WEATHER
CONTINUED COLD AND POS
SIBLY FALLING TEMPERA
TURE TONIGHT RAIN AND
SLEET.
VOLUME I.
Chinese Invading South Korea
Habson Forecasts
For 1951
* RECORD NATIONAL INCOME * RADICAL-INFLATION
* LESS BUSINESS VOLUME * MORE GOVERNMENT CONTROLS
* FARM OUTLOOK GOOD * TAXES TO BE HIGHER
/ INCREASED WAR PRODUCTION * MORE DEFICIT FINANCING
As UNCERTAIN STOCK MARKET * REAL ESTATE DECLINE
' * ANOTHER “KOREA” EPISODE
By ROGER W. BABSON
EXCLUSIVE TO THE DAILY RECORD
1. Excluding defense orders, the total business volume in 1951 will be
less than that for 1950. Rowever, National Income in 1951 will be the
highest ever recorded, as war orders take the place of peace produc
tion and high prices prevail.
MORE GOVERNMENT CONTROLS COMING
2. The outstanding feature of 1951 will be the ever-increasing inter
ference of the government fn the lives of businessmen and consumers. •
3. The Administration and its economic advisors are firmly convinced
Chat radical inflation is about to break out next year. But the “brain
trusters” are overlooking the fact that the boom is already old and
that it was creaking badly when the Korean War broke out. War post
poned the downturn which would have taken place much sooner. The
date of the slide has only moved ahead.
4. Rushing to catch up on its neglected defense progrtm, the Admini
stration is anxious to shrink business volume to an unnecessary degree.
Efforts at first will be along the line of tighter credit curbs, such as res
tijctions on mortgage and installment loans and increased bank re
serve requirements.
5. As 1951 wears on, the effect of credit controls will cause a decline
in legitimate business. Civilian production will decline more than arma
ment production will increase. The public may then cry, “This is a
f«pvernment-made slump; let’s get rid of the controls I”
* 6. If In 1951 it becomes evident that business is declining too fast as
a result of government curbs, the planners at Washington may rush their
patient into an oxygen tent.
LABOR OUTLOOK WILL CONTINUE TIGHT
7. Most labor groups will not be successful In getting a sixth round of
wage increases in 1951. Although there may be more strikes in the first
part of 1951, there will be fewer for the whole year as compared with 1950.
8. Tightness in the labor supply will be continued as the year wears
on, particularly of hlghly-skllled workers.
9. The Taft-Hartley Law will not be repealed during 1951 but may be
amended. The Administrators of the law will continue to wink at some
of its clauses.
♦ COMMODITY PRICES WILL REMAIN FIRM
10. Wholesale prices of many commodities will be marked by a mild
decline in 1951 when compared with the price level for December 31.
1950. In some lines the drop may be quite steep from the high levels
of late 1950. Retail prices for 1951, I do not now_ forecast.
11. The year 1951 should prove an excellent' time to keep a tight
grip on inventories. Commodity speculation for the rise will not pay
in 1951. Furthermore, our expanding stockpile of strategic materials
present a real price threat in the event of a peace scare. Such stock
piles could then act strongly as a depressant on prices.
12. The post of living will remain high during 1951. This prediction
recognized that living costs next year may be above the lower levels
that existed during the first half of the year now closing.
FARM OUTLOOK GOOD
<9 13. Fanners’ income for 1951 should average no less than that for
196®. Since the trend in the first half of 1960 was down, this forecast
is not so optimistic as it might otherwise seem, for there is likely to be a
weakening of the farmers’ Income position during the latter part of 1961.
14 Barring crop failures, the total supply of food avaUable should
be larger in 1951 than for 1950, since the government will raise planting
quotas as part of its attack on inflation. If the weather is extremely
favorable, the government will be blamed\ for farm-price weakness
during the latter part of 1951,
15. With prospects good for a rising supply of feed grains, meat should
be more plentiful next year than in 1950. Prices for meat, however, will be
held up by continued high National Income and by military needs.
, TAXES WILL BE HIGHER
>#l6. The burden of federal taxes, both corporate and personal, will be
Increased again in 1951. State and municipal taxes will remain high.
17. There will be an excess profits tax in 1951. These excess profits
taxes will be milder than those in force during World War II; but they
will be inflationary and retard efficiency, economy and Incentive.
