Decatur Daily Democrat, Volume 56, Number 276, Decatur, Adams County, 22 November 1958 — Page 1

DECATUR DAILY DEMOCRAT

Vol. LVI. No. 276.

ARMY UNVEILS "OVERLAND TRAIN”—This Defense Department photo reveals the U. S. Army’s new “Overland Train” designed to transport heavy cargo over Arctic regions and other remote areas. The 450-foot long, 12-unit giant has 52 wheels which mount tires 10 feet high and 4 feet wide. Unique features are its all-wheel drive and that the entire unit can maneuver curves and embankments , simultaneously.

Mogilner Tells Os Corruption And Conspiracy Bribery Trial Os Ex-Highway Head Ends First Week INDIANAPOLIS (UPD-The bribery trial of former Indiana Highway Commission chairman Virgil (Red) Smith wouni Up its first week Friday, with‘*‘glo” salesman Arthur J. Mogilner painting a dark picture of conspiracy and corruption. During testimony before the Marion Criminal Court jury, Mo'gilner said he paid Smith “commissions’' in return for preferential treatnjent in the awarding of contracts for heavy equipment. One of the alleged payments, for $7,793. is the basis of the currentt trial. Mogilner said he paid Smith at least $43,680' in kickbacks, including the $7,793 check as his share of profits from the sale of 36 front end loaders to the highway department for $529,000. Other former officials in the highway department when Smith ruled as chairman testified earlier that he rigged specifications so that only the equipment represented by Mogilner could qualify. Mogilner said the sale of the loaders "was the biggest deal we made.” “1 pointed out to Red that the cut for each of us would be considerable,” Mogilner said. 5e said Smith constantly kept informed "how much money was in the equipment account.” Mogilner said checks made out to Smith were in the name of "V. Wilson,” presumably an alias for Virgil Wilson Smith. He said on one occasion the check was made out to “V. Willson” because “I’m a bad speller" and in another instance to "V. Williams” because of “a typographical error.” Mogilner said Smith endorsed the checks the way they were made out. i Mogilner was dismissed after cross examination and indications were that he was through testifying. He was expected to return in a few months to testify during the trial of former highway purchasing director Cecil McDonough. Special Judge Thomas Garvin accepted into evidence 22 payoff checks totaling $43,676, including the one for $7,793, over defense attorneys’ strong objections. The trial also lost one of its alternate jurors. John M. Bruce came down with a cold and was excused. The trial will resume with only one alternate. Prosecutor John Tinder indicated he had several more witnesses ready to testify when the trial resumed Monday. One was a state police handwriting expert who was expected to verify Smith’s signature on the “V. Wilson” checks and another was a banker who allegedly cashed the checks for Smith. The case was expected to go to the jury of 10 men and 2 women about the middle of next week. There was no indication of whether Smith would testify in his own behalf. INDIANA WEATHER Partly cloudy tonight and Sunday. A little colder tonight. Not much change in temperature Sunday. Low tonight upper 2fti north to around 30 south. High Sunday mid-408 to mid50a. Outlook for Monday: Part-, ly cloudy with little temperature change. 7 NOON EDITION

