Indianapolis Times, Indianapolis, Marion County, 5 December 1951 — Page 18

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5 A SCRIPPS-HOWARD NEWSPAPER

ROY W. HOWARD WALTER LECKRONE HENRY W. MANZ [President . Editor Business Manager

PAGE. 18 Wednesday, Dec. 5, 1951

0 d published dally by Indiadapolis Times Publish. Tote 0% a a a3 Postal e 9. Member of

em nited Press, Scripps-Howard Newsoaper Alliance, NEA Service od Press, Bureau of Clreulation.

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" Telephone PL aza 5551 Give Toke and the Peop's Wilt Pind Thole Own Way

EN & ¢ - When Is a Gambler . . . ? : OU may feel, as we do, that Prosecutor Fairchild is being overly cautious in the use of the new weapon against gamblers that federal law has given him. Can't say we blame him much, though, in the light of what's shappened to gamblers in the courts around here in the past. In their battle with the law in Marion County there is no shadow of a doubt about who has won. That may have some bearing on the fact that of all the gamblers in the whole United States who so far have taken out federal licenses to gamble about one-fourth of them were in Indiana and more than half of those were in Marion County.

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” » » - ~ ” . THE custom, hallowed or something by ‘‘precedent” in Marion County, is for the occasional gambler who gets into court to cry for a “special judge.” He gets one automatically, not by law, but because “the courts” have held that it isn't’ necessiary to show any reason for by-passing the regular criminal court judge who is responsible to the public and might have trouble come next election day if his record is too smelly. Given what almost amounts to his choice of “judge,” the racketeer usually manages to get one who is, to say the least, sympathetic. Some of them, in the past, have been also remarkably ingenious in the discovery of technicalities that make conviction impossible. Each one has become a “precedent” to be followed faithfully by future judges. Among the more notable decisions along these lines have been: :

” ” THE White Swan case, where a “special judge,” at a single sitting, ruled that the White Swan Club was not a gambling place, thus acquitting the defendant, then fined the state's chief witness $100 for “frequenting a gambling place”—the White Swan Club. The written ruling of an elected criminal court judge, "(no longer in office) that a lottery operator was not guilty because the law prohibits “division of property” by chance —whereas all this racketeer was doing was dividing money by chance and money wasn't “property.” The great body of rulings that require the prosecutor of a lottery case to produce eye-witnesses who saw a gambler sell a “chance” on a lottery, saw him conduct a drawing to determine a winner, and saw him pay the winner. Since all major gamblers have hordes of “agents” who do the selling, seldom conduct any kind of “drawing” to deter. mine winners, and rarely pay off in public (if at all), this effectually blocks almost “all of the prosecutions. Legally the rules of evidence are the same in all criminal trials. In actual practice many a felont has gone to jail and plenty ofmurderers to the electric chair on evidence that wouldn't have convicted a gambler in Marion County.

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NATURALLY a prosecutor gets discouraged, and so do policemen. ; Lal Now, however, they have this new federal law. Under it, up to yesterday, more than 200 Indianapolis men and women have taken out federal licenses, paid fees of $50 each for them, and in effect made affidavits that they intend. to run gambling rackets. Most of them have no other occupation, and no other visible incomes. By federal statute those licenses and everything pertaining to them are “public records,” open to anybody who wants to see them at any time, in spite of some dubious procedures by local Internal Revenue Bureau officials in that connection so far to keep . some of them temporarily secret. “To most of us a man who describes himself under oath as a common gambler is a common gambler. How that will appeal to the courts of this county neither we nor Prosecutor Fairchild can know until there's a test case. In Lake County, it is interesting to note, the prosecutor took their word for it and arrested a batch of them, a forthright approach that we believe could well be emulated here. » = » = - . : THERE may also be a still sharper ax in the prosecutor’s hand. : The gambling racketeer “licensed” under this federal law is also required to report the pay-offs he makes on lotteries or bets, telling under oath that this was a gambling payment, how much it was and who got it, and without faking their identities, either. We aren't vet sure whether this, also, is a “public record,” although ib plainly was the intent of Congress that it should be, because he always has been supposed to provide that information for the secret files of the Bureau of Internal Revenue, even before this new law was passed. With that in the hands of a prosecutor we don’t see how even a one-case “special judge” could get past it—although let's not for a minute underestimate their resourcefulness. The racketeers seem to think so, too. Some of them have been up to the Collector's office already complaining that this will put them out of business. And that's just what we—and the Congress which * passed the law—had in mind. =

