davidaulloa/AmericanStories huggingface dataset:
, 1957-10-07
Schools Close at
200 P. M. in Honor of
Christiun Chose

'~~-S-
B O t h the Christiansted
High School and the Gram
mar Schools closed at 2 o'clock
today so as to give teachers
and students an opportunity to
attend the funeral of S. Chris
tan Chase, which will be held
in Frederiksted at 3 o'clock
today.
Mr.. Chase was a member of
the Insular School Board.
, 1957-10-07

Continued on page ~
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
. By JOACHIM JoEsTEN

A great battle Of pipeline prof.
ects is under way in the Middle
East, rejecting the diverse and
often conflicting aspirations of
the powers interested in that oil
rich area.
BY latest count. the number of
new pipeline systems under con-
struction or being planned in that
part Of the world stands at i've.
/. The big international oil
companies, specifically the multi
national consortium now oper-
ating the former British conces-
sion in Iran, propose to build q
vast new pipeline network de-
signed to provide terminal on
the Mediterranean coast Of Tiir-
key for the crude oil output of
Iran and Iraq.
2. Italian and German interests
now active in Iran outside Of the
International consortium's con-
cession area have laid plans for
another pipeline linking the new
Iranian oilfields with the Turkish
coast. across eastern Anatolia.
3. Egypt is pushing construc-
ton Of q pipeline running parallel
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
CONTINUED Prom Pace Az


tive of the U. N. in an effort TO
obtain Russian withdrawal Of its
troops from Hungary.
The Burmese delegate, U Thant.
opposed Assembly action in the
case of Hungary when the U. N.
was refusing to consider the
question Of Algeria, where France
has been struggling many months
to suppress a nationalist rebellion.
U Thant's complaint pointed up
an increasingly sore point among
the newly independent nations Of
the world. including several ordi-
narily found associated with the
Western bloc.
In the final vote, so to 10. the
outcome was never in doubt. But
the serious disaffection Of the
"neutralist" bloc and Of other ma
tons as well was plainly evident
in the fina lvote--there were 10
ASSERTIONS, including India. Egypt
and Syria. And although Iraq
and Lebanon voted with the West
in favor Of the resolution, their
delegates carefully refrained from
taking any part in the debate.
The Soviet bloc voted solidly
against the resolution. The Czech
oslovak delegate, Josef Ulrich.
called the resolution one "aimed
at fomenting the cold war" AL
bania challenged the right Of the
U. N. to interfere. holding that
the Russian action in Hungary
had been justified under the terms
Of the Warsaw Pact.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
THE WORLD SCENE

the airliner refueled at London,
staying with the plane for the
short stopover. His mission at the
U. N. was clear enough: To ignore
the Hungarian resolution and at
tack the Vests policies in the
Middle East.
Disarmament, almost a van
ished hope in the gloom of world
development. was slated to come
up again in the forum of the
U. N. Mr.. Gromyko was expected
to lead the Soviet bloc in an effort
to move the disarmament issue UP
on the agenda-a move looked
upon with misgiving by Western
delegations because they dis
trusted the Russian motives. The
Soviet tactics, most delegates pre-
dicted. would be designed to place
the West on the defensive by APP
pealing TO the almost universal
desire for curbs on atomic weap-
ons tests.
Harold E. Stassen, presidential
assistant on disarmament and
United States delegate to the U. N.
subcommittee meeting in London,
now recessed, chung doggedly to
his optimistic outlook last week.
He saw some agreement as "still
possible"
Mr.. Dulles last Tuesday also
refused to see the arms control
impasse as hopeless. He pointed
to the unity Of the West: AT
least Is nations came to IN
agreement, at least among them
selves, on highly significant pro-
posals. I feel confident over
the span Of years the measure Of
agreement which was reached at
London will prove significant and
will advance the cause of limita-
ton of armament" His remarks
were interpreted by some to mean
that he has no expectation Of any
accord with the Russians soon, but
is gratified by the success of his
|, efforts to get solid Western posi-,
ton on the issues.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
CANADIAN REPORT
Diefenboker Presses
His Economic Demands

