Decatur Daily Democrat, Volume 57, Number 214, Decatur, Adams County, 11 September 1959 — Page 2

PAGE TWO

Eight Gamblers Sentenced

INDIANAPOLIS (UPI) — Eight men who were convicted of excise tax evasion in the operation of what was believed to be the world’s biggest football betting syndicate, were sentenced late n»ursday—six of them to prison. Federal Judge Cale J. Holder meted out 5 year prison terms to Leo Shaffer, ss. and Jules Horwick. 55, CMicago; Philip Share. 55, and Irwin Gordon. 42, Las Vegas. Nev.; James E. Tamer, 47, Miami, Fla., and E M. Wyatt, 61. Terre Haute. Former Marion County Sheriff Charles L. (Buck) Sumner, 71, and Joseph Jacobson (Joey Jacobs), 64. Indianapolis, were placed on probation. Each of the eight was fined $25,000 and court costs for their lengthy trial at Terre Haute in June and July. The eight were convicted of conspiracy to evade and actual evasion of the 10 per cent federal excise tax on bets totaling more than three million dollars during a 10week period in the fall of 1957. The six ordered to prison were each given a fbur-year term for conspiracy and a four-year term for evasion, the terms to run concurrently. The fifth year was added for another count charging failure* to properly apply for a federal gambling tax stamp. Judge Holder said he did not sentence Sumner and Jacobson to prison only because of their ages. Th'*’ other six were given until Sept. 21 to wind up their affairs before reporting to the U.S. marshal's office for transfer to a federal prison. A motion for delay in sentencing was withdrawn by defense attorneys during the four-hour hearing. After the sentencing, defense lawyers said they were uncertain on whether to appeal.

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Holder said, in pronouncing sentence that “the court sees nothing that is a sufficiently mitigating circumstance to warrant probation excep only on the matter of age. The pre-sentence reports Indicate all have participated and skated on the edge of the Jaw for years.” The maximum sentence they could have received was 21 years and $50,000 in fines. Fines of $10,006 each were ordered on only two counts each and a $5,000 fine each on the final charge of failing to register for the stamp was added, plus court costs. These costs have not yet been determined, but are expected to be high because of the length of the trial. Even this does not the full story of the difficulty in which the eight convicted gamblers are involved. Hanging over them is a possible civil tax liability of $1,700,000. The civil tax liability was cited by attorney Daniel W. Davies, Newport, Ky., in seeking to gain a 60-day delay in sentencing. He said the defendants wanted time to make a tender of taxes. Davies, who represents onl Wyatt and Horwick, soon ran into the same sort of cross-purposes which characterized the trial itself. The remaining three attorneys expressed surprise, and a recess was ordered for a purpose described by district attorney Don Tabbert a “getting their ducks in a row.” When the hearing was resumed, Davies withdrew his motion for a continuance. Tabbert, speaking for the prosecution, declared there never has been “a more serious fraud upon revenue brought before this court.” He asked that all defendants be given “substantial” prison terms and fines. Tabbert read a telegram from attorney general William Rogers terming the eight-man operation “the largest international football betting syndicate” ever to operate and calling their conviction “an important step in (the Justice Department's) campaign against organized crime.”

The district attorney also presented some data not given during the trial which showed Gordon, Shaffer, Horwick, Jacobson and Tamer received a total of $23,725 from Dell Import Corp. Ltd. Montreal, in September, October and November, 1957, the months the syndicate flourished in its Terre Haute quarters. Tabbert said the Canadian firm was a cover-up for the betting operation and not a fruit and vegetable importing concern. Holder noted that Jacobson, Sumner, Gordon and Horwick never have been previously convicted of a felony. He personally admonished Jacobson and Sumner, after placing them on probation, warning them to “disassociate yourself from the (gambling) fraternity” and “get back to your family and church.” I Outlook Meetings Planned In State I Purdue University agricultural economists will conduct 81 outlook meetings throughout Indiana beginning September 21. Purpose of the meetings will be to answer questions concerning prospects for farm prices and incomes both for 1960 and for the next three to five years. Effect of the steel strike, inflation and the tight money policy on the demand for farm products and the cost of things farmers buy will be discussed. Questions to be discussed include: How long will cattle prices hold up? • How low will hog prices go in 1960? Should soybeans be stored this fall? Should corn be sold at harvest time? What is the forecast for prices -of milk, eggs and broilers? Purdue agricultural economists say that not only farmers, but businessmen and city consumers will be especially interested in the discussion of trends in prices and incomes. Effects of these trends and other factors on farm real estate prices also will be discussed. The Adams county outlook meeting will be held Tuesday evening, October 6, at the Adams Central school library.

