Decatur Daily Democrat, Volume 57, Number 130, Decatur, Adams County, 3 June 1959 — Page 1

Vol. LVIi: No. 130.

Committee In House -* • | WN <. Approves Extension Os Wartime Tax'Kates

WASHINGTON (UP—)—Another year’s extension of the wartime tax rates on orporations and such items as cigarettes, liquor and automobiles was approved today by the House Ways and. Means Committee. The Treasury would lose two billion dollars a year if the rates were reduced. Before acting, the committee heard Budget Director Maurice H. Stans testify that the federal deficit tor the year ending June 30 is expected to total $12,400,000,000, some 500 million less than estimated in January. This still would be the greatest deficit spending in peacetime history.———— I Other developments: 1 ! Labor: AFL - CIO President George Meany urged the House to approve a strippd-down version of the Senate-approved labor reform bill. Meany told two House labor subcommittees considering such legislation that this would “get at the crooks" in the labor movement He said the Senate bill would do “grave and irreparable harm” to unions under the guise of fighting corruption. Defense: The House continued debate on the bill appropriating nearly 39 billion dollars for the nation's defense in the next fiscal year, with passage expected by nightfall. f Rackets: A deputy sheriff from Valparaiso, Ind,, told Senate rackets probers that a Chicago hoodlum offered tt> go as high as half a million dollars in payoffs to county officials in an attempt to get a gambling and prostitution monopoly.* I Aid: President Eisenhower’s foreign aid bill won approval of the House Foreign Affairs Committee, but it was cut $266,800,000. The vote was 23-6 and the $3,642.600,000 measure is now expected to be taken up by the House next week. Appropriation: The House okayed by voice vote a compromise $4,641,363,000 money bill to finance the Treasury, Post Office and Tax Court in the next fiscal year. This was $44,964,000 less than the administration requested. Farm: The Senate drove toward passage of a four - billiondollar agriculture appropriation bill. The total is nearly 106 million dollars below Eisenhower’s budget request. I Strauss: Repubican hopes for Senate approval- of Lewis L. Strauss as commerce secretary were reported strengthened by President Eisenhower’s determination to fight for the nomination. The Senate plans to take up the nomination this week, probably Thursday. Contracts: Congress _ was told that the comptroller general’s office has unearthed $30,800,000 in “excessive costs" used in fixing

Hear Evidence On Bribe Offer

WASHINGTON (UPI) — The Senate Rackets Committee today heard the recorded voice of a Chicago hoodlum offering a $50,000 bribe to a deputy sheriff to let him open a brothel and gain “corner to corner’’ control of gambling in Porter County, Ind. The deputy, Harold D. Rayder of Valparaiso, Ind., told the committee he made the recording on May 4 while talking in an automobile with Tom Morgano, Porter County representative of the Chicago crime syndicate. Morgano, helding a cigarette between his teeth, listened to a playback of the conversation in the witness chair and then Invoked the. 4 Fifth Amendment to all questions about it. But Rayder testified that Morgano offered to go as high as half a million dollars in payoffs to county officials in order to get a gambling and prostitution mohopoly. It The deputy, who had been billed by Committee Councel Robert F. Kennedy as an “extremely important mystery witness,” took the stand as the committee dug deeper into rackets in Porter and Lake counties in Indiaria, near Chicago. Witnesses testified Tuesday that former Lake County Prosecutor

DECATUR DAILY DEMOCRAT

prices of Air Fbrce planes. Comptroller General Joseph Campbell said in a report that most cases of “unreasonably high” prices on contracts and s übcontracts - stemmed from faulty procedures by theAlr Force and its contractors. Bonds: A bitter fight was forecast if the administration asks Congress to raise interest rates on federal bonds. President eisenhower is expected to request the authority within a few days. Arnold Hobbs Convicted Os Embezzlement FORT WAYNE, Ind. (UPD— Arnold G. Hobbs, portly Albion “business wizard,” was convicted of embezzlement and sentenced to 15 years imprisonment Tuesday. His attorney immediately moved to set aside the penalty. Ralph Probst, defense attorney for the former manager of the defunct Noble County Credit Union, moved for -an arrest of judgment and Allen Circuit Judge William H. Schannen scheduled a hearing on the motion for next Monday. Probst indicated that if the motion failed, he would appeal the conviction. An all-male jury convicted Hobbs in the embezzlement of $1,600 from the credit union after deliberating for 40 minutes. Hobbs, who took the stand in his own defense on his 33rd birthday Monday, was tried on one of 21 indictments charging the embezzlement of a total of $78,800 from the credit union. May Be Tried Again Hobbs was fired last Sept. 13 when officers and directors of the firm confronted him with evidence of unauthorized loans to his various business ventures. An incomplete audit of the credit union revealed a shortage estimated at nearly two million dollars. Judge Schannen sentenced Hobbs to 15 years and a SI,OOO fine. The maximum sentence is 20 years imprisonment and a SI,OOO fine. The state indicated the “wonder boy” of Albion finance may be tried on some of the 20 other indictments against him. Awaiting trial as accomplices in the alleged embezzlements are four other persons indicted by a Noble County grand jury. They are Edwin A. Cambridge, Continued on page five

