Decatur Daily Democrat, Volume 55, Number 99, Decatur, Adams County, 26 April 1957 — Page 1

Vol. LV. No. 99.

RUN CLOSES THREE SAVINGS-LOAN BANKS ; M ■ I ■ 'I st Wtf R®CL' Ja w jgg*^ ™ . ■ JE■MHML Ik 5 il *H fl W «F -$W Wfl ~ I Ila I !S3 --’F; w kww’;. 3 taaUfIBHHfIHHBBHBHBHfIHBHafIBMBfIBHFWJL. :.-KKBBMBBIKBK<--THOUSANDS OF DEPOSITORS line up to withdraw funds from this (left) and two other Chicago savings and loan associations controlled by C. Oran Mensik (right), following announcement by Illinois State Auditor’s office that the organizations lacked assets sufficient to pay off depositors. The banks were ordered temporarily closed during the height of the run. Mensik, linked politically with convicted former Auditor Orville Hodge, has file! a damage suit for $2,000,000 against State Auditor Elbert S. Smith. '

Three Chicago Finance Firms Closed By Runs Small Percentage Os Money Freed To Some Depositors CHICAGO (UP) — A small percentage of money was freed today for some depositors in two of three financial institutions closed by. runs. Long lines of depositors formed at all three savings and loan associations to sign up for withuFiiwaTs wTk?R Wey will"wV pWFtfttt* ted. Some depositors waited all night outside City Savings Assn. The line was more than a block long shortly after daybreak. Extra police were on duty. Other lines formed early at Chicago Guarantee Savings Assn, and First Guarantee Savings Assn. The three institutions, owned by C. Oren Mensik, were closed by the state Thursday when runs developed after Mensik sued State Auditor Elbert S. Smith. Mensik is a business friend of former State Auditor Orville Hodge, now imprisoned in a $2,500,000 scandal. At Chicago Guarantee Savings and First Guarantee deposits made since Feb. 16 were being paid out. On that date, the state of Illinois took joint control of the two associations and put all new money into a special account. A total of $347,327 was set aside in the special account out of more than nine million dollars in deposits at the two institutions. The state took control of City Savings Thursday after SBIO,OOO was withdrawn in the morning. About 30 million dollars was on deposit at City Savings. None of the three institutions has federal deposit insurance. Mensik’s suit asked two million dollar damages, charging Smith and five members of his staff with conspiracy to take the institutions away from him. The suit said that Smith claimed that Chicago Guarantee and First Guarantee were operated in an unsound manner and it denied the allegation. Hundreds of depositors stood in the rain Thursday in an effort to withdraw their funds from the three associations. Smth permitted the institutions to open as usual Thursday, despite the disclosure, in hopes no run would develop. However, hundreds of persons flocked‘to the institutions and extra police squads were required to maintain order. Three women f a idt e d in the crush and observers said it was the worst “runs” they had seen since the depression. The institutions paid out about $1,100,000 to depositors during the morning before Smith ordered them closed. They had a balance of about $1,115,000 on hand and $850,000 in government bonds. The firms involved are the City Savings Assn., the Chicago Guarantee Savings Assn., and the First Guarantee Savings Assn. Mensik, who figured in the investigation of ex-State Auditor Orville Hodge’s $2,500,000 embezzlement, said he filed suit against Smith and five of his staff members on grounds the auditor was trying to oust him from control of the Chicago Guarantee and First Guarantee firms. Smith had taken technical custody of the two associations last Feb. 18 after an examination by bank examiners. The results of the probe had been held in confidence prior to Mensik’s suit. Cootiaoed <m Pace Eight

