Decatur Daily Democrat, Volume 56, Number 155, Decatur, Adams County, 2 July 1958 — Page 1

Vol. LVI. No. 155.

>W i WM»w ;^&aaEijaSazLatofcia2s^.,Aai gHg BggfiMMHE l Egf* i 5# ■ - <<<l < BARNS OF “MAFIA” LABOR INFILTRATION—His back to the camera to avoid recognition, Federal narcotics agent Maritn F. Pera appears before the Senate rackets committee investigating . ; gangster infiltration of labor and business. Pera added to previous testimony that the Italian Mafia was attempting infiltration of business the claim that deported vice king Charles (Lucky) Luciano had an agent at last year’s “underworld convention” at Apalachin, N. Y., who was accompanied by two others recently returned from Palermo; Italy. . <

Arguments Are Presented In Highwayfase Road Scandal Trial Expected To Go To Jurors Late Today “. INDIANAPOLIS (UPD — The jury in the Indiana highway, bribery trial listened today to 11th hour orations before deciding between prison terms or freedom for Elmer (Doc) Sherwood and William E. Sayer. By late afternoon, the panel of 10 men and 2 women was expected to deliberate the fate of the two former big-wigs in Indiana government • who wwe-impli-cated in a huge Bribery scheme by a salesman and former associate who testified against them. On the eve of the jury’s deliberations, Sherwood and Sayer—still protesting their innocence—spent the day “just relaxing.” They held a last-minute evening meeting with their attorneys before court reconvened for final arguments this morning at 9:30 (c.d.t). At 4 p.m. Tuesday, supersalesman Arthur J. Mogilner, whose testimony the state relies on for any convictions, was napping at his north side home. The former “Gio” salesman has a new job as sales representative for a children’s wear firm. Sherwood, one-time Indiana adjutant general, gained <a reputation as a political “kingmaker.” He was a behind-the-scenes adviser to former Gov. George N. Craig, in whose administration the alleged bribes occurred. Sayer, like Sherwood, was an American Legion friend of Craig’s, and served 18 months as the governor’s administrative assistant. The jury must decide if they are guilty Os bribing former Indiana Highway Chairman Virgil (Red) Smith with $43,000 to land $1,600,000 worth of equipment contracts for firms represented by Mogilner. Mogilher pleaded guilty to the same charges — conspiracy to bribe and actually bribing. The jurors could send either defendant to prison for 2 to 14 years , on either ’count. Their decision will be based largely on which witnesses they believe —Mogilner, or Sherwood and Sayer, Mogilner cited conversations that would prove Sherwood and Sayer knew the salesman was paying off Smith and other, officials. Sherwood and Sayer denied these conversations, . and claimed any money Mogilner paid to Smith was without their knowledge. Attorneys for both sides huddled with Special Judge Thomas Garvin late Tuesday in an effort to agree on final instructions to the jury. The legal language of the instructions was vital to both sides. Should Garvin give an instruction contrary to law, the losing side could use that fact as the basis for an appeal to die Indiana Supreme Court and possible reversal. Proposed Instruction No. 6, offered by the defense, sparked a heated debate. It said that if the jury decided Sherwood and Sayer merely Consented to Mogilner’s payments »,.to Smith sometime after they began, without prior knowledge, the verdict would have to be not guilty. • L

