Decatur Daily Democrat, Volume 52, Number 217, Decatur, Adams County, 15 September 1954 — Page 1

Vol. Lil. No. 217.

Unveil National Budget ■k’T' i &-'****' f i O . ul--' L* ■ ■ **< '«-;. >:■ ■' '-■ ■■ ■ ■u / *♦ ■ fl ■Mn* )sl3i ‘ ' ■ KT* e? fll i The FEDERAL BUDGET • HttM Uttl | ■f: mM kk-■' ~ '■■ f!■ uss . HHMBHHRMHHHK *ctwi I : '.'• MC£IPIS 64,1 IdliM ns# ' j sussi I. ■H' * <4.61.11*** £ ' ”*g ; “ | / * - WWi Hfcift I — BEFORE A CHART showing the budget dollar, where K. conies from and where It will go. Secretary of the Treasury George Humphrey (top-left) discusses the outlook for 1955 with Budget Director Rowland W. Hughes. The chart (below) shows comparison with previous years.

Sharp Boost In Budget Deficit Os Government Administration Aims At Further Cut In Federal Spending. WASHINGTON (INS) — The administration aimed today for further cuts in federal spending to reduce an estimated four trillion 700 million dollar budget deficit for the current fiscal year. Treasury aecretaty George M. Humphrey, in announcing the anticipated amount the government will go into the “fed" by next June 30, pledged reductions “all along the l|ne” in federal expenditures, including defense spending. The new deficit estimate, con- ,., tained in the budget bureau s annual post-Congress review Os the fiscal situation, is one billion 700 mlHion dollars more than President Eisenhower forecast last January. The sharp increase in the deficit was attributed to a one billion dollar loss in federal revenue through excise tax cuts and an unexpected 773 million doller, boost in spending, primarily for farm price suppdrts and housing programs. The revised budget also showed that estimated spending for national security programs has been slashed by two billion 900 million dollais since last January to a new total of 41 bHHott-99A milHotM Humphrey explained that the cut _ in defense expenditures, which claim 66 percent of the taxpayers dollar, reflects a belief that more defense can be obtained for less money rather than any im provement in the world situation. ♦rhe secretary and budget di _ rector Rowland Hughes told a joint news conference that the military budget is based on the as sumption that the U.S. must main tain a position of strength per manently. But they eaid they fell that ad ditlonal cuts can be made in de sense spending as well as othe programs to improve efficiency without reducing the nation's "effective national security" The budget bureau said that although military spending has bern • cut, the current rate of expenditures “will support the moSl.udw erlul and efficient fighting fore, the United States has ever maintained short of war." The mid-year budget review said the estimated spending would finance acquisition of large quantl ties of modern weapons and electronic warning equipment, permit expansion of reserve forces, gllow for additional public works projects and assure continuation of essential research and development , The Pentagon reported that two billion dollars has been cut from defense spending estimates made last January, with the army absorbing one billion, the navy 200 million and th* air force 800 million. ’’

DECATUR DAILY DEMOCRAT ONLY DAILY NEWSPAPER in ADAMS COUNTY

Craig Shifts Stand On Beer In Politics Reveals Change At Press Conference INDIANAPOLIS UNS) — The anti-dtevrimination fight which Gov. George N. Craig waged for month* in what he termed an effort to get beer out of politics > Gov. Craig, at a Tuesday after- - noon preev conference upon hia re- [ turn from <a Canadian, vacation. . said he etill wants to get beer out . of politico but he has changed hia mind about the beet way to do it. He said he now feet* the brewer or distiller should have the right to designate whom he would have sell his. product, providing that ! designated distributor meets etate . qualifications* for a license. Back in 1953, the governor had said he intended to enforce an anti-discrimination section of Mate liquor laws which specifies the manufacturer of an alcoholic bev , eiuge must sell bis product to any licensed wholesaler. A rash of quite were filed by wholesalers favored by the breweries and also against the breweries. None of the cases came to any conclusive finish bht the effort caused a rift in the official family. Joseph B. Kyle, then alcoholic lie verage commission chairman, redfcned Jml 21 in a huff, stating ‘the majority vote of -the alcoholic beverage commission in the ‘discrimination cases’ waa contrary to the Governor’* ‘opinion aa to how .he law should- be administered." Game a new chairman. DeWitt Oweu. Chd etillho decisive action '.a the anti-discrimination cases. Tonay. Craig 4 * turnabout seems to •pell an end to the legal effort to force breweries to sell to any wholesaler. The governor said it now appear* the antidiscrimination litigation would next Indiana general aaeembly and that it would he better to ask the lawmakers to revise the act so as to take beer out of potttKW. He ■<>m mooted: "To be honest, you can’t take beer out of politics under our present laws . . There shouldn't he any more politico in beer than in groceries or But It wt its start that way . . we have 20 years engrained- politics In beer.” The reporter* who had started to leaye the gubernatorial chambers, grabbed their pencil* again aa the governor said: "One suggestion ’that seems the nearest to a solution of the problem la to let the manufacturer designate to whom he would eel his product. Then let the state (jetermine if that person has the qualifications for a wholesaler—good moral Character, never convicted of a felony, and the rest.” Gov. Graig said the suggestion conform* with "my own thinking" end when confronted with his previous anti-discrimination stand, said honestly: "It is a departure. We learn m wgeo along, or at least we should." Gov. Craig cautioned that he has pot yet made up hie mind if each a suggestion will be incorporated 1 ■ *