Cost in Their Makeup

F THE Navy really gets it established, the idea of including “cost consciousness” in rating the leadership qualities of officers can be the most progressive thing that has happened to the government in 20 years. ; Sen. Lyndon B. Johnson, chairman of the Senate Preparedness Subcommittee, says the Navy has agreed to use “this measurement of its officers. ; : . The idea developed from the“committee discovery of “routine day-by-day waste of both men and money at military establishments which have been investigated. Waste, as Sen. Johnson described it, “that would make any prudent businessman shudder.” The committee immediately should do its best to plant the same idea in the other armed services: And then see what can be done about spreading it to other government departments, beginning with the White House. : : Tt would be a wrenching reversal of policy for the gov-

er’ t, but a resuscitative relief to some 40 million taxPay... : 4 : aa < ha *» Pn 2v 3 > 3%]

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WHISTLE SOFTLY . . . By Frederick C. Othman Little Background on Shakedown

WASHINGTON, Dec. 5—You're going to be hearing a lot about Abraham Teitelbaum, the Chicago millionaire; Mrs. Shyrl Menkin, his gorgeous-looking friend, and their utterly fantastic tale of shakedown artists in high places. So 1 think I'd better tell you about them. Mrs. Menkin probably is the most beautiful woman ever to testify before a House investigating committee. Even the photographers whistled softly when she held up her gloved right hand to be sworn in. She was a brunet in black from her toes to

: the feather that curled around her cheek and to

the smoked glasses that hid her eyes. The story she told was as black as her costume. Some thieves, for sure, tried to get their clutches on friend Teitelbaum. Wealthy real estafe operator, sole owner of a loop skyscraper (in which, incidentally, I used to work) and attorney for the late Scarface Al Capone, Mr. Teitelbaum turned out to be a hefty gent, egg bald, clad in an electric blue suit, and possessor of a voice surprisingly’soft for a man so large.

Confirms Story

HE "OLD the sorry saga first; the raving peauty who was with him confirmed it. . Mr. Teitelbaum said he was’ in an argument with his government about hfs income taxes on an assortment of complicated real estate deals. In Miami Beach, where Mrs. Menkin lived, he said he met a couple of shakedown artists he identified. as Frank Nathan, the Pittsburgh gambler, and Burt Nastor, occupation unspecified. The gents suggested the only way he could stay out of jail was slip. them $500,000. Kind of made Mr. Teitelbaum sore. Then they showed

~ him a contract they had on an oil deal with the

Messrs. T. Lamar Caudle, the ex-assistant attorney general, and Jess Larson, the boss of the General Services Administration, which is the housekeeping division of the government. “lI don't know Mr. Caudle from a bale of hay,” said Mr. Teitelbaum. “Or Mr. Larson, either.” 3

Seek Soft Touches

HE WENT on to say that Mr. Nathan and

friends were looking for soft touches like him-

self, in a jam with the tax collector. The Congressmen found it hard to believe, as did I, that either Mr. Caudle or Mr. Larson would stoop to such skulduggery.

The unfortunate part was that both of them

had been in an oil-leasing deal with Mr. Nathan,

Views on News

IT WILL be easy to convince those who know him that House Republican Leader Mar-

tin hasn't made up his mind who he is going to

support for President next year.

AFTER inspecting our far-flung outposts all

over the world, one Congressman concluded

that we are all set to figure out any emergency on IBM machines.

EVEN WHITE HOUSE Press Secretary Short agrees now that the Korean War is still up in the air. . ! —D. K.

SIDE GLANCES

oath 12-5

LL TM REG. U.S PAT. OFF. COPR. 1981 BY NEA, SERVICE. ING.

"Why don't you fellows take a poll on something important- ; such as wives running out to bridge parties?"

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who was using their names on the contract to impress Mr, “Teitelbaum. He was impressed for sure. He said he refused to pay a cent to Mr. Nathan and that once, if he'd only had a gun handy, would have killed him. The Congressmen were shocked. They were jolted still harder when Mr, Teitelbaum swore that after he refused to pay the $500,000, his tax case was transferred from the Treasury to the Justice Department. . This ‘was evidence enough for him that the plot led to high places.