DECATUR DAILY DEMOCRAT

Graduation Riles At Pleasant Mills Commencement At School On May I Commencement exercises for the 21 members qf the senior class of Pleasant Mills high school will take place Wednesday, May 1, at 8 p. m. at the high school. Baccalaureate exercises are scheduled for Sunday at 8 p. m. in the high school auditorium. The Rev. Billy Springfield will deliver the baccalaureate address. Also on the program will be music by Carolyn Luginbill, the invocation by the Rev. L. T. Norris, choral selections by the high school choir, and the benediction by the Rev. H. C. Seipie. - Glen B. Custard, principal of the school, has announced the selection of David Myers as valedictorian with an average of 94.96 percent, and Mary Speakman as salutatorian with an average of 94.55 percent. Both were active in extra-cur-ricular events during their high school years. Myers was associated with 4-H for eight years, the annual staff, the Future Farmers of America, was president of the senior class, was in track for two years, served as freshman secretary, played basketball and baseball two years and participated in the junior and senior class plays. Activities listed for Mary Speakman include chorus four years, basketball two years, the annual staff, the junior and senior class plays, pep club two years and band three years. Each of these will speak at the commencement exercises Wednesday night, which will be preceded by a concert by the high school band,' Main speaker for the graduation ceremonies will be R. F. “Dutch” Struck, athletic director of Hanover College. The diplomas will be awarded by G. M. Grabill, superintendent of the county schools. Presentation of awards will be made by Custard, Also on the program will be the processional by Carolyn Luginbill, the invocation by the Rev. Elwood Botkin, a song by the high school girls sextette, a presentation by an instrumental ensemble, a selection by a vocal ensemble, benediction by the Rev. James Hipkins and the recessional by Carolyn Luginbill. The 21. candidates for diplomas are Kay Archer, Judy Bollenbacher, Beverly Ehrsam, John Frey, Ronnie Garner, Bill Garwood, Homer Gause, Hubert Kuhn, David Light, Wanda Luglnbill, Bill McCullough, Dick McCullough, Lynn Mefferd, Judith Miller, David Myers, Mary Myers, Duane Seiple, Mary Speakman, Roger Terrell, Larry Wable and Jerry Williamson. Junior Class Play Here This Evening The junior class play, “Foot Loose,” will be presented at the Decatur high school auditorium at 8 o’clock this evening, the first clas» play given at the school for many years. Tickets will be available at the doors, which will open at 7 o’clock. # Larry Moses, president of the junior class, will act as official host, with Beverly Thieme, Alicia Levy, Joann Jones, Marjorie Wolfe, Phil McDonald and Dick Leming helping as door personnel. A large crowd is expected to attend.

Stale Highway Head Checking Road Scandals 1 J''' ! Peters Says Tipoff Likely Made Huge Profits Possible INDIANAPOLIS (UP) — State • Highway Chairman John Peters checked more deeply into Indl- : ana’s highway scandal today on ■ the assumption that someone in a . previous administration tipped off i friends on how to make a killing i on land-buying deals. , Peters called in newsmen Thurs- ' day to report his latest moves to ■ clean up the "mess" he said last - January he inherited from his • predecessor, Virgil (Red) Smith. > In answer to a question Peters I said “we can only assume” that someone in the previous depart- . ment told prospectors where the , state planned to build highways , and pay big prices for right-of-way. It would be impossible, he indicated, to make large profits like those unearthed so far without prior knowledge. Meanwhile, Prosecutor John Tinder said seven full-time investigators assigned to his office in the investigation would be “extremely busy” the next few days “checking out possible witnesses, and trying to run down some leads.”. Tinder Dismisses Jury „ Tinder dismissed the jury Thursday after hearing testimony from four more witnesses. Die jury will resume its probe next Tuesday., The leadoff witness is expected to be Herbert Erickson, utility engineer for the highway department. Erickson, wno did appraisal work for Smith, said the former chairman “paid no attention to my appraisals.” Tinder said Harry Doggett, friend of former Gov. George Craig in whose administration the deals occurred, probably will be subpenaed next week. Doggett, assistant to Nile Teverbaugh, ex-right-of-way chief, was fired by Peters. . .... Peters told newsmen his inquiry was turning toward equipment contracts left by the previous administration. He said he plans to look into contracts amounting to perhaps $2,500,000. In at least one case, he said, he plans to recover $12,371. Peters said this was the difference between the value of brooms an Indianapolis firm contracted to furnish the department, and the value of those actually delivered. He said the firm was second highest among six bidders, but was awarded the contract. Ft. H • 1 \ Will Review Contracts Peters also said he would review the 39 consulting engineer contracts now in force— involving about 125 million dollars worth of contracts for road design. Engineering fees on those projects are worth an estimated $4,400,000. “It’s time that we take a look at practically everything that has gone on in the past,” Peters said. He said about 20 contracts for road design which are less than 25 per cent finished faced the “possibility” of cancellation. Peters listed seven stretches of highway involved in reports of land-buying deals: Madison Ave. expressway, Indianapolis; Ind. 62, Evansville; Ind. 37, Indianapolis; U.S. 27, Richmond; Tri-State Highway, Gary; Ind. 10, Culver, and U.S. 31 bypass, South Bend. t

ONLY DAILY NEWSPAPER IN ADAMS COUNTY

Decatur. Indiana, Friday, April 26, 1957.

