Decatur Daily Democrat, Volume 52, Number 17, Decatur, Adams County, 21 January 1954 — Page 1

Vol. Lil. No. 17.

28 American Marines Drown Aller Collision Landing Craft Is Rammed In Inchon Harbor; 22 Saved INCHON, Korea UP —Twentyeight American marines were drowned today when an American LST carrying anti-Communist Chinese to Formosa rammed their small landing craft and plunged them, struggling in heavy packs, imp the icy, racing currents of Inchon Harbor. The accident was the second worst naval disaster of the Korean War. . ..*1- ■ ' Twenty other marines, an army crewman operating the capsized landing craft, and one Korean •were pulled from the frigid seas by rescue boats from the naval transport Gen. Pope and by native sampans. The rescued, suffering from shock, submersion and exposure, told how the swirling tidal currents—among the world’s most _ powerful—sucked them under instantly when their landing Craft was hit. Pfc. John D. Gates, Pensacola. Piy, said he brought the small craft which he was navigating alongside the LST landing ship tank to put the marines aboard as security guards for the antiCommunist Chinese. "The next thing I knew I was under water,” he said. "When I came up I hollered for them to drop me a line.” Gates said he had no idea how the accident occurred, except that the powerful currents seemed to slam his craft against the larger vessel and then capsize it. Pfc. Robert D. Heal. Wilmington, Del., said: “When the boat .went down, I was spun under water ■with my pack on my back/ I went around and around and down and down.” Heal said he came up under the capsized boat, managed to slip-off hispack and all his clothing but his trousers. - A buddy 4hrew him a plank which saved his life. X Pfc. Thomas Locke, of Deaver, S. D., credited the buoyancy of his pack with saving his life. "I snapped it off and hung on until we were picked up,” Locke said. The Marines had been assigned to duty as security guards for the Chinese, who were returned to Allied custody at Panmunjom Wednesday. The death tojl in the Inchon tragedy was exceeded only by the accidental killing of 30 men in a gun-turrent explosion on the USS St. Paul off North Korea's east coast on April 21, 1952. Until today, the death of 26 men in the sinking of the U.S. minesweeper Walks off the eastern coast of the peninsula was the second worst naval tragedy Jn the Korean crisis. X', • Navy officials announced earlier that 52 men were aboard the tinyassault boat, but a thorough check lowered the figure to 50.

Favors Housing For Low Income Groups President Unveils Experimental Plan ■WASHINGTON UP — President •Eisenhower today unveiled an “experimental’’ plan for helping low income families buy homes with practically no down payment. In his budget message, he also asked funds for 35,000 new public housing units, an increase of 15,000 over this year’s program. And he proposed new government aids for rehabilitating rundown neighborhoods before they turn into slums. - The recommendations amounted to a preview of the special housing message he will send to congress Monday. (Mr. Eisenhower said the federal bousing administration (FHA) “should be given authority, on an experimental basis, to insure mortgages with smalf down payments and with the balance payable over a long period, to finance inexpensive homes for lower income fam- . flies." The President’s advisory committee on housing recently recommended a 40-year repayment period for government-insured home loans, compared to the present .25year limit. Informed sources predicted that 7." Mr. Eisenhower willendorse the 40-year period kind will propose minimum downpayments of only lT«ni Te Page Flvej J

DECATUR DAILY DEMOCRAT / ONLY DAILY NEWSPAPER IN ADAMB COUNTY

The BUO6ET DOLLAR // A jj WCAI VIA* ESTIMATED // mMVID JMCOMI TAXII EXCISE Mxn |\ customs, ZlJfl 11 MAjot nayi ucutmr |O S \ MUTUAL MH. MOCIAM _ X. >, ATOMIC ENEIGV IT STOCKPILING IV/tcro it will so. •. t l chaw* w law H IHTIEHT. VETEKANS Z a ZM QKAMIS TO STATES, ETC. XO 5 . MCWNKECtuW ~Vk 22* / *MW TAX PROPOSALS VI J? MCVTivf ouiei ot 'ton prtsiMnt. iuriau or the The FEDERAL BUDGET JI ' " ■» ■■■ I—■.!■■■ fiscal nut 2’54 un *SSI IRFCFIPTS HfllilliM I (IHIW • ■"W* »» on,UM I BTMUTt T ~ jl m" • tK«ipl h»M« Nt* Th F<w«wli 'f f f ICt OF IHI IRIIIEtWf • DUREAU Os EM I BUDGET THESE TWO CHARTS illustrate information from the President’s budget message to congress. Note how much of the budget dollar is required for the defense program.

