Indianapolis Times, Indianapolis, Marion County, 13 March 1951 — Page 14

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The Indianapolis Times A SORIPPS-HOWARD NEWSPAPER Eo

ROY W. HOWARD WALTER LECKRONE HENRY W. MANZ «President tor

PAGE 14

a

Tuesday, Mar. 13, 1951

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10c a copy. Telephone RI ley 5551 Gibe Light and the People Will Fina Their Own Woy

| SCRIPPS ~ NOWARD |

World-Wide RFC?

BOARD set up by President Truman last fall to survey the problem of the world’s underdeveloped areas, in line with his Point IV Program, has made its report. ont It says, not surprisingly, go ahead, full steam. It is the International Development Advisory Board, headed by Nelson Rockefeller and made up of 12 representatives of American labor, business, education, agriculture, ete. Incidentally, one of the consultants who assisted in preparation of the report, is Robert R. *Nathan—a curious

choice of a person to help write our foreign spending policy. 3 ” » »- ” » ”

MR. NATHAN is an economist, formerly with-the federal government and the CIO, and now head of Robert R. Nathan Associates. The Nathan Associates is registered with the Justice Department as an agent for Indonesia (Mr. Nathan visited there in 1948) and for the Embassy of Israel.

sistant to President Roosevelt, who last year got a $150,000 seen aix-months contract to advise Colombia on economic matters. | Broad aims of the program conceived by the board can hardly be questioned. By raising living standards and food production in undeveloped regions of four great world areas, it would seek to halt Soviet aggression short of war. It ‘would, do this by initiating a multibillion-dollar American spending program, starting with annual appropriations of $500 million for several years. It would lump the present 23 U. S. agencies now handling our various ~ foreign-aid programs into one administration headed by one man with great authority. : sr ha The board sa;= /»1¢.elthough our foreign economic-aid “Programs have been well handled in the past—a debatable point, to say the least—it is now urgently necessary to eliminate any idea that this is to be just another give-away

plan.

» yn o # " - BUT, how are we to disabuse other nations of the idea that our Point IV is a bigger and better dispenser of hand-outs? Ever since the “bold new plan” was first broached in the Truman inaugural address of 1949, foreign nations have been standing around hat in hand for this new type of donation. They saw the dawn of a new day in which their economic development would be underwritten by Uncle Sam. They saw a world-wide Marshall Plan—and when the administration asked only $45 million appropriation as a starter, there was acute disappointment amounting almost to indifference. The Rockefeller board proposes several steps to reassure American taxpayers that their money was not being bestowed loosely. It would require local investments “wherever possible,” and in no case would the International Development Authority make grants covering the “full cost” of any project. In addition, it hopes to increase private American investments abroad by at least $1 billion, primarily by exempting these investments from u. 8. taxation. ‘ Could this be the beginning of a world-wide RFC

Land of Opportunity

THE LATE Horatio Alger, could he return and read about our current congressional investigations, surely would be convinced that America still is a land of opportunity. Consider, for instance, the testimony of Attorney Joseph E. Casey, former Democratic Congressman from Massachusetts, before Sen. Fulbright’s subcommittee which is investigating “favoritism and influence” in the Reconstruction

Finance Corp. . Mr. Casey and another Washington lawyer, Joseph H. Rosenbaum, represented applicants for RFC loans. They also were associated in forming a company which, with a capital of only $100,000, borrowed $10 million from an insurance company, bought five ships from the government's Maritime Commission, and sold them at a profit of $2.8

million. : y vn 8 8 ®

MR. CASEY, having invested $20,000 in the ship-buying company, sold his stock for $270,000. Then there's the “rags-to-riches” rise in the RFC of E. Merl Young. He's the financial genius who bought that $9540 natural pastel royal mink coat for his wife, a White House stenographer, and gave Attorney Rosenbaum the privilege of paying for it. And there's the New York gambling magnate, Frank Costello. - Sen. Kefauver’'s Crime Investigating Committee has been told that Mr. Costello earned a tidy $60,000 in four years by keeping unwelcome bookmakers away from a New York harness racing track. “And the former employee of the government's Internal Revenue Bureau, who, according to other testimony before the Kefauver committee, bought $200 worth of stock in the game race track 10 years ago. He retired on pension three or four years later, and a director of the track testified that his stock now pays him $4800 a year in dividends. Opportunity? Horatio Alger’s hard - working young heroes never had it so good.