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Rackets Prober To Bow Out Saturday WASHINGTON (UPI) •- Chief Counsel Robert F. Kennedy of the Senate Rackets Committee will formally end his career as one of the nation’s most famed investigators Saturday. After three years in the national spotlight, Kennedy announced Thursday that he was bowing out to return to private life. His resignation was accepted by Committee Chairman John L. McClellan (D-Ark.) with reluctance and with glowing words of praise for the young staff aide who sat at his side through months of turbulent public hearings on labormanagement corruption. Some. Republican committee members, who publicly tangled with Kennedy during the recent hearings on the United Auto Workers, were more restrained. McClellan has said that, barring a change of plans, the UAW inquiry would be the last conducted by the committee before it goes out of business next January. The shutdown did not set well with the GOP members, who wanted to look further into the UAW’s activities and at labor's political spending. “I don't like to see a man who was so competent in investigating Jimmy Hoffa leave while, there is still unfinished work to do.” Sen. Barry Goldwater (RAriz.) said in commenting on Kennedy’s resignation. “The mysterious thing to me in" 1 the whole course of the hearings has ‘been the militant reluctance of the Kennedys —John and Bob—• and the whole staff to get anywhere close to the UAW and its history of violence...they were certainly tough on Hoffa.” Kennedy told newsmen he planned to vacation for a time and then write a book about congressional investigations. But Goldwater said he understood that Kennedy was leaving to help his brother, Sen. John F. Kennedy (D - Mass.), campaign for the Democratic presidential nomination. Hand Mangled By Home-Made Rocket SALEM, Ind. (UPD—A homemade rocket exploded at the Washington county Conservation Club near here Thursday night, badly injuring Paul Brown ,17, Salem high school senior, as he tried to launch it. Brown’s mutilated left hand was amputated in surgery after the accident.

Ike’s Top Ambition Is Arms Reduction

By STEWART HENSLEY ' United Press International WASHINGTON <UPI) — President Eisenhower's greatest ambition as he nears the final year in [ 'the presidency is to make some progress on arms reduction. He fears the world arms race is , nearing the "explosion point'* and intends to devote every atom of his energy in trying to reduce ' the trend. Eisenhower frankly acknow- _ ledges real progress on disarma- ’ ment can come only if some moves can be made on resolving outstanding conflicts. He hopes to : make some headway in his talks . with Soviet Premier Nikita S. ’ Khrushchev. The President’s position has been made clear on these probJ lems: Germany: The United States ’ will agree to any honorable solu- ; tion for reunification of Germany which gives the German people , complete freedom to select their own form of government. It will ' not agree to any Soviet-proposed ' "confederation” or other arrange--1 ment which would give the Communist eastern part of the coun- ' try, which has a population less ’ than one-half of the pro-Allied " West, the opportunity to impose ’ Red rule on the entire country. Berlin: The United States and ' its Allies will pull out of West r Berlin only tn connection with a ' I settlement of the entire German ’ problem. They will not give in, under threat or pressure, to Soviet ’ demands that Britain, France and ’ the United States evacuate West J Berlin and permit it to become a demilitarized "free city” at the , mercy of the surrounding Com- ’ munists. Nuclear Test Ban: The United ’ States will agree to a permanent : ban only if the Russians agree to ' establishment of an effective control and inspection system to en- , sure its enforcement. The United States, as well as Britain, rejects Russia’s idea of an agreement on a permanent ban without any police system. Disarmament: Recent big power agreement to resume discussions of arms reduction is a hopeful sign. The talks should be pursued sincerely by both sides, with consideration for the other’s position. The West is prepared to offer the ' Soviet Union a guarantee against resurgent German militarism if that will help allay Russian fears. American Bases* The bases are vital to the defense of the free world so long as Communist elements continue their efforts to