Sticks to Story

THE LAWGIVERS and their counsel, Adrian Dewind, tried to argue with him; to show him that Mr. Nathan was giving him thé husiness. Mr. Teitelbaum stuck to his story. ; “I thought my government was supposed to represent the people,” he shouted in his peculiarly high-pitched voice. "I found that some of them misrepresented the people.” Then Mrs. Menkin, in soft and well-modulated tones, took up the tale, while the photographers shot some of the prettiest pictures they ever took. ” : 3 She told of her canasta games with Mr. Nathan's wife and of the-eonversations about the. $500,000 her friend wouldn't pay. It was sizzling testimony; we're going to be hearing a great deal more from ‘it soon. ' -1 ean’ only advise bureaucrats to make no more oil leases with gamblers. Such documents are what you might call embarrassing. If you want to put it mildly.

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‘EUROPE .". . By Ludwell Denny ~~ Congress Looks With _Distavor |

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WASHINGTON; Dec. 5—The European army plan is petering out and probably only extra American dollars can save it. Gen. Eisenhower says such an tional defense force is essential. But Congress

On More U. S. Military Aid

interna-

is not enthusiastic about increasing foreign

military subsidies, which would be required to help arm West Germany as part of the integrated European army. The Germans have no intention of paying their proportionate share of the Atlantic defense effort. Our Allies, who are requesting more American aid for themselves, cannot help carry the reluctant Germans. The Allies have not even been able to agree on how to finance the proposed European army as between themselves and apart from the German share. -

U. S. of Europe

PARTICIPATING nations would sacrifice a good deal of sovereignty. Each would contribute to a budget which it could not control, Each would contribute troops it could not control. Thus much national political power would be delegated to a supra-national authority. That means the creation of some form of United States of Western Europe. Ever since the war there has been increasing talks of this, and several® definite moves toward “union” or “federation.” The largest of these, the European Consulative Assembly which meets in Strasbourg, is a loose organization as yet without supranational power. A small body but with actual super-state authority is that proposed by the Schuman Plan for pooling coal and steel resources. It has been negotiated but not yet ratified. The European army plan, also originated by the French to balance Germany's superior potential, is the military counterpart of the economic Schurhan Plan.

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The Washington government, though always sentimentally in favor of a United States of Europe, started out lukewarm on the Schuman Plan and opposed to the European army plan, It is now-—along with the Paris government the most vigorous advocate of both. iy The reason is practical. The Marshall Plan proved there is little hope of genuine West European prosperity without economic unity. Gen. Eisenhower discoveréd that a European army system is the safest way to handle German rearmament, which is essential to defense against Russia. :

England Will ‘Co-operate” BRITAIN — regardless of early Churchill speeches—always has been cool toward Euro-

pean economie, military and political pooling”

plans. Because she has strong commonwealth ties and separate American bonds, she is unwilling to sacrifice sovereignty to any form of West European super-state. She will only “co-operate.”

Belgium and The Netherlands, original advo- .

cates with France of a European army, now have serious reservations—largely because of National and Socialist opposition, and fear of French instability. More important, the two largest French parties the Communists and DeGaullists—are opposed. In Germany, the Socialists and Neutralists are opposed, and the Adenauer government’s continued support depends on a favorable deal for Germany based on “equality.” Despite these political differences, however, there is some chance of a compromise in which the supra-natioral authority would have only faint powers for an experimental period. There is less chance—probably none—of financing 4 Furopean army and its essential German divisions under Eisenhower command unless the United States will pick up the larger check.

DEAR BOSS . . . By Dan Kidney

WASHINGTON, Dec. 5—Four Hoosier Republican Congressmen are home from abroad. , Three of them veted against the $7.5 billion for foreign aid when 'it passed the House. They

think they. did the right thing. The fourth, Rep. -

Charles B. Brownson, Indianapolis, now says he would -only vote for half as . much. None of them likes the " way the funds are being spent. “Neyer have so many (Amerjean taxpayers) given so much to so few,” is the way Mr. Brownson sums up the case after a world-circling flight with the Bonner subcommittee checking managerial expenditures. “For the most part,” he “our money has gone to shore Wp bankrupt regimes and to permit the spread of cartels and monopolies that benefit the rich and further pauperize the poor. “They just don’t understand that U. 8. capitalism is based on mass production and getting widespread distribution, of the goods produced, to all classes of the people.

“In some places, like England, they would rather not work as hard as we do and do without the gadgets. Many are frank to say so.”