Finis Hiss Case

THIS would be no time to turn the back of our hand to Alger Hiss, now that the Supreme Court has left him to his fate of five years in jail as a perjuror-traitor. Supreme Court Justices Frankfurter and Reed, who were character witnesses for Mr. Hiss at his original trial, appropriately did not participate in yesterday’s action of the high tribunal. They can make known their own present ; views and sentiments, as they choose. Ey So can Secretary Acheson, who so proudly would not : deny Mr. Hiss, even after a jury found him guilty. .. So can President Truman, who once thought the whole affair smelled of nothing but red herring.

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SCHUMAN PLAN . . . By Ludwell Denny

Can The Allies Tie German Military Po

PARIS, Mar. 13—Continued French support of the United States in the Big Four Deputies Conference here depends partly upon German acceptance of the Schuman Plan for pooling Western European steel and resources. Unless Germany's economic future and military potential are thus tied to the West she can play Russia against the Allies for the highest bidder, resulting possibly in a GermanSoviet deal. So far, the French delegation in the deputies meeting is standing firmly with the United States against the Soviet agenda plan for a phony neutralization of Germany. But {f John J. McCloy, United States High Commissioner in Frankfurt, fails to deliver West Germany's signature to the Schuman Plan within .a week, look for French wobbling in the deputies’ conference. That's what Stalin is waiting for. While there is no chance of France openly breaking with the United States Western defense policy, she and Britain. could force a so-called compromise with Stalin on, the German neutralization. issue, which would make effective Atlantic defense virtually impossible. Following Commissioner McCloy's behind-scenes shuttling between Frankfurt,

A HERO? . . . By Earl Richert

Assassin Seeks

Refuge in U.S.

WASHINGTON, Mar. 13—On a bright June.

morning in 1927 in a railroad station in Warsaw, Poland, a 19-year-old youth fired six shots

"at the Saviet Ambassador to Poland, killing him

instantly. Newspapers throughout the world bannered news of the assassination. The ambassador, Peter Woykow, had been one of Lenin's closest associates was a member of the comin tern and had participated directly in the execution of ‘the Czar and his family.

was a penniless Russian. refugee who had witnessed many acts of Soviet terror in

. his boyhood, including the murder of a close family Mr. Kowerda friend. All by himself, he set «..asymbol Gut to avenge millions of his

persecuted countrymen. Today, having survived through the years, this man, snowy-haired at 43, is a moral issue before the U. 8. Congress. Shall this convicted assassin (now living with his wife and child in a displaced persons camp in Bremen, Germany) be given refuge in this country? The law will admit them but says that as an admitted murderer he cannot: come in. Rep. Francis E. Walter (D., Pa.) thinks Mr: Kowerda merits special treatment and is pushing a bill to allow the Kowerdas to enter this country. It has been approved by the House Judiciary Committee and is pending before the House—where_it is known it will be opposed on the gro dacfia political assassins should not be rou uge here. \ Backifg Mr. Kowerda is the Tolstoy Foundation, h & by Countess Alexandra Tolstoy, daughter of the famous Russian writer, Count Leo Tolstoy. : Rep. Walter said Countess Tolstoy had told him that Kowerda was a ‘symbol of anticommunism’ to millions of people in Europe. “I feel that to permit this man to live in the

atmosphere of freedom -— which he himself .

fought so hard for—will offer a substantial ray of hope to thousands of others,” Rep. Walter sald. . ‘ T. A. Schaufuss, European representative of the Tolstoy Foundation, told the House committee that Mr. Kowerda was a man of moral integrity and fortitude. \

Was a Hero

“HIS ADMISSION,” Mr. Schaufuss, “should not be feared for reasons of safeguarding our country from undesirable elements. He may prove to become a loyal and useful member of the American community.” Mr. Kowerda survived because Poland was strongly anti-Communist at the time of the assassination. And he was a hero to many then. The Polish court sentenced him to life imprisonment but a year later the sentence was commuted to 10 years of hard labor. He was released in 1937. When the Germans took Poland, he was sent to Germany as a slave laborer. With the coming of the Russians he fled to Lichtenstein and then to France. All is ready for:the wife and child to enter the U.S. under the displaced persons law, but they will not come without Mr. Kowerda. Boris V. Sergievsky, 300 Central Park West, New York City, has offered to give Mr. Kowerda employment as assistant bookkeeper at the Certified Aviation Center Inc. in New York City.