subvert free governments around the world. Establishment of bases on foreign soil and the increase in the American military establishment came only after the Koreah War had exposed naked Communist aggression. Middle East: All the big powers should avoid meddling in the internal affairs pf the countries of the Middle East, confining their efforts to economic assistance to help raise the economic level. Only in this way can some semblance of lasting peace be brought to this turbulent area. Communist China: Eisenhower hopes Khrushchev will use his influence on the Peiping government and get it to halt Communist infiltration in Laos and India. He also will explain that while the United States has no aggressive designs toward Red China, it will not abandon its responsibility to the government of Chiang Kaishek on Formosa. The list of problems is long, the gulf between East and West is wide, and the heritage of bitterness is great. It may be impossible to actually bridge any of the gaps at this time. But if Eisenhower and Khrushchev succeed in creating a more agreeable general climate for negotiation, the President will consider his efforts well spent. ° Household Scrapbook | By ROBERTA LEE I O o Piano Care Do you live where rust will attack the wires of your piano? If so, fill a pound bag with unslaked lime and tack this inside the piano close to the wires. The lime will absorb the moisture. Breaking Coconut To break a coconut easily, first drain out the milk through the eyes, then place it in a hot oven <350 degrees) for about twenty minutes. Remove the coconut and allow to cool before breaking it. Perspiring Hands A treatment for perspiring hands is the use of an astringent lotion made of one part of boric acid to twenty parts of water; dust the hands afterwards with talcum powder. Poison Ivy Killer Poison ivy growths will die when subjected to a spray made from a gallon of soapy water and three pounds of salt. Use this spray several times in the ’’danger zone.”

Panhandle Requests Gas Rate Increase Panhandle, Eastern Pipe Line company Thursday requested federal power commission approval of an average rate increase of 2.4 cents per thousand cubic feet (MCF) for natural gas sold at wholesale to utility companies in six states—Kansas, Missouri. Illinois, Indiana, Ohio and Michigan. If none of the increase is absorbed by the 60 utilities affected, it would amount to approximately 33 cents per month to householders using Panhandle gas for home heating, according to James R. Sykes, general sales manager of the pipeline. Sykes, said the total increase requested is 38,653,724 per year, or eight per cent above the present level of rates. Sykes pointed out that Panhandle’s rates under today’s filing are still much lower than those charged prior to World War II and will still be considerably lower than those of other pipelines serving the same geographic areas of the nation. Sykjs said this rate adjustment is the direct result of the terms of an FPC order authorizing Trunkline Gas company, a Panhandle subsidiary, to undertake an 382,000,000 expansion program, increasing Trunkline’s capacity by 135,000,000 cubic feet daily. Sykes said: “The FPC order in the Trunkline case (May, 1859) automatically imposed higher costs upon Panhandle which, under regulation, has no choice but to include the new costs in the price of gas sold to utilities for resale.” When the Trunkline expansion program was first presented to the FPC, it provided that the costs associated with the new facilities should be borne by the one customer then destined to receive the new gas supply involved. Consumers Power company of Jackson, Mich., was to have received all of the 135,000 MCF per day of new capacity from thq Trunkline project and had agreed to pay 45.5 cents per thousand cubic feet. Sykes said. In approving the Trunkline program, however, FPC reduced the rate to consumers to 40.5 cents per MCF, added Michigan Gas Utilities company of Coldwater. Mich., as a recipient of some of the new capacity, and directed Trunkline to file a new rate schedule covering the changed conditions imposed by the commission. Sykes said: “The primary purpose of this rate filing is to provide the revenue necessary to

FRIDAY. SfcPT. 11, 1059

meet the higher costs of gas purchased from Trunkline. Although it was not management’s intention of imposing added costa upon customers not receiving new supplies from the Trunkline expansion, the FPC order has left us no alternative.” Sykes cited the rates of competitor pipelines as. proof that Panhandle remains the consumers’ most economical source of supply in the areas served. In Indiana, utility customers of Texas Eastern Pipe Line company have been paying between 36 and 40 cents per thousand cubic feet. Panhandle utility customers in Indiana are now paying an average of 30 cents per thousand cubic feet to the pipeline. Under the new rates filed with FPC. Panhandle Indiana customers will pay 32.4 cents per thousand cubic feet. Goshen's 42 Lowest Reading In State United Press International Temperatures dipped today in Indiana to the lowest points since last spring and gave Hoosiers a foretaste of autumn with readings as low as 10 degrees above freezing. Goshen’s 42 was the state’s lowest in the daily Weather Bureau check of six geographically distributed cities. South Bend had 43, Fort Wayne 44, Lafayette 46, Indianapolis 47 and Evansville 50. The chilly dip of the mercury followed the season’s coolest day Thursday, with temperatures ranging from 66 at Lafayette to 71 at Evansville at their high points. Generally speaking, the Thursday highs were the coolest since last May 23 and today’s lows the chilliest since last May 17. Slightly warmer temperatures were expected today, tonight and • Saturday, and the five-day outlook for the period ending next Wednesday indicated normal readings would prevail. Highs today will range from the low to mid 70s, low tonight from the mid 40s to the low 50s, and highs Saturday around 80.

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