18. There will be heavy pressure for increased federal “sales taxes” to
discourage purchasing of luxury and certain nonessential goods. Congress
will see the value of some such sales taxes as an inflation road block.
19. States and municipalities will again be under pressure to find ade
quate sources of revenue. Further increases in such taxes can be looked
for next year with additional cities and-or states adopting sales taxes,
tax above the present 25 per cent figure, rates will remain unchanged.
20 Despite renewed efforts to increase the long-term capital gains tax
'Aove the present 25 percent figure, rates will remain unchanged.
DOMESTIC TRADE WILL BE LESS
21. Credit curbs will cut into the demand for automobiles and house
hold equipment. Completions of fewer dwellings will also act as a damper
on furniture sales. _ . * ~ ...
22. Falling demand "for hard goods should mean a stabilization of the
public’s spending for food and lower-priced soft goods.
23. The trend forcaset in No. 22. will mean a decline in department store
volume, but I predict a rise in the sales of variety chains and of drug
chains.
FOREIGN TRADE OUTLOOK FAIR
24 Barring new war developments, I look for continued shrinkage in
(Continued On Page Seven)
General Motors Unveils
"Jet Plane On Wheels"
By NORMAN NICHOLSON
UP Automotive Writer
DETROIT, Dec. 28— (UP) —Gen
eral Motors, an eye cocked on the
future, took the wraps off its “Le
Sabre” today, revealing the nearest
thing to a jet plane on wheels.
“Swoo-ooehf” is about the best way
to describe this three-foot high,
two-seater sports convertible that
rivals in styling some of Buck
Rogers’ best.
Harley J. Earl, vice president in
charge of styling, said the car was
purely experimental, custom-built
“to find out whether some of our
ideas would pay off on the
The model was revealed !h full
size plaster form by the corporation's
t Here arc some of the ideas OM
incorporated in the “Le Sabre,”
French for saber, or streamlined
sword. *
OVER 8M HORSEFOWER
Engine; 10-to-one compression
ratio V-8 type, with supercharger,
which runs on a mixture of premium
ijt and methyl alcohol. Expected
horsepower is more than 880, twice
that of the moot powerful auto now
25
craft type, v r 2 hit jk.
Rear end: fwin tall fins in sim
ulated jet style, which hdiise air
craft type 20-gallon rubberized tank
for the two types of-fuel.
Front end: Sleek futuristic design
to swing around two close set head •
lights when the front lamps ace
turned on.
Construction: Uert-treated mag
nesium and aluminum alloys re
place conventional steel for a low
3,000 pounds of automobile. GM
points out these metals are much too
expensive for use ir ordinary cars.
Size: Body is 38-% Inches high,
and 50 inches with the convertible
top raised. Wheelbase is 115 inches,
overall length 200 inches. Overall
width is 70-% inches. Ground
clearance is six inches.
1 GM says the car, in development
four years, will be a ‘laboratory on
wheels” for testing new ideas its
mechanical experts and stylists
dream up.
CAB OF FUTURE
“This is the car of the future
only In the sense that some of Its
design or mechanical features may
appear some day tn standard motor
cars,” Earl said.
“Le Sabre Is the advanced coun
terpart of car GM
Bailtj jUteturd
McCarranSays
Anti-Red Bill
To Be Stronger
DEMOCRATIC LEADER
SAYS ATTACK WILL
STRENGTHEN BILL’
By UNITED PRESS
WASHINGTON, Dec, 28.
(UP) —Senator Pat McCar
ran, D., Nev., predicetd today
that the more his subversive
control law attacked, “the
stronger it will become.”
McCarran said opponents of the
law are “unwary and uninformed”
ar»d fooled by Communist propa
ganda. He had no comment on a
new national organization fighting
for repeal of the acf.
"But so much has been put out
by enlmies of the law in the way of
misleading statements and false
information,” he said, "that it is
not surprising to find men of high
intentions and good purposes en
rolling themselves in groups which
later they will regret.”
ELSEWHERE IN CONGRESS
Air raid shelters—A joint lommit
tee, trying to iron out conflicts be
tween House and Senate virsions of
the administration’s $3,100,000,000
civil defense bill, agreed tentatively
to authorize federal loans to build
atomic air raid shelters which also
can serve as garages and subways.
