Decatur Daily Democrat, Volume 52, Number 236, Decatur, Adams County, 7 October 1954 — Page 1

Vol. Lil. No. 236.

Housing Expose Rolls On • IWIIv >yir w!m,.y.. . A ■— t i 11 JI IR I rear ,JL g-gW jKe- '■ • ' av jmh y w fc~ ®f ■flnlHffii WHILI CLYDE L. POWELL (top-right), former FHA official under fire in Washington appeared before a federal grand jury- at the justice department to answer charges of irregularities, a long string of real endue operators w<ho realized "windfall" profits testified before the senate banking committee. Among these latter were (1. to r. bottom) Fred Schnider of Arlington. Va., who realized $350,000 on a S2OO investment; Ben Cohen, Baltimore, Md„ who olrtained $20,000,000 in FHA guarantees and made $2,600,000 on the deal, and William Magazine, Washington. D. C., builder, whose operations involved $49,537,000 which was SBOO,OOO aboVe costs.

Mendes-France Name Linked To Spy Case French Premier Is Tied To Sensational Spy Case In France PARIS (INS)—An arrested peddler of secret Preach military information today injected the name of French Premier Pierre MendesFrance into the sensational spy case for the fir.st time. Rene Turpin., top aide in the National Defense committee secretariat quoted his co-worker Roger Labrusse, who also is under arrest. as recommending that the military data should go to government opposition members, including Mendes-Frunee, last May in the critical days of the Indo-. Chinese war. He said Labrusse told him that Emmanuel d’Astier de la Vigerie. editor of the pro-Commuirtst news paper Liberation, was “supposed" to relay—secret- information to Mendes-France at a time when the latter was demanding that the government arrange a peace in IndoChina. The implication was that Mem deo-France and others could use top eecret in-nformation in their battle against Premier Joseph Laniel, who was then head of the government. But there was no testimony that Mendes-France or others actually received such data. Turpin said the secret information concerned the May 26 meeting of the national defense committee. The May 26 meeting of France’s most trusted an I powerful govern me rut figures occurred at the Elyisee Palace. France's White House, two weeks after Dienbienphu had fallen.* ■U was up to the men in that meeting, including premier Joseph Laniel. to decide what France should do to halt the tide of Communipm in Indo-Chiina. The Geneva conference was on and in the resulting upheaval Laniel was tossed out of office and MendeeFrance wae voted in. He then negotiated a peace at Geneva. Ju-st what was decided at that meeting is not known -publicly, but it is known that within 36 hours the French Communist party had full detailM. Turpin d-id not say. MendesFrande received such information ami he has not confessed to being a Communist courier The government has quoted him as admitting responsibility for leakages from national defense committee meeting®, however, presumably tbrojiigh Labrusee. Andre Baranes-, the confessed Red spy courier who said he also was a eecret tipster for the euspended French anti-Communlst police Inspector. Jean- Dides, named Lazruese as the source of eecret (Continued on Page Six) INDIANA WEATHER Fair and cool tonight Friday fair and a little warmer. Low tonight $5-40 north and 40-45 south. High Friday around 70. ,

DECATUR DAILY DEMOCRAT

Nine Agencies In Community Fund Salvation Army Is Included In Fund The Salvation Army, which will receive SI2OO out of the 1054 budget of $11,665 for the Decatur Community Fund had previously conducted its own campaign in Decatur. It is now one of nine worthwhile agencies included in the one united effort which will begin next Tuesday. The "army” was organized b£ General Wm. Booth and hia wife in London in 1865. It has since spread to 62 countries. It has no formal creed and gives little attention to a discussion of doctrinal differences.. Admission to membership is based solely on a solemn pledge to Christian conduct, including total abstinence from intoxicating liquors and all harmful drugs. These pledges are known as the “articles of war" and must be signed iby every “soldier," Most of the army's religious work is aimed at the conversion of those segments of society often not reached 4>y the church, especially the vicious of this budget request is returned to a local committee to “provide emergency aid to any needy individuals or families, resident or transient, regardless of race, creed, or color —in order to carry out in Decatur the •'Salvation -Army’s policy of serving a need, at the time of need, and at the place of need." on here of the local emergency aid committee are Margaret Holthouse, Joan Wemhotf, Louis Jacobs, and its treasurer, Earl Caston. A much appreciated meal, a humble night's lodging, bus transportation to the Army’s shelter at Fort Wayne, plus several special arrangements to meet unusual needs, have been provided through this local committee. Additional local funds are available from state headquarters If needed. Each Salvation Army corps is constantly alert to serve unfortunates in its area. It might be a tire which completely destroys someone’s home; it mlty be an unwed mother who does not know where to turn; it might be a family suffering sudden illness or death and finding itself without funds. Servicemen from 'both World Wars remember the friendly help given them, often near the front lines. The Salvation Army gives aid and comfort to men and women behind 'prison bars. Here in Indiana there are a large number of parolees who have been assigned to the care of experienced Salvation Army officers. Financial assistance is often given quietly to homes whose bread-winner is paying his debt to society. Special efforts are made to rehabilitate the<»e men so that when they become eligible for parole, they will be better equipped morally and spiritually to face the outside world. "The Salvation rmy serves those unfortunates who need it most. We often serve people who have been refused help elsewhere. We are instructed to serve the need as it develops and not to split hairs as to the victim's eligibility,” raid ■ member of the local committee. 12 PAGES

