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Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-04-16


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Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21

that It was completely fraudu-
lent.
The recording. which was
played at q news conference
represented a man identified a
Mr.. Normile as saying union
members must "kick In" 81
apiece or you shop stewards
can always let them know
there's still a graveyard Qate
night work. shift"
In Chicago. an ANA spokes-
man said the ANA was improp-
erly made a defendant in the
suit because the recording was
distributed only by AMPAC
which the spokesman said Is ar
entirely separate organization
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21
Mystery in Tx Probe:
WhyWos Firm So Sure?

Force and Navy officers who
favored a bid by the Boeing
Aircraft Co. as promising a
better and cheaper design.
New Quiz Possible
As the hearings were re-
ceSSed. Senator Mcclellan said
he might have to recall Mr..
Gilpatric for further question:
ing. He also said he hoped to
resume hearings next week
with Mr.. Korth. a former Fort
Worth banker. as the witness
on whether his role involved a
conflict of interest.
The optimism Of General
Dynamics about its prospects
for winning the Tx contract
was reflected in three Of Mr..
PAGES operational reports.
The first was in July. 1861. 1t
said there are asona bly,
strong indications that Fort
Worth's proposed configuration
offers the only approach that
can satisfy both Air Force and
Navy requirements"
1t was not until the COMPETE
ton between Boeing and Gen.
.eral Dyna mics had been
through four selection board
procedures that the General
Dynamics design was consi-
dered as meeting the require
.ments Of the two services. ac-
.cording to the subcommittee S
evidence.
In his August, 1861, report
Mr.. Pace said that g. Gen.
eral Dynamics/ Fort Worth be-
lieve they have the only Tx
proposal that will meet bi-serv-
ice requirements" A similar
view was expressed in his re-
port a month later.
Other developments in yes
terday's sessions included:
/. The subcommittee intro
duced records showing that a
senior member of Mr.. Gilpa-
tries former New York law
firm telephoned him II times
in the first 16 months after he
became Deputy Secretary, with
IL of the calls dealing with
General DynamicS matters.
Mr.. Gilpatric said the calls
were concerned with work he
was handling with the firm
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21

and with requests for informa-
ton on persons who we're being
considered as possible success
sors to Mr.. Pace as head Of
General Dynamics.
He testified that according TO
his recollection he and Maurice
Moore, who made the calls
never discussed the Tx con-
tract at any time. The law
firm, Cravath, Swaine & Moore.
it was brought out, charged the
IL calls to General Dynamics.
2. The subcommittee ap-
peared 10 be split evenly among
the eight members present dur
ing the day over Senator
McClellan's flat statement to
Mr.. Gilpatric that he should
have disqualified himself from
any part in the Tx decision
because Of his past relations
with General DynamicS.
Senators Mundt Of South
Dakota and Curtis Of Nebraska,
Republicans, and Jackson,
Democrat Of Washington, sided
with the chairman's views.
Four Support Javits
Four supported the view ex-
pressed by Senator Javits,
Republican Of New York, that
no conflict of interest was in
volved and Mr.. Gilpatric had
acted properly. Taking this
position with Senator Javits
were Senators Erwin Of North
Carolina, Muskie Of Maine and
Brewster of Maryland. all
Democrats. Senator Mcintyre,
Democrat of New Hampshire,
was not present during the ex-
changes on this point.
Mr.. Gilpatric, who said he
considered he had been com
pletely objective" said:
Il was at all times dispas-
sionate and free of bias in
every decision I made"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21
By CECIL HOLLAND
Star staff writer