Metrol Holovachka and other officials helped enforce a pinball gambling operation that netted more than 12 million dollars in five years. They said similar assistance was rendered to juke box operators with Chicago underworld ties. Rayder identified Morgano as the Porter County agent of the Chicago mob headed by Sam Giancana. He said Morgano obtained a toehold in the county by opening a pizza pie place on campus of Valparaiso University. Rayder, who was in uniform, said the recording related the last of several conversations he had with Morgano who had sounded him out on whether he would help the syndicate move into the county. Rayder said he took pt~ five in January as part of a clean-up slate. ~ I INDIANA WEATHER Fair tonight. Ihor »d » y mostly sunny and a little warmer. Low tonight mostly in the 595. High Thursday in the 80s. Sunset today 8:08 p. m. Sunrise Thursday 5:18 a. m. Outlook for Friday: Mostly fair and continued warm. Low 55 to $5. High in Ma.

Continue Probe Os Crane Dynamiting No arrests haVe been made as yet for the dynamiting of the William Becker crane, that was blown to pieces Wednesday, May 27, southwest of Decatur, but the investigation is still in full operation, sheriff Merle Affolder, said today. Local law enforcement officers are still probing the incident that occurred on the Julius Kohne farm, located about % mile west of U. S. 27. Becker’s drag-line crane was nearly totally demolished by unknown persons at 9:15 o’clock on the night of May 27, when dynamite was placed between the gas tank and the engine motor scattering the wreckage in all directions from the crane's site. An estimated damage of $12,000 was given for the neatly new $19,000 crane. Information is still being requested by all of the law officers brought into the investigation. Anyone with any information is asked to contact any of the local law enforcement agencies immediately. Vizard Is Chairman Os Bank Directors .■’* • 1 ■ G. M. Vizard, Pleasant Mills high school principal and a member of the board of the First State Bank for 14 years, has been named chairman of the board succeeding the late E. W. Busche, T. F. Graliker, president, said today. A former coach, former Central Soya personnel director, and widely known as a businessman and educator, Vizard was elected to the board July 6, 1945. He has been serving as vice president of the bank for several years. Earl Fuhrman, of the Schafer company, a member of the board since 1952, was named vice-presi-dent succeering Vizard. Fuhrman has been county Red Cross chairman for the past two years, and was recently elected president of the Decatur Memorial Foundation, Inc. - ' , . L. Martin Busche, of West Lafayette, was elected a member of the five-man board succeeding his father. Busche is a native of Tipton county, but moved to Adams county at an early age, and was reared on the Busche farm just east of Monroe. A Monroe high school graduate, he went to Purdue university, where he was graduated' with a bachelor of arts in agriculture degree and a master of agricultural science degree. Busche returned to Adams county, and served here as county agent from 1920 until 1928. In that year he was moved to Anderson in Madison county where he was county agent until* 1934, when he moved up to a staff position at Purdue university. Busche is now assistant director of the agricultural extension service in Indiana. Raised in Adams county, he and his wife have owned a farm here since 1940. They have three children, two of whom were born here. Rev. Pen rod Heads Decatur Ministers The Rev. Ji O. Penrod, minister of the Trinity E.U.B. churtrh, was elected president of the Decatur ministerial association at a meeting held Monday afternoon at the Zion Evangelical and Reformed church. Rev. Penrod will succeed the retiring president, the Rev. Stuart Brightwell, pastor of the First Baptist church. The Rev. Harold J. Bond, minister of the First Presbyterian church was elected vice president, and the Rev. Emmett L. Anderson, pastor of the Union Chapel church, was elected secretary-treasurer. Devotions during the meeting were led by the Rev. F. Hazen Sparks, minister of the First Methodist church.