DECATUR DAILY DEMOCRAT * ONLY DAILY NEWSYAFKR IN ADAMS COUNTY

Township Line Case Tossed Back Here Split Decision By State's High Court INDIANAPOLIS (UPD — A boundary line dispute between two township trustees was tossed back to local officials today in a split decision by the Indiana Supreme Court. The state’s highest court left undecided * the question of the boundary between Wabash and Monroe Twonships in Adams County in a 4-to-l decision which partly reversed and in part affirmed action taken by Judge Myles F. Parrish of Adams Circuit Court. The Supreme Court, id a majority opinion, pointed out that the , real issue, in the case was file legal boundary and not the matof transferrltf Property from one township to the other, which is the form in which the fight reached court. Trustee L. A. Mann of Wabash Township contended that the boundary is Ind. 118 running east and west through the city of Berne. But the Monroe Township trustee alleged the boundary is the southern city limits of Berne, which has been moved. Valuable taxable property in Berne is at stake in the issue. Man had asked for an order voiding all transfers of taxable property from Wabash to Monroe Township. Parrish refused to void already completed transfers but ordered that no further shifts of property be made unless approved by the county commissioners. The Supreme Court held today Parrish was right in denying the petition for voiding completed transfers, but wrong in his order relating to future transfers. Four members of the state’s highest court said boundary line disputes canot be settled ir a suit for mandamus. Judge Norman F. Arterburd dissented and (Continued on Page eight) Kick By Horse Fatal To Schwartz Youth 11-Year-Old Boy Dies At Hospital Tuesday David U. Schwartz, 11-year-old son of Mr. and Mrs. Daniel M. J. Schwartz, of near Berne, died about 1:30 p.m. Tuesday in Parkview memorial hospital, Fort Wayne. He had suffered.critical injuries Monday morning at his home on the Chris P. Neuenschwander farm approximately three miles east and one mile north of Berne when a horse, which he was attempting to hitch to an implement, scared by his approach and kicked him in the face and head. A toe calk of the horse’s shoe struck the lad in the eye. Suffering a basal skull fracture, broken hOse, severe injury to the right eye, other injuries and shock, he was transferred from the Adams county memorial hospital to Parkview after examination. Surviving in addition to the parents ate two brothers, Jacob and Daniel, and fdur sisters, Rosie, Emma, Elizabeth and Rebecca, all ‘ ~ Friends may call after 6 p.m. today at the residence, where the body was returned after being taken to the Yager funeral home, Berne. Services will be conducted at 9 a.m. Friday at the residence, Joseph L. Schwartz officiating. Burial will be in the Wabash cemetery.

Rejectsvilban Rebel Claim Os Improper Aid Eisenhower Asserts No Action Taken To Endanger Americans WASHINGTON (UPD — President Eisenhower said today he will do nothing reckless which might endanger the lives of 47 Americans held by the Cuban rebels just to try to get them released a bit earlier. The President told his news conference that the matter of Americans held by Cuban insurgent leader Fidel Castro is a delicate one..and. the United States will continue every effort to tree them by diplomatic negotiations. He emphatically rejected rebel assertion that the United States was improperly aiding Cuban government military forces—the pretext for the kidnapings. The President said American diplomatic officers are trying in every way they can to convince the rebels of their error and to get the Americans freed. He branded as inaccurate reports that two or three American consuls trying to negotiate with the rebels have been seized as hostages themselves. U.S. consuls in the area are in touch with rebel leader and are trying to get them to release the prisoners.' The President said the situation in Cuba was entirely different from that in Russia, East Germany and Red China, where other Americans are being held prisoner. He pointed out that in Cuba it is a rebel group and not the established government which is holding the Americans. He made it clear that he felt cogressional and other suggestions for forceful American action in Cuba might endanger the lives of Americans held by Castro’s forces. U.S. officials are trying to get live Americans back, he said, and the U.S. government is not disposed to .do anything reckless that would create fatal consequences. The two top Republicans in the Senate—GOP Leader William F. Knowland and Chairman Styles Bridges of the Senate GOP Policy Committee—have called for firm action against Castro. Knowland demanded Tuesday that the United States give Castro 48 hours to free the Americans or else send arms and equipment into Cub* against him. Bridges indicated he favors sending Marines in if necessary. The President did not comment directly on the cases in East Germany, where nine American soldiers have been held since June 7 when their helicopter became lost; (Continued on page Mve) INDIANA WEATHER Partly cloudy with do important temperature changes this afternoon, tonight and Thursday. Scattered thundershowers north portion. Low tonight 65 to 72. High Thursday 85 to 92. Sunset today 8:17 p.m. Sunrise Thursday 5:22 a.m. Outlook for Friday: Scattered thundershowers north portion, good chance of scattered thundershowers south portion by Friday afternoon or night. Warm and humid south and ' central. Not quite so warm extreme north. Lows Thursday night 65 to 76. Highs Friday near M extreme north, tow Ma south. Q