Defense Costs Are Pared In Budget Today ♦ * - 40,000-Plane Air Armada And Record A-Weapons Program 7 WASHINGTON UP — President Eisenhower U>day gave congress a pared-down defense budget looking toward a 40,000-plane “jetage" air armada backed by a record atomic weapons program and liigkhly-mobile sea and land forces.'■ Mr. Eisenhower requested $44,860,000,000 in national security outlays in the 12 months starting July 1, including $27,575,000,000 for the U. S. military forces, 4,275.000,000 in foreign military aid $2,425,000,000 in atomic funds and 585 million dollars for critical stockpiling. He said these sums were four billion dollars below this year’s estimated spending for the same purposes and $6,100,000,000 under actual Democratic outlays last year. He said his plan provides for “full exploitation of air powes and modern weapons” in a time of “uneasy peace.” “Our security is being strengthened — not weakened,” the President said. Congressional Republicans hailed the President’s program as onb that will keep the nation strong and solvent. Democratic lawmakers praised tha airpower buildup and called it a victory for their party. But they questioned the wisdom of other House Democratic leader Sam Rayburn of Texas said "t would rather be alive with an empty one.” But house speaker Joseph pocketbook than dead with a full W. Martin Jr., said the President’s program proves spending can be cut and preparedness improved at the same time. House Democratic whip John W. McCormack of Massachusetts urged close congressional scrutiny of army and navy cutbacks because “this is no time to weaken our defenses, the Russians respect onlystrength." The President said his program provided tor the biggest airpower buildup since World War II and the largest atomic program in the nation’s history. At the same time, he raised som# question as to whether Russia actually has a deliverable hydrogen bomb. The air force was given a green light to expand to 137 wings by mid-1957. It would spend $16,209,000,000, an increase of 609 mil l lion dollars over this year. The army would spend $10,198,000,000, a cut of four pillion dollars. No money was proposed for army procurement. Carryover fundS from prior years would finance this function. The navy, ,-slated to lay up 53 ships including a battleship, would spend $10,493,000,000, a cut of 807 million dollars.

Diesel Plant Test Run Is Postponed Needed Revisions Cause Postponement Because of the necessity of changing several connections at Decatur’s new diesel power plant, the scheduled meeting of neighbors in the area, city officials and engineers, tor the city and the IJma-'Harnlltoncompaqy.,' manufacturers of the new engine, was from today until a later The meeting had been scheduled for today, following the lodging of a formal protest (by home owners in the Dayton and Seventh street areas to the city council Tuesday night alleging damage to their properties from vibration caused by the new diesel plant. Property owners also complained that the of their properties had greatly decreased since the test runs were started. Engineers of Emory, Marker and Emory, Toledo, 0., representing the city, and engineers from LimaHamilton company have promised to continue their search for the causes of the vibration and city officials are hopeful they will come up with a quick solution. — Some are of the opinion that the cause is entirely airborn and that a larger and higher exhaust stack would correct most of the offense, while others believe that there also is some vibration being carried through the foundation and into sewer and water lines in the area. "City officials are considering both probabilities of the cause and with the engineers are working toward an early solution.” Mayor John Doan said today. The mayor announced the postponement of the scheduled meeting after it was learned the fuel oil testicould not be started until several corrections 'Mayor DoSh said tlfWre would be no let-up in the search for a solution tb the problem and that as soon as the test run was rescheduled, he would announce the new date fer the joint meeting. . - 1 ■■ Veterans* Programs Cost Four Billions WASHINGTON UP — President Eisenhower estimated today that Veterans’ programs will cost about $4,192,00,000 in fiscal 1955, compared to $4,160,000000 this year. His budget message to congress proposed no important changes in veterans benefits. Mr. Eisenhower noted that veterans’ programs are. prescribed by law and what they cost from year to year is largely beyond the administration's control. Churches Council Will Meet Tonight The Associated Churches council will meet at 7:45 o’clock this evening At the Zion Evangelical and Reformed church. All representatives of the different churches are urged to attend.

Decatur, Indiana, Thursday, January 21, 1954.

