Decatur Daily Democrat, Volume 55, Number 48, Decatur, Adams County, 26 February 1957 — Page 1

Vol. LV. No. 48.

THREE NAMED TO AMBASSADOR

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. COMPLETING a reshuffling of diplomatic posts which began with his second term in the White House, President Eisenhower named three men to key ambassadorial posts. Nominated were David K. E. Bruce (left) to succeed Dr. James B. Conant as Ambassador to Germany; William J. SebaH (center) to be Ambassador to Australia, and industrialist Amory Houghton (right) to replace C. Douglas Dillon as Ambassador to France.

Reporters Tell Os Rackets In Portland, Ore. Senate Group Opens Investigation Into Labor Racketeering WASHINGTON (UP) — Two Portland, Ore., reporters told Senate racketeering investigators today that Teamster Union officials conspired with racketeers, gamblers and the district attorney in an attempt to take over the Portland city government. The reporters, Wallace Turner and William Lambert, whb'wrote a prize-winntng series of dispatches for the Portland Oregonian on their own investigation on Teamster Union activities, said the Senate’s hand-picked committee on racketeering can uncover even more jof the "disgraceful condition” which they said afflicts Portland. They said local government officials lack power to clean it up. Chairman John L. McClellan (DArk.) said in an opening statement launching the year’s biggest congressional inquiry that the underworld is muscling into control of unions and employer associations. He said the first series of hearings will show how “unscrupulous union leaders” ally themselves with “equally unscrupulous politicians" to control and operate organized vice in Portland. Turner said racketeer James P Elkins became “disenchanted" with fellow conspirators in Portland and spilled the story of their activities. He said Elkins would testify in the hearings. McClellan and Subcommittee Counsel Robert. F. Kennedy have said other witnesses will include union leaders, public officials, gamblers, bootleggers and prostitutes. The first hearings were expected to involve not only Portland but Seattle and Spokane, Wash. McClellan, in an opening statement, outlined a wide field for the investigation but said the committee is particularly interested in “the apparently growing Influence of the underworld on labor-man-agement relations. “In, some areas, criminals and their accomplices have become aware of loopholes in the laws'governing the conduct of labor unions,” he said. “They are seeking to take full advantage of the opportunities that deficiencies in the present law afford with a view of seizing control of the labor unions and employer associations. Situations of that type have assumed disturbing proportions.” McClellan said the committee Inter—probably next month—will investigate “labor-underworld alliances” in the New York area. “Some nationally known hoodlums will be called before the committee to explain their connection with labor and management groups," he said. INDIANA WEATHER Cloudy and colder with rain ending most sections tonight. Wednesday partly clondy and colder. Low tonight in 30s north to near 40 south. High Wednesday near 40 extreme north to upper 40s , extreme south. Sunset 6:33 p. m.. sunrise Wednesday 7:22 a. m.

DECATUR DAILY DEMOCRAT

Handley's Tax Plan Runs Into Trouble House Committee Vetoes Withholding INDIANAPOLIS (UP)— Governor Handley's tax proposals to hike Indiana state revenue the next two years ran into trouble today in a House committee. The Ways & Means “A” Committee voted in -a post-midnight session to approve Handley’s plan > to boost the gross income tax - rate by SO per cent. * But other major points of the s tax program Handley outlined to - the Legislature last Thursday were i rejected one by one. 1 The committee voted against approval of a plan to withhold gross f income taxes from pay checks, u among other things. - * Meanwhile,’* state revenue com- ’ missioner Edwin Beaman estimated withholding would bring an unexpected 14 million dollar “windfall” if the tax rate is raised by 1 35 per cent. 1 Beaman figured that amount ‘ would be over and above amounts ’ Handley had figured as potential 1 revenue in his tax program, be- ■ cause the governor failed to take - into consideration that withholdl ing would produce taxes this year - which otherwise would not have . been paid until 1958, and next f year which otherwise would not have been paid until 1959. i The House committee's action • was subject to change, for memr bers did not vote to make their ’ decisions final and binding. They I voted to hold the withholding tax measure for further study. A committee member said the , 50 per cent gross income tax hike measure was approved to get the bill out on the House floor “just " as a means of getting something 1 to work on.” He said the action did not mean ' necessarily the committee favored ' the gross tax increase and nothing else in the governor’s program. He said three moves were made ’ in the conimittee, and each rejected, to hand out of committee 1 other tax proposals. One involved ! the entire Handley program. Another was for a sales tax. The ■ third was a “camouflaged” sales ' tax jo be passed on by retailers in higher prices and a $5,000 i gross income tax exemption. ).. — 1 — Mrs.'Clara Dornseif Is Taken By Death Funeral Services Thursday Afternoon I Mrs. Clara Hoile Dornseif, 73. . 108 Violet court, Fort Wayne, died , Monday at the Adams county me- , mortal hospital, where she had been a patient for the past seven weeks. 1 Mrs. Dornseif was born in Adams county and had lived in Fort Wayne for the past 20 years. Her husband, Herman J. Dornseif, a Lutheran school teacher in Indiana, died 16 years ago. She was a member of the Redeemer Lutheran church and the Ladies Aid of the church. Surviving are two sisters, Mrs. August Bohnke, Decatur route three, and Mrs. Enoch Heckman. Fort Wayne, and several nieces and nephews. ) "'•' X Funeral services will be conducted at 1:30 p.m. Thursday at the Wellman funeral home in Fort Wayne, the Rev. Herbert Lindemann officiating. Burial will be in Concordia cemetery. Friends may call at the funeral home after 7 o’clock this evening. ......... « .. ...... r . .J...-