■ ” IW," I. Decatur, Indiana, Wednesday July 1, 1958

Eisenhower Stands Pat On Decision To Retain Sherman Adams As Aide

Goldfine Says No Favors Os Friend Adams Denies Seeking Or Obtaining Specials ■fasyßUtaLs WASHINGTON (UPD — Industrialist Bernard Goldfine swoaW 1 today that he neither sought nor got special favprs from his friend Shermap Adams. He charged that politics prompted a House subcommittee’s airing of charges to the contrary against him and the presidential assistant. Rep. John E. Moss (D-Calif.) immediately denounced Goldfine’s long statement—prepared and released to the press in advance—as reading like a “professionally written scenario.” Moss said Goldfine’s charge of politics was “vicious and absolutely false.” As the 67-year-old New England textile manufacturer, who rose, from immigrant boy to millionaire and close friend of the mighty, concluded almost three hours of testimony there were these highlights: —Goldfine dismissed as lies, conceived by a sick man, sensational charges by John Fox, Boston financier and one-time Goldfine friend. that Goldfine had claimed Adams was taking case of his troubles with file federal government. Ike Trusts Adams —He conceded he gave presents to Adams. But on balance, he said, the presidential assistant and Mrs. Adams gave Goldfine and his wife presents worth more than those he and Mrs. Goldfine gave them. —Roger Robb, Goldfine’s counsel, told United Press International that Goldfine definitely deducted costs of his favors to Adams as a business expense on high income tax returns. The Internal Revenue Service says true gifts may not be deducted. —President Eisenhower told a news conference he stands on an earlier statement that although Adams was imprudent in his relations with Goldfine, he still trusts him and needs him. The portly Goldfine, surrounded by a retinue of attorneys, public relations men, and family members, told the subcommittee that it obviously was not interested in him, but merely in using him as (Continued on Lage eight) Selective Service Personnel Honored 15 Years Os Service Given Recognition Personnel of the Adams county ■ selective service board were honored today in recognition of their patriotic service to the United States government in operation of the local board. Col. Vernon E. Clark, personnel officer for" the Indiana headquarters for- selective service system, delivered four 15-year service pins and one 15-year certificate to James K. Staley, chairman of the Adams county board, for presentation to board personnel. A 15-year certificate and pin .were presented to Mrs. Urcile B. Chase, clerk of the board, and 15-year service pins were presented to Ralph E. Roop, board member; Earl B. Adams, government appeal agent, and Dr. Clarence Hinchman of Geneva, medical advisor - Col. Clark stated this is the only board in the state where there have been four personnel in any board to receive these recognitions simultaneously. He extended thanks to the four honored members for their long service on behalf of Lt. Gen. Lewis B. Hershey, selective service director, and Lt. Col. Wayne E. Rhoades, state director. The presentations were made by Staley in the office of the local board on North Second street.

Heavy Rains Hood Sections Os lowa ' Muggy Heat From Plains Eastward j By Upited Press International ’J Flooding rains and -at least one tornado stormed across sections of. Southwestern lowa Tuesday *~Hsd to dent a muggy heat wave stretching from the Plains states to the Atlantic. *An 8.5-inch deluge of rain in l ®our hours touched off a flash flood in Audubon, lowa, forcing about 25 families to evacuate their homes. Blue Grass Creek surged out of its banks and inundated the western, part of the city under five to six feet of water. Motorists in the area were stranded by the rain Which came down so hard it was impossible to see to drive. . ‘Earlier, a tornado ripped across a-, drive-in theater at nearby Har- . fan, lowa, but injured no one. Au- . Monties said the twister uprooted ttees, damaged utility lines and [ caused some damage to buildings. I It was the second straight night | . of violent storms in the Midwest. Officials at Ellsworth Air Force ■ Base, counting damage from a ' Tfail storm Monday night, reported $2 of its 852 jet bombers assigned to the Strategic Air Command were damaged. Hail stones the size of baseballs punched holes and dents in, the tfetes of the giant pistes. At least TTorihe planes werb grounded until repairs are made, officials at the Rapid City, S.D., air base said. A two-inch rainfall pelted Sioux City, lowa, Tuesday night, and heavy rain and three-quarter inch hail stones hit Sidney in the Nebraska Panhandle early today. The rain belt extended from Nebraska into the mid and upper Mississippi V alley. Scattered showers also occurred in the . western Plains, the e astern Rockies, extreme northern California, Oregon and Idaho. i The hot humid weather Tuesday i sent readings to highs of 90.3 at New York City, 94 at Roswell, N.M.; 93 at Dodge City, Kan.; 101 i at Phoenix, Ariz.; 91 at Dallas i and Kansas City, and 90 at Chi- ■ cago. Overnight readings dropped no lower than the high 70s as far ‘ north as Burlington, Vt., and Lebanon, N.H., and in sections of ’ Minnesota and Wisconsin. i ■■ " G.E. Plants To Close For Annual Vacation « The Decatur and Fort Wayne General Electric plants will be closed July 28 through August 8 for the annual vacation period. Only skeleton crewst-WiH be on duty in the various divisions. City Budgets To Be Readied This Month Forms Distributed At Council Meeting forms to prepare the 1959 bud- • get estimates, .were distributed to i the heads of the departments of city government at the city council i meeting Tuesday night. The budgets must be prepared I during July, and published early in : August. An application for a rural line extension by Carl Hurst of Root township was referred to the light and power committee and the superintendent, L. C. Pettibone. 1 After the reading of bills, city 1 clerk-treasurer Mrs. Miriam Hall gave the following balances from ! the city funds: general fund, SBO,208.49; park fund, $2,369.20; street, $16,442.13; electric, $5,961.15; water, $35,739.37; recreation, $5,558.62; revolving sewer fund, $16,362.64; parking meter fund, $9,434.29; sewage construction, $209,959.27. All of the city councilmen, department heads, city attorney, clerk-treasurer, and mayor were present for the brief meeting.

