Indianapolis Times, Indianapolis, Marion County, 11 December 1951 — Page 3

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11, 1951

BES

o latest haprative, long. s gifts

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' T. Lamar Caudle-—"Man With Built-

‘ . x i as Es s ur La g TETDAY, DRC. 11, 1051 ». THE INDIANAPOLIS TIMES re 1a : soo fe @ Rn en : 2 : 3 ) a apts = ie Cr : ia : y : The Tragi Comic North Carolinian— , J RPE xa ih oud Sigs pias pS ER i LA

Scripps-Howard Staff Writer 7 WASHINGTON, Dec. 11—The man on the witness stand today [was Attorney General J. Howard McGrath, an important man. But the spotlight of the King Subcommittee hearings seemed to touch him only casually. Most of its glare continued to beat pitilessly down on men of lesser rank, men -reported involved in an attempted $500,000 tax - fix shakedown. One of these men is Mr. McGrath's . ousted

| -¢ By ANDREW TULLY | |

Democrats Brand Rules ‘Dictatorial'

By NOBLE REED | § Proposed new rules governing Democratic Party ‘ organizations in Indiana were branded as “too. dictatorial” at an executive ses-| sion’ of the Indiana Democratic! Committee here yesterday, As the result of opposition to some of the regulations, State| Chairman Ira Haymaker post- = poned adoption of the rules until assistant, Theron

after Jan. 1. Lamar Caudle, the tragi-comic Ninth District Chairman: Jack North Carolinian--the ‘man with Love, Seymour, said one section the built-in foot in his mouth. of the’ proposed rules that pre- Another is Charles Oliphont, vents an ousted county chairman resigned chief counsel of the Infrom running for the post again ternal Revenue Bureau, who tes- phant is concerned. That is the for four years was “too dicta-/ matter of the prosecution of

” tifies tomorrow. torial. . | And with’ them was an array Jacob Freidus and Samuel E. Need Encouragement

lof others — Frank Nathan, Se “This would keep some good Pittsburgh gambler; Bert K. Nasleaders from the ier, the Florida electrical manu-| Hititately were sent 30 DHSOR. after some minority groups got facturer; Henry Grunewald, the, = 0° 3 0" ead into the together and engineered a re-Washington “mystery man”; hearings a record of a telephone moval,” he said. “We need to en-| Abraham Teitelbaum, the wealthy conversation between Mr. Olicourage good Democrats to be- former lawyer for Al Capone. phant and Richard C. Schwartz, come party lov '~=s instead of dis-| These people remained in the| assistant head of the Internal couraging them. “o glare of publicity because their Revenue Bureau's penal division. Chairman ...ymaker said he, ,mes kept coming up—sensa-| In it, Mr. Oliphant is quoted as Would call another session of the tionally—in the hearings. They telling Mr. Schwartz to make a Somm se about Jan. 15 to adopt ore still on stage because they note “that I talked to Caudle, we e revised rules and have them. o ot1) important to the script. went to some length on the testiprinted before the deadline set by mony by the physician and both law in March. Wrought Confusion ‘agreed the a on Pr Sustions will ban ihe Mr. Caudle has finished giving stand trial.” men voting oy proxy ae his testimony. But the spotlight! The ‘*fellow” mentioned was conventions in the future nly is not through with him because Mr. Aaron, and the medical rechange was made to conform with 1i8 testimony has brought confu-|port had noted that although he sion piled upon confusion in prac- had a bad heart condition he was

a state law passed six 8 \ In the a 3 rei ivalty every matter it touched well enough to go on trial.

must be present to cast a vote, |UPOD. Caudle Denies It Some Units ‘Very Weak’ Caudle, after several ex-

Mr. Tully

* "Tragi-comic of North Carolina."

tax fraud case, in which both

| - For instance, Mr. Caudle offered) ,,. ‘himself to the subcommittee as a .,.ciong into the round-about, de-

Discussing party defeats in 72 man who was told Mr. Nathan :.i ne had entered into such!

of the state's. 103 city elections and Mr. Naster were using his 5, agreement. “I never, no sir, I last Nov. 6, committee members name to extort money from MT. never read any medical testimony

i |Teitelbaum — and did nothingits Mr. Oliphant over the phone,” SE xanieations In Some about it despite his high place inne declared emotionally. : * [the Department of Justice. | And that is how it stood today They declined, however, 1o| uj just never occurred to me,” as J. Howard McGrath came forname names or cities but manylis the way Mr. Caudle put it. {ward to tell what he could about agreed privately that the Indian-| Mr. Caudle also caused the sub- the fancasie case of Theron Lalis committee considerable bewilder- mar Caudle. a xe my : Tisted in the matter of the “deep,/ What Mr. McGrath said would The Democratic ticket o th o Suttural voice” which is alleged to be important, of course. But in a b tty of 13600 votes have told Mr. Teitelbaum over the|sense the last word already had yo major also laid bre. Phone that he'd better do business been said about Theron Lamar liminary plans for Snancing the|Vith Mr. Nathan and Mr. Naster, Caudle. It was said by subcom8 the. ay Caudle admitted he told I. mittee Chairman Cecil R. King,