Canada Offers 4-Point Plan For Mid-East Four-Point Program Offered By Canada To United Nations UNITED NATIONS, N.Y. (UP)— Canada suggested a four - point program for the Middle East today, including Israel’s withdrawal from the Gaza Strip and appointment of a United Nations commissioner for the disputed area. Canadian External Affairs Minister Lester B. Pearson put this compromise proposal informally before the General Assembly: X —A firm pledge by Israel and Egypt to observe scrupulously their 1949 armistice agreement, which would mean prohibition of any form of aggression or belligerent acts, among other things. —Deployment of the U.N. Emergency Force on both sides of the 1949 armistice demarcation line to assist in the prevention of raids from either the Egyptian or Israeli side. —Dispatch of UNEF to the Gulf of Aqaba to maintain quiet and prevent conflict and a guarantee against interference with “innocent passage” or the exercise of belligerent rights in that strategic waterway. —Withdrawal of Israeli military and civilian forces from the Gaza Strip—which belongs neither to Israel nor Egypt—with UNEF taking over and Secretary-General Dag Hammarskjold appointing a U.N. commissioner for Gaza. Pearson made his proposal without offering it as a resolution for action by the assembly. The proposal camo as Jjaokftage negotiations continued between Hammarskjold and Israeli Ambassador Abba S. Eban. Eban, armed with instructions from Premier David Ben-Gurion, saw Hammarskjold twice Monday and planned to continue their talks today. *. Reports were current here that the Israeli Knesset (parliament) had approved a similar four-point program backed by Ben-Gurion. This reported program called for abandonment of Israel’s civilian administration, appointment of a U.N. commission, a guarantee that Gaza would not revert to Egyptian control (a point skirted by Pearson) and Israeli insistence on freedom of navigation in the Gulf of Aqaba. The assembly spent only three minutes in disposing of the Cyprus question. It approved, 55-0 with 1 abstention, the report of its main political committee which had unanimously adopted a resolution expressing belief that solution of the dispute involving Britain, Greece and Turkey “requires an atmosphere of peace and freedom of expression.” The measure voices a desire that a peaceful, democratic and just solution will be found in accordance with U.N. principles. There was no discussion and the vote was by show of hands. Boa Is Lifted On Hospital Visits The ban limiting visitors to the Adams county memorial hospital during the past several days lias been lifted, according to Thurman Drew, hospital administrator. Overcrowded conditions, which caused the temporary visiting ban, have been alleviated.