Ike Warns Os I ■ --- C X Danger In Cut In Foreign Aid Charges Committee Is Taking Risks With U.S. Safety IKE WARNS OF v WASHINGTON (UPI) — President Eisenhower accused the House Appropriations Committee today of “taking reckless risks with our safety” in cutting his foreign aid program by 872 million dollars. “It is my deep conviction that reductions of a size contemplated by the committee will have grave consequences in portions of the free world, and to our nation’s security—and will encourage Communist imperialists,” Eisenhower declared. The President told his news conference he will use every possible influence to get Republicans to vote to restore the funds. He called upon Democratic leaders to do the same with members of their party. He said he felt they had agreed to do so. The chief executive read a special statement in opening his news on amendments to add at least 130 million dollars to a pending $3,078,092,500 money aid bill. The President said he is sure the American people'“will demand” congressional approval of his full foreign aid program. He said, “We have this choice: , “Stand up and be counted, live up to our ideals and purposes, and assume the responsibilities that are ours. “Or, shrug our shoulders, say that freedom for others has no significance for us, is therefore, no responsibility of ours, and so let international communism gain the ultimate victory.” Republican and Democratic leaders agree there was little chance the House would overturn its committee. Foreign aid backers held out more hope of restoring some of in the Senate. House Republican Leader Joseph W. Martin Jr., figured more than half the Republicans would support the administration amendments. But lawmakers generally agreed any such margin would be (Continued on PMT« five) Former Local Lady Is Taken By Death Lichtensteiger Rites Thursday Afternoon Miss Dorothy Florine Lichtensteiger, 51, a former resident of Decatur, died Monday at the home of a brother. Paul E. Lichtensteiger, in Harrison township, Van Wert county, O. She had been ill for three years with arterio sclerosis and her condition had been serious for the past month. She was born in Harrison township June 18, 1907, a daughter of Frederick M. and Bella Everett-Lichtensteiger, and had never married. She had spent her-entire life in Harrison township with the exception of' years, when she resided in Decatur. Surviving in addition to the brother with whom, she made her home is a sister, Mrs. W. H. Collison of Alien Park, Mich. Funeral services will be held at 2 p. m. Thursday at the Cowan & Son funeral home in Van Wert, the Rev. O. B. Turner officiating. Burial will be in Woodland cemetery at Van Wert. Friends may call at the funeral home until time of the services. NO PAPER FRIDAY In accordance with custom of many yean, the Decatar Daily Democrat will not publish an edition Friday. July 4, which is Independence Day.