Indiana Bank Is Robbed Os $20,000 Today Two Bandits Stage Robbery Today In Southern Indiana ELBERFELD, Ind. (INS) —Two bandits, wearing dark Hollywood sunglasses as disguise®, held up the Elberfeld Stale Bank today and escaped with $20,000. Elberfeld is about 20 mile® northeast of Evansville in Warrick county. Norman Bertram, 47-year-oid cashier, said he and three women employes were in the bank five minute® after it had: been opened when two robber® about 36 yean® old stepped into the institution waving revolvers. One of the bandits, shouted: "Lie down on the floor behind the counter, and none of you will get hurt!” The two men then -scooped up the cash and bills from- the counters and drawers and the bank vault in -paper eack® and fled in a two-tone green Mercury car which had been parked across the street. The women employes were Mrs. Cart Godeke, Mrs Linda Koch and Miss Barbara Arndell. While the holdup was in progress, a customer, Mrs. May Dassel entered and she also was ordered to lie on the floor. Bertram said the robbers commamded the five persons to go into the vault and tried to lock it. They were unable to. work the lock, however. The quintet emerged from the vault as soon as the bandit® fled in their automobile. Thwsrt Holdup NEW YORK (INS)—Police today broke up a bank robbery in Queens, capturing one of three bandits in a gun battle. Police eaid the attempted robbery was at -the Ridgewood Savings Bank in Laurelton. One of the alleged bandits, identified by police as Joseph Ritter, of Brooklyn. N- Y., was seized in the bank where he ! had herded several bank employes into the basement Police said he “gave up meekly” when they broke in. Two of the gunmen escaped by car under a hail of bullets. Their car was found abandoned a short distance from the bank. To Challenge Soviet Sincerity On Plan _ U. S. And Britain Challenge Sincerity UNITED NITIONiSr N. Y. (INS) — The U. S. and Britain plan to challenge in the L’N Friday the SovieUUnion's sincerity on its banning of nuclear weapons. The test is slated for the opening session of the political committee which starts operating now that the assemltly has wound up general debate. The U. S., Britain and France propose that the committee give the general subject of disarmament priority and that Soviet delegate Andrei Vishinsky’s proposals on nuclear weapons be included under that item. Should Viahinskb' insist that his plan on nuclear weapons be dealt with separately, the western big three will consider it a clera-cut demonstration that the proposal was made mainly for propaganda purposes. The western contention Is that progress toward agreement can be achieved only if Russia Joins others iiPcincerely considering the whole disarmament problem with a view to hammering out an ac ceptable compromise blueprint. Vishinsky’s rtinoduction In the assembly on Sept. 30 of a Soviet blueprint on disarmament and nuclear weapons somewhat different from previous ones raised hopes among many free world delegates for an early solution to the eightyear deadlock on that vital cold war issue. For that reason, Vishinsky’s actions and attitude tomorrow will he watched by others with keen interest. Fair, Cool Weather Predicted Tonight INDIANAPOLIS (INS) — The Indianapolis weather bureau predicted fair and coo) weather today and tonight after frosts were recorded in northern Indiana Wednesday night. The mercury dropped to 30 degrees in Goshen and near freezing temperatures were reported In other regions Wednesday night. The forecast for Friday was f*ir and a little warmer.

ONLY' DAILY NEWSPAPER IN ADAMS COUNTY

Decatur, Indiana, Thursday, October 7, 1954.