Sabath—Rep. Adolph J. Sabath,
D., 111., set a new record for con
tinuous Congressional service. The
84-year-old dean of the house has
been in congress for 43 years, nine'
months and 25 days, topping by
one day the record set by former
Ben. Justin S. Morrill of Vermont,
who died In 1898. ,
Kerr-Acheson—Sen. Robert S.
Kerr, D., Okla., urged the nation to
support Secretary of State Dean
Acheson who, he said, is doing his
best “working for peace, if it can
be had, or to win the war if it is
forced upon us.” Kerr said "it is to |
the best interests of all Americans
to help our secretary of State to be
as strong as possible instead of as
weak as his critics can make him..”
u *
I
Draft Board
Seeking 11
Eleven registrarits were cited as
delinquent Thursday by the Harnett
County Draft Board.
Local Board No. 44 in Lillington
pointed out that those delinquent
registrants are liable to prosecution
under the Selective Service and
Training Act of 1948 {or not com
plying witn that law.
Anyone having information re
garding the men should notify them
to report immediately to the local
board, according to the announce
ment.
The missing registrants are:
David Calvin Gilmore, Dunn Rt.
4; Louis Harden Smith, Varina, Rt.
1; Lester Olen Hobson, 301 S. Mag
nolia Ave., Dunn; and James Ben
jamin Mercer, 301 Magnolia Ave.
all white.
Early Womack, general delivery,
Broadway; James P. Green, Apex,
Rt. 1; James Edward Clegg, Dunn,
Rt. 5; Luttion Brown Tolson. P. O.
Box 704, Dunn; George Archie Mal
loy, Dunn, Rt. 3; Thomas James
Fairley, Jr„ 605 E. Edgerton 8t„
Dunn; and William Oscar McPher
son, general delivery, Vafina, all
Negroes.
Ernest Fox, 4,
Died Last Night
Ernest William (Joe) Fox, Jr.
four-year-old son of Chief Petty
Officer and ‘Mrs, Ernest W. Fox
Sr., died Wednesday night in Duim
Hospital. He had been ill with pneu
monia for two days.
The body will be takenHo Moorrs
boro, near Shelby, N. C„ where
funeral services will be neld Sat
urday afternoon from the Bandy
Run Baptist Church. Burial will be
in the church cemetery.
He Is survived by his parents and
one toother, Gerald, Fra, all of
BVS fS93&£ kT
n re
a low
. GM
ich too
’ cars.
DUNN, N. C. THURSDAY, DECEMBER 28, 1950
Sign Os The Times—Uniforms Back
Is. J 9 I
B w* ■S&jj WmW ' 5 B sg
m a >. Pi* % It TBrai mm i HP WmSme
§P
SOBER NOTE AT SORORITY DANCE—Last night was a gala one for members of the Delta Theta Delta So
rority of Dunn and their escorts. The sorority members entertained their boy friends at their annual holiday dance.
Seven of the young men came wearing the new Air Corps uniforms. As a Record Photographer snapped this pic
ture, one of them remarked: “It may be many a year before this group gets together again,” and after a pause he
added, “If we ever do.” The service men, left to right, are: Bobby Johnson, Sonny Draughon, O’Dell Faircloth, Lt. I.
R. Williams, Jr., Lexie Nordan, Ed Hinson and Angus hfonds. Seated in front of them are: Mrs. William Jernigan,
Betty Cathey, Sara Frances Thip rixs, Rogie Tyler, the Sorority president, and Becky Lee. All of the boys are in the
Air Cdrps. From some far off *ir 2«se somewhere in theMorld, they’ll probably -recall many ttmes the fine timp
they had at the sorority dance of 1950. (Daily Record Photo by T. M. Stewart.)
Patrol Cites
Road Dangers
To Motorists
With winter rain turning to ice on
Harnett’s highways, Cpl. William
O’Daniel -of the State Highway
Patrol warned motorists Thursday
to drive only in emergencies—and
then with extreme caution.
“This part of the State is in the
heavy rain and ice area,” he stated
Thursday. "Driving on the high*-
ways, and especially on bridges, is
dangerous.”
He added a note of caution for
persons who intend to take holiday
trips during the New Year’s week
end. Corporal O’Daniei pointed out
that Harnett’s list of highway fatal
ities now totals 12, which is three
below the 1949 mark, and urged that
holiday motorists try to keep that
figure from rising.