Secy. Dulles To Europe For German Parley Leaves Tonight On Flying Trip, To See • Adenauer, Churchill WASHINGTON (INS) — Secretary of state John Foster Dulles will leave tonight for a flying trip to confer with German chancellor Konrad Adenauer and British prime minister Sir Winston Churchill on West Germany's' place in the anti-communist alliance. The state department said the secretary will arrive in Bonn Thursday. After talking to Adenauer, he will fly to London Friday for a conference with Churchill and British foreign secretary Anthony Eden. Dulles Is expected back in the capital Saturday morning. Asked why he will not visit other western European capitals, thp state department said there just isn’t time —that tne. secretary must t>e back for the United Nations general assembly meeting in New York Tuesday. Because of the departure time, Dulles will have to pre-record his report to the nation via radio and television tonight on thd Manila conference and the ahtt-Com-mu-nist defense pact signed there. The talk, at 8:45 pm. '(EDT), was to be carried over the DuMont television network. Other radio and TV stations planned to broadcast Jt at varying .times during the evening. Dulles’ sudden plan to fly to Germany to confer with Adenauer reflected U. S. concern over the failure of France to ratify EDC and the future of a hoped-for united defense wall for Western Europe. Meanwhile, British foreign secretary Anthony Eden left Rome for Paris where he hoped to win approval for a plan to use the «ix and one-half year-old Brussels pact aa a steppiryj to.European defense unity. uf> .' ‘ . /* Eden repoFtedly won Italian agreement to bring Italy and West Germany into the present five-na-tion Brunels pact and the French were reportedly favorably inclined to go along. Eden and Italian foreign minister Attilio Piccioni announced an agreement on the need for an international conference to study the best method to "associate” the West German republic with the other Western powers. This Would mean restoring sovereignty and rearmament for -the Adenauer government. The U. S. view, however, is that Germany must be placed on an equal status at once with the Western allies in their discussions on Germany's future, including (Continued on Page Eight) Decatur Lions Hear District Governor North Webster Man Is Speaker Tuesday DECATUR LIONS HEAR Lion* diet r tot governor John g Herrmann, of North Webster. 1 spoke to the Decatur Lions club Tuesday night, and outlined the growth and activities of Lion ism planned for this next year. Gov. Herrmann was Introduced by Roy Price, past district governor. and now an International councilor. Also present for the meeting was the district secretarytreasurer, Ollie Link, of North Webster. ~~ Herrmann awarded 25-year badges to Dr. Henry Frohnapfel and Clyde Butler; 20-year badges to Leland Smith; 15-year awards to Roy Price, Anthony Mettler, Glenn , Hill, Herman Krueckeberg, Ed Highland, Dale Moses. Dr. Harold Zwick, J. M. .Doan, D, Burdette Custer, John Halterman, and Merritt Alger, who is also a charter member of the" Hoagland Lions club- Ten-year pins went to John DeVjoss, Richard Macklin, Ronald Parrish. Frank Rowley, and Paul Hancher, who also received the key award for introducing new members. New member Dale Hunt was introduced to the members. Dr. H. R. Frey Introduced his guest. Dr. Weisman, who recently moved to Decatur. Marion Robison made a report on the summer activities of the 1 Boy Scout troop. - INDIANA WEATHER Mostly cloudy. A little cooler north tonight Thursday partly cloudy and 0001. Low * tonight ML6O. High Thursday 63-70 north, 70-77 couth. , I

Decatur, Indiana, Wednesday, September 15, 1954.

