Galbraith Rebuffs 'Red' Accusation by Capehart

John Kenneth Galbraith, professor of Economics, last night accused Senator Homer E. Capehart (R-Ind.) of deliberately quoting a pamphlet of his out of context in a television broadcast yesterday afternoon, and denied that the pamphlet "praised Communism," as the senator had charged.

Capehart, a member of the senate Banking committee demanded that Galbraith be recalled as a witness before the Committee to testify about his 1949 booklet, "Beyond the Marshall Plan."

Galbraith recently testified before the Committee investigating the stock market and urged that margin requirements be raised. Yesterday Capehart charged that Galbraith was a man with Communist philosophies and by his testimony had "discredited American industry and the American economy."

Appeal to Europeans

Galbraith answered that "the pamphlet warns of the danger of Communism. the paragraphs the Senator read explain its appeal to the European masses. Those that follow, which the Senator did not read, tell of the resulting danger." He explained that the pamphlet had been written to point out the danger of Communism and the fallacy in assuming that the Marshall Plan would be sufficient in the fight against Communist domination in Europe.

He wired the Committee chairman, Senator William J. Fulbright (D-Ark.) immediately after the program, NBC's "American Forum," stating that he would appear to testify further. He had already asked the Committee for an opportunity to expand his remarks on the stock market.

"The senator cannot plead ignorance of the import of the document," Galbraith said. "I wired him of its nature before the show was filmed." Galbraith noted that Capehart had not only quoted the pamphlet out of Context, but had omitted qualifying phrases from the text.

Galbraith did not expect any injury from Capehart's remarks, saying, "My position on Communism is part of the intellectual history of our time and is well-known."

The economist called attention to the fact that the pamphlet, published by the National Planning Association, was "in general supported by a statement signed among others, by Milton s. Eisenhower, brother of the President and Allen W. Dulles, brother of the secretary of state.