$65.5 Billion Budget Bill Sent Congress By President Eisenhower

House Group Refuses Hike In Exemption Committee Votes Down Proposal For Exemption Os S7OO WASHINGTON, UP ~ House ways and means committee Republicans today defeated a Democratic proposal to boost individual income tax exemptions to S7OO. The party - line vote was 15 against to 10 for. The present exemption is S6OO. Rep. Hale Bogga (D-La.) who proposed the increase said it would relieve seven-million persons of all federal income tax obligations if adopted. Committee chairman Daniel A. Reed (R-N. Y.) said the proposal would cost the government two-to-three-billion-dollars in annual revenue. ißeed added that the committee voted unanimously at a previous meeting not to consider exemption increases until it had finished consideration of overall changes in the tax laws. Today’s vote, he said, “merely affirmed that orderly procedure.” Other congressional developments: Surpluses: Sen. Homer Ferguson (R-Mich.j ; proposed tliEf the government study possibility of distributing surplus foods such as butter, eggs, and cheese among the aged and needy. The government wants to avoid any starplus disposal system that might depress the market. But Ferguson said It could safely give “some of this surplus food to our aged people, many of whom barely subsist on the Inadequate income they now receive." Poll: Sen. Albert Gore (D-Tenn.) challenged the legality of thq. recent post office action in spending public money for a public opinion poll on postal rate increases. Gore said he, understood Postmaster General Arthur B. Summerfield spent $12,000 of department funds on the poll-which Summerfield said showed most of those quizzed would favor an increase. Ceiling: The senate armed servisec committee approved a bill lifting for another three years the peacetime ceiling on size of the

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Three Local Young People Are Injured $ Injured In Accident South Os Fort Wayne Three youpg Decatur persons arc patients in Lutheran hospital. Fort Wayne, following an auto collision on U. S. highway 27, near the Tillman road intersection, at 9:30 o’clock this morning, state police reported. injured: Robert Black, IS, of 1333 Mix Ave., driver of one of the cars involved, serious back injury and lacerated scalp. Patricia Grim. 15, Decatur route 6, serious back injury: Sheldon Egley, 18, of 417 N. Fifth street, bump on forehead. With the above in Black’s car was Rosetta Osborn, 14, 245 W. Monroe street, not Injured. .Thorman Gaunt, 21, Decatur route 3 was the driver of the other auto. He did not have any passengers. State police at Baer Field barracks stated that an ABC bus had stopped in the highway so the driv’er could adjust some baggage. The two Decatur cars were driving north. Gaunt was traveling behind the bus-and stopped his car in line with the vehicle. Black was un-, able to s(op and rammed the Gaunt car, caving In the rear end. The Black car was severely damaged in -front and the left front door was sprung. State police arrested Black for reckless driving.

Kyle Resigns Post As ABC Chairman Resignation Forced By Governor Craig INDIANAPOLIS, UP — Joseph B. Kyle resigned today as chair- ‘ man of the Indiana alcoholic beverage commission. He charged that while he tried to take politics out of the liquor industry others in Gov. Craig’s administration tried to “saturate it with politics.” Kyle sent his resignation to Craig in a letter replying to one in which the governor asjced for it. He said jt was up to Craig when to terminate his services. He said his action was due to “an honest difference of opinion.” In a prepared statement, Kyle said: “The big disappointment to me in this position has been that while I have devoted my best efforts to removing politics from the indnstry, others in the administration and close to it have attempted to saturate the Industry with politics.” Kyle declined to elaborate on his “saturation” charge. Craig’s executive secretary, Horace Coats, said regarding the charge “I don’t, kpow what he means.” ’ Kyle was asked to resign in a letter delivered to him ‘ Tuesday while Craig was in Washington on business. He said the letter was dated IftSU Thursday. Kyle, former public relations director for the Indiana Brewers Assn., wrote Craig: "M’hen you asked me to serve you and the citizens of Indiana tn this capacity, your state policy was.to take politics-dut of the alcoholic beverage industry. My efforts have been unceasingly toward that objective. I regret that an honest difference of opinion requires this action.” In his prepared statement, Kyle admitted he and Craig “disagreed on policy.” He said the majority (Continued on Pnge Eight)

I. U. School Survey Experts In Decatur Continue Survey Os City School System Three Indiana University school survey experts are in Decatur this week gathering information concerning the Decatur (public school system .preparatory to the filing of a complete report and analysis of the local school situation. •Dr. Melvin B. Lewis, of the department qf education, is gathering data on administration, organization and curriculum pertaining KJhase, also of the department of education, is studying present buildings, grounds and equipment. Clarence tM. Platen, of the Indiana University audio-visual department, is collecting a group of photographs of all parts of the city to be used in the final study, prior to the making <of the formal written report. This week’s work is another phase in the study of Decatur’s school system ordered several months ago by the school board following a series of joint meeting with school patrons. Superintendent W. Gtiy Brown stated. When completed the survey will show the present status and future needs of buildings, equipment and personnel in the local schools. The school board will use the survey in setting up local plans for the educational needs in the ■future. “. • '< A. INDIANA WEATHER Mostly cloudy with snow flurries north and snow south, probably mixed with freezing rain or gleet extreme south ’ this afternoon, changing to snow tonight and gradually ending. Colder tonight. Friday partly oloudy; continued cold. Low tonight 6-15 north, 15-20 south. High Friday 18-20 20 north, 20-29 south.