States. with its export subsidies,
barter deals and sales for foreign
currency"
chorge Of Violation
Two months earlier Mr.. Diefen-
baker had fiatly accused the
United States Of violating the gem
eral agreement on tariffs and trade
by requiring countries receiving
surplus United States wheat TO
commit themselves TO future pur-
chases. He did not repeat this
charge at Dartmouth. possibly be-
cause he did not want to inject
so sharp a note in his first speech
in the United States since he be-
came Prime Minister. However.
there is little doubt that it will
be raised in the intercabinet COM
mittee.
AS to why the United States
should be concerned about Can
ada's falling wheat sales. the
Prime Minister argued that the
free world must cooperate eco
nomically as well as militarily to
have the best chance Of survival.
IF you want US to help defend
freedom" he said in effect. you
must abandon policies which
weaken Canada economically"
The former Liberal administra-
ton here used the same ergu-
ment. But Mr.. Diefenbaker is
also talking about cutting inn
ports from the United States, and
laying down new rules for Ameri-
can capital in Canada. This may
make Washington more receptive
to his views.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15

md it difiicult to determine the
precise location. Of any particular
unit Of the task force. to say
nothing Of pressing an effective
attack home through the many
concentric rings Of defensive fire.
power that would surround the
carrier for hundreds Of miles.
Also. the offensive potential Of
the sea base could be used to stop
enemy attacks at their source
that is, the enemy's bases-by
using the overwhelming concern
tration of airpower available to
the task forces
The iluclear-powered task force
built around the atomic carrier
will give the Navy unprecedented
mobility and striking power.
The Underwater Satellite
The nuclear-propelled subma-
rim capable Of launching inter-
mediate range ballistic missiles
with nuclear warheadS could make
our Navy an even more effective
deterrent force.
There is no reason why inter-
mediate range ballistic missiles
cannot be launched from floating
platforms. surfaced or submerged.
The Navy is. in fact. now develop
ing such a missile, the Polaris.
Armed with this missile. the nu-
clear-powered submarine will be-
come an underwater satellite. 1t
will be large enough 70 store.
maintain. and fire intermediate
range ballistic missiles. and it
will be able to move anywhere
at any time, completely sub
merged.
These underwater satellites will
launch their attack from far out
in the Atlantic, the Pacific. or the
Arctic Ocean. They could be
placed anywhere within 1900
miles Of their targets. They could
be dispersed over literally millions
Of square miles of ocean.
The problem Of locating and
destroying such an underseas fleet
viii be tremendous. Search radar
viii be helpless against 1t. The
enemy would be in the position
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
By GEORGE FLYNN

IAN attractive new creature dis
covered on the financial range" Is
creating luneasiness among the
giant ranchers of the insurance
and investment businesses. Con-
gress may be asked to hogtie and
brand the critter.
The new creature" tag was
given to variable annuity" insur-
ance policies by Federal Judge
Robert N. Wilkin in District Court
IL days ago when he ruled out reg
ulation Of such policies by the
Security Exchange Commission.
Suit had been brought against two
Washington firms selling the pol
icies by the SEC and the National
Association Of Securities Dealers.
The case concerned the "varfa-
BILE annuity" a financial device
relatively unknown to laymen
but the cause of what Barron's
Weekly calls financial free-for-
all" and Finance Magazine terms
"the most controversial subject to
hit the financial field since Roose-
welt unveiled the Securities Act"
How II Works
Everybody's familiar with the
conventional type of annuity. in
which the insured pays a speci-
fed premium and the company
promises to pay him, at an agreed
upon date in the future, speci-
fed number of dollars, either
for a fixed number Of years or
for life.
The variable annuity-"VA" in
the trade-brings the escalator
principle used in many labor
contracts into the insurance field.
The dollar payof on a VA policy
is not a specific amount Of cash
determined when the policy is
written. Instead, the payoh is
stated in the policy in terms OF
"units." The value Of these units
is based on the cost Of living. in
creasing when living costs in
crease. declining when they
decline. Premiums remain con-
STINT, as in conventional policies.
Thus. the VA is intended to
as ure the annuity holder Of a
return in purchasing power COM
mensurate with the amount Of
purchasing power he put into
the policy.
To keep the payoh tied TO the
rise--or fall--in living costs, VA
premiums are Invested largely
IN common stocks, rather than
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15