FINANCIAL HIGH JINKS . .

)

The youth, Boris Kowerda, ,,

Paris and Bonn during the past 10 days, the American and French governments think German acceptance of a modified steel-coal plan is in the bag. They have been similarly hopeful a half dozen times since Foreign Minister Robert Schuman made his original proposal a year ago.

Assuming West German Chancellor Konrad

Adenauer and the Ruhr industrialists honor their pledges to Mr. McCloy last week, there

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The second hitch is that the German signa-

ture would not guarantee ratification by the Bonn parliament. Chancellor Adenauer’s own Christian . Democratic Party and also the Free Democrats (second largest party in the coalition

By Frederick C. Othman

What a Country--Kiss Your Wife In Public and It’s Jail, Buster

‘BUENOS AIRES, Mar. 13—Here a fellow has got to stop, look and listen for cops before kissing his wife good-bye at the railroad station. That is a crime against the dignity of the state and he can go to jail for it. . It also is only the beginning. There are so many laws here regulating the life of the average Joe that he needs a book to list them alphabetically. Say he's been out on the town with his best” girl. He takes her home. Not only is it a misdemeanor to kiss her, but he can’t even sit a while with her in his car. The government does not approve of necking. If a lady appeared on the street in shorts she'd go to . jail. If she wore slacks, the cop would be little more polite about it; he'd tell her to go home and get decent. On penalty of law.

A mere man is in a tougher spot still. No matter how hot the night, he must wear a coat before he can stroll the boulevards. Everybody does wear jackets, too, because the first offense brings a warning from the ever-present police and the second sends him to headquarters. No matter how classy the restaurant, it must list on its bill of fare a menu economica, or a complete meal for around 30 cents. This usually consists of soup, beef stew, and baked custard, and it puts the beanery proprietors on a tough spot. They try to discourage such trade but they can't get tough about it because the customer can call for the book. This is a volume =o constructed that a page can't be torn out without leaving an obvious and illegal hole. Any diner who feels that the meat's too tough, or that he’s been insulted can demand the book and write down his com-

. By Charles Lucey

plaints. An inspector calls each week to read them, and woe is the restaurant owner whose book has too much writing in it. A companion law says it is beneath the dignity of an Argentine waiter to accept a tip. The statute calls for a 22 per cent addition to each bill so that everybody in the place, including the dishwasher, can get his fair share of the loot. - But I guess waiters and human nature are alike all over the world. It is wise to leave another and illegal tip if you expect to eat in the same restaurant again.

And that brings us to El Presidente Juan Peron, the strong man, and his blonde wife, Eva. This is not the place to discuss the closing by the government of La Prensa, one of thé greatest newspapers in the world, because it did not approve the way Juan and Eva were running the country. There's nothing funny about that, or about the night spent in jail by an American photographer because he took pictures of a battle between La Prensa’s workers and a group of, quote, strangers, unquote. I have seen Peron and his wife at numerous events, including a boxing match, but I never did get a chance to talk to them; American newspapermen are not exactly popular here now.

Oppressed by a Coat

I WAS talking to a philosophical Argentinian who shrugged his shoulders. Similar governments have been in power here before. In fact, he said, the people labor mightily 18 hours per day to destroy their country. : “But during the other six,” he added, “the grass grows and calves are born and that repairs all the damage done by man.” He's probably right. This is a rich and delightful country, but I'd like it a good. deal better if I could read the newspaper of my own choice, kiss any lady who did not object, and stroll down the Calle Florida in my shirt sleeves. I've never felt so oppressed by a coat, or a government, before.

heavy industry generally. This coking coal is controlled by German trusts through a central selling agency (DKV) ‘and through the German steel companies’ ownership of captive mines. That control enabled the Ruhr industrialists to speed Hitler's armament. It would permit

them to control mot only the future German

- Obvious Ways

THERE are two obvious ways theoretically to curb this overwhelming power of the Ruhr industrialists in peace or war. One is to break up the German trusts, The other is international control. ; The Allies are formally committed to trust busting, but have made little progress. Trusts being the normal European system, neither the French nor the British are basically inter-

ested and even the United States has walbled . under pressure irom all sides; {ncluding hostile :