Rep. Cecil Harden, Covington, who was on the same trip as Mr. Brownson, said she doesn’t consider herself an “isolationist.” She pointed out that this Congress wd¥%the first in which . she failed to vote for foreign aid. She is serving her third term. . “From what I saw in the Orient, Near East and Europe,” Mrs. Harden said, “I am sure that ‘1 was right in withholding more funds until better use can be made of them.” During the trip they encountered two Hoosier Air Force generals who have high command posts. They are Lt. Gen. William E. Kepner, Kokomo, who heads the Alaskan command and Maj. Gen. Ralph F. Stearly, Brazil, who is on

Mrs. Harden . .

no isolationist

Hoosiers Shocked by Spending

Okinawa. One of the greatest installations in Pacific history is being established there Mr, Brownson reported. : The subcommittee held hearings in Tokyo and Korea, where Rep. William G. Bray, Martinsville, also visited. They then went to Europe via the Far and Middle East. Rep. Earl Wilson, Bedford, visited the European countries as a member of the appropriations committee studying the Coast Guard. He also reported that there is less “war talk” and more time being taken out from work there than here. “The closer you get to Russia the less the talk of their going to lick the world,” Mr. Brownson, a World War II veteran of both fronts, declaf®d. “Turkey is the best off country as a result of our aid—Turkey and Greece. We can count on them to fight communism. Turks guard the Russian border and take a dim view of Russian soldiers. One of them summed it up like this: ‘We know Ivan. He is stupid, deceitful and lazy. We have no fear of him.’

‘Aristocratic Ways’

“THEY THINK the only way Russia would go to war would be through a ‘preventive attack’ from. the U.S.A. Of course everyone hopes that ‘will not happen.” Mr. Brownson was most impressed by a visit they had with Winston Churchill. He considers him “one of the greatest.” Mrs. Harden, however, who saw him here in wartime, said she was shocked by his change into “an old man.” Some of the startling expenditures reported by the world travelers was. the staffing of palaces in Manila with 1200 Americans in diplo-

macy and aid missions. There are 413 in the

embassy at Rome. “Everywhere the Americans live lavishly and seem to be in contact with only those natives in similar circumstances,” Mr. Brownson said. “We cannot succeed in spreading demaqcracy by practicing the old monarchial and aristo«cratic ways of life. The people’ resent it and some have come to hate us.”

HOOSIER FORUM—‘Congratulations to the PSC’

MR. EDITOR: Hats off to the Public Service Commission for putting a damper on the telephone racket. Of all the brazen schemes hatched to skin the public, the telephone company has enjoyed a seat in the parquet circle of the swindling show for many years. ; In every business mass production "and

volume sales makes for greater efficiency and

more profits. Witness the chain stores and the auto industry. If your sedan was made by a small garage which made only 100 in a year, it would cost you $20,000. At present I have to do with gigantic automatic machines one of which does the work that required 10 men and 10 machines 10 years ago; -but instead-of boosting the price of the finished product, my employer has reduced it. . &» <> > NOW consider the telephone. We have a right to believe that the dial system greatiy, reduced the labor cost. of-service since it should relieve thousands of “hello” girls; also we know that small, simple desk phones could be produced at about one-tenth the cost of the old wall phone.. The phone company admits its customers have trebled in number in the last few years. Still it has the brass to boost rates. The curse of the telephone is its monopoly and public indifference. People generally have never considered what a sinecure the phone company has, and this indifference has enabled

WASHINGTON, Dec. 5—The aircraft industry was most jubilant over the Sen. Lyndon Johnson preparedness report which blasted the government's guns and butter mobilization policy and for the lag in defense production. pie Plane makers have borne the brunt of the criticism of lagging munitions output. And the aerial war gover Kofea, with a shortage of our: newest jets being a factor, has dramatized that aspect of the problem. The great bulk of the aircraft industry depends mostly on government orders and has not much motive to be in sympathy with ) plan. Plane makers make very tittle butter. Som 3 , ” » THUS, from the start, the aircraft industry has quarreled with the basic approach to the : Korean mobilization, which has wmmm—mm====_, been to try to divide the available materials and machine tools among the various civilfan users according to a preset formula. What the industry wanted was first crack at all the materials and machine

could be divided among civilian . users, *< : i It is this idea, in effect, X which Sen. Johnson's subcom-

{ty TV Bak ited > ~

the company to enjoy great profits, hire highpriced lawyers and build a luxurious business machine. Competition would shatter this expensive bubble over night, put real management in the phone business, and give patrons better service at one-third the cost. It is high time for an enraged and outraged public to attend public hearings and silence this brazen octopus for all time. —Pat Hogan, Columbus.