Fox Is Defendant In Libel Action W Charges Defamatory Statements To Fox PITTSBURGH (UPI) — Boston promoter John Fox, controversial figure in the congressional investigation into the relationship between Presidential Assistant Sherman Adams and millionaire Bernard Goldfine, appears at an alderman’s hearing here today as the defendant in a Hbelaction. Fox, who has tJjreXfehed a libel action against Adaxrts, will defend himself against Xiharges ©t aw attorney who contends the former publisher of the defunct Boston Post, made defamatory statements in a telegram regarding an oil lease suit now on trial in Federal Court here. « Immediately after his appearance before Aiderman Frank R. Bruno, Fox will return to U. S. District Court to press an action he filed as a major stockholder in Rockton Drilling Co. He charged Devonian Gas and Oil Co. encroached on a Rockton lease in Clearfield County, Pa., by drilling at an agle. Counsel for Devonian, William R. Beatty, filed action against Fox charging the Boston financier libeled him in a telegram sent June 15 in which Fox demanded an accounting of profits oil the well ■ lease. ■ Fox contended that Devonian, ; using “bent straw” drilling methods, tapped gas reserves on ad- . j a cent land under lease to Rockton. Fox, who has appeared before the congressional committee investigating “influence” charges against Adams, predicted Tuesday that Goldfine “will refuse” to produce records asked by the investigators.” “I predict Mr. Goldfine will piously protest that he has no objection to giving the committee anything they may want,” Fox said, “but it must be subject to approval of his lawyers. I predict their approval will not be given.” Air Explorer Troop Plans Expedition Leave Early Friday On Three-Day Trip The air explorer troop sponsored by the Decatur Elks lodge will leave Friday morning at 6 o’clock for a three-day campout and canoe trip at Greenwood camp, Alger. Mich. The group of 11 explorers and two adult leaders will drive 300 miles north to the Saginaw bay region Friday, perhaps in time to see the climax of the international canoe races to be held that day on the river the group will explore. Saturday morning, trucks will take the group upstream and they will spend the day canoeing downstream, arriving at the camp for supper of T-bone steaks. An elaborate menu is planned for the camping trip. Dr. Melvin Weisman and Bernard Hain will lead the group which includes Mike Durkin, Sev Schurger. Chuck Krueckeberg, Ron Highland, Larry Macklin, Jim Burk, Dan Poling, Tom Sharp, Mike Ehler, Herb Banning, and Jim Newton. > The group will return to Decatur Sunday evening about 6 o’clock. Late Bulletins WASHINGTON (UPI) — The House ignored a new. plea by President Eisenhower today and refused to restore 75 million dollars of the 872 million cut from Ms foreign aid program. WASHINGTON (UPI) — The State Department said today it has received information raising hope that nine American servicemen whose plane was forced down in Soviet territory “win be returned promptly.”

Six Cents

Says Adams Is Still Needed AsTopAide Stands Pat Despite Republican Urging • Adams To Resign WASHINGTON (UPI) —President Eisenhower stood pat today on his decision to keep Sherman Adams as his top aide despite Republican statements that he should resign because his usefulness has been seriouly impaired. The Preident told a news conference that the statement he made two weeks ago on Adams now is no more or no less an expression .of his confidence in Adams than it was then. The President then conceded anew that Adams had been imprudent but the chief executive said that he still needed Adams. After giving that answer to a question about whether he might be reconsidering his decision oh Adams, the President said he would have nothing more to say at this time on the matter. He pointed out that the House subcommittee hearings still were going on. He added that he would not have any comment or entertain any other questions today on the Adams case. Foreign Aid Flea But a few minutes later he did say in response to a question that he assumed the Internal Revenue Service would report to him on whether textile tycoon Bernard Goldfine had charged off as an income tax deduction his gifts to Adams on the ground that they were a business expense. The President said that he heard only this morning that Goldfine may have done that. — In other news conference highlights, Eisenhower: —Made a strong plea for restoration of the House Appropriations Committee cut in his foreign aid program. He said the committee’s cut added up to “taking reckless risk with our safety.” Such a cut, he said, would “have grave consequences in portions of the free world and to our nation’s security—and will encourage Communist imperialism.” —Said that he was not disposed to do anything reckless in an effort to rescue the Americans captured by the Cuban rebels. He said we are trying to get live Americans back. The action of the Cuban rebels was unjustifiable and this government is. doing everything it can in an effort to convince the rebels that they were wrong, the President added. • Hopes to Cut Deficit —Made clear that he will not show any preference in the contest for the Republican nomination for governor in New York. —Said that he hopes the presently anticipated federal deficit of more than 10 billion dollars for fiscal 1959, which began Tuesday, can be cut. He based this on hope for increased revenues resulting from an economic upturn and reductions from the present estimates of expenditures. —Promised that Atty. Gen. William P. Rogers would go as far as the law permits him to enforce racial integration. But he added that he has always believed that the true cure for racial difficulties depends on all Americans observing correct procedures rather than acting from individual prejudices and emotions. —Expressed hope that sensible solutions—which will not be too damaging to either country—will result from discussions of common problems on his forthcoming visit to Canada. He listed the problems as dealing with water, oil. lead and zinc and surplus wheat. He said that he believed relations between this country and its border neighbors should be just as close as possible/ And he added that he hoped uch a relationship would be strengthened by his trip with Secretary of State John Foster Dulles to Ottawa next week. —Expressed hope that some kind ot understanding, which can lead a little bit toward better (Continued on page ftve) ■