ships would survive initial at
tacks and break out into the
open seas. We are now developing
a nuclear-powered submarine spec
officially to cope with this threat.
Frieote on the Woy
We are also designing a nuclear
power plant for another type Of
ship which will be very important
for antisuhmarine warfare. a
frigate. We hope to be able to
start construction Of this frigate
in the near future. It will be
needed to protect our naval task
forces against submarine attack.
The nuclear task force will be
unlike its closely knit counter
part of World War II. In order to
reduce vulnerahility to hydrogen
bomb attack. it will be dispersed
over an area as big as the State
of New York. No ship will be
within H-bomb radius OF another.
This being so, 1t would be hard
for q conventional frigate to give
the nuclear task force adequate
aatiSuhmarine protection since its
cruising radius is so small. Too
much Of its time would be spent
tied to a refueling ship rather
than in searching for enemy SUBJ
marines, It would be q part-time
protector.
But the nuclear frigate would
be a tull-time protector. the kind
Of ship required for the full nu-
clear task force.
OF course the nuclear task
force would also have to guard
itself against air attack. I have
never yet met man in our Navy
who claims that carrier is abb
solutely invulnerable.
In a nuclear war everything is
vulnerable, including airfields
ashore. But q mobile sea base has
a far greater chance of survival
than a fixed land base.
The enemy would know the
erdct location Of our land bases
in advance: but could know only
the general location Of our sea
bases. Our system Of task force
defense-in- depth would limit en-
envy reconnaissance and he would
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15

of man trying to find q black
cat on q vast and empty plain on
q nioonless and starless night.
Anywhere, Anytime
The underwater satellite marks
the closest approach now foresee-
able to the ideal mobile platform.
1t could 60 anywhere at any time.
It could remain well hidden from
the enemy. It would draw the
enemy's missiles and bombs away
from our cities and factories and
farms. and draw them toward the
uninhabited seas.
An aggressor could not escape
destruction as long as this missile
fleet remained intact. He would
be forced to attack 1t. thus greatly
reducing the number Of missiles
available to him for hitting our
territory or that Of our allies.
Two further points, both. con-
cerned with the economics Of de-
Tense. should be mentioned. We
now have about $50 overseas bases
and our allies have many more.
The land-based IRBM viii require
large numbers Of flxed launching
sites. These bases and launch
ing sites on land are costly to
build and costly to maintain.
The underwater satellite would
not be cheap. ! believe. however.
that it would compete more than
favorably with land-based missile
systems in terms Of deterrent
value available for dollars spent.
Conversely, the mere existence
Of this underseas feet would Gre
ate a tremendous military and
economic problem for a potential
aggressor. He would know the
location Of our fixed land-based
missile sites. He might calculate
that so many of his missiles
launched in a surprise attack
could destroy our land-based coun-
terforce before We could effectively
rcJdllaLe.
But he could not make q ra-
tional calculation for an attack
against our hidden and mobile
underwater satellites. Many
enemy missiles might be needed to
destroy Just one of these SUBJ
merged launching platforms.
] should make 1t plain that this
weapon cannot be built by the day
after tomorrow. 1t will be q scien.
tific and engineering challenge,
comparable to the first nuclear
submarine.
In other words. the Nautilus did
not mark the end Of q technology
cal road. It marked the beginning.
It should be compared with the
first airplane that new at Kitty
hawk.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15