German iabor as well as capital, A International control now exists through the

Allied “Ruhr Authority” and Allied high commissioners under the occupation statute. But these controls will disappear as Germany fis granted sovereignty and equality. The Schuman Plan would replace Allied control with an international authority over all Western European steel and coal on .which Germany would be represented as an equal. The purpose of the plan is to create a free competitive market in which member nations would have equal access to raw materials and markets and by which—after an initial protective period for the weak sisters—only efficient producers would survive. Both the French and German trusts prefer the old pre-war system which enabled them to operate international trusts, allocate materials and fix prices for mutual advantage but at the expense of European prosperity and peace.

Key to Defense ; THE UNITED STATES in the current MecCloy negotiations is using the over-all American economic and financial position in the world, as well as the American key to West European and German defense against Russian aggression, to force Chancellor Adenauer and the Ruhr industrialists to accept a modified Schuman Plan. as the price for taking Germany into the Allied family, economically and defensively. This is potent because of Germany's current trade and credit crisis.- ? The McCloy compromise would postpone the break-up of the German coal sales organization monopoly for three years and allow certain German steel companies to retain ownership of captive mines supplying roughly 75 per cent of their own needs. In return, Germany's demand for killing the Allied Ruhr Authority and its controls would be granted Oct. 1. Chancellor Adenauer and the Ruhr industrialists have agreed in principle to this Amer-ican-French compromise, but the Germans are still trying to chisel for more favorable terms.

FOSTER'S FOLLIES

GRAND RAPIDS, Mich.—An 11-year-old Grand Rapids’ AI a her hid President

Truman, approving her idea of tossing over

hér Republican upbringing and becoming a

Democrat.

Though we've not seen the words he wrote, We doubt they were alarming, We think in fact this little note -» May have been ultra-charming. : “Suzanne, my dear, please pay us heed, “You're lovely sweet and cute, you're “The kind of lass we're gonna need— “Some 10 years in the future.”

RAINBOW'S END

THE COLORS of the rainbow , . . are glorious to see . . . and when a rainbow decks the sky . .. it thrills the heart of me . . . the red is like no other red ... for woven in its hue . « » are living rays from God above . . . that warm me through and through . . . the blue and green are quite the same . . . they have a

magic tint . . . and seem to spray the heavens

with . . . a diamond colored lint . . . the spectrum of the rainbow . . . a million shades unfold . . . but what my eyes are seeking most . .. is the pot of shining gold. —By Ben Burroughs.

Will The RFC Affair Turn Into Another ‘Teapot Dome’ Story?

Will 1951 See a Repeat of Sensation

That Took Place in the Mid-1920s? ©

The Big Wheel in the Nation's Capital

Scandal Tore Harding Administration

Apart—Will the Same Thing Happen Now?

WASHINGTON, Mar. 13—They're beginning to compare the influence-peddling and financial highjinks at the RFC with piracy of the Harding administration's Ohio gang and to tab this “a

new Teapot Dome.” ‘

The bribery of Albert Fall, Secretary of the Interior, and those linked with him were a sensation in the mid-1920's.

It all began when a Wyoming citizen whote Sen. John B. Kendrick about gossip heard in April, 1922, that government oil land known as Teapot Dome was being leased by Secretary of Interior Fall

to the Mammoth Oil Co., the creation of a. bold. promater named Harry F. Sinclair. Sen. Kendrick wrote Fall for an explanation. Fall ignored the request and the Senator introduced - a resolution calling upon Mr. Fall and Secretary of Navy Edwin Denby — control oyer government oll reserves had been vested in the Navy-= to say whether federal oil lands were. being leased to a private.corporation. 5 » ” SOON the Interior Department announced that not only had Teapot Dome been leased to Sinclair, but that the Elk Hills reserve in California also had been leased to a company headed by Edward L. Doheny. Development of the reserves was necessary, it was said, because adjoining land owners were depleting them through drainage. Fall confirmed all this in a belated reply to Sen. Kendrick, and veiled the whole affair in executive discretion. But Wis-

consin’s Sen. ‘Robert M. La?

Follette Sr. pressed for an in-.

vestigation and Sen. Thomas J. Walsh, Montana Democrat, was named to direct it.