Russian “Volunteers” Reported Standing By In Syria For Action

Tornado Rips Nebraska Town; One Man Killed Other Tornadoes Reported Thursday i In Texas, Michigan * By UNITED PRESS New storm warnings were out for the Southwest today in a flurry of vident weather that sent twisters ripping through communities in Oklahoma and Nebraska, flooding fains in Texas and dust storms in Colorado and Kansas. At least one person, was killed when a tornado lashed Milford, Neb., and toe surrounding area west of Lincoln Thursday night. More than 20 persons were injured by toe twister, some 75 homes were destroyed and about 15Q to 200 persons were left homeless. Another twister slammed into Holdenville, Okla., Thursday night, causing considerable damage io the business and residential sections. Michigan Also Hit Other tornadoes were reported ’ Thursday from such distant points as Texas and Michigan, where ’a small tornado caused some damage in a town near Detroit. Weathermen said more turbulent weather, including severe thunderstorms and possible tornadoes, could be expected early today in sections of five southwestern states. Specifically covered by the warning were southwest Missouri, eastern Oklahoma, northwestern Arkansas, southwestern Arkansas and northeastern Texas. Killed in the Nebraska twister was Paul Cast, 76, a farmer living southwest of Milford whose home was demolished. Authorities at Milford credited ample warning of toe approaching twister for preventing any fatalities in the community itself. Siren Warns Residents The town’s fire siren alerted the town’s 1,200 residents shortly before the funnel cloud slammed into the business district and then tore a destructive path through the residential section. Mayor George Phipps of Milford estimated damage could reach as much as $1,500,000. Os toe injured, only 16 required hospitalization and none of them was believed critically hurt. The tornado was toe first spotted on a radar screen at toe Lincoln Air Force Base. Die radar tracked toe twister as it left Milford and headed towards Lincoln. However, it disappeared before hitting Lincoln. Five other tornadoes swirled over Omaha, to toe northeast, but none touched ground. ' 12 County Judging Teams In District District 4-H, FFA Contests Saturday Twelve 4-H and F.F.A. judging teams representing Adams county will participate in the district contest Saturday in Allen county, reports Leo N. Seltenright, county agent. In poultry and egg judging. Adams Central, coached by Martin Watson, and Berne-French, coached by Eugene Sprunger, will compete with teams from 11 other northeastern Indiana counties. The Adams Central team is Don Ray, Jerry Gerber, Wayne Bierly and Jan Smith. The Berne team is John Hartman, Lynn Lehman, Bill Hartman, and Wayne Amstutz. In crops judging. Adams Central, coached by Martin Watson, and Geneva, coached by Kenneth VanEmon, will compete. The team for Adams Central is Phil Moser, Richard Hirschy. Palmer Urick, and Tony Sharp. Die team - for Geneva is Steve Bauman, Art Schindler, Ivan Nevll and Jerry Hofstetter. - In livestock judging, Adams Central, coached by Martin Watson, and Decatur, coached by Wil(Con tlnued on Pago Eight) >

Name New Directors Os Community Fund Three Directors Are Elected Lost Night Hie Rev. Virgil Sexton. Royal s .Friend and Ralph Habegger were ' Elected to ,three-year terms on the board of directors of the Decatur Community Fund at the Decatur Youth and Community Center Thursday, evening. The three repalce the Rev. Ray Walther, Don Bohnke and Joe Kaehr. The meeting featured reports presented by representatives of the participating agencies. These include the Boy Scouts, Girl Scouts, the Salvation Army, the Cancer Society, the Mental Health Association and the youth center. Ed F. Jaberg is president of the Community Fund association. Also discussed at last night’s meeting was the proposed entry of the Red Cross into the Community Fund association. Leo Kirsch, representing the Red Cross, pointed out that the Community Fund’s constitution forbids special drives and that as long as Riis is so, the Red Cross could and would not become a participating member of the fund. General sentiment expressed at the meeting favored organization of a United Fund in this community to take care of all the fund drives which are conducted each year. It is the general belief that the various fund drives are failing to meet goals because of the fact that people are asked to contribute to so many diferent drives throughout the year. It has been pointed out by many civic leaders that a United Fund would have the advantage of more efficient organization and that the local persons would probably find it more convenient to contribute a lump sum at one time rattier than several smaller amounts. George Auer Speaks Al Rotary Meeting General Electric Manager Is Speaker “Machines are made for men, not men for machines.” George Auer, general manager of the Decatur General Electric plant, told members of the Decatur Rotary club at its regular meeting Thursday night at the Decatur Youth and Community Center, in a talk on automation. Earlier in the meeting, Dr. Leo Curtin, Marvin Stuckey and James Borders were indoctrinated as new members by the Rev. William Feller. Gene Rydell was chairman of this pert of the program. During the meeting it was announced that Mr. and Mrs. Ward Calland will leave in a few days for Europe and while in Switzerland, Calland will represent the Decatur Rotary club at the Rotary International convention as its official delegate. E. W. Lankenau was general chairman of the program and introduced Auer as a former citizen of Decatur, who has returned after having set up two new General Electric plants. Auer defined automation as production by a continuous flow rather than intermittent production and as the automatic linking together of already highly mechanized processes, which he said is responsible -for the great strides America has made in the improvement of its social and economic welfare. By 1908 methods at today’s labor scales, he said it would cost $50,000 to produce a 1908 model automobile which would make the ownership of automobiles impossible for the average American. By 1965 he predicted Americans will consume 65% more products but that the available working force will increase only 14% in the same time. “Automation is the only means of maintaining our standard of living.” he said. As an Illustration of the way in which automation increases employment he said that the produeContinure Pace Eight