1 Eo upalin in the congres- n Cohen, an Atlanta¢ attorney, (D. Cal), in a statement follown stricts. i Hy ing the conclusion of Mr, Caudle's Each district party chairman that the voice probably belonged Ing

to Mr. Grunewald—although he!testimony. re tampaign collecting) astened to add he had never| Speaking directly to Mr, Caudle, early next year "met or spoken to Mr. Grunewald. Mr. King put it quite simply. Committee members dodged Mr. Grunewald, of course, is The damage vou have done discussion of prospective candi- the wealthy apartment house YOUT government,” Je sad, "will dates for governor and U.S. sen- OWner who loaned $1300 to not be sasy lo repair. ator in formally adopting a reso- Charles Oliphant. He has been : lution to hold the 1952 state nomi. identified by Mr. Oliphant in Auto Production Oft nating convention on Tuesday, executive session testimony as the June Re Y' individual who made inquiries 20 Pet. for Year DETROIT, Dec. 11 (UP)—

about Mr. Teitelbaum’'s tax case) WYNN L427,

and then told Mr. Oliphant not to Twenty per cent fewer passenger tell anybody he had done so. (cars were produced this year than BITE SIZE~ i a N\

That - swings the spotlight|/in 1950 because of government re-

officials Mr. Teitelbaum said Mr. reported today. Nathan told him were in a clique Although production was “rela“looking for soft touches to shake tively high” during the first six down.” And earlier, one of Mr. months of 1951, it dropped sharp- | |Oliphant’s assistants had testified ly during the July-to-December that Mr. Oliphant interested him- period, the AMA said. : self “in an unusual manner” in| Total output of motor cars the Teitelbaum case. |reached an estimated 5,373,000 Then there is another part of this year, compared with 6,665,863 the script with which Mr. Oli-|last year, .

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From Indianapolis fo Empire— .

Democratic National Committeeman Frank McHale and New York promoter Frank Cohen were making money together long before the lush $70,000 for $1000 deal revealed yesterday, The Times learned today. Mr. Cohen was a principal stockholder and Mr. McHale was legal counsel for the Reserve Life Insurance Co. of Indiana 15 years ago when it succeeded in getting the Indiana State Department of Insurance to reverse its own orders and let Reserve Life buy Texas oil property from {connections of Mr, Cohen. . Reserve Life was an old -In{dianapolis company. Mr. Cohen began to purchase its stock in {the late 30's, and soon controled (the company through “friendly” lofficers gnd directors. In Indian- % Kaeo gy 28 [apotis, he told lawyers and bus- ESR" gL _ liness ne acquaintances he was a Frank E. McKinne

(with AB. and Ph.D. degrees, a,

{former Columbia basketball star | jand “in line for the board of Tank McKinney, his" political

Ht rustees.” |protege who is now Democratic!

{$1000 to purchase stock in a trac-| {tor company, another venture of] |Mr. Cohen's. | The tractor company was

{phia from which the two Indian-| \apolis Franks made about $69,000 japiece on a $1000 common stock | heard the name in connection [investment for 10 months in 1947, | with the University board.) Name of the concern was Empire Reserve Life s ’ _| Tractor Co. The two Indianapolis| ious difficulties ta Jon, investors also got: back -325,000 surance Department. Department each 3 hat they had put. into prerecords still show charges of oo SOCK “questionable practices” and “non-| Aroused by Headline |admissible assets.” These “assets” mr = owg “awe {as ; | This dedl was explained as a {included mortgages which had «oomparatively EAD oné. when

fosen Jal of 2nd released, and yr McKinney called a press conlion Re th ference in his new office as Demore was talk at the time of .; tj» National Committee chair{filing suit for receivership of the | man in Washington yesterday. | Sompany: and of such steps being Both Mr. McHale and Mr. Meoil Jed os political influence.” ginney say their investments in| atever e reason, no such suit the tractor company were ‘‘pure

was filed. | 2 land simple business deals.”| | Mr. Cohen proposed to use as- Nejther thought it was ‘“unusual”| sets of the insurance company 10 to mate-a profit of about $69,000

{buy oil wells from a company in apiece on the $1000 investment | which he had an interest in Tex4s. within one year.

The State Department of Insur-| A year after the McKinney-Me-|

ance refused to permit it, ruling Hale stock pay-off, Mr. Cohen's that such investment was con- company went bankrupt. It still) trary to Indiana law. lis under settlement in a federall Order Reversed |court at Philadelphia. According| {to the referee, L. Leroy Deininger,'

Mr. Cohen and Mr. McHale suc: creditors have received about 65 ceeded in getting the Indiana At-|per cent of their claims. {torney General to issue an opinion] that the oil well-deal was legal, UNRRA and was ready to clean and in getting the Insurance De- up with a contract with Argentina, partment to reverse its own rul-'when the deal fell through. ing, and permit the investment. | n : Denied Loan to Cohen {