Study Increase In Foreign Aid Loans Report Proposal To Increase U.S. Loans WASHINGTON (UPD—The administration today was reported studying a proposal to boost U.S. foreign aid loans through the Development Loan Fund to the rate of one billion dollars a year for the next three years. It was learned several high administration officials hope to persuade President Eisenhower to present the request to the next Congress. Dempster Mclntosh, manager of the Development Loan Fund, presented the proposal as his “personal views” during a news conference Friday. In its first 12 months of operation, the fund will have made loans to underdeveloped nations totaling 700 million dollars. — .. „ The fund, with about $1,60(1,000,000 in loan applications from 45 countries on hand, will run out of money some time in January. Mclntosh said the administration has not yet decided how big a supplementary appropriation for fund operations it will ask from Congress to finish out the current fiscal year, which ends June 30. Three-Year Appropriation To continue lending at the recent pace, he said, it must ask Congress for about 500 million dollars — twice as much as the administration and Congress expected when the initial appropriation was advanced last August. Mclntosh said the “most efficient way of operating" would be on a three-year appropriation with an annual rate of about a billion dollars. This could be arranged, the administrator said, by giving the fund authority to draw from the Treasury as funds are needed. The U.S. Export-Import Bank now has this authority. Permanent Fund Sought A bigger and more permanent fund has long been the key element of the administration’s plan to switch most U.S. foreign economic aid to a loan basis, rather than gifts. Congress, however, has so far refused to give it more than year-to-year support and has sharply cut budget requests. In another foreign loan development, Latin American countries Friday urged the United States to contribute a substantial sum of money to a proposed Inter-Amer-ican Bank aimed at easing hemisphere economic problems. The bank was the chief topic of discussion at a closed meeting of representatives of the 21 American republics seeking concrete measures to speed Latin American economic development. Diplomatic sources said Venezuelan Finance Minister Jose Antonio Mayobre called on the United. States to put a large contribution into the bank. He pointed out that the Latin American nations had little to offer since they already were in financial trouble. BULLETIN . f Dwight Myers, 51, of Decatur route 5, plant manager for Bag Service, Inc., died suddenly of a heart attack at about 10:30 o’clock this morning in the office of Bag Service. He had been suffering from a heart condition for the past year but his death was unexpected. The body was removed to the Zwick funeral home. Funeral arrangements have not been completed.

No Confirming Os Report Os Status Change No Explanation Os Delay in Russia's Plans For Berlin MOSCOW (UPD — Expected Russian proposals for “solution” of the explosive Berlin question were delayed without explanation today, and it appeared there may be no further word on Soviet intentions this week. * The Austrian, Belgian and Dutch ambassadors responded to a summons to the Foreign Ministry, expecting to receive copies of a note covering Russia’s plans for the future of Berlin. Instead, they were handed statements concerning their own* countries* relations with the Kremlin. No confirmation could be obtained here for a report broadcast by the Communist radio in Berlin that Russia would propose “eradication of the occupation status” of the Red German capital today. No Summons to Big Three The call to the three ambassadors, who were summoned *in alphabetical order, had been regarded as the beginning of distribution of a note on Berlin which Russia had announced would be jent to all the nations who fought tn World War 11. At noon today, however, no summons had been sent to the ambassadors of the United States, Britain, France or West Germany —the nations most closely concerned with the Berlin question. Since it has been Russian practice in recent years to observe the standard Western week end in diplomatic matters, it appeared unlikely that any further statement of Soviet intentions would be issued before Monday. The official organs Izvestia and Pravda carried no major new comments on Berlin today. Potsdam Repudiation Seen The general expectation here is that the Russian statement on Berlin, when it is forthcoming, will amount to a repudiation of the Potsdam agreement which established the status of the Western allies in the divided city. Premier Nikita S. Khrushchev set the stage for such a move in a speech last week in which he accused the Western powers of violating the Potsdam agreement by rearming West Germany. “The time has evidently come for the powers which signed the Potsdam agreement to give up the remnants of the occupation regime in Berlin and thus make IV possible to create a normal atmosphere in the capital of East Germany,” he said. Airlift Considered a Possibility “The Soviet Union, for its part, will hand over those functions in Berlin which are still with Soviet organs to the sovereign German Democratic Republic. “Let the United States, France and Britain form their own relations with the German Democratic "Republic and come to an agreement with it if they are interested in certain questions connected with Berlin.” The Western powers have announced their readiness to resume the airlift that sustained West Berlin through the blockade of 1948-49 in the event of Communist interference with ground traffic between Berlin and the West. West Germany has called home its ambassadors from Washington, London, Paris, Rome and Moscow to discuss the situation. In Bonn, U.S. Ambassador David K. E. Bruce has* been conferring with Foreign Minister Heinrich von Brentano.

ONLY DAILY NEWSPAPER IN ADAMS COUNTY

Decatur, Indiana, Saturday, November 22, 1958.