ONLY DAILY NDWDFAFSR IN ADAMS COUNTY —

Decatur,. Indiana, Tues day, February 26,1957 - * ■■ ' 11 Mfr**"*" «... ,■

Indiana Senate Votes Gross Income Tax Aid To Wholesale Grocers

Postpone Army Order Requiring Guard Training Army And National Guard In To Postpone Order ' * WASHINGTON (UP) — Rep,. Overton Brooks (D-La) announced' today thftt the Army and National Guard have agreed to- postpone until next Jan. 1 the Army’s order requiring six months of active duty for young Guard recruits. The Army has ordered six months active duty for all new Guardsmen effective April 1. Under the agreement announced by Brooks, this would be delayed for nine months for recruits between 17 and 18% years old. Brooks announced “full agreement" on the compromise at a meeting of his House Armed Services subcommittee. The group ap- ; proved the agreement in an execu- • five session and Brooks said it i will be presented to the full ‘ Armed Services Committee. * The agreement came after an Army-Guard feud which produced ’ a charge by Defense Secretary ■ Charles E. Wilson that the Guard , had been used as a “draft-dodgini. business” during the Korean W.an, ) The Guard denounced Wilson's j charge as a “lie” and President Eisenhower said it was “very unf wise.” Brooks, who originally proposed . that the Mx-month training pro- ■ gram be delayed 15 months, said : the agreement on the postpone- • ment until Jan. 1 “settles the two ; questions which have plagued us ■ tor the past three weeks.” Under the plan, 11 weeks train- ' ing would be required tor the I younger recruits beginning April 1. They could volunteer for six ■ months training if they wished. On Jan. 1, the 11-week program would be discontinued and all new Guard recruits would be required to serve six months on active duty. The agreement provides that the strength of the Guard shall be maintained at about 400,000 men, approximately its present level. The Army agreed “to use every means” to keep the Guard at this figure. Brooks said steps to be taken to maintain Guard strength included “as a last resort" a pre-release plan. This would permit draftees to be released from service before their terms expired if they agreed to serve in the Guard. Five Persons Killed When Autos Collide Two Small Children Are Among Victims PLYMOUTH, Ind. (UP) — Two automobiles collided with a terrific impact in U.S. 31 south c 8 here late Monday, killing five persons including two small children. The dead were Mrs. Lucinda Brady, 24. R. R. O', South Bend; her children, William, 6, and Donald, 4; Cloyd Richard Taylor, 36, R. R. 6. South Bend, and William Clyde Fisher, 45, a Tippecanoe farmer. State police said Fisher was driving south on the highway when his car failed to negotiate a curve at high speed. The, car edged over into the wrong lane and smashed into a northbound automobile driven by Taylor, in which the Bradys were riding, at a point on the berm where Taylor had swerved in an effort to avoid a collision. When passersby reached the scene, they found Fisher, Taylor and the two little boys dead in the wreckage, and Mrs. Brady dying. She was rushed to Parkview Memorial Hospital here and died 10 minutes after arrival. The accident occurred three miles south of here at 9:55 p.m. CDT. The bodies of most of the dead were crushed badly with multiple fractures of the skulls and broken arms and legs. ■

Vote Wednesday On Pay As You See TV Large Scale Trial Run Is Considered WASHINGTON W — The Senate Commerce Committee plans to ■. vote Wednesday on whether to call for a large scale trial run of .pay-as-you-see TV programs. > A majority of the committee was expected to approve the proposal. A tentative draft of a reI port containing that recommendation already has been prepared by the committee staff and distributed to its members. Unless followed by legislation approved by Congress, the committee’s decision would be merely a recommendation to the Federal Communications Commission. The FCC so far has not acted on petitions asking for a test of subscription television. If a test program should be launched, it could eventually have a great impact on the TV indus- ’ try. But at the,outset, pay-as-you-see TV would be available only in . limited areas. i Under the proposed plan, TV viewers could buy coin box attachments dr punch cards to uni . scramble TV signals for shows , which could not be seen without I these devices. , The tentative Senate report [ /vould call on the FCC. to roach an t early decision ,on the technical t merits of these systems and its - legal powers in the matter. However, the report says that 1 pay-as-you-see TV should be sub- . mitted to reasonable tests and 1 couy not be tolerated if it threat- - ens the success of the existing TV > system. s The chief supporters of subscription television at Senate com- ■ mittee hearings last year were the : Zenith Radio Corp., the Interna- [ tional Telemeter Corp, and the : Skiatron Corp. All have developed subscription systems. ' Opponents of the proposal inCoatlaaed oa Pare Klicht Engelkinder Family Unable To Appear Replace Group For March 5 Concert The Engelkinder, a family music group of the Austrian Alps who were to present the March 5 concert of the Adams county civic music association, will be unable to appear, according to word received Monday by association officials. The local assocation has been informed that the Engelkinder tour of the United States has been cancelled because the family was in an automobile accident in Austria recently. Replacing the group for the concert will be Men of Song, one of America’s finest concert quartets. The program will begin at 8 p.m. and the doors will open at 7 p.m. i Members of the Men of Song include John Campbell and Carl Honzak, tenors; Thomas Head, baritone; Bruce Carithers, bassbaritone, and Charles Touchette, accompanist-arranger. Their diversified program, planned to offer something for each member of the audience; includes special arrangements of great art songs, operatic works, spirituals, folk songs and songs of humor. The group has been termed one of the best of its kind by the i national society of music. The quartet has been appearing on the - concert stage for seven years, during which they have also appeared on radio and television and re- 1 corded for RCA and : Victor records. Members of the association who attend next Tuesday’s concert will I have the opportunity to renew their , membership since the concert , comes during preparation week of the annual membership drive. Current members will be given 1 first chance for memberships, ! which will be limited to 1,000 for < the 1957-58 season. Deadline for > membership renewal is Friday, March 8. Any membership not ’ renewed by that day will be sold ' in the open membership drive > (CoatlßueS Pace Five) 1

