another look later on to see .if still more taxes are needed. The new taxes. he said, should be retroactive to last Jan. 1. Warning that delay would hinder the government's effort to curb inflation, Johnston told the lawmakers: "There's no mistaking that the days ahead are going to be tough and rough for all of us. We're all going to take a cut. "Wages won't run as high as workers think they should. Profits won't run at the rate busi ness thinks they should. The far mer won't get all he wants—and all of us as consumers will have to get along with less." But Johnston said he believes the present controls on wages, prices and production can be lift ed in two or three years," barr ing a full-scale attack." He said the main task now is to protect the soundness and sta bility of the dollar, Reapportionment Bill Introduced In House WASHINGTON, Feb. 14--(2?) A reapportionment bill with teeth in it was introduced today to guarantee the "fairest practical" representation of all citizens in the House of Representatives. If it becomes law, not only will the 435 House seats be reappor tioned among the states every 10 years, but each state will be re quired to redistrict according to its population changes. Present laws do not make such redistrict ing mandatory. , Rep. Celler (D.-N.Y.) said his measure specifies that any repre sentative elected from a district that does not conform to the re quirements shall be denied hi s seat in the House Ignore Losses; Korean Attack Reds Push TOKYO, Thursday, Feb. 15 (fP)—Chinese Communists, ignoring stunning losses to four shock divisions, renewed massive assaults along a bloody 20-mile sector of Korea's central front early today in an attempt to score a major breakthrough. Front dispatches said fighting still was in progress after United Nations forces, buttressed by powerful artillery and air support Acheson Asks Red Party Revolt against Moscow WASHINGTON, Feb. 14—UP)— Secretary of State Acheson called today for an international revolt of Communist parties against the domination of Moscow. He advised all foreign Com munists who have the interest of their country at heart to follow the example of a group of Italians and break away from the Krem lin's control. And, at his news conference, the Secretary of State renewed a warning that any Communist at tack on Yugoslavia might strain the fabric of world peace to the breaking point. Yugoslavia al ready has, declared its indepen dence of the Soviet Union. Encouraging View Acheson said recent develop ments in Italy, where a number of Communist leaders have de cided to put their country ahead of their party, are a matter of great interest to the United States. He observed it is encouraging when the fact finally dawns on Communists outside Russia that they are a gents of a foreign power. 'Hands Off' Policy In telling aggressors to keep their hands off Yugloslavia, the Secretary of State said this coun try already has demonstrated its attitude toward aggression in Ko rea and in the United Nations. He added that it was this govern ment's broad policy, as stated by President Truman, that "new re course to aggression in the world today might well strain to the breaking point the fabric of world peace." Mr. Truman said that in his message to Congress last July 19 after ,fighting in Korea had be gun. Senate Committee Puts Red Army At 4 Iviiiiion WASHINGTON, Feb. 14 (EP)—The Senate Foreign Relations committee said tonight that Russia is estimated to have an armed force of more than 4,000,000 men organized in about 175 divisioni. With all its European satellites, the committee reported, Mos cow could boast another 1,000,000 men under arms, making the total more than 5,000,000. This does not include Communist China's armed forces. Against this strength, the At lantic Pact nations, including tile United States and Canada, had about 4,500,000 men under arms as of December, 1950, the commit tee said. But comparisons were difficult The figure for the 11 Atlantic Pact countries included the army, navy and air forces. It did not include the estimated 2,700,000 men in organized reserves. It was not clear from the com mittee's report whether Commu nist air and naval forces were in cluded in the iron curtain fig ures, but if they were not each of the divisions would have more than 20,000 men. U.S. military men say Russian divisions actual ly have nearer 10,000. Geograph ical distribution of the strength was another factor which made comparison uncertain. The figures were issued in ad vance of hearings starting tomor row (10 a.m., EST) on the contro versial troops-for-Europe issue. Defense Secretary Marshall will be the first witness. Chairman Connally (D-Tex) of the foreign relations group said the report was issued so commit teemen would have "certain basic facts" before them in considerincf the question of sendinr; American soldiers across the Atlantic. PAGE THREE smashed the first waves of the Red onslaught Wednesday and held their lines firm. BULLETIN TOKYO, Thursday, Feb. 15— (IP)—A hard-fighting Allied di vision today claimed victory "as of this moment" over ele; ments. of nine Chinese divisions which tried to break through the central Korean front. The Allies, a f t e r shattering four enemy shock divisions, still held firmly to Chipyong and Wonju and the 20 miles of mountain line between them, a field dispatch reported. At the same time South Korean marines Wednesday staged a spectacular commando-type raid on Wonsan, east coast port 90 air miles north of the 38th parallel. While General MacArthur pre viously ruled out any sustained U.N. drive north of the old polit ical boundary as "purely academ ic" at this time, he made an ex ception of patrol actions and com mando like forays. South Koreans Advance The Republic of Korea (ROK) marines occupied two islands off the Communist supply port and drove to the Wonsan city limits under the protective fire of Allied cruisers and destroyers. On the western front, U.S. in fantrymen, including Puerto Ri cans, killed 1,152 North Korean Reds who infiltrated United Na tions lines south of Seoul. Costly Day For Reds There was no immediate esti mate of Communist casualties on all fronts Wednesday, but it may have been one of . the most costly days of the war for the Reds. By official estimates. two Chi nese divisions were destroyed as organized fighting forces and two others broken up on the central front alone. The Eighth Army count of Communist casualties inflicted by ground action alone since Jan. 25 mounted to 86,301 dead, wound ed and captured through Tues day's action. British Assume Confrol Of Steel ,LONDON, Thursday, Feb. =(/1 1 )—The British steel industry became government property to day. It was the last and most elusive piece in a pattern of socialism for the nation's basic industries. A prompt boost in steel prices is in prospect. The changeover came at a time when the nation is forging new arms for defense against Com munism. Steel is vitally needed for .arms, but the full impact of defense orders has not yet been felt in the plants. The British steel industry, which turned out 16,293,000 ingot tons last year, is the largest in the world outside the United States and Soviet Russia. The United States is producing more than 100,000.000 tons annually, Russia's output is less than halt that. Lion Party Meeting Lion Pa rt y clique chairman Hugh Stevens announced last night that opening nominations for clique officers will be held in 110 Electrical engineering at 7 p.m. Sunday.
Significant historical Pennsylvania newspapers