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 The Taft-Hartley Law will not be repealed during 1951 but may be amended.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

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