After three days Of question:
ing Deputy Defense Secretary
Roswell L. Gilpatric. Senate
investigators Of the Tx war
plane contract had a mystery
on their hands.
It was: How could the top
officials Of the General Dy-
namics Corp. have been sure
the company had the inside
track on the multi-billion con-
tract to build the new plane for
Joint Air Force-Navy use even
before the Tx program was
authorized by Defense Secre-
tary Mcnamara?
Questions Confidence
The feeling by General Dy-
namics was revealed by the
Senate Investigations Subcom-
mittee yesterday in the form Of
excerpts from operation reports
by Frank Pace. jr., the COM
pany's former president, to his
board Of directors starting in
July, 1861. The program was
not authorized until September
!, 1861.
Il don't see how Mr.. Pace
had so much confidence at this
time" said Subcommittee
Chairman Mcclellan, Democrat
Of Arkansas.
Mr.. Gilpatric, who described
Mr.. Pace as a friend, said he
could only attribute Mr.. PAGES
comments in the reports to
both hopes and prayers" with
no basis for sound expectation.
Mr.. Pace is q former Secretary
Of the Army.
The subcommittee has been
. questioning Mr.. Gilpatric on
/. whether there was q conflict Of
o. interest in his role in the Tx
decision. He and his New York
q law firm represented General
. Dynamics before he became
Deputy Secretary and the law
firm still does.
Mr.. Gilpatric Joined with Mr..
Mcnamara, Air Force Secre-
tary Zuckert, and former Navy
Secretary Fred Korth in
awarding the estimated SOS
billion contract to General Dy-
namics. They overruled top Air
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21

which is improperly directed. q
transparent publicity stunt and
q smokeScreen to divert atten-
ton from the hearings current
ly being conducted BY the
House Ways and Means Com
mittee on the administrations
Government health-care bill, "
DR.. Annis said In q statement.
Recording Played
Mr.. Normile's suit said the
record was distributed by the
American Medical Political Ac-
ton Committee (AMPAC), the
AMA's political branch, and
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21
Husband Is Charged
In Wife's SIuyinq

James L. Harris, %. Of AT
Thirteenth street NE. was
charged with homicide in the
fatal shooting Of his wife last
night, police reported.
Capt. George Donahue of the
Homicide Squad said Harris
told police his wife, Geraldine
%, was shot in the chest with
q .38-caliber revolver as they
struggled for possession Of the
weapon during a bedroom
argument.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21
Denies Charge

In Washington Edward r
Annis, president Of the ANA
said the charge Of fraud levelec
by Mr.. Meany before the 1900
delegates was &C completely
false"
This is a ridiculous law suit
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-21
Union Official
Sues AMAZON
MedicaICa

NEW YORK, Nov. q
CAP).-The AFL-CIo conven-
ton wraps up its official bust
ness today after charging the
American Medical Association
with STOPPING to fraud to mis-
represent labor's support of
medical care for the aged.
George Meany was elected
yesterday to his fifth term as
president Of the 13.5-million-
member organization.
The reelection of Mr.. Meany
and the q vice presidents of
the AFL-CIO followed the an
nouncement of a $500, 900 dam
age suit by a SteelworkerS
Union official who claims his
name was misused in a record
ing purporting to be a tran
script Of q union meeting.
The suit, filed in Washington
by Paul Normile Of Pittsburgh,
said he was falsely represented
as a tough-talking labor leader
who threatened union members
if they didn't contribute to the
Committee on Political Educa-
ton COPE, political arm Of
the AFL-CIO, to fight for med
ical care legislation in Con-
PreSS.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Banks Agree
To Curtis Loan

NEW YORK DD.-The First
National Bank of Boston said it
and five other commercial
banks have agreed to lend Cur
tbs Publishing Co. $35 million.
Curtis would get a sos mil
lion five-year loan. Its paper
making subsidiary, New York &
Pennsylvania Co., would get a
$l4.5 million seven-year loan.
Interest for both loans would
be per cent above the prime
rate with a minimum of So
per cent and a maximum of 6
per cent. The exact interest
charge would be adjusted from
time to time as the prime rate
changed.
Curtis listed the five other
banks and the amounts they've
committed themselves to lend
as:
First Pennsylvania Banking
g. Trust Co.. Philadelphia. SIS
million; Philadelphia National
Bank, Philadelphia, $6.5 mil
lion; Franklin National Bank,
New York, SIS million; Bank
of the Southwest, Houston, So
million; Union Bank, Los An
geles, 50 million.
Serge Semenenko, vice chair
man of the First National Bank
of Boston which developed the
refinancing plan with Curtis,
said that Curtis would use $22
million of the new money to
retire short-term loans from
four banks. These loans fell
due last August and were ex-
tended temporarily.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Area Store Volumes
Lag Behind Year Ago