Claim Windfall Profit * From Housing Project Paid To Congressman

White Pupils Straggle Back ’ Into Schools t Washington Strike * Over Integration Appears Broken WASHINGTON (INS) — Hundied® of white students straggled back to etae® today, their strike apparently broken by official® who refused to yield to their violent demands for a return to racial segregation in Washington schools. One lx»rd of education authority declared flatly that -the walkout “is busted.” It began Monday at Anacostia high school and spread rapidly throughout much of the capital. By Tuesday, about 1,500 pupils were out. But this morning, attendance, even at Anacostia, was almost back to normal. Anacostia principal Eugene Griffith told newsmen: ‘‘There ha® been a flood of students all day yesterday and today returning to classes." Except for about 20 teen-ager®, including one who was arrested when tie jeered at pupil® returning to class, all the youngsters who showed up at the school building this morning went inside. ; TWe meant that even those still refusing to attend the same Schboi witli Negroes were for the most part obeying a police warning to stay home and not try to cause any trouble. '■ The return - to- class movement fallowed an ultimatum by school superintendent Hobart M. Corning, who said students not at their desks by Friday will be banned from scholastic honors and extracurricular activities for the rest of the school year. Between one and -two thousand white students stayed away from two senior and six junior high schools, in the nation'® capital Wednesday in the third day of a walkout in protest against racial LlfLCfjl OILKJTL. ‘ “•* Many of the absentees were kept home by parents who feared a possible outbreak of violence despite cordons of police w-ho have kept strikers from congregating outside the affected schools. In most areas of the city, the (Continued on Page Five) Hearings Planned On Power Contract Public Hearings On Dixon-Yates Pact WASHINGTON (INS) — The Dixon-Yates power contract was thrown out on the table today (or mid-campaign congressional hearings which could tire up or dampen public power as a 1954 election issue. Chairman Sterling Cole of the joint atomic energy commission announced that public hearings will begin next week on a request of the atomic energy commission aimed at early approval of the controversial Dixon - Yates contract. Public hearings are tentatively cet to begin next Wednesday. One Republican campaign leader, advised of the hearings, said the GOP was not concerned over Democratic attacks on the power contract and added: "If there is anything* wrong with the contract, let's hear about it.” The contract, approved by President Eisenhower, would authorize construction by a private combine of a plant at West Memphis, Ark. to feed power into the Tennessee Valley Authority’s system to replace power TVA is supplying to the AEC's big Paducah, Ky„ plant TVA and public power advocates say TVA could furnish the power itself. Some Democrats oppose the contract on the ground it would guarantee a nine percent profit for the Dixon • Yates group with no risk. Cole, New York Republican, des(Comtmued oh Psge Six)

Speaks Saturday will jbi > gjsffiSgl gf jßk < jfl gF Robert Meyers;, mayor of Fort Wayne, will epeak at Republican headquarters In the Cort theater in till in city Saturday night at 8 o’clock. Ray Jones, fourth dietriot GOP chairman, county end state candidates ;will be introduced. Refreshment* will lie served following the meeting. Officials Say Prison Guard Strike Fizzle Officials Report Operations Normal At Michigan City MICHIGAN CITY. Ind. (INS) — Officials at the Indiana state prison in Michigan City declared a strike by guards “was a complete fizzle” and that “operations were normal" today. Forty-six of the prison’s 197 guards went on strike early Wednesday and set up a 12-man picket line in front of the prison, which houses 2,285 convicts including 600 life-termers. Hugh O’Brien,- chairman of the state board of correction, said a full complement of 44 non-striking guards has been assembled since the 4 p.m. to midnight shift Wednesday and that the "strike was a complete fizzle." As a result, O'Brien said. 200 national guardsmen were taken off “alert status" and he was dismissing 60 state troopers w’ho had been held in readiness at the nearby Chesterton police barracks. The striking guards, members of the International Guards’ Union of America, were fired by Gov. George N. Craig. They had walked out to support their demands for union recognition, a 4ff-hour work week and better working conditions. Craig, in refusing the union demands, said: 1 “We won't recognize the union now or at any time in the future, and we won’t recognize anyone who seeks th turn the people against the government.” Warden J. Ellis Overlade said there was little change in the routine of the inmates although those considered to be “dangerous” were locked in their cells. Merlin Griffith, union vice president, hinted the strike order would be extended to the Indiana state reformatory at Pendleton which has 2.500 prisoners. He said notice of the Michigan City walkout had been sent to union members there and also a picketing delegation. Reformatory Supt. Ralph H. Tahash said the delegation Os four suspended guards arrived at Pendleton without the banners they carried when they left Michigan City. A*.. He said he refused to let the four men talk with guards on duty but said they were free to talk to off-duty guards all they pleased. (Continued on Pago Five) BULLETIN, > SANTA FE, N. M„ (INS) — State police headquarters reported today a "large plane” crashed In a oanyon near Magdalena, N. M., 90 mils* southwest of Albuquerque.