New Net Coach Is Hired For , Decafur High Bevelhimer Signed, Worthman To Coach Football And Track Expansion and reorganization of ' toe Decatur high school athletic ’ department and appointment of a new head basketball coach werei announced this morning by the city school board and W. Guy Brown, superintendent. The new basketball coach for the Decatur Yellow Jackets will be Paul Bevelhimer, net coach at Greenfield high school for the past three years. Robert Worthman, who has served as head coach in football, bas- , ketball and track for the past 10 years, will be relieved of his bas- , ketball duties, enabling him to conj centrate his activities on football i and track. ! It was the consensus of toe board . that Decatur high school has reached the size which makes it t imperative that individual coaches t be employed fpr football and bas- . ketball. The board emphasized i that, jail member schools ip toe J Northeastern Indiana conference, with the exception of Decafur, , have different coaches for the ma- : jor sports of football and basket- . ball. Under toe reorganization of toe ; athletic department, Worthman will have full jurisdiction and control of high school football and track programs. Jerry Leitz was renamed as assistant in football. Bevelhimer will have full jurisdiction and control of the high school basketball program. Owen Wemhoff will continue as assistant basketball coach. The board also revealed that the request by Deane T. Dorwin that he be relieved of duties as head baseball coach has been granted. William McColly, junior high coach and Dorwin’s assistant in baseball this spring, will become head baseball coach. McColly’s high school classes will be assigned to Bevelhimer, and McColly will be assigned to classes taught this year by Robert Doan at the Lincoln grade school. Doan has resigned, effective at tfee close of toe school year, to enter the armed forces. The school board announced that today’s reorganization of the athletic department is a part of the annual offering of contracts to teachers for toe ensuing school Increase Pay Under Living Costs Plan G.E. Employes To Receive More Pay General Electric employes affected by the automatic cost-of-living “escalator" provisions, including those in toe Decatur plant, will receive an increase of approximately one-half percent in pay, effective Monday, as a result of toe rise in the government's consumer price index for March. The new index, which was released Tuesday, was 118.9 as compared to the September, 1955, index level of 114.9, against which cost-of-living adjustments are calculated under toe union contract. These cost-of-living adjustments are computed quarterly (September, December, March and June) and provide for a .59 percent increase in toe payroll added for each full one-half percent increase in the consumer index. This increase therefore boosts the “current adder” from 24.95 percent to 25.54 percent. This “adder” is made up of 22 percent from general adjustments and 3.54 percent from cost-of-living. A major feature of toe General Electric “escalator” arrangement is that should toe consumer price index subsequently drop, only the extra pay resulting from index increases would be affected.