Ike Confers With Mollet On Relations Seeking To Rebuild Strained Relations Os. Two Countries WASHINGTON (UP) -President Eisenhower and French Premier Guy Mollet got down to work today on rebuilding strained FrancoAmerican relations. Mr. Eisenhower and Mollet conferred in the President's office at the White House shortly after another visiting French official, foreign minister Christian Pineau, began conferences with Secretary of State John Foster Dulles. Mollet pledged on his arrival Monday that “we are going to put our hearts, our minds and our full strength to achieving the peaceful and just purposes that are common to our two republics.” Sues Invasion Harmful * Relations between the United States and France hit a postwar low last fall when France and Britain invaded Egypt without first conferring with this government. The invasion strained badly the formerly close ties among the “Big jhree" western allies. . Only recently, after she BritishFrench withdrawal from Egypt, did Mr. Eisenhower agree to meet : with Mollet and the new British prime minister, Harold MacmilI lan. The President will confer with . Macmillan in a separate meeting in British Bermuda March 21-24. “The purpose of these two meet- . ings is to get Big Three confidence back on the tracks," one official said. , Sanctions Pose Problem Despite efforts to restore former good relations, France and the United States are split on the question of sanctions against Israel. This could be a ticklish point in the Eisenhower - Mollet talks unless Israel soon agrees to withdraw her forces from Egypt. The Eisenhower administration hhs indicated it will go along with some form of United Nations sanctions if they are voted. France has said flatly it won’t. Reports from Paris said Mollet will try to get Coatlnned on Pane Kight Influence Peddlers Scored By Peters Highway Head Says Evidence Obtained INDIANAPOLIS CT - State highway chairman John Peters said today he has evidence that “influence peddlers” have •promised lucrative contracts to engineers and contractors for a 10 per cent fee. Peters was quoted by Irving Leibowitz in the Indianapolis Times as saying he heard one such offer himself last week in an Indianapolis hotel room while sitting in a room adjacent to the one in which the "peddler” conferred with an out-of-state contractor and promised to use his political influence to get a state highway contract tor a fee. Peters said he has taken action to stop the practice. He said he will “fire on the spot” anyone on the state payroll . dealing with an “influence pedfer,” and disapprove any contract involving influence peddling. “No engineer,” Peters said “or contractor needs a broker to do business with us if they are qualified.” Graduation Dates Set For Schools • Commencement dates for the five Adams county rural high schools have been announced by Gail Grabill, county school superintendant. , Commencement dates are: Hartford, April 30; Pleasant Mills, May ’ 1; Geneva, May 10; Adams Cen- 1 tral. May 14, and Monmouth, May - 16. '

Movie Producer Is Key Spy Witness Boris Morros Named As Mysterious Man NEW YORK (UP)—A Russianborn Hollywood movie produce# - and music director was identified Monday as the mysterious individual who kept a series of cloak-apd-dagger international rendezvous with three accused members of a Soviet espionage ring. fßoris Morros, 62, a naturalized American citizen who has been living abroad for the past six years, was named by the government as the person mentioned in 14 overt acts involving Jack Soble, a New York brush' importer, his wife, Myra, and Jacob Albarn, a foreman for a Brooklyn tea and spice company. Chief Asst. U.S. Atty. Thomas B. Gilchrist Jr., who identified Morros at a hearing in Federal Court, indicated that the former child musical prodigy was being kept in seclusion, but said he would be available as a key government witness when the Sobles and Albarn are brought to trial. But he declined to say whether the portly producer was a former Communist who had defected, an American counterspy or a “double agent” working for both the United States and Soviet governments. Indications were that Morros, who won his greatest fame through the film “Carnegie Haji.” .tag ' acted as an. American-under cow* : agent, assigned to obtain evidence ‘ against the Soviet spy net disclosed 1 last month with the arrest of the ' Sobles and Albarn. J Morros’ identification pinpointed ’ him as the individual who received various “writings" from the Sobles, Albarn and co-conspirators i during trysts in New York, Paris, Zurich and Vienna. One of these , Continued o» Pa«c Klaht Red Cross Campaign Will Open Friday Industrial Heads Appointed By Engle Harold Engle, chairman of the Decatur industrial division of the 1957 Red Cross fond drive which gets underway officially Friday, has announced assistant chairmen in the various local industries. Assisting Engle with employe and company solicitations will be Arthur Burris, Central Soya Co.; George Laurent, General Electric Co.; Glen Mauller, Decatur Castings: Miss Helena Wehmeyer, Wayne Novelty; Gene Rydell, Bag Service; Pete Krick, Krick-Tyn-dall Tile MUI; Miss Sue Mahlen, Decatur lndustries; and Glenn Ellis, the Schafer company. Solicitation in these industries will be completed early in the month-long fund drive. Sticker tags and receipts wiU be issued to aU of those who donate through the industrial phase. FamUies who have donated will not be contracted in the door-to-door solicitation later. Carl A. Braun, general chairman of the drive which seeks to raise over SII,OOO, has announced community chairmen who will assist throughout the county. They include Jim Briggs, Jr., and Eli C. Stucky, Geneva; Mrs. Charles Pyle and Mrs. Theodore Yoder, Linn Grove; Mrs. Francis Jacquay, Monmouth;'’Otto Longem berger, Monroe'; Mrs. George Daniels, Pleasant MiUs, and Mrs. Mildred Foley and Miss Gladys Ewell, Preble. No chairman has been named for Berne since that community completed its fund drive for Red Cross through the Berne Community Chest campaign earlier. Braun announced that over 1,000 membership cards would be mailed to Berne residents who contributed $1 or more. Funds collected in the annual campaign finance local Red Cross projects including first aid, the blood program, home service, disaster relief Service and other activities. A portion of the local money is sent to the National Red Cross headquarterg.