-

Tom Walsh, one of the ablest Senators ever, took 18 months to build his case. His first witness was Albert Fall, a Kentuckian transplanted to New Mexico, who had been a Senator before he joined the Cabinet. He was a man of wide-brimmed hat, bronzed skin and a pleasant drawl. In the old days, he and Sen. Warren Harding had beeh cronies. = ” Tr FALL told Sen. Walsh, as the investigation began, that he had not called for open bidding on the oil leases because he could- get a better price without calling for bids. He met questions about sin-

- Ister purpose by taking refuge

in the confidential nature of

military affairs, including oil

storage for future crises. The - Senators asked Fall about a European trip he had made after leaving the Cabi~ net, which he admitted was

‘ financed by Sinclair. Fall said

he had been in Europe on

‘.business for Sinclair. As for

his tie with Doheny, the other oil lessee, he said he had advised him on certain matters but without compensation. That seemed to be that. But then Sen. Walsh called Secretary of Navy Denby. Why had

- naval oil reserves been trans- -

ferred to the Interior Department? Denby seemed uncertain. He said he had assented to the transfer, proposed by Fall, without under-

standing much about it. The chief impression he gave was simply that of a man who -didn't know what it was all about.

» ” . SEN. WALSH then called technical people who denied that drainage from the Naval reserves, because of adjacent development, Would be serious. He called Sinclair and Doheny, but aside from admission that tremendous dollar

values of oil were involved, seemed. to get little. Mr. Sinclair denied Albert Fall profited personally by- these deals. 2 But neighbors of Fall observed signs of a new prosperity at his New Mexico ranch. New fencing, more land bought, an electric light plant installed, back taxes paid. It added up to $175,000. Tom Walsh asked Albert Fall: How come? :

“ turned toward

Friends told Fall that, for the sake of the Harding administration’'s ‘reputation, he must answer. He did. He told the committee Edward B. McLean, Washington publisher, had loaned him $100,000. He denied receiving anything from Sinclair of Doheny. ” EJ 8 a IT SOUNDS natural. Fall and Mr. McLean had been cronies and both were pokergame associates of President Harding. Mr. McLean had bar rels of money. . The Senate- committee

Mr. Mclean, who -was--in Florida. tically, he began trying to evade a committee appearance. Plainly, he was scared. Tom Walsh decided if Mr. McLean couldn't come to Washington, he'd go to Florida.

Mr. McLean told Sen. Walsh yes, he had loaned $100,000 to Fall in checks. Then he said, amazingly, thaf Fall had returned the checks to him—that he actually had not given Fall any money at all. He admitted, a little later, that Fall had asked him to deceive the committee. Then Edward Doheny, after long brooding, told Albert Fall he should tell the truth. Fall demurred. So Doheny went to Washington, told the committee he had loaned Albert Fall $100,000 to enable him to purchase a New Mexico ranch, He denied impropriety, cited long friendship with Fall i oe os ~ ALBERT FALL came to Washington, a sick and tragic man, facing former Senate associates in disgrace. He de-

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Fran-.

, fraud the government.

clined to answer committee questions. Now Harry Sinclair was called again. He refused to talk and was charged with contempt of the Senate. He was tried, convicted, sentenced to a $1000 fine and three months in jail. Normally, the whole case would have gone to the Justice Department now for prosecution. But the Senate lacked confidence in Attorney Gen-

* eral Harry Daugherty, another

Harding crony who had been under almost continuous criticism. So special prosecutors were named—Owen Roberts, later Bupreme Court Justice, and ex-Sen. Atlee Pomerene of

~ Ohio.

They showed the Doheny loan to Fall was almost simultaneous with Fall's first moves toward leasing “Elk Hills to Mr. Doheny. They traced $200,000 in government bonds, made to the credit of Fall or a son-in-law, back to Harry Sinclair. ” . ”

THE OIL leases were or-

dered canceled. On June 5, -

1024, Fall and Sinclair were

indicted for conspiracy, and Fall and Doheny for bribery. On a technicality, the indictments were thrown out. New indictments were returned. Fall and Doheny were ace quitted of conspiracy to deFall and Sinclair were acquitted after another conspiracy trial, Fall at last was found guilty of accepting a bribe, sentenced

to a year in jail and fined $100,000. But Doheny was ac- » quitted on a charge of bribing

Fall

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