Expected Proposals By Russia For Solution In Berlin Problem Delayed

TWA Grounded As Mechanics Go On Strike Refuse Last-Ditch Settlement Offer Made By Company KANSAS CITY, Mo. (UPD— Trans World Airlines planes Were grounded all over the world today by a strike of 6,700 mechanics who refused a last-ditch settlement offer by the company. TWA normally carries some 12.000 passengers a day throughout the United States and to 23 foreign cities. It has 196 daily flights. Flights that were in the ait Friday were permitted to go on to their final destination, but all schedules originating after the strike deadline Friday morning were cancelled. About "19,000 TWA employes were furloughed without pay by the company as a result of the walkout by members of the International Assn, of Machinists. Deadline Was Postponed The union had set a previous Strike deadline of Oct. 31 but it Was postponed to allow the union members to vote on a company offer. It was rejected by a 63 per cent majority, TWA President Charles Thomas in New York issued a statement that further negotiations would start at present wage levels and would not include any previous offers of retroactive pay. The Machinists have been working without a contract since Oct. 1, 1957. Until the company withdraw its offer, wages had not been a major factor in the dispute. The company said it had offered an average of $285 retroactive increases and an average increase of $45 monthly per employe. Jet Service a Factor Thomas said the union was asking the company to limit the auOontlnued on page five Capital Airlines To Resume Service Mechanics Ratify New Wage Contract WASHINGTON (UPD — Capital Airlines today planned to resume some of its flights Sunday and have its service back to normal by midnight Tuesday following settlement of a 37-day strike by union mechanics. • The mechanics, members of the International Assn, of Machinists (IAM), ratified a new contract Friday calling for a 41-cent-an-hour wage increase over a threeyear period. A spokesman for IAM, representing the 2,474 ground crew employes of Capital, the nation’s fifth largest airline, said the vote was 927 in favor of the contract and 755 against. He said the big “no” vote was a protest against Capital’s insistence on elimination of week-end overtime. The new agreement gives the company the right to pay straight time to men who work on Saturday or Sunday provided such work is within a 40-hour week. The Capital settlement came shortly after mechanics on Trans World Airlines struck in support of wage boost demands. Eastern Airlines mechanics have voted to strike and negotiations are being conducted with National and Northeast Airlines. Northwest settled a dispute with its mechanics last Tuesday. <7 Terms of the Capital agreement were worked out earlier this week by Capital President David H. Baker and IAM President Al J. Hayes. Robert T. Quick, general chairman for the airline’s mechanics, said the wage increases would range from 29 cents an hour for cleaners to 46 cents an hour for lead inspectors.

Union Thanksgiving Service Thursday Annual Service On Thursday Morning The annual community Thanksgiving service, sponsored by the Associated Churches of Decatur,, will be held at 9 o’clock next Thursday morning at the Nuttman Avenue United Brethren church. The Rev. Huston Bever, Jr., pastor of the Church of God in this City, will deliver the Thanksgiving sermon. The Kev. J. O. Penrod, of the Trinity Evangelical United Brethren church", will lead responsive reading, followed by prayer by the Rev. F. Hazen Sparks, First Methodist church, and the Thanksgiving offering and prayer of dedication will be offered by the Rev. Stuart Brightwell, First Baptist church. Ministers of other participating churches will also assist in the service, and the president’s proclamation will be read by Lowell J. Smith. Special music will be provided by Mrs. Faye Michael and Miss Chloe Harkless. The offering received during the Thanksgiving service will bte sent to the Kashima Glory church, Kashima, Japan. This is a mission work under the direction of the United Christian church of Japan, started in 1954 by the Lacour evangelistic party. The Rev. Hazen F. Sparks, pastor of the First Methodist church here, spent two months in that church in 1956. The church is made up of a group of 30 dedicated Christians, who meet in a rented home, which is also the home of the pastor. They are the only Christians in a community of 18,000. They have purchased a plot of ground where they hope to build the First Christian church ediftce in the community. Criticize Proposed Gas Tax Increases Truck Association Assails Proposal MIAMI BEACH (UPD - The American Trucking Assn, has sharply criticized proposed increased gas taxes and other federal levies on the nation’s highway users. The group’s board of directors pointed out at the ATA’s 25th convention Friday that highway users already are paying the full cost of the federal government’s sharq of the aid to highways program. A resolution adopted by the board lashed out at a report by the director of the budget in which he said it will be necessary to increase gas and other taxes because the highway system probably will cost more than anticipated. The resolution said the statement was “premature” because final estimates on the program are not yet known. The ATA noted that the secretary of commerce has cautioned Congress against any tax adjustments. The truckers recommended a tax on non-highway users who will benefit from the federal aid highway system but who,, according to the truckers, are not making any contributions to the cost of the program. Harold W. McMillen Lions Club Speaker Harold W. McMillen, chairman of the board of directors of the Central Soya Co., Inc., and the McMillen Feed Mills, will be guest speaker at the weekly dinner of the Decatur Lions club Monday at 6:30 p. m. at the Youth and Community Center. , v McMillen, a former resident of Decatur while serving as president of ti»e Central Sugar Co., wiU be introduced by Herman H. Krueckberg, program chairman.