to the Suez Canal on its west
bank.
4. Israel has embarked on a
pipeline building project that is
to link her port Of Elath On the
Gulf Of Aqaba with Haifa on the
Mediterranean.
S. The Economic Council Of the
Arab League has under considera-
ton an ambitious scheme for an
all-Arab network of pipelines
stretching from the Persian Gulf
to the Mediterranean.
The salient feature Of the new
Middle Eastern pipeline system
devised by the dig international
oil companies at a recent meeting
in London is that it aims to make
a detour around the two most
troublesome members Of the Arab
bloc. namely Egypt and Syria.
At present, the crude oil pro-
duced in Iraq is piped across
Syria to the Mediterranean port
Of Baniyas. This line was put out
Of commission, by government
sponsored sabotage, shortly after
Syria's ally, Egypt. had become
involved in hostilities with Brit
ain and France. Two other
branches of the same pipeline sys-
TEN, carrying oil from the. Kirkuk
field across Syria to the port Of
Tripoli in Lebanon. also were sab
otaged by the Syrians.
TcpIine' Across Jordan
Aramco's output in Saudi Arabia.
or at least a substantial portion
Of it. now flows through the
TRANSPORTATION Pipe Line (Tap-
line) to the Port Of Sidon in Leb-
anon. across Jordan. This line was
not affected by the recent disturb
ances in the Middle East. At
present the three countries crossed
by Tapline Saudi Arabia. Jordan
and Lebanon--are all in the Ell
senhower doctrine" camp and
therefore considered safe" How
ever. in view Of King Saud's con-
tinued fiirtations with Egypt and
the unsettled conditions in Jor-
dan, the future Of Tapline, too,
remains beclouded.
The balance Of the Saudi Ara
hian output. like the crude from
Kuwait. Qatar and Iran, used to
be shipped predominantly by
tanker via the Suez Canal. Thus.
under present conditions. it lies.
more than ever. under the shadow
Of Dictator Nasser's whim.
To some extent. this oil has
been and also will be in the future
rerouted by supertanker around
the Cape Of Good Hope. An alter
native way Of making shipments
from the Persian Gulf area inde-
pendent Of Cairo's goodwill is Of
fered by the new pipeline system
in question. which will be entirely
within the political and military
sphere Of the Baghdad Pact.
While details Of the project have
not yet been announced its gen.
eral contours are known. Starting
out from Abadan, at the head Of
the Persian Gulf, the line will run
through IraQ to the Kirkuk oil
fields in the northern part Of that
country and from there westward
towards the port Of Iskenderun in
the southeastern corner Of Tur-
keys Mediterranean shore. At the
southern end Of the system. branch
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
TIED TO LIVING COSTS
Insurance Plan Is Hot Pototo

will regulate the investment end
Of the variable annuity plan.
One representative Of the nell
trail" forces told The Star. I'VE
haven't said much. but ven be
ready to compete when the time
comes"
How soon that will be for most
companies depends on both State
and Federal actions.
George E. johnson, president Of
Equity Annuity Life Insurance Co..
one Of the defendants in the suit.
says: This thing will be kicking
around for quite a while" He
foresaw the possibility the deci-
sion will be appealed to the Court
Of Appeals and that final action
may rest with Congress.
A pioneer in the field-he for
merly was president Of Variable
Annuity Life. the other defendant
in the suit-Mr. johnson emissions
the sale of a million policies in
the next few years. although only
100000 policies have been sold
since the formula was invented
after World War II.
His favorite argument for the
VA is his own experience. The
S5,050 he invested In q fixed an
nuity in 1850 is now valued at
S5,345, as compared to $5.050 he
invested in a variable annuity
which he now values at S9,270.
Opponents point out, Of course,
that in a defiationary period the
dollar value Of his annuity could
be much less than his original
investment.
Up to Congress
Mr.. Johnson's anticipation Of
action by Congress was similar
to hints in that direction ex-
pressed by Judge Wilkin, who held
that existing Federal law gave
State and District Of Columbia
insurance commissions regulatory
power over the variable annuity
business, but he commented:
Congress. 1t seems, Is the
proper agent to determine what
classification would best enable
the Ccompanies) to serve the ma
tional economy. The judy
ment Of the court is, therefore,
what in ringside parlance would
be called a split decision
He said the variable annuity
contract has "some Of the mark
ings Of the insurance herd and
some Of the markings Of the in
vestment Sherd. This court finds.
however, That Congress has kept
the only branding IRON"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15