Department store sales in
the Washington Metropolitan
Area Jagged 4 per cent behind
q year ago in the week ended
October 26 and also were 8 per
cent below the previous week,
the Federal Reserve Bank of
Richmond reported.
Area store sales in four weeks
ended October 26 were 2 per
cent behind a year earlier and
for the year to date were up
6 per cent.
The downtown portion of
the area sales total was 6 per
cent below a year ago and off
9 per cent from the preceding
week in the period ended Oc-
tober 26. In four weeks, down.
town sales were / per cent
above a year ago and for the
year to date also were / per
cent higher.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Curtiss to Return
Gurrett Shares

NEW YORK ODD Curtis
Wright Corp, announced that
since fewer than TOO, 900 shares
of Garrett Corp. common had
been rendered under its offer
to purchase 100000 shares at
$57 a share, it would not accept
any stock. Stock already ten
dered will be returned.
The company refused to
state how many shares of Gar
rett had been rendered.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
B&O'63 Net
SIS Million

NEW YORK ,OD-The
Baltimore & Ohio Railroads
net income for 1868 will rise to
between SIS million and So mil
lion from $1,6O6,7OO in 1862,
Jervis Langdon, jr., president,
predicted in a Dow Jones inter-
view.
But fourth-quarter net will
slip to about 50 million from
$3.50, 800 a year earlier, large
ly due to heavier expenditures
for maintenance equipment
and track improvements, he
added.
Freight revenues for the full
year will rise more than 3 per
cent from 1862, and operating
revenues overall will increase
to about $3.50 million from
$685., 1872, 565 in 1862.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
c. & P. Appropriotes
Nearly 81 Million

Directors of Chesapeake g.
Potomac Telephone Co. have
approved an additional appro-
priation Of $1,975,000 for ex-
pansion and improvements in
the District, 1t was announced
by j. Hillman zahn, vice presi-
dent in charge Of the Washing
ton company.
In IL months ended Septem-
Der 30. the company invested
$2l million in plant. raising
total investment on that date
to $230.685 900, Mr.. Zahn re-
ported.
Net income for the IL months
was $8,396,O00. compared with
$8.850.000 in the preceding /:
months, he said. Net for Sep.
TENDER was $639, 1000 VS.. $770,-
900 in September last year, he
added.
However, operating revenues
for the IL months rose to $82,-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
BUSINESS
BRIEFS

Rail Freight LOadings in the
week ended October 26 totaled
624,581 cars. down 0.3 per cent
from the previous week, but ur
"a per cent from the like week
q year ago.-ASSn. of Amer
Railroads.
Manufacturers Sales in Sep
TENDER totaled 1854 billion,
about unchanged from August;
new orders increased 8 per cent
during the month.-Commerce
Department.
Retail Sales over the Nation
in the week ended October &c
totaled $4.67 billion, UP 3 pei
cent from the like week a year
ago. For the last four weeks
sales have been 4 per cent
above the like period a year
ago.-Commerce Department.
United Whelan Corp. and
Consolidated Sun Ray, Inc, an
nounced the reopening Of
merger talks and plans to ask
an investment banking firm to
recommend terms.-Dow Jones
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Washington Gas Net
Holds Above 1862

Despite a larger seasonal
loss in September, net income
Of Washington Gas Light rose
to S6.485.852 in the first nine
months Of this year, compared
with $5.971,724 in the same
1862 period, the company re-
ported today.
The seasonal September def
icit was S894,3l0, compared
with a loss Of S522,37l in Sep
TENDER last year.
Operating revenues for the
nine months aggregated $685.
504, 1878, compared with $751;
OBJ, 1903 a year earlier. Sep
TENDER revenues amounted to
$3,19s.602 VS.. $685., 653 in the
same 1862 month.
The company had 428,73I
meters in service on September
80, compared with 417,766 on
the same date last year. Prop
erty, plant and equipment on
September 80 totaled $218,7lO.-
938 VS.. $199. 4S0,628 a year ago.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Steel Industry
March Joined
By Bethlehem