’ J j r - ■ — '■ ' ■ Three Americans Freed By Chinese Communists After 18 Months Time

Huge Increase In Spending For Defense Phenenemqi Rise In Recent Months On Defense Costs WASHINGTON (INS) — De-' fence spending rose phenomenally in recent months to a level more than three times last winter’s rate. Contracts for purchases and construction were disclosed today to have risen to $5,600,000,000 for the three months ending July 1 and prow will exceed MX billion dollars' in the current quarter. They amounted to only 1.6 and 1.4 billions in the last two threemonth periods of 1953. Defense officials said the boost creating new business and employment resulted from the extensive review of military requirements undertaken after the end of the Korean war has been completed and* the requirements were nowknown. They said total defense depart* meat spending would remain at ej level well below the Korean was period. Spending during the year b»g«a Met July 1 wHi be aboikltf to 36 MUioa doHafe as com ns red to 43.8 billion dollars for the previous year and 47.5 billion dollars for the last full year of the Korean struggle. The sharp increase „in purchasing orders recalled that defense, secretary Charles E. Wilson, duringing the early months of his administration. canceled or delayed hnudreds of contrasts pending a review of the nation’s military needs. So great was the fall-off in purchasing after Korea that, although President Eisenhower’* January budget message estimated the carry-over of uncopunitteed - defense funds at 8.5 billion dollars, the actual carry-over on July 1 was 14.6 billion dollars. For the fiscal year ended July 1, purchasing commitments totaled only 10.9 billion dollars, as compared to 27.8 billion in the previtContlnued on Page Six)

Dixon Tells Os Months As Red China Prisoner

(Editor's note: Donald Dixon, vice correspondent who was released from Chinese Communist captivity with two other Americans today, tells here in his own word® of bis 18-months as a Red prisoner. much of it In solitary confinement. Thia is the story as he told it to fellow INS'er Robert Schakne in. Hong Kong.) By DONALD DIXON (Copyright 1954 by I. N. S.) HONG KONG (INS) — In 18 monffibs in Red China, 1 saw what the country was like only from the inside ( of prison cells. In all that time, I eaw no Americans until today. I never saw the sun for the 18 months. From the time of our capture, I did not even speak to Dick Ap plegate or Ben Kraener, who were taken prisoners with me on March 21. taet year. At one period during our confinement, Applegate and I were able to pare menage to each other. This we* shortly after our ciHXure wh*n we were lielng held in a private house In Canton that w«u» converted into a special prison, We were caught once, passing our messages. The way we did it was to slip papers through a liole in the wall of a connecting bathroom. We also shoved the message* through the keyhole. We*were in international waters — not in Chiense water* — when we were captured aboard Applewnte’a boat, the Kert. Our capture era* an act of piracy from beginning to end. We canfeeaed to "intruding" tn Chinese wstere as the only way to get free. I have had a good taste of what<

Nationalists Claim 533 Ships Damaged Claim Reds' Plans Virtually Destroyed TAIPEH, Sept 16 — Thureday — (INS) — Nationalist China announced. Wednesday that ito 13-day air-navaj assault on the Communist mainland’ coast opposite Formosa- had daMrnyed or damaged ‘538 Red vessels and "demolished" gun emplacements at two forte. The Nationalist defense ministry claimed its "offensive” had "virtually shattered the enemy’s plans to conquer" Quemoy Island, key outpost in Formosa’s ring of defenses. It admitted, however, that the Red imvaeion springboard® "may not have been completely wiped out.” Another Taipeh communique said five Nationalist warplane® were lost and several others damaged, presumably by Communist anti-aincraft fire, during the 13-day action. i Listed as sunk or destroyed by ■ Nationalist air and naval attacks were 380 Communist wooden junks, . 22 motorized junks and four gunu bowte, while 125 junks and two I gunboats were eaid to have been j damaged. x I *A* Nationalist military spokesf man said the action against the Reda in -the Amoy coastal area bad entered a new phAae of “har-■•ffSTOwi-v Wfva HVI VW WmIW. (Continued on Page Hix) Clark Is Taken To Fort Wayne Hospital Richard <E. Clark, who has been a patient in the Adams county hospital for the past few days with a kidney ailment, is now at the Fort Wayne Lutheran hospital under specialist care. Clark was taken to Fort Wayne at about 6 p.m. Tuesday .by Sheriff Robert Shraluka. The 2'4-hour guard on him will continue. Being held in the Adams county jail pending trial on a charge of robbery of the First Bank of Berne May 29, Clark became ill early. Sunday morning. "Tests and examinations today will • del/irmine whether an operation will be necessary.