bonds and mortgages. the tradi-
tional safe but low-yielding in
vestments Of ordinary annuities.
The use Of stocks contains
built-in risks. But champions Of
the VA system say 1t is the best
method yet devised to protect an
nuitants from imitation.
Ronee Warfare
1t was the prospect Of the
large-scale entry Of insurance
firms into the securities field that
set of the range warfare be-
tween the VA promoters and the
organized securities investment
business.
Judge Wilkin ruled only on the
legality Of VA policies, in the Dis
trict of Columbil. whose laws have
permitted insurance companies TO
invest unlimited funds in COM
mon stocks.
In the States. however, the laws
set low limits on the extent Of its
assets any company can invest in
common stocks. New York's limit.
for example, is 5 per cent.
To date. insurance firms seeking
relaxation of State laws in order
to sell VA-type policies have met
rough treatment at the hands Of
legislators. who have been lob
bied vigorously by securities deal
efs. and by big bloc Of established
insurance firms who dislike the
color Of the new critter.
In New Jersey last year. the
fight pitted Prudential, the No. 2
giant in the insurance business,
against Metropolitan, the No.
giant.
Metropolitan argued:
The life insurance contract hos
been the one outstondinsly safe iinon-
eiol medium upon which Americans
and concdions hove come 10 depend
with confidence. We in the Metropolton
do not wont thot confidence shoken
or impaired"
Prudential countered:
Experience hos convinced mony
people ihot q fixed. dolIor income does
not protect them completely osoinst
all risks because the value Of dollar
does ehonse. The Prudential believes
thot variable onnuities can help to
provide such on income
Both companies have their al
lies. A numerical majority Of the
insurance firms have been sitting
out the battle, awaiting a clearing
Of the air on the question Of who
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
By GERALD WARING

OTTAWA.-As q curtain-raiser
on the Canadian-American eco
nomic talks to be held next month,
Prime Minister John Diefen-
bakers speech at Dartmouth Col
lege last week could scarcely have
been more revealing.
Primarily the speech underlined
the earnestness Of the new head
Of the Canadian government in
seeking solutions to politico-eco-
nomic problems which for some
time have been like sand in he
gears Of good Canadian-American
relations.
It also removed doubts as to Mr..
Diefenbaker's determination 70
pursue vigorously three detectives
which he outlined during the cleo
ton campaign last spring. at a
time when not even he expected
his Conservative Party to win the
election. They are:
. Inducing the United States to
modify its wheat surplus disposal
program so Canada can reoccupy
its traditional share Of the world
wheat market.
. Reducing Canada's trade def
icit with the United States. and
Canada's dependence on the
United States as a market for Ca
madam goods and a source Of
manufactured goods.
. Requiring foreign-owned firms
in Canada to follow policies which
are in Canada's interests, and to
make their equity shares available
to Canadian investors. Most such
companies are American.
To Be Discussed
All three detectives will be dis
cussed at the two-day meeting Of
the Joint United States-Cana
Cabinet Committee on Trade and
Economic Questions which will
convene at Washington Octo-
Der 7.
This group consists Of the four
cabinet ministers from each coun-
try concerned with trade, finance.
agriculture and foreign affairs. 1t
was set up in 1854 to promote
understanding in Washington Of
Canadas trade and economic
problems. especially as they are
affected by American policies, and
vice versa. But after two meetings,
the last in September, 1855, the
committee practically ceased to
function. 1t had been the Cana
dams who had wanted 1t in the
first place. and after two years
trial they concluded that its effect
in influencing the American Gov
eminent was negligible.
When Secretary Of State John
Foster Dulles conferred with
Prime Minister Diefenbaker here
on July %. the latter suggested
that the committee meet soon.
Mr.. Diefenbaker was most con-
cerned then, as he is now. with
the effect of the United States
farm surplus disposal program on
Canadian wheat sales abroad. He
blames the United States because
Canadian sales dropped to 26l
million bushels last year from 800
million the previous year.
The United States program. Mr..
Diefenbaker said at Dartmouth,
denies fair competition" He ex-
planned that Canada can COM
pete for her share Of the markets
Of the world. provided other ma
tions follow recognized COMPETE
tive practices (but) the
surplus disposal program Of the
United States has made it diff
cult. II not impossible. for Can
ada TO maintain its fair share OF
the worlds market. Canada can
not compete against the dominant
economic power Of the United
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
Gromyko's Mission

Even while the delegates were
voting in the impressive chamber
OF the Assembly In New York,
Soviet Foreign Minister Gromyko
was flying from Moscow aboard a
speedy TU-l04 jet airliner to take
command Of his country's delega-
ton at the United Nations. He
rejected British hospitality while