ONLY DAILY NEWSPAPER IN ADAMS COUNTY

Decatur, Indiana, Wednesday, June 3,1959.

West Nations - . • •: ■. a , ... . . Studying Plan

GENEVA (UPD—The West is studying a new plan which would establish an East-West appeals commission over the access routes to Berlin and include East and West Germans on it, informed sources reported today. The sources said the Western Big Three and West Germany are considering such an offer in the presently deadlocked foreign ministers’ conference on one unyielding condition: That Russia guarantees Western rights in West Berlin and free Western access to the city. - The plan was still in the study stage as East and West went into another secret negptiating session this afternoon. Beforhand, the Western ministers spent an hour at U.S. headquarters discussing how best to follow up British Foreign Secretary Selwyn Lloyd’s appeal to Soviet Foreign Minister Andrei Gromyko Tuesday to let "practical work” begin. I , Secretary of State Christian Herter, French Foreign Minister Maurice Couve de Murville and Lloyd were reported in firm agreement that Russia should take the first step forward if it grants agreement here, since it waa Moscow that set off the cur* rent Berlin crisis by demanding that the West get out under threat of a separate Kremlin peace treaty with East Germany. Despite this feling, the Western ministers were reported preparing counter - offers designed to eliminate any chance of armed conflict until an overall settlement is reached on Berlin and Germany. Work on some kind of “breakthrough” arrangement has been intensified as it becomes more apparent each day that the original East and West package plans for Grtrnany and Berlin have no chance of acceptance. One indication of this intensified work came when Herter summoned Maj. Gen. Ralph M. Osborne chief of intelligence for the U.S. Army in Europe, to a strategy meeting here this morning. Several other high-ranking experts also sat in. Earlier, American officials had reported “microscopic” progress toward a Berlin agreement, although this was being obscured by "propaganda. The latest blast came today in the official Soviet newspaper Izvestia which repeated Soviet charges that the United States’ arming of West Germany with nuclear weapons is aimed at frusHearing Dates Set By Board 01 Review The Adams county board of tax review began „its 30 working day session at the Adams county court house Monday for •hearings dh taxation of new improvements. Disagreements by Adams county residents pertaining to taxation should be brought before the board during the 30 day period. Tmie has been set aside for the hearings and will be conducted by townships. Members of the board include: Edward F. Jaberg, county auditor; Walter Koos, county assesspr; Waldo Neal, county treasurer; apd two appointees by the Adams circuit court, David Schwartz and Milton Girod. The hearings for each of the townships are as follows: June 8— Preble, all day; June 9—Root, morning; Union, afternoon; June 10—St Mary’s, morning, Washington, afternoon; June 11—Kirkland, morning; French, afternoon; June 12—Monroe, morning. Blue Creek, afternoon; June 15—Jefferson, morning, Wabash, afternoon; June 16—Hartford, morning, Geneva, afternoon; June 17—Berne, all day; June 18 —Monroe-Monroe, and Monroe-Washington, morning; and Decatur, afternoon, until through.

trating the Geneva goal of a German peace treaty. came Tuesday night from Eest Berlin Communist Mayor Friedrich Ebert who brought but all the old Communist charges of Western, subversvie activities in West Berlin and threatened “necessary counter-measures” to end them, r . j Similar charges come almost daily in the East-West meetings from Soviet Foreign Minister Andrei Gromyko and sometimes from East German Foreign Minister Lothat Bolz. Bolz was left red-faced and angry Tuesday when Secretary of State Christian Herter advised him to read his history before trying to instruct the West on their rights in Berlin. American officials said the microsopic progress so far has been confined largely to stripping away excessive demands by both sides during toe talks. They hope that once each side gets down to its basic demands some real progress will come. Despite toe apparent deadlock in toe public sessions, they still Continued on pa;e nve