Lattimore Is Re-indicted On Perjury Charge Federal Grand Jury Again Indicts Far East Specialist WASHINGTON (INS)—A federal grand jury re-indicted Far Eastern specialist Owen Lattimore today on charges that he falsely denied following the Communist line or promoting Communist interests. The two-count perjury indictment accused Lattimore of “knowingly and wilfully” lying under oath during a senate investigation into the Institute of Pacific relations, which he headed. The indictment will be consol!-, dated with the five counts etill remaining from a sdven-counrt. indictment handed down In December, 1953, which has had a rocky road through Che federal courts since then. The grand jurors specifically charged today that Lattimore lied when he told the senate internal security subcommittee: 1. “That he had never been a' follower of the Communist line.” 2. “That he had never been a promoter of Communist interests.’’ The grand jury, under direction of V. S. Attorney Leo A, Rover charged that Lattimore had “knowingly and intentionally” been a follower of the Communist line from 1935 to 1960. ■ 'lt listed 25 so-called "topics” on which Lattimore allegedly followed the propaganda directions as laid down by Russian and Chinese Communist authorities. To back up this first change the grand jury cited from 132 of Lattimore’s writings, including books, magazine articles and syndicated columns. U. S. attorney Leo A. Rover has been presenting witnesses and documents to the grand jury since mid-September, when the justice department decision was made to try for a new indictment. Lattimore, a Johns Hopkins University professor, on leave without pay pending the outcome of his case, was originally indicted on eeven counts in December, 1952. Later, a federal judge threw out four of the counts on the grounds that they were vage and unconstitutional. This spring the U. 8. court of appeals, by a 5 to 4 ma(Oontinued on Page Five) 12 Men Killed In Air Force Crash Four Men Survive California Crash WILLOWS, Calif. (INS)—A fourengine B-50 plane on an air force weather, reconnaissance flight from El Paso. Tex., crashed and exploded in a northern California rice field Wednesday night and 12 of 19 men aboard are believed to have perished. Sheriff Lyle Sale of Glenn county, who witnessed the crash from a distance of about a quarter of a mile, eaid 11 men were killed, that four survived and one was not accounted for immediately. An air force spokesman, however, eaid the miming men had probably been killed also although hie body had not been found. Three survivors parachuted from Che plane at an altitude of 500 feet or less. Sheriff Sale said a fourth man crawled out of the tall assembly following the crash. Hospital attendance said the survivors . escaped with minor Injuries. A. B. Crittenden, foreman of the O’Brien ranch where the fiery crash occurred, said the big aircraft narrowly missed several ranch buildings including a warehouse containing 1,400 gallons of gasoline, Crittenden said the bomber wan in flames before it etruck and exploded on impact.