Proposes U. S. Share Slore Os Atomic Fuels Ike Proposes U. S. Share Store With Friendly Nations WASHINGTON, UP —President (Eisenhower proposed today that this country share its great and growing store of atomic fuels with friendly nations to help them reap the fruits of peacetime nuclear power. The President HAS new” 1 program for peaceful use of the atom in a budget message calling for record-smashing atomic spending of $2,425.000,00ff in the fiscal year starting July 1. the atomic energy commiseion’s primary aim is to manufacture and develop A-bombs tnd H-bombs in ever greater numbers for defense of the free world. He indicated in this connection that the new sl,500,000,000 Savannah River Hbomb plant is or soon will be mass producing explosives for hydrogen super weapons. But he also announced the hope that “present international relations eett be improved and the wonders of niydear power turned gradually ta the development of a more abundant life tor ourselves and all mankind.” The time has arrived, because of scientific advances andj’greater availability” of atomic materials, to put new emphasis on developing “this new and uniquely attractive energy source for peaceful purnoses,” he said.

Mr. Eisenhower alluded to his atoms-for-peace plan now being Hscussed with Russia, but his call •or sharing of atomic materials with friendly nations was a new and separate proposal. He told congress he will recommend amendment of the atomic energy act to r,, peisfait the transfer of fissionable material (atomic fuels) to friendly nations to assist them in peacetime atomic power development, partclularly those nations which are supplying us with uranium raw materials.” This was viewed as a move not merely to hasten atomic power developments but also to make more secure supplies of precious raw materials from countries, such (Cob tinned on Page Five) India To Withdraw Guards Friday Night Leave Unrepatriated To Selves PANMUNJOM, Korea UP — The Indian command announced /today its guards will Withdraw from their “north” camp at midnight Friday and let 21 Americans and oth«r unrepatriated prisoners of the Communists shift for themselves.

Lt. Gen. K. S, Thimayya, Indian chairman of the neutral nations repatriation commission, said the fate of the prisoners then would no longer be a matter of concern to his command. ... . Fifteen ships sailed out of Inchon Harbor with 14,000 anti-Communist Chinese prisoners who will become civilians Saturday, more than 24 hours before the first ship is scheduled to arrive at Formosa. One of the vessels in the "freedom fleet” headed for the Chinese Natjlsyi/list stronghold was the LST which rammed and sank a small assault boat in Inchon Harbor, drowning 28 American marines. ■ • •■■ ■■ ' ' -■ 7... Before the Indians open the gatbs of the prison camp, Thimayya said he would tell the Americans, one Briton and 325 South Koreans that the Communists hafb refused Jo take them back. . Thimayya said, however, he would ask the Communist high command’ once more to accept (Tara T* Pam F»vei

Possible Merger Os Schools Discussed Jefferson-Geneva Schools May Merge There is a deflnite probability that Jefferson township public schools may merge with Wabash township—Geneva school system in the near future, it was learned from high educational sources today. Rumors have been current for some time that because of the less than 50 enrollment at Jefferson high school many residents of that township feel that their children would have better educational facilities if the school \ystem was merged -with Geneva. VThere also has been talk among Jefferson school. patrons requestclosing the Jefferson schools and\ transferring the pupils on a tuitimi basis. A survey shows, however, that most of the Jefferson patrons at the present time are favoralble to a merger with Waibash township. Jefferson high school now has two educational unite and six teachers on the basis of enrollment. With this number of teachers, it is believed that educational facilities are of necessity curtailed. Under the consolidation statute, 5 or more residents of Jefferson township may pgtiiion lhe tewnshW tShsteJs and • advisory bo'ard for a merger. If there is no remonstrance filfed, it is then the duty of the trustee and board to complete the merger. This of course also depends on whether the Wabash township trustee and advisory board are favoralble. If there is a remonstrance in either township, then it is necessary to hold an election on the proposition. So far there has been very little talk of a remonstrance In either township. Enrollment at Jefferson has been between 40 and 55 for the last several years. Gail Grabill,’ county superintendent, has been furnishing officials of both townships with statistics and information pertaining to a possible merger. Grabill said he had no official announcement at this time, but that he has expressed a willingness to meet with groups in both townships concerning the proposal.