‘Forgot a Few People’ rt

I was noticing that the gentleman from Terre

Haute listed Mr. Truman, Mr. Barkley, and a Mr. Chapman taking trips at ‘the public's ex-

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A LITTLE PRAYER

WHEN WORRIES all but swallow you . .. and skies are never fair . . . for consolation that is real . . . just say a little prayer . . heartaches mount and dreims take wing . . . don’t sit around and stare . . . try talking to your God above . .. and of your troubles air... then you will find your pain will ease . . . dark clouds will pass away... and just as if by magic you ... will find the happy way . .. so when all other helpers fail . . . and friends are very rare +» you'll gain a wealth of comfort if . , . you say a little prayer. By Ben Burroughs.

. when ,

pense. C.D. C, forgot the Congresswoman from

his own district who is taking a trip to Kotea, -

at the taxpayers’ expense, along with eight or nine gentlemen, also on the public expense ac-

count.. But, Mrs. Harden is a Republican, so |

that makes her trip very important. Mr. Republican, himself, is running around beating the-bushes for votes-to nominate him-

"self as President and more than likely we are

paying for his trips in one way ‘or another. Senators have traveling accourts and. get cut rates, and so on. _ : : All this follows the same trend of my thinking for some time. There are entirely too many people getting handouts from the government and it should be stopped. That goes for them all . . . regardless of party. We cannot: cut taxes until we stop spending. —F. M., ,City

‘Missing Subject’ MR. EDITOR: ‘ I enjoy your paper very much, but I feel like there is one subject missing and that is temperance. I am sure there would be much fewer sad accidents if our dear boys and men would leave off the drink. Oh, it surely seems very sad that

drink it mostly the cause of it. —Mrs. W. H. Mitchell, Morgantown,

By Galbraith PLANE INDUSTRY SAYS ce By Douglas Larsen ‘Let's Put More Guns Before More Butter’

the guns and butter

tools, and then what was left .

mittee. on preparedness apparently is demanding. Instead of guns and butter at the same time, it should be guns first, and butter later— if possible. * #® The Johnson report sugges getting a procurement. czar the Pentagon ‘with complete control to co-ordinate all military buying, who will be a louder voice at. the conference table where the big decisions are made. The aircraft industry leaders are especially pleased over the prospect of this happening. A good share of their present woes are the result of fumbling and indecision in the Pentagon. First, the plane manufacturers feel that the Joint Chiefs of Staff failed to make a strong enough case to the President on the needs of the industry. They say the Penta-

gon was afraid to speak out

against butter with the guns and as a result they are suffering their present woes,

» ~ ANOTHER big gripe against the Pentagon was the failure {to set up any kind of a priority system within the services on naterials. All anyone gets who. oes business with the es is a defense order certificate.

- That means that a plane-

maker trying to get stainless steel for a firewall in a jet— the partition between the engine and frame—doesn’'t have any more rights to it than the manufacturer of plumbing supplies who might need stainless steel for bathroom fixtures in

some barracks. As one aircraft »

company executive puts it: » = » IT WASN'T until very recently that the three services would consent to any kind of a pooling arrangement of the . huge stock of machine tools which each had in storage. The Navy was most reluctant to turn over any of its huge stockpile to makers of planes for the Air Force. The Air Force was first, to go along with something like a pool deal but not until very late in the game. Theoretically the feeble Munitions Board should have broken up this hoarding play as soon as it was discovered. Their case against DiSalle is based on his unwillingness to let machine toolmakers raise prices. Attitude of the

. tool industry was, “why should we take a chancé on making’ brand-new machine tools on

which we are sure to lose

money?" Price increases have

sipce been granted, but accordto a plane manufacturer,

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the delay held-up production on the new jet models exactly 12 months.

= » LJ THE INDUSTRY does not have a major complaint against the services for setting .unrealistic schedules of delivery: Their irritation on this score is against President Truntan, said in a speech that aircraft production could be quickly increased five times. When he made that claim, total military plane production. was from 225 to 250 per month. Exactly 15 months ‘later, production had barely doubled to from 450 to 500. The manufacturers claim that even if conditions had been perfect and they could have gotten all the materials and machine tools they needed, the best they could have done in a year was to triple production.

Barbs

THESE days, dad would be

smarter to pass the hat instead of the cigars when a new baby

>

is born.

COFFEE was originated In Africa. Was it the long trip that made-it so weak in some

of our restaurants? a

In December of 1950 he .