NEW YORK (AP)-Bethle-
hem Steel Corp. has joined in
the upward march Of steel in
dustry profits.
Like all other major steel
companies that have reported
their latest earnings Bethlehem
said yesterday its third-quarter
profits topped year-ago levels.
The September quarters net
income was $17.62s,734 or IS
cents a share, up from $13,-
ala or 81 cents a share.
For the first nine months of
the year, Bethlehem reported
"a decline from 1862 levels. It
had a January-September
profit Of $66,329,145, down
from $75,163056 in the like
span Of 1862. This works out to
s1.35 a share this year $1.54
last year.
Just after Bethlehem an
nounced its profits, the COM
pany's board chairman and
chief executive officer, Arthur
B. Homer, announced that he
will retire next spring. He will
step down on becoming So, next
April IA, he said.
At the same time, Frank r.
Brugler. controller, and Paul
s. Killian, vice president-pur-
chasing, announced their re-
tirement. No successors were
named Immediately.
With Bethlehem's earnings
results added in. the pattern
of industry profits looks like
this so far:
1868 1852 1863 1862
Sd Quarter Nine Months
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Associated Mortgage
Acquires New Firm

Associated Mortgage Compa-
mics, Inc, Of which George De-
Franceaux Of Washington is
president, has acquired J. Max
well Pringle & Co., with offices
in New York, New Orleans and
Los Angeles.
The Pringle firm will con-
tinue its mortgage banking OPP
erations under its present name
with ]. Maxwell PringIe as
president. Philip zinman. board
chairman Of Associated. and
President DeFranceaux have
become members Of the Pringle
board.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Continued Tax Credit
On Dividends Uroed

Millard F. West. jr., WASH
ington governor Of the Asso-
citation Of Stock Exchange
Firms, and Howard Dean,
New York member Of the
board presentd a formal state
ment on Capitol Hill today
reaffirming the associations
strong stand for retention Of
the preSnt 4 per cent tax
credit on dividends.
The securities industry has
long advocated q cut in the
effective capital gains rate as
being a means of unlocking
vast amounts Of capital and
increasing revenues" the
statement said.
The House proposed capital
gains changes would be help
full "in the direction Of en-
couraging the investment and
mobility Of capital. it add.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
By ALLEN M. SMYTHE
Star Special Writer

Testimony by ex-Navy Secre-
tary Fred Korth. Vice Admiral
Lyman c. Rickover and Chair
man Glenn T. Seaborg Of the
Atomic Energy Commission in
executive session before the
Joint Atomic Committee may
modify the plans of Defense
Secretary Mcnamara for a
business reorganization Of the
Navy.
Senator John o. Pastore,
emocrat of Rhode Island,
chairman Of this group, and
other members are outspoken
in their views for the need OF
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
CREI Starts Addition

Capital Radio Engineering In
stitute has broken ground for
a major addition that will dou-
BILE the space of its facilities
at Sixteenth street and Park
road NV. 1t will be occupied
by classrooms, laboratories and
a chapel.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Two Elected
At Allegheny
BY the Associated Press

Allegheny AirlineS has an
nounced the election Of Nelson
B. Fry, jr., as executive vice
president and w. Blake
Thompson as vice president
and controller.
Mr.. Fry will be in charge of
the airline's new Sc million
center at Greater Pittsburgh
Airport. He formerly was senior
vice president and general
manager Of operations here
before the airline transferred
passenger, flight and mainte-
nance functions to Pittsburgh
last month.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01

OF the So installations now
in the system, so are within
the Washington Metropolitan
Area. In addition to restau-
rants. the locations include
catering services in several
hospitals and at Dulles Inter-
national and Washington Ma
tional Airports. Five other
locations are in Philadelphia,
four in Baltimore, three in
Richmond and one in Fred
ericksburg. Va. Additional loca-
tons are to be added soon.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
Earnings

E. /. du Point du Nemours in
9 months ended September 80
earned $319,539,178 or $6.78 a
share VS.. 1920, 793,847 or 1881
in 1862 period.
Southern Pacific Co. in 9
months ended September 80
earned S72,035,802 or Sass a
share VS.. $67,556,661 or $2.49
in 1862 period.
Carter Products in 6 months
ended September 80 earned
Sc, 840,357 or $3.50 a share VS..
$4,996.615 or $1.9 in 1862
period.
other earnings included:
Far . Moutha Ended Seutember 20
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
BY DONALD B. HADLEY
star Financial Editor

telephone network which feeds data central COM
puter at Bethesda has been established by Shoppes
simplify ordering and inventory control for s. units in Wash
ington and three adjoining States, it learned today
The new system Is expected to than $4,000
and result in greater efficiency Eventually the
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01

