Crackdown nets five high-flyers

50 years ago SHANGHAI (September 3): IN the most drastic action yet taken to enforce the compliance of the Government's new economic regulations, Major-General Chiang Ching-kuo's supervisory economic control committee has arrested five members of Shanghai's social 'upper crust' on charges of hoarding and black market dealings in shares.

This sensational disclosure was made at a Press conference this morning by General Chiang, supervisor in charge of the enforcement of his farther's emergency economic measures, through his secretary, Mr Kao Li-wen.

Black-Market Dealings Those arrested were Tu Vi-ping, second son of Mr Tu Yueh-sen, well-known industrial magnate, and Lin Loh-keng, one of Shanghai's biggest stock market operators, accused of black-market dealings in shares; Chan Pei-lin, head of the Paper Merchant's Guild, accused of hoarding and charging prices for newsprint above the August 19 level; Huang Yi-chung, manager of the Wing Tai Wo Company, distributors of the British-American Tobacco Company's products, accused of hoarding and refusing to sell below the August 19 price level; and Wu Hsi-lin, prominent cotton textile merchant, accused of hoarding.

It was also announced that Hung Yung-yuan, owner of the Sung Sin Cotton Mill, as well as a chain of flour mills, was also arrested but jumped bail and fled to Hongkong.

Efforts Satisfactory Mr Kao opened the Press conference with the general statement that the Government efforts to hold the August 19 price line had been satisfactory and the public reaction to the currency reform had been generally good.

However, he pointed out, merchants still adopted a 'wait and see' approach, resulting in some shortages. He added that the hoarding had been especially rampant in cigarettes, cotton yarn, newsprint and other necessities.