The records show that Mr. Me-| Mr. McKinney insisted he got

Hale's law firm was paid $900 for! its services to the insurance com- ints the Cohen concern through pany. Oscar Salenger, who was part] In 1939, the company was re- owner of the Milwaukee Brewers (financed, and moved to Dallas, baseball team at the same time |where it is reported prospering un- that Mr. McKinney owned the |der another name, {Indianapolis club. He denied that

electric chair last December for! the crimes. | Click was convicted of slaying {teen-ager Phyllis Conine and then jeontessed murdering Wilhelma |Haaga and Anna Kuzeff. An-

» In Slayings |other man who now is at the

FT. WAYNE, Dec. 11 (UP)—|state prison, Ralph Lobaugh, has Legal aspects of four claims to a/confessed, denied, and reconfessed $15,000 reward were studied today'all three murders plus the 1945 as a special commission neared a'slaying of Mrs. Dorothea Howard. decision on who will get the Mrs. Phillips based her claim money for solving three 1944 Ft on a prediction of the murders.

Wayne rape-murders. [She ie elie police W he > > as The eommission ruled out two greamed. Nicodemus injected Lo- | claimants late yesterday, brand- baugh's name into the case, ing their stores as “irrelevant and Still under consideration are having no basic facts.” Arthur|the claims of Mrs. Click, Mrs. LeA. Herber, president of the City ona Sparks, Kainsville, Tex., and

Council and a member of the spe- Mr. and Mrs. Floyd Moreland, cial reward commission, said Angola. °

Ferdinand Nicodemus were re- her a letter of confession, Mrs, jected unanimously. {Sparks said she gave information which led to Click’s arrest after Confessed Three Slayings {he kidnaped and raped her, and Standing claims were narrowed the Morelands said their amateur to four, including that of Mrs.|detective work linked Click to the Marie Click, who se husband 'murders through a laundry ticket.

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| { {Franklin died in the state prison)

claims of Mrs. Naomi Phillips and] The kiiler's widow said Be sent :

Frank Cohen | After the war, Mr. McHale and he was let in on the deal by Mr. familiar with all this, although

McHale. Mr. McKinney said he remem-

dianapolis about 15 years when he came into the Fidelity

Trust Co., of which Mr. McKinJiro president, regarding a loan. | Mr. Cohen is now “out of the|brate mass in three sectors ‘on

’ : | 't get the loan and Mr. country.” That is what the Em- Christmas Day. short-lived operation in Philadel He olga } set attorney for his|pire Ordnance Co. office at 531,

bank, Mr, McKinney stressed at Fifth Ave, New York City, re- timed last Saturday from #&

his press conference. Mr. McHale's name prominently throughout the hear-

ings on Empire Ordnance and Yesterday, Mr. Savannah Shipyards, a subsidiary, out for retaining Atty. Gen. J. | pangs of letters with the Genwhich were investigated back in Howard McGrath in President ,..; 4, which Gen. Van Fleet said the winter of 1941 and 1942 by a Truman's Cabinet and cleaning up in,¢ the Cardinal's visits to troops |Senate committee headed by Har- all corruption. ry 8. Truman, then Senator from Mr. McHale, who took credit! +o the morale and spiritual

Missouri, "

Mr. Truman at that’ time de- successor to William Boyle, wh scribed the wartime munitions resigned under fire, is the Demo-| business of the ordnance com- cratic

pany as “anything but ethical.” These hearings disclosed that in 18 months Mr. Cohen had run a small investment by himself, Mr. McHale and a few others into

an ordnance empire with assets)

of more than $6 million. In 1944 a House Naval Affairs Committee estimated Empire Ordnance made 100 per cent profits on some $13 million in British orders alone. When Mr. McHale won a $935,000 judgment from the Air Force as a contract settlement, the government impounded the money for payment of excess profits taxes. :

Mr. McHale promptly sued the

{government for $93,500, seeking! The company made tractors for to collect a 10 per cent fee for

representing Empire in the contract settlement. Mr. McKinney said he wasn't

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Spellman Plans Mass ' lin Korea.

By United Press on) "| NEW YORK, Dec. 11—Francis Cardinal Spellman, Archbishop &f |New, York, announced last night he will celebrate mass at three of § the “most diffi-. aN cult” positions in the Korean front lines on Christmas, | | “I much pre[fer bringing | Christmas to our boys in Korea than being in St. |Patrick’s Cathedral on that |day,” the Cardi-

{ « 1 Cardinal inal said. “I sha Spellman

remain as long as is necessary to visit every combat unit.” fe Cardinal Spellman said he wag invited to the front lines in Korea the newspapers were filled with it py Lt. Gen. James B. Van FI at the time. He just put the commander of the U. 8. 8th Army, Cardinal Spellman said he will [tractor venture because he figured leave Dec. 19 or 20 to give him

[tractors would be needed, he said.|time to get to the front and cele-

“Frank M. McHale

who reé-

Cardinal Spellman,

(ported when contacted by tele- inrae.week trip to South America,

{said he considers Gen. Van Fleet's At the same press conference invitation a “command.”

McKinney came po released the texts of an ex-

in World War II “helped to pro-

Hor. putting Mr. McKinney in as|)ife of the S0lAIES. mime ol

Margaret Smith presents a Committeeman| page of garden tips in The | Sunday Times ° c.

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