Harnett has fared somewhat
betcer than the rest of the State in
regards to highway fatalities, ac
cording to figures compiled by the
State Department of Motor Vehicles.
The Btate total stood Thursday
morning at 968 deaths on the high
ways, compared with 841 for 1949.
Harnett has 12 fatalities oiKthe pub
lic roads, though, against 15 for the
(Continued On Page Seven) I
BULLETINS
TOKYO, Friday, Dec. 29.—(UP) — The main body of U.
S. Bth Army forces completed its withdrawal behind the
Imjin River line 21 miles northwest of Seoul Thursday
while allied warplanes hit back at the Chinese Reds.
BIRMINGHAM, Ala.. Dec. 28 (UP)*— Mayor Cooper
Green said today that guards will be stationed soon abound
city reservoirs ter protect Birmingham from any saboteurs
who might contaminate the drinking water.
TOKYO, Dec. 28—(UP> —Red China has thrown two of
its five field armies into the Korean War and appropriated
$8,000,000,800 for military purposes in 1951, Gen. Douglas
MacArthur’s headquarters reported today. _
WASHINGTON, Dec. 28—(UP)—The Army has asked
that 80,000 young men be drafted during the month of
March, the Defense Department said today. The March
call brings the total Army request since the beginning of
the Korean fighting to a total of 450,000.
ROCHDALE, England, Dec. 28—(UP) —Ti)irty-Six spin
ners the Marland textile mill quit work and went home
today when the thermometer reading feU from 70 to 69
(OwMlmil 0» Page Bmm)
Chinese-Russian
Split Is Predicted
WASHINGTON, Dec. 28.
gists believe Red China’s milit
brng an eventual split betwe
which Communist nation sha
Asia.
This possibility was reportetj to
day by informants who are assess
ing events in Korea for signs of
Moscow-Peking cooperation or dis
sension.
The analysis is part of a continu
ing survey to provide the frame
work for long range U. S. policy in
Asia. Conclusions may not be avail
able for a long time.
Experts are making no firm pre
dictions. But they are intrigued by
chances that seeds of dispute have
been planted in recent weeks.
Initial hints that Russia and
China may not see eye-to-eye on
their future roles in Asia were noted
in late November when the Chin
ese Reds moved into Korea and
Gen. Wu Hsiu-Chuan, their fore
ign minister, addressed the United
Nations’ security council. Experts
feel that Wu almost stated openly
China’s dreams of being the dom
inant Asian power.
CHINESE AMBITIOUS
Estimates in official quarters are
that the Chinese might use a
I (Continued On Page 3)
-(UP)— Government strate
tary campaign in Korea may
r een China and Russia over
all be the supreme power in
First Stork
Will Bring
Many Gifts
The first stork to arrive in Dunn
in 1951 will bring more than a bun
dle of joy in his long beak.
That bird will also bring a beak
ful of ' gifts, presents and honors
for the first baby in 1951.
• At least 14 local firms have com
bined to give 1951’s first toddler a
rousing reception with oiankets,
food, a baby chair—and his own
bank acount. The contest is being
sponsored by The Daily Record.
SOMETHING FOR PARENTS
And there are even remembrances
for the parents, such as a shampoo
for the mother and a belt for father.
Eligible to compete for the prizes
will be babies born after midnight,
Dec. 31, 1950, when the old year
goes stumbling out.
The doctor who attends the
birth must state exact time and
place of the event, along with the
name, sex and weight of the child
and the names and address of the
(Continued On Page 3)
Woman Facing
Court Charges
Following a minor accident early
this week, charges of hit-run driving
have been brought against Mrs.
! Pauline Hamilton of Dunn. A hear
ing on the case has been scheduled
in Recorders Court at Lillington
Tuesday.
The accident, in which only minor
damage was done, occurred Tuesday
on the rural by-pass connecting
highways 82 and 421, according to |
the-State Highway Patrol. Mrs.,
Hamilton is alleged to have struck
a 1960 Chevrolet driven by Mack
Barefoot of Dunn, while driving
her 1957 Chevrolet sedan and cod- j
tinned on her way.
.. .a: j,.;. .J&k ki.