West Plans Outer Space Study Group Forges Ahead With Plan In Spite Os Possible Boycott UNITED NATIONS, N.Y. (UPD —The West forged ahead today with plans to create an 18-nation outer space study group, including three Communist members, despite the possibility of a Soviet boycott. The united States and 19 other sponsors of a Western draft resolution on outer space- prepared to publish the names of the countries they hope will join in the first international effort to control man’s probes above the atmosphere. Informed sources said the West planned to included Russia and two other Communist nations on the list even htough the Kremlin turned down Western suggestions on the list for a previously-pro-posed 11-power study group. Russia had proposed that the Soviet Union and three other Communist countries be included in the 11-nation preparatory commission. The West considered this to be disproportionate representation for the Soviet bloc, which includes only nine of the UN’s 81 members. The proposed membership, sent home Friday night for approval of governments concerned, was: The United States, the Soviet Union, Britain, France, Canada and Australia as the countries most knowledgeable in the space field; Belgium, Italy and Sweden for Western Europe; Czechoslovakia and Poland for Eastern Europe; Argentina, Brazil dnd Mexico for Latin America; and India, Iran, Japan and the United Arab Republic for the Afro-Asian group. Caril Refuses To Discuss Sentence Attorneys Have 10 Days To File Appeal LINCOLN, Neb. (UPD — An eighth grade schoolgirl convicted of homicide went about her regular chores today and refused to discuss the life imprisonment term to which she probably will be sentenced. Caril Ann Fugate, 15, wept bitterly and insisted “I didn’t do it,” Friday when a seven-man, fivewoman jury found her guilty of first degree murder and recommended life imprisonment. The jury decided after nine and one half hours deliberation that Caril helped her boyfriend, Charles Starkweather, 19, along his murderous course last January when 10 persons, including her mother, were slain. Caril’s contention that she was an innocent hostage, was rejected. Caril’s attorneys have 10 days in which to file their motion for a new trial. Until this is done she will be held in the Lincoln State Hospital, where she has been kept since her arrest last Jan. 29. She was supported from the courtroom where she heard the verdict and taken to the sheriff’s office until she regained her composure. She was dry-eyed when she left for the hospital 30 minutes later. Starkweather, who has been sentenced to death, was not officially informed of the verdict and Warden Joseph Bovey of the State Penitentiary refused to permit questioning. If the traditional prison grapevine had not informed him of his ex-girl friend’s fate, Starkweather read about it in the newspaper he receives each evening.