may be extended to other
States.
One Of the largest of its type
In the country. the new system
uses regular telephone lines
and represents the first major
use Of data communications by
"a chain Of eating establish
ments.
Milton Barlow, executive vice
president Of Hot Shoppes, said
orders for more than 5000 line
items a day are being trans
mitted on punched cards from
locations in Virginia. Maryland.
Pennsylvania and the District
Iof Columbia. At the Bethesda
computer center they are proc
essed and invoices prepared
in half the time previously re-
quired.
VIII Help Plan Baking
The company also is PLAN
ming a two-way transmission
system between the Bethesda
computer and its new Wash
ington commissary TO assist in
planning baking and other food
processing procedures more eff
| ficiently. The conimissary is
to be constructed in 1864 and
1865.
Preparation Of recipes and
programming of oven produc-
ton schedules can be speeded
by means Of data funneled
through the computer. Ex-
panding transmission proce-
dure also is providing addi-
tional accounting information.
This eventually may include
point-of-sale transmission Of
sales data.
The new Hot Shoppes system
is described in the current issue
of the magazine Food Executive
as "a Revolution in Food
Service"
The magazine detailed the
intricate operations of the
system.
Pulses Converted to Tones
Each unit now linked in the
new data-processing system is
equipped with Bell System data
Phone sets connected to IBM
1901 card readers. The data
sets convert pulses from the
reader to tones suitable for
telephone transmission at the
rate Of 20 characters a second.
At the computer end, Data
Phone converts the tones back
to pulses, activating business
machines which duplicate
transmitted data on IBM cards.
In effect, the data sets enable
the business machines to COM
municate with each other by
telephone.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
u. 5. Benefit
Seen as Reds
Unload Gold

LONDON (AP) Financial
experts here expect Russia to
unload more gold to pay for its
Western wheat purchases-and
among the chief gamers will
be the United States Treasury
and the American dollar.
In recent months Moscow IS
estimated to have sold nearly
$400 million worth Of gold, or
twice the average for the last
few years.
This inflow into the Western
monetary system is likely to
continue at an expanding rate
unless there is a considerable
increase in other Russian ex-
ports or new outlets for the
Soviet gold sales are developed
in the Middle East, where the
Russians recently opened a new
branch bank.
The Soviet moves have far
reaching implications, espe-
cially for the London gold mar
ket and the United States
Treasury.
One London expert recently
estimated that the Soviet sales
this year are roughly equal to
one-third the new gold pro-
duction from the main Western
sources. which is expected to
reach $1.4 billion this year.
Dumpings Absorbed
A gratifying factor has been
that the large Soviet gold
dumpings in September and
October appear to have been
taken up almost entirely by
the central banks of the West
ern nations. as private hoard
ing demand greatly declines.
One result, beneficial to the
United States. has been that
those central banks which are
worried about large holdings of
dollars in the monetary reserves
have been able to raise the pro-
portion Of gold. This has served
to take the edge off their i'm
patience to see the end of their
dollar problem"
The big shift of the gold
flow into central bank stocks
instead Of private hoardings is
another lift for Washington In
the battle with its payments
balance.
One London expert esti-
mated that in 1862 more than
three-quarters of all newly
mined gold, plus Russian sales.
went into private hands. This
year so far, the London mar
ket estimates that little more
than half, and possibly less.
has been bought for private
boards.
U. s. Is Helped
eff this trend continues. f"
said the expert, ut will provide
more time for the United
States payments balance to
right itself. And apart from
the direct sale of United States
wheat to Russia, the dollar will
be considerably strengthened
both by the large Russian gold
sales in Europe and by the de-
cline in private gold boarding"
How much gold does Russia
have? And how big is Soviet
gold production?
Like most things about the
Soviet economy, these are mys-
teries to the outside world.
However. some London ex-
pertS now believe-on the basis
Of Soviet sales over past years
that the total Russian gold
reserves now may not be much
larger than Britain's. perhaps
about 81 billion. This would
explain Russian reluctance to
sell gold freely to relieve tenn
porary preSsures in the Soviet
economy.
Russian gold production is
believed here never to have
been high compared to that of
South Africa, the free worlds
main producer. However, it is
believed to have been increased
considerably in recent years by
a great deal of mechanization.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-01
$4,000 ANNUAL SAVINGS
63-Unit Computer System
Installed by Hot Shoppes

o5s,0Oo from s75.sss 900 in the
previous period. September rev.
enues Of S6,e84,000 were well
above S6.435,000 q year ago.