No Progress Seen For Summit Talks

WASHINGTON (UPI) — President Eisenhower said today that the Geneva for ig n ministers meeting had not yet, in his opinion, made sufficient progress to warrant bolding a summit conference. I The chief executive, in his first news conference in three weeks, told more than 200 reporters that he was willing to define satisfactory progress rather liberally. But even so, he said, the meeting going on now had not yet produced sufficient evidence to justify planning for a top level meeting later in the summer. Other highlights of the President's news conference: —He said any injection of antiSemitism into the Senate confirmation battle over Secretary of Commerce Lewis Strauss would be a tragic, sad affair, completely unwarranted by Strauss’ highest type character and ability. —He labeled as completely untrue a charge by John L. Lewis, head of the United Mine Workers, that he was basically against labor in the steel negotiations. In this connection, Esienhower said his interest in big business men was only slight compared With his interest in the ultimate fate of the working classes. —As for the differences between the armed services on the missile program, Eisenhower said he was standing behind the defense plans he submitted to Congress in the late winter, pending completion of new study of the missile program by the secretary of defense. —He said it was true that he was disturbed over recent polls showing a decline in the national acceptance of the Republican Party. > He said plans to attack the situation were being drawn up and would be announced in the near future, presumably by the Republican National Committee. The question of Strauss’ Jewish background was raised by a reporter who asked whether he agreed with certain Republican congressmen that anti - Semitism might be a factor in the current difficulty of the Cabinet officer in winning confirmation. The President replied first that he did not know that any Republican congressman had made such a charge. If anti - Semitism is made a serious factor, he added, this indeed would be tragic. The President was questioned from a number of different .angles about the steel negotiations. The first inquiry was whether he might invoke the Taft-Hartley law and seek an 80-day cooling off period if a strike begins July 1. The President said he would have Ito wait for that time before arriv-

I M Planning Second Offer - To Buy Plan! Officials of Indiana & Michigan Electric company met in conference with the Decatur board of works, Monday, indicating they were definitely interested in purchasing the City-owned electric power plant and franchise. The company officials said they would present a formal purchase offer within two weeks. The board of works met with I&M officials as part of the request in the petition presented at the council meeting two weeks ago. The petition, signed by 2,269 registered voters, requested that the city seek any and all measures to initiate a new sale of the city utility. The petition was presented after ’a referendum proposing the sale to I&M was defeated by 73 votes April 14. The association for the betterment of Decatur was formed when it appeared that public sentiment was not aligned with the outcome of the vfite. The association canvassed the city, comifig up with a total number of jLVoring sale, in excess of the dumber that actually voted in the special election. The board of works reported to the city council Tuesday night that action had been taken to contact the I&M company with the result that the company was interested in the sale. Remonstrators to the sale may appeal to the council by a petition signed by 100 registered voters. If no remonstrance is recorded, the city officials have the authorization to effect the sale. BULLETIN NEW YORK (UPD—T h e United Steelworkers Union called an emergency session of its international executive board for Thursday to discuss the deadlocked steel negotiations.

ing at a decision. Then the subject of labormanagement relations was broadened somewhat. A reporter cited the belief of Lewis and James Hoffa, head of toe Teamsters Union that Congress should not pass a labor reform bill this year. The President was asked whether he thought the House and Senate should go home without adopting such legislation. I Firmly, Eisenhower said he most certainly did not think that Congress should adjourn without action. As for the charge by Lewis that he had interfered in the steel negotiations, Eisenhower said that all be had done was to say publicly that both sides should exercise self-discipline and that management should keep toe price structure steady to avoid an inflationary wage-price spiral that might force the government eventually into drastic action. As to a summit meeting, the President said he would not attend a conference under any threat by Soviet Premier Nikita Khrushchev to take action in Berlin. He said Western rights and privileges in Berlin must not be impeded and there should be some agreement on ultimate unification of East and West Germany before he attends a meeting with the other Big Four heads of government.

1 m| *** flHu*W *** "**< «Vy |M *V ® %. ■• -»v«gpry> ■s,"■■■ ’ *” > 'wra- ■ >• • TRUCK RI AST kills 11—The charred remains of the cab are all that is left of a gasoline tank truck after it exnloded on a heavily traveled eastern Pennsylvania highway killing at least 11 persons and injuring 15 others. Thirty minutes before the explosion, the tank truck was struck from the rear UT another truck as the two traveled down a rain-slick hill. Firemen attempted to control the resulting blaze but the truck exploded in a ball of fire killing firemen and spectators as far away as 300 feet. •

City Council Votes Down Zoning Chan ge

The Decatur city council voted 3-2 against the Mies-Dawson re- , zoning ordinance on the third read- , ing Tuesday night in the council chambers, besides passing two city , street improvement ordinances and ( other business. ■' , In voting against the city plan- , ning commission’s recommenda- ; tion to rezone seven acres of the ( residential land along U. S. high- ( way 224 to general commercial, | councilmen Lawrence Kohne, Ed . Bauer, and Clyde Drake favored the remonstrators’ objections , against the proposed $200,000 bowling establishment. The remonstrators’ main objection centered on the use of five acres that would not be used for the bowling site. The petitioners stated they would use a little more than two acres for the new building and parking facilities, while no definite plans were presented, showing the utilization of the remaining land. Amended Proposal Favored Consensus of opinion, following the meeting, indicated that an amended proposal, calling for an ordinance to rOzone only the necessary amount of land, would stand a better chance of passage.