Communist juetice is. They told ue totell the troth. So We told the truth end we got solitary confinement. They hammered amd hammered us with questions. They awked me tor military intoranatlon. tor information on troope in Korea, and so on. I played dummy. I Jost kept telling them “J don't know, 'I don’t know." They must have thought I was one of the stupidest correspondent* hr the world. But tot me tell it from the beginning. We were Most taken to the Leland of Lapeapmei off the China coast. We were held together tor a week in the boat cabin, and that's where the question* started. They kept insisting we tell the truth, and we did. About how we were not in. Chinese waters, were just on a vacation trip, and so on That ‘tff#p*Tentt*rfy thenu- So then we were taken to Oanton and put in the private house, in solitary confinement, it wa* here that Applegate and I tor awhile were able to exchange messages We were questioned from time to time, always alone. During this period the Red guard* stole money from u» at night. They’d sneak into the room and steal some fruit I had. too. I finally got fed up with this and left them a note telling them to stop. 1 gave them money and said they should buy their own. The tnterrogatlone Included everything. They wanted to know everything from the day I was born to where I went to school. They wanted l to know who I knew, what I knew from my work in ’• (Continued on Pag* Eight) . -ii f! ■■ t I,-

? New Pastor ■-/' IJ" 1111 I ’ i m The Rev C. E. Lykins is the new pastor of the Decatur Church of i the Nazarene, succeeding the Rev. i. Romains D. Wood. Rev. Lykina has pa stored Indiana churches at Farmland, Parker, Hammond, Middletown and. Goshen, and for the poi-it four year* has been in the field’ of eva®geli»m. 1 . * One Incumbent I Senator Loses In Primaries Primary Elections Are Held Tuesday 1 In Nine States International News Service 1 One incumbent senator failed to ’ win nomination in the nine primary elections held Tuesday, but ' balloting — light despite favorable ' weather — was generally as expected. Republican Sen. Robert W. Upton of New- Hampshire, Who had been appointed to the vacancy left by the late Sen. Charles W. Tobey, was edged out in his bld for nom- ‘ ination. The winner wae Rep. Norris Cotton, a member of the house since 1947. Sen. Styles Bridges was unopposed for the other seat. In a hard-fought battle, former Rep. John A. Carroll of Colorado defeated Deaver Mayor Quigg Newton fbf'tne benioclttie senatorial nomination. Oarroll will oppose Lt. Gov. Gor, don Aliott (R) in the race for the seat now held by Sen. Edwin C. Johnson. Johnson is running for governor after Iff years tn the s*h - ate. - v In Massachusetts, the favored candidate, Foster substantially led his two nearest Democratic opponents, Joseph L. Murphy and John I. Fitzgerald. Furcolo will oppose Sen. Leverett S<l- - GOP chairman of the senate armed services committee, who was without opposition An the Republican primary. Minnesota Sen. Hubert H. Humphrey scored an overwhelming victory over his two Democratic opponent* with a lead of over 16 time* the combined votes of th* othefs?” In the GOP race, state (treasurer Vai Bjornson won almost as strongly over his two opponents. These were (he key senatorial races settled by the primaries. Lesser offices were involved In other primaries in Utah, Vermont, Minnesota. Washington. Wisconsin and New York. In Washington, all Incumbent representatives, one Democrat and six Republicans, were renominated. Five of the seven were without party opposition. The vote showed that only one-third of a million and a half voters went to the polls. ~~ | «j Wisconsin's Republican Gov, Walter J. Kohler was unopposed, but William Proxmire held a strong lead over attorney Jamee E. Doyle in the Democratic primary. , Massachusetts Democrats nominated Rep. Robert F. Murphy as their choice tor govsrnon Murphy tn November will oppose GOP Gov. 1 (Continued on Page Six)

Scientist Quits Atom Commission Oppenheimer Backer Resigns Position DENVER (INS) — The summer White House today announced the resignation from the atomic energy commission of scientist Henry Dewolf Smyth, who cast a lone vote against barring J. Robert Oppenheimer from the nation's security secrets. He will be replaced, it wa,s announced simultaneously, by another distinguished, nuclear scientist, University of Chicago professor Willard Frank Libby. Smyth said in his letter of resignation to President Eisenhower that the nation's stockpile of atomic weapons assures that any enemy attack on this country -would be answered with "overwhelming power.” He expressed hope, however, that the massive destructive force at the atom will serve as a deterrent to war and praised Mr. Eisenhower's plan for an International atomic pool for peace. Smyth has been the only scientist on the commission, where he has served since 1949. His resignation is effective Sept. 30. Ms. Eisenhower said be was accepting Smyth’s resignation “ver*, reluctantly” apd praised his contribution to the nation’s security and development of "a new source of power of epochal significance to the future of mankind." Smyth cast the only vote for Oppenheimer in the commission's four to one decision upholding a special committee’s recommenda- , tion that Oppenheimer be denied access to security secrets. He has indicated some dissatisfaction with the policies at ARC chairman Lewis Strauss, and testified before the congressional atomic committee that Strauss had not shown as much confidence Ln hiiiL. as previous chairmen? Smyth was the author of a 1945 report on atomic energy still considered the basic textbook on the subject and worked on the topsecret production of the A-bomb during World War H.