I New Net Coach f f « i A " 1 * ■r x / Paul Bevelhimer

Differ On Proposed Project Wage Scale i Heller Disagrees On [ Proposed Wage Scale ? A difference of opinion on the , prevailing wage scale for unskilled 5 labor in Decatur led to the filing ' of two wage scales to toe city of * Decatur for toe new $1 million ' sewage disposal plant. ’ ; John D. Parish, representing toe ’ state Federation of Labor, and Lester E. Roush, representing Governor Harold Handley, agreed that $2.40 was the prevailing wage ■ for common unskilled labor here. Dick Heller, Jr,, representing the city, disagreed, stating that he had talked with various labor leaders here, with the laborers themselves, and with contractors, and that $2.40 was higher than toe prevail, ing wage for common labor in Decatur. Heller added that he certainly, as much as the others, desired to see high wages here in Decatur, to increase buying power and toe well being of the workers here, but it was the board’s job, he felt, to determine what is prevailing, not what should be prevailing here. Parish and Roush also felt that a truck driver, in the unskilled category, should receive $2.32 to $2.77 an hour. Heller pointed out that to award a possible higher rate to an unskilled category than to a skilled category, would certainly destroy initiative. Carpenters, for example, in toe skilled classification, receive $2.75 locally, which is less than the maximum paid to unskilled by the contract. In his letter to toe mayor and the city council, Heller pointed out that Parish and Roush had arrived together with mimeographed copies of a wage scale. The scale, approved by the Building Dades Council of Fort Wayne, and vicinity, was already prepared for signature. i Heller went over the scale, and determined that there were two points which he felt, were certainly not prevailing in the Decatur area. He pointed this out to the other two, explaining to them that , he had contacted local industries, local contractors and local workers, and looked over other wage scales used on public projects here. Heller asked if the other two would be willing to call local workers, labor leaders, and contractors to decide on a prevailing wage 1 rate here. Parish stated flatly that he had no authority to lower toe wages on the mimeographed paper. Heller then stated that he understood toe law to mean that toe three of them were to decide on * what toe prevailing scale was, not to rubber stamp a decision made elsewhere. Roush pointed out that : since there was no union, nor coun- , cil of union and employers here, ’ it was impossible to arrive at a , (Continued on Pa«e Seven, j INDIANA WEATHER Scattered thund- ! erstorms this afternoon or even- ; ing, continuing tonight. Safar- , day partly cloudy, showers endIng north, scattered showers , south portion. Turning colder , north portion Saturday. Low , tonight 58-63. High Saturday , near 60 northwest to 70s south- ] east. Sanset 7:34 p. m., sunrise Saturday 5:51 a. m.

Report Ready For Action if Trouble Erupts Sas Internal Crisis ow Under Control Report King Hassein By WALTER LOGAN United Press Staff Correspondent Reports circulated today in Baghdad that Russian “volunteers” from Moslem areas of the Soviet Union are standing by in Syria reqdy to go into action if Syria becomes embroiled in a war with its Arab neighbors. King Hussein of Jordan has demanded that Syria withdraw its 3,000 or more troops from Jordan. And a Baghdad dispatch today confirmed that highly mobile forces of the Iraqi army are poised near the Jordanian frontier, ready to drive them out if Hussein summons help. . President Shukri El Stlwatli of Syria flew today to Riyadh, the political center of Saudi Arabia, for talks with King Saud on the l [Jordan crisis and its threat to the : neutral Arab bloc. Kuwatii was aeJ companded by Wing Cmdr. AH ' Sabry, chief political adviser to President Gamal Abdel Nasser. The Baghdad reports injected new possibilities of international complications. United Press correspondent Jack Saul said reports the Soviet “volunteers” were in position could not be confirmed officially. But he said there had been official talk of volunteers elitering Syria from Moslem regions of Russia. Russia is known to have supplied arms to both Syria and Egypt. Situation Under Control Saul said Hussein and King Feisal of Iraq, his cousin, were in continuous communication and that Feisal had sent his troops to the desert no-man’s land where Jordan and Iraq share an 80-mile frontier some 180 miles east of Amman. United Press correspondent Joe Morris reported from Amman that King Hussein appeared to have the situation under control, with local troops patrolling the streets and armored tanks stationecT at strategic intersections. The dispatch disclosed that new Defense Minister Suleiman Tukan was named military governor of all Jordan and given charge of national security. Beirut dispatches said he had arrested “several hundred" persons for anti-government and anti-West-ern actions. Egypt’s Middle East News Agency said some army of- • ficers had been “assassinated” and that a number of political leaders were arrested. The threat of a general conflict was still so great the United States sent urgent diplomatic warnings to Israel and the Arab countries not to capitalize on Jordan’s internal troubles. It backed them up by sending the U.S. 6th Fleet to the eastern Mediterranean. A Naples dispatch said the fleet was assembling at a secret rendezvous off Italy for a dash to the Middle East in support of President Eisenhower’s warnings against a Communist takeover attempt in Jordan. Search fgr Nabulsi The fleet consisted of the supercarrier Forrestal and the Lake Champlain, a battleship, guided missile cruisers and . a landing force of 1,800 Marines. The Marines would be used to evacuate Americans if war breaks out. .' ft Moscow Radio broadcast a new series of inflammatory statements to the Arab nations today. It said Israel was mobilizing its reserves at strategic points opposite the tense cities of Jordan and said tanks and other heavy armor were massing near Jerusalem and Ramallah. Israel pooh-poohed the reports. A government spokesman in Amman disclosed today that ousted Premier Suleiman Nabulsi is a "fugitive” and that security forces are searching for, him. The Jordan crisis was touched off three weeks ago when Hussein fired him because of his pro-Communist, p oEgyptian and pro-Syrian views. Reports in Beirut said he had ‘ been arrested. In New York the U.N. Security Coattaeed «a PM* Efeht

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