Six Cents

Bill Designed For Correction Os Inequities > , tight To Work Bill Survives Several Tests In Senate . V ND IAM APOLIS The In- \ \&na Senate, beset with problems on how to hike state revenue by raising taxes, voted today to give ~ gross income tax relief to wholesale grocers. Sponsors of the bill, which went to the House by a 43-3 vote, said cutting the gross income tax rate from one-fourth of one per cent on gross income to one per cent 1 on gross profits would cost the ; state only $125,000 a year. But even a slight decrease in . state revenue was a development : in the opposite direction from rais- ’ ing taxes so the state can meet . a multi-million-dollar anticipated deficit the next two years. The problem of raising taxes or . creating new ones to bring In k more money for operating state » government is the major issue 1 facing the Indiana Legislature now only two weeks away from adjournment. i Bays Corrects Inequities QM e bhm>ss WhOleSale gr ° CerS “We’re going to lose a lot more d than $125,000 a year by wholesale a grocers moving out of the state,” k he said. s Sen. Marshall Kizer (D---lt Plymouth) said he knew of a e Northern Indiana wholesale grocer who pays $20,000 a year in gross .. income tax — “that’s half his profit.” Sen. Arthur Wilson (D-Princeton) said the reason there is pressure to cut gross income tax rates is “the gross income tax was wrong in the beginning.” “Next session," Wilson said, “I’m going to offer an amendment that lawyers be adjudged as wholesalers and that we pay only oneeighth of one per cent.” > Loses House Test » In the House, the first real test ! on the “guaranteed annual wage” ( issue resulted in a 58-32 vote t against it. The test came when Rep. Mal- , colm Hemenway (R-Evansville) ; proposed an amendment to a bill ' increasing state unemployment , compensation benefits from a max- ' Imum of S3O a week for 20 weeks * to $33 a week for 26 weeks. ; Hemenway’s amendment would > have made supplemental unemploy- ' ment contract provisions legal in labor contracts in addition to full state unemployment compensation, a principle ruled illegal by State Atty. Gen. Edwin Steers. ■ The 58-32 vote was on Rep. ■ Arthur Atwell’s motion to table i Hemenway’s amendment. Before the bill moved unamend- , ed, to third reading and a final showdown, House members rejected by rather narrow margins several amendments offered mostly by minority Democrats to raise the benefits higher 1 than they were when the bill came out of committee with a $3 a week raise in the maximum and no change in the present tenure. Parties Trade Blows One amendment offered by Rep. Walter Acker (R-Evansville) would have raised the benefits to SSO a week for the first 10 weeks* and S2O a week for the next 10. Democrats and Republicans traded criticism in floor debate on the Hemenway SUB amendment. Rep. James Hunter IDEast Chicago) said banning SUB "undermines the rights of the people” be cause It is an arrangement between workers and their employers and does not affect the state in any way. Rep. Allen Morgan (R-Kokomo), however, called it a “socialist move” and said if the House failed to defeat Hemenway’s proposal “we are opening the door to a labor socialist government.” Up to noon, the dog-eared “right to work” bill had not figured in the day’s activities. It survived a (Continued on Pa<e Six) ■ - . . ■ ■ .<>• ■ ■ » ' ■ feiv