In debate on the subject, Bluffton attorney John Edris, speaking for. ( lhe remonstrators, asked that the petition be amended to limit the area of land intended for use as a bowling establishment. He added that his clients had no real objection to the building of the alleys. , Burdette Custer, of the Custer and Smith law firm, countered that the city would not lose control of any of the seven acres as the rezoning request was only the first of three steps necessary to complete the project. The second step would require the council’s approval- of a dedicated plat, including all easements, sewer and water lines, and other specifications as required by law. The third would be the issuance of a building permit. ™ Custer also challenged data that

May Up Interest On Government Bonds WASHINGTON (UPD —Big and small investors may be given a chance this summer to buy new government bonds paying higher interest than the law now permits. President Eisenhower Is expected to ask Congress within a few days to permit higher interest on future issues of these government securities, including savings bonds purchased by workers through payroll deductions. Senate Republican Leader Everett M. Kirksen (Ill.) predicted Tuesday that the President also would propose a new bond calculated to appeal to parents saving for their children’s college expenses. He said it would be called the “educational assurance bond.” Any request for higher interest on federal bonds will produce a bitter congressional fight. Nevertheless, Congress probably will wind up granting—but grudgingly — some of the authority sought by the President. Forecasting "considerable opposition.” Senate Democratic whip Mike Mansfield (Mont.) said “I fear the consequences” of such legislation. He said it might “feed* fires of inflation.” Some Democrats contend the government itself, is responsible for the fact that the cost of borrowing money has risen to the highest leVel in three decades.

Six Cents

the objectors presented to the councilmen concerning their grievances. The information and enclosed drawing, Custer said, were open to conjecture. The data showed that 150 homes could be built on the Mies property and property Across the highway, owned by Clark Smith and associates. Custer argued that the estimate of homes would be nearer to 80. The remonstrators contention was that many, of the available lots in the city should’ be used tor residential purposes. Approve Improvement Ordinance In other business, the courcil approved an ordinance calling for a contract between the city and Meshberger Stone Co. of Linn Grove for Marshall street improvements. The city will pay the company $2,150 upon competion of the work from 12th street to 13th street, on or before July 1. The Meshberger company will assume all liability for the construction work. A purchase of street improvement materials, supplies, and equipment from Meshberger was also approved by the council. The city will buy bituminous concrete, liquid asphalt, crushed stone, and other necessary street improvement material for use in its summer work schedule. Four requests for rural light extensions were referred to the city power and light commission in conjunction with the superintendent, L. C. Pettibone. The requests were from Leo Roe, of Root township; Ivan Hakes, Root township; Thurman Drew, Union township, and Daniel Kwasneski, Washington township.

Gov. Long Ordered To Menial Hospital GALVESTON, Tex. (UPI) — The acting Louisiana governor said today that Gov. Earl Long, mentally 111 in a Galveston hospital. may be unable to complete his term of office. Lt. Gov. Lether Frazar, acting chief executive of the Bayou State in Long’s absence, said it is possible the fiery 63-year-old long may never serve another day as governor of Louisiana. His third four-year term ends in May, 1960. At the request of. Long’s family, Probate Judge Hugh Gibson Tuesday pronounced Long dangerous to himself and to others and ordered him committed for psychiatric treatment at John Seaty Hospital here. The order said Long was mentally and physically ill. The hospital said in a medical bulletin late Tuesday that chances for the colorful Louisiana political leader's recovery are “excellent." At Baton Rouge, Frazar told United Press International "there is no doubt that he will be out for the rest of the fiscal session (of the Legislature that has another two weeks to go), but nobody knows yet whether he will be able to serve out the rest of his term as governor of Louisiana. "We hope that he will be able to return, but none of us are too hopeful. It is possible he has served his last day as governor. The main thing we all want is for him to recover his health.” Mrs. Long, who has been at her husband's bedside since he was flown secretly to Galveston Saturday, was scheduled to return to the mansion in Baton Rouge today and talk to members of her husband’s administration.