Wickard To Speak At Geneva Tuesday Former Agriculture Secretary To Speak Claude R. -Wickard, secretary of agricultrue from 1940 until 1954 under President Franklin D. Roosevelt, will speak at the high school in Geneva at 8 .p. m. Tuesday, Dr. Harry H. Hebble, Democratic county chairman, said today. . Wickard will address a trl-coun-ty rally of Adams, Wells, and Jay counties, and the public is invited to hear the wellknwon Hoosier agriculture expert speak. Wickard. a graduate of Purdue University and a member of the Indiana Farm Bureau, went to ■work for the department of agriculture in 1933, and in 1940 was named secretary and a member of Roosevelt’s war cabinet, -when Henry Wallace resigned to run for the vice-presidency. When Truman succeeded Roosevelt In 1946, Wickard resigned, and became federal administrator of KBA. The former secretary was born in Camden, Carroll county, February 28. 1893. A large crowd Is expected to fill the auditorium to hear the noted farm expert speak on current farm .problems. I , ! Panel Discussion Os i Issues On Saturday , A panel discussion of campaign issues will be held at Democrat headquarters, one-half block north of the stoplight on Second street Saturday night at 8 o’clock, Dr. Harry H. Hebble, Democratic county chairman, said today. The panel will Include Fred W. Greene, candidate for congress; William Kruse, candidate for the state legislature, and Von A. Eichhorn, unopposed for joint senator from Adams, Wells, and Blackford counties. > Ike, Nixon On TV And Radio Friday Nixon Seeking More Speeches From Ike DENVER (INS) — Vice President Richard M. Nixon may try to persuade President Eisenhower today to do more campaigning for Republicans between now and electino day. Nixon said on arriving In Denver Wednesday night, he is “tremendously encouraged” by the progress of the GOP congressional campaign but stressed the party still faces “a tough fight" to win the November elections. Other Republican sources said the Vide President is swinging toward the view of a growing number of party leaders that Mr. Eisenhower must take a more active role in the closing weeks of the campaign if the GOP is to retain control of congress. Nixon was to confer with the President today in advance of the important political pow wow Mr. Eisenhower has called in Denver Friday. This strategy session with GOP congressional leaders wll iprobably make the final decision on how much more speech-making help the President will give GOP candidates between now and Nov. 2. The president and Nixon will each make 15-minute speeches Friday night over a nationwide radioTV hookup billed as the most tai-, portant single event of the Republican campaign. The Vice President said Wednesday night the president’s speech, which will be piped into GOP "precinct day” rallies across the country, “will give the campaign another very good phot in the arm." The President’s hard-hitting political adreM, it was learned, will strike back at recent Democratic attacks by Ad lai Stevenson and others on the administration’* foreign policy record.

Price Five Cent*

Sene*e Prober Says Preston Shared Profit Capehart Reports Windfall Profits To Georgia Solon WASHINGTON (INS) — Sen. Homer E. Capehart (R Ind.), said today that senate investigators of housing scandals have been told that one-third of a $250,000 “windfall" profit went to Rep. Prince H. Preston (D Go.) Capehart made the statement at a hearing of his senate banking committee after reading an account of a speech Preston made in Statesboro, <Sa., .Wednesday night accusing the Indiana Republican of “character assassination.” The senator then said he will take the witness stand himself this afternoon to answer Preston’s charge. Capehart declared that William A. Bowen, mayor of Statesboro, > has told the committee at a closed i session that he received two-thirds -of a $250,000 “windfall" on a Savannah, Ga., housing project, and that he was holding one-half of . this for Preston. The “windfall,” Capebart said, was realized on the Nelson Apartments project in Savannah. Cape- , hart said Bowen will be called a< a witness at * public hearing. The matter came' up when Capehart read news dispatches in which Preston was quoted as accusing Capehart of trying to make "politics” out of the Savannah project. Capehart said: “We haven’t said a word about Preston, and so the only way he could have known about the matter was from Bowen, who has testified before us in executive session.” Earlier at today’a hearings, internal revenue commissioner T. Coleman Andrews told the senate investigators that .the government _ has a “fighting chance" of recapturing its proper share of the taxes on huge “windfall” profits in more than 1,150 cases. Andrews gave his testimony as the committee also heard these statements: 1. Curt C. Mack, of Baltimore, top federal housing administration underwriter during the “windfall” profit period, said he was “shocked” and "amazed" when confronted with evidence that his and other cost estimates were far above actual costs of building FHAInsured apartment projects. Builders pocketed the difference between cost and FHA mortgage insurance. 2. Franklin D. Richards, FHA commissioner from 1947 through June JO, 1952. admitted he received.. $9,600 from lan Woodner, Washington builder, for consultation work which helped Woodner • get permission to use part of his swank Washington apartment as a hotel. Richards’ work for Woodner began a month after he resigned his FHA post. He testified he never appeared before the FHA or contacted FHA officials in Woodner'a (Continued on Psge Five) Roy A. McKean Is Released On Bond Utoy A. McKean, apprehended about noon Wednesday by local authorities on a warrant from Ohio, was released Wednesday afternoon after posting a $3,000 bond. The bond was set in a hearing in the Adams circuit court Wednesday afternoon. McKean was represented by Atty, Hubert R. McClanahan. Wanted on a charge of second degree manslaughter in Pickaway Co., 0., McKean is now free until Ohio authorities complete extradition procedure. The indictment against McKean states that he felled to bring his automobile to a stop and caused an accident which killed Charles E. Ellis. The accident occurred in Pickaway county Aug. Is.