Mrs. Ida Merriman Is Taken By Death Funeral Services Friday Afternoon Funeral services will be held Friday tor Mrs. Ida Merriman, 75. ‘of 417 South First stfeet, who died at 12:36 o'clock Tuesday afternoon at Parkview memorial hospital, Fort Wayne. She bad been ill since June. She was born in Wells county Oct. 5, 1878. a daughter of Peter and Sophia Rapp-Yager. Surviving are two daughters, Mrs. Elmer Winteregg of Decatur and Mrs. Hazel Hire of Toledo, 0.; one son, Chalmer Niblick of Toledo, 0.; one stepson, Marry Merriman of Kankakee, Ill.; two stepdaughters. .Mrs. Vernet Beechler of Indianapolis and Mrs. Francis Bolletrbacker of Fort Wayne; six grandchildren; five greatgrandchildren: a brother, George Yager of Ossian, and a sister, Emma Hendry of Fort Wayne. Services will be conducted at 2 p.m. Friday at the Zwick funeral home, the Rev. Herald J. Welty officiating. Burial will bb In the Decatur cemetery. Friends may call at the funeral home after 7 o’clock this evening. The deceased requested the omission of flowers. Indiana's Highway Death Toll Is 720 INDIANAPOLIS (INS) — Indiana etate police today reported Hoosier highway slaughter through mid-night Sept. 12 totaled 730 deaths compared, to 840 killed In

Price Five Cents

Cross Border Info Freedom Early Today Wear Same Clothes As When Captured By Chinese Reds • HONG KONO (INS) — Three Americans. clad in. the same clothes they wefe when seized by the - Chinese Communist* nearly IS months ago. crossed over the Red China border to freedom early today. The three —lnternational News Service correspondent Don Dixon of New York, N. B. C. correspondent Ricliand Applegate of Medford, Ore.,' and merchant Oapt. Ben Krasner of New York — walked into British territory on the road to Kowloon. Applegate walked unsteadily but Dixon jumped with' excitement at the sigfat of waiting newsmen friends he had met while covering the Korean war for 21 months. As the trio crossed the border at 2:40 p. m. (1:40 a. m. EDT) they had on the same dungarees and sweatshirts they wore March 2L 1953, when they sailed from Hong Kong for the Portuguese col- ' flpy of Macao aboard Applegate’s fachi, “lUrt.” " . Dixon said be spent five and a half months in solitary confinement and revealed the trio had been hi a Cantos jail during their entire imprisonment. Krasner related that he eras "cuffed and kicked" several time* but otherwise was not harmed. He added that "we were treated comparatively well compared with the Chinese prisoners who were treated brutally.” He said he and the two other men were allowed to see each other only once—when they were photographed' for the Communists’ “rogues gallery?.’. He said that at intervals during hie imprisonment; he was subjected to “inquisitions" which occasionally continued for weeks at which Chinese who “acted as judge, proeecutor and defense attorney” ecreamed at him to confers. He added:

"The Communists Kept harpins that we intruded on their territorial waters hut J kept telling them we were in international waters. "However, they wanted a confession and finally I save them - Krasner said he was kept in • six-foot by 11-foot cell with a Chinese celuwrte and wae never taken outside and never permitted to exerciee. He continued that he learned only Tuewday night that he would be released. Applegate described seizure of the yaclrt a» an act of "international piracy.” He said the “Kert” was five miles southwest of Lentao lelabd “ and two miles outeWe British waters when a Chinese gunboat approached from the north flying the ■signal “King," meaning "stop your vessel immediately.” Applegate relented that the Chinese who Ixjarded the vessel were told the yacht we* in international waters and proceeding to Macao. But the Rede ordered the “Kert” to follow the gunboat, which kept machine gunn trained on the vessel. The Communist New China ■ (Continued on Page Eight) | — Brother-In-Law Os Decatur Man Dies Max Meatechkln, 61, brother-in-law of Morris Begun, local businessman. died Monday at his home in Rockford. 111. A former Chicago grocer, he had operated a men’s furnishing store In Rockford for the past six years. Survivors include his wife, Esther; two daughters. Mr*. Essie Abramovlts and Mrs. Mildred Shayne, and three grandchildren. Funeral services were held today. Mr. and Mrs. Begun and daughter > attended the services. > •