Sen. John Sparkman Speaks At Portland Local Democrats To Meeting Feb. 10 Sen. John Sparkman. Alabama, Democrat candidate for vice-presi-dent tt im, will be tfie guest of honor at a Democrat dinner and rally at Portland February 10, it was announced today by Dr. Harry Hebble, Adams county Democrat chairman. Hebble said that all Democrate Os this county had been Invited to attend the dinner. Spats -will be reserved at the banquet, which will be heljat the Portland armory starting* at 6:30 o'clock in The evening. Tickets are selling for $5 each. Dee Eryback, long time Democrat of this city, has been named Adams county ticket chairman for the event. Dr. Hebble also has tickets for sale. Plans are underway for several carloads of Adams county Democrats to attend the . banquet and reception. Sen. Sparksman is regarded as one of the outstanding Democrats of the nation and always has been considered one of the nation’s leading orators. Among other notables who will take part in the program is Claude C. Wickard, Delphi, former secretary of agriculture in the R,oosevelt and Truman administration, and now Indiana chairman of the Democrat agricultural committee at oosmnte*. ar77 ~ o -J?’-' ' — O 12 PAGES

Price Five Cents

Budget leaves A Deficit Os Three Billions President Asserts Budget Stripped Os Unnecessary Frills WASHINGTON, UP—Preaident Eisenhower sent congress today a bedrock “necessity'’ spending budget of $65,570,000,000 which he said was stripped of frills and would protect national safety and prosperity. He outlined $1,200,000,00(5 of selective tax relief for some individuals and corporations, but upposed any further general tax cuts thi® year. This‘first all-Republlcan budget in 22 year® was stashed' $12,300,• 000,000 under the last Democratic budget proposal. It still would leave the government $2,928,000.000 in the red in the fiscal year of 1955, which begins this July 1. Mr. Eisenhower said “necessity —rather than mere desirability—” was the test he applied to all proposed expenditures. He said he "firmly” believes hrs budget “will not only protest our way of life but will also strengthen our and enhance tue weifnre.; or &R « w / As in every budget since the outbreak of the Korean war, national security was the biggest item by f ar $44,860,000,000 thi® time. This was $3,860,000,000 below the latest for the current fiscal year. /’Jfe. • The President pledged to provide more national defense for less money by cutting down on manpower and putting greater reliance on air power and atomic weapons. The U. S. military forces would get $37,575,000,000 of the national security total. And the air force would get the lion’s share of that —over 16 billion dollars. Other big national ‘ defense items: $4,275,000,000 for foreign military aid, $2,425,000,000 for atomic energy and $585,000,000 for critical stockpiling. It added up to the biggest airpower buildup since World War II —40,000 planes by 1957 instead of the present 33,000—and the biggest atomic program in the nation's history. Mr. Eisenhower’s proposed spending figure was $5,300,000,000 under the latest estimates for the current fiscal year of 1954 and $12,300,000,000 under the amount proposed by fohner President Truman just before he left office last year. ■ el < The 1955 budget stacked up againet fiscal 1954 like this in billion® of dollars: Trumap’s revised proposed 1954 1954 1955 Spending ... $77.9 $70.9 <65.6 Receipts ... $68.0 $67.6 $62.7 Deficit „ — $ 9.9 $ 3.3 $ 2.9 Budget director Joseph M. Dodge told reporters the proposed 1955 budget could be balanced through cute in spending only "at the expense of essential activities of the government” He said there would have been a surplus of--two billion dollars except for the tax cuts made Jan. 1 and the tax relief now recommended by Mr. Eisenhower. Dodge predicted there will not. be a business recession in the next 18 months. To finance the proposed spending, Mr. Eisenhower asked $56.306,600,000 of new appropriations. This is not as large as the spending figure because huge amounts Os past appropriations are Mill available to be spent. He pledged that his administration “will continue determined efforts for ecenomy to reduce the deficit.” Savings will be translated into further tax cuts “as rapidly as justified" in future years. “ Mr. Eisenhower recommended 95 revisions in tax tews. These selective reduction® would be divided about equally between individuals and corporations. They would be more than offset by confrere Te Peea rt»e»