Depositors Seeking Aid Os Government Ask Government To Act In Albion Cose ALBION, Ind. (UPD—Depositors whose life savings were tied up when the Noble County Credit Union was declared insolvent met with U. S. District Attorney Phil McNagny Jr. at Fort Wayne late Friday in an attempt to get the federal government 1 nt o the case. Depositors were left holding the bag when a two million dollar shortage was uncovered recently. Former manager Arnold G. Hobbs, 32, was jailed after grand jury returned 13 indictments against him charging embezzlement. “In order to establish the fact that the mails have been used to defraud we wil£> start oiir investigation immediately,” McNagny said. Two of the depositors, George Bowers and M. McDonald, both of Albion, said they made deposits after receiving a letter from Hobbs stating that each depositor was insured for SIO,OOO. There is no such kind of insurance on the market. Bowers told McNagny he deposited SIB,OOO in the union prior to assurances from Hobbs that funds were insured. He said that after he received the letter, he added another SIO,OOO. Bowers has a passbook for each of his seven children. He said he was to get the 4% per cent interest and the children were to get the principal. McDonald, the father of a boy connected with 4-H work, said he also deposited money after getting a letter from Hobbs. Postal inspectors will be at the credit union offices in Albion next Tuesday to take statements from depositors. Navy Planning To Fire New Vanguard Hold-Down Test Is Conducted Friday CAPE CANAVERAL, Fla. (UPD — The Navy went ahead today with plans to fire another Vanguard before the end of the year despite a policy declaration to the contrary by the nation’s space agency. A static, or “hold-down” test was conducted Friday on the first-stage engine of the eighth Vanguard. And a project official said “nothing official has come down here at all” on the announced postponement of further satellite launching attempts. In a statement released in Washington last Tuesday, the National Aeronautics and Space Agency NASA said it was holding up further Vanguard launchings until after the end of 1958 while a study was being completed on “ways to increase the reliability of all satellite vehicles.” But the Vanguard official here, who asked that his name not be disclosed, said “we’re just going along the same as ever” on the project. A static test normally precedes a firing by one to three weeks, and the project official said the eighth Vanguard would be launched within at least three weeks unless present plans are altered. , <0 Mishawaka Grocery Is Robbed By Gunman MISHAWAKA, In d.(UPD — An armed gunman robbed a Mishawaka grocery store of S2OO Friday night. Mrs. John Raab, owner of the ’ store, said she was checking out 1 the cash register for the day when . the holdup occurred. She said the . bandit carried / a small pistol < which might have been a toy. 1 It was the third armed rob- ’ be»y in Mishawaka in the past < week. 1

West Germany Awaiting Word On Occupation Kremlin Jerks Rug From East Germany Reds On Questions BERLIN (UPD—The Kremlin today jerked the rug out from under Germany’s Communists, who had predicted immediate • “eradication of the occupation status” under which the West ■ maintains troops in Berlin. ; Western ambassadors sum- ■ moned to the Soviet Foreign Office to receive what was expec- : ted to be a new Russian declara- [ tion on Berlin policy were handed . a statement about their own . countries’ relations with the Kremlin instead. . The Reds’ Berlin radio had pre- , dieted that Russia would tell the . Western envoys that it favored an ! immediate end to the four-power rule imposed on Berlin by the Potsdam agreement. Brentano in Berlin Foreign Minister Heinrich von . Brentano flew in from Bonn to- , day to discuss West Berlin’s prob- ; lems with Mayor Willy Brandt ■ and Western allied leaders here. [ “I believe the Berlin position will be maintained, although ot j course the situation is serious,” , Brentano told newsmen at the ’ airport. , Premier Nikita S. Khrushchev has declared that a Soviet note on “the status of Berlin” Can be b expected soon, and a Communist ’ commission has already been set up here to work out details of , the surrender of Soviet controls ( to the local Reds. No Immediate Change Seen It had been expected that control of the lifelines of isolated West Berlin might be transferred to Red Germany’s satellite regime within a matter of hours, but it now appears that no change is likely until next week at earliest Although .the Communists have promised that there will be no immediate interference with West German traffic, they could clamp a total blockade on West Berlin at any time. Sources at the “vacation White . House” in Ajgusta, Ga., declared ■ Friday that the United States has . “firm intentions" of preserving l West Berlin’s integrity despite the new Red threat. Similar firm- . ness is expected from Britain and France. Recognition Called Aim Khrushchev has promised that Russia will not attempt to drive the Western allies out of the city by force, but he simultaneously pledged the full support of the Communist world to the Reds In Germany if they become the target of any “aggressive act” . The specific aim of the Communists appears to be to try to force Western recognition of the East German puppet regime. Captured U.S. servicemen have been held as hostages in past efforts to achieve the same goal. In the current situation, the Communists are expected to demand recognition of the East German regime as the price for Buys Health Bond Help Fight TB Buy Christmas Seals Local 1932, United Steelworkers of America, has voted purchase of a $lO health bond, officials of the Christmas seal campaign in Adams county announced todjiy. All proceeds from the annual Christmas seal sale are used in the fight on tuberculosis and to provide clinics and otherwise carry on the fight against the “white plague.”

Six Cento