BE A CHARTER
RECORD SUBSCRIBER
Ice And Sleet
Blanket State
Sleet and freezing rain laid a
dangerous sheath of ice over the
Carolinas today , turning highways
into, near-impassable hazards, can
celling airjine service, disrupting
bus service and slowing Carolinians
to a slow, skittish walk
The icy conditions came from a
double layer of air. . . one frigid,
the other warm. . the Weather Bur
eau explained.
Cold Canadian air which swept
southward over the Carolinas early
yesterday laid a low blanket over
the Carolinas only a few thousand
feet deep. Above that cold air was
warm, moist air flowing up from
the Gulf of Mexico.
The weather bureau said the pre
cipitation c%me from the high,
warm air. As it passes through the
cold band it freezes into sleet or
freezes after it hits the ground.
NORTHEAST UNICED
About the only area of North Car
olina free of the ice blanket at mid
morning was the extreme North
east section, but the ice was sweep
ing northward.
The Highway Patrol reported that
worst conditions were Ih the central
Carolinas, but the ice blanket was
reported as far south and east as
Charleston, S. C.
The patrol advised “extreme cau
(Continued On Page Two)
Lee Daniel Ennis
Buried Here Today
*•••• fr*:. -
-y * -
1 % vlpl
iuv - • j^^Hj
NO. 17
McArthur Says
UN Can Soon
Strike Enemy
REDS ARE REPORTED
INVADING IN GREAT
FORCE, UNOPPOSED
TOKYO, Dec. 28.—(UP)—
Elements of Gen. Lin Piao’s
crack 4th Chinese Commun
ist Field Army were reported
invading South Korea in
force and unopposed today
for an all-out assault on
American-defended Seoul.
Gen. Douglas MacArthur’s head
quarters said the entire 4th field
army of 171.000 men would be in a
position to strike at Seoul any tints
after Jan. 1 and may attack in lesser
strength of one or more Army Corps
even sooner.
Red Troops tentatively identified
as from the t4h Field Army Already
have occupied abandoned Kaesong
and Chujon, two miles south of the
old North Korean border, and
pushed on in force another two
miles to within 33 miles north
west of Seoul an Bth Army spokes
man reported.
A Chinese platoon also was re
ported across the Imjin river near
Korans po, 15 miles east oT Kaesong,
a mile south of the border and 27
miles northwest of Seoul. t
The Bth army spokesman said the
Chinese march across the 38th par
allel was unopposed. Kaeson, Chu
jon and Korangpo were abandoned
by the V. S. Bth Army in its with
drawal to the new ' defense line
guarding Seoul.
NORMAL BUILD-UP
The apparent Chinese crossing of
the 38th parallel was not regarded
as the actual start of the offensive
against Seoul. Rather, it was be
lieved part of the normal Chinese
buildup for the offensive.
Farther east, other Communist
fonsef- -believed North Korern
oceupied The abandoned Central
Korean town ’of Chogyo and Oron,
two to four miles south of the 38th
parallel, and skirmished with United
Nations Patrols as much as 17 mile.')
I below the frontier.
In the air, three F-80 Shooting
Star fighter pilots probably destroy
(Continued On Page Seven)
Wood To Head
Benson Lodge
Relief Lodge 431, AF and /-M,
Benson, plans a banquet meeting
and installation of officers at the
Benson High School library, at 7
p. m. next Wednesday.
The Rev. Harold Glenn Cuthrell,
pastor of the First Methodist Church
i of Maxton, will be the principal
speaker. Installation officer will be
J. F. Lynch, district deputy grand
master of Erwin.
OTHER OFFICERS
' The following officers, elected, at
a meeting Dec.l, WfTi be installed:
p. B. Wood, Jr., worshipful master;
C. M. Lee, senior warden; G. R.
Ellis, junior warden; J. R. Farmer,
treasurer; and Julian Godwin, sec
| retary.
Appointed officers who will be in
. stalled at the meeting are Shelton
j Benson, senior deacon; Charles Tur
j lington, junior deacon; Donald Far
i risb and Glenn Brady, stewards;
G. D. Mangum, tiler; W. J. Bare
■ foot, chaplain; and Alonzo Parrish
Jr., marshal. '- ,
I Funeral services were held this
afternoon at 3 o’clock In the First
Baptist Church here for Lee Daniel *
Ennis, 74, one of Dunn’s oldest and
best known citizens. He died at his
critically ill since Sunday.
5 He was a retired merchant. For