Indianapolis Times, Indianapolis, Marion County, 30 December 1951 — Page 1

), 1951 Jushmiller

Ay and

Sunday |

~ Edition

, . 0 : w RAR BL wr or - 0 Le + > Fin = i 3 - ; : v . , , gig’ slide : so - - ; OR : Mostly cloudy, continued mild with occasional showers today, tonight. Showers, colder tomorrow: High today 55. : oad 62d YEAR—=NUMBER 303 as 30, 1951 ¢ Eniered as Second-Class Matter at Postofice .s -e

SUNDAY, DECEMBER

Indianapolis, Indiana, Issued Dally,

PRICE TEN CENTS

White House Hushes Report Slapping at Empire Ordnance

By IRVING

LEIBOWITZ

Times Staff Writer a WASHINGTON, Dec. 29 — President Truman, who once condemned as “unethical” the activities of Empire Ordnance Co.—in which Demogratic National Committee-

man Frank McHale was a di of secrecy on an official government report criticizing the tactics of the munitions firm.

rector—has erected a curtain

where it is going to stay unless someone unfreezes it.” A copy of the mysterious re-

The White House refused today|,,.¢ was located at the Rooseto make public the report, linking Ler pines Ot, Bp IE

top Democratic officials with the much-investigated and criticized war plant. Chief target of the report was Frank Cohen, New York promoter of many deals with the government, Mr. Cohen promoted Empire Ordnance with the aid of a Chicago beer baron, Alexander Louis Greenberg, who has been linked publicly with the old Capone gang. A director and stockholder of thé munitions combine was Frank McHale, Democratic tional Committeeman for Indiana and political sponsor of Democratic National Chairman Frank McKinney. Simple Investment Empire Ordnance’'s bankrupt successor, the Empire Tractor Co., also headed by Mr. Cohen, is the company in which Mr. McHale and Mr. McKinney each made a fast $68,000 profit after putting up only $1000 apiece for common stock. Both Mr. McHale and Mr. McKinney described this as “a simple stock investment.”

In the long-suppressed goyern-

ment report, the financing of Em-|

pire Ordnance was traced to Mr. Greenberg, owner of Canadian Ace Brewing Co., which the Kefauver crime investigating committee labeled “a Capone brewery.” : In Indianapolis, tov, Schricker has ordere state Alcoholic Beverage Commission to.investigate the reported links between the old Capone gang and Canadian Ace brewery, which is regis‘tered to sell beer in Indiana. Investigators for the Securities and Exchange Commission com{led the government report on Empire Ordnance during the early stages of World War II at the direct request of the late President Franklin D. Roosevelt,

F. D. R. Praised It

Praised by President Roosevelt as “an important job competently performed.” the seven-year-old report has never been made publie. Today copies are carefully guarded under lock and key at the White House, Justice Department and the Roosevelt, Memorial Library at Hyde Park, N. Y. | Despite the blanket of secrecy thrown over the SEC probe, The Indianapolis Times has uncovered a summary of the original report written by one: investigator and corroborated by another. Highlights of. the report disclose Mr. Cohen sought influential Democrats to secure war contracts for his firm. Promoter-speculator Cohen, the report said, was a munitions maker who had much trouble making weapons, He was a shipbuilder who failed to produce even one rowboat. Nevertheless, he secured millions of dollars worth of-war contracts. So scandalous were the operations of Empire Ordnance during the war years that President Roosevelt asked Ganson Purcell, chairman of the Securities and Exchange Commission, to investigate Mr, Cohen and Empire Ordnance. H. 8. T. Criticized It

Even the Senate War Investigating Cemmittee, then headed by Sen. Truman of Missouri, criticized Empire Ordnance operations as “anything but ethical.” Shocked by the findings of the SEC investigators, President Roosevelt ordered the Justice Department to optain criminal prosecutions against many persons named in the report. Despite his instructions, only one man was ever indicted, Jacob Perlman, who confessed that he was implicated in a scheme to profit by padding ‘the company’s payroll. He was convicted but never served a day in jail. A Grand Jury in New York investigated Empire Ordnance for many months but no indictments were + returned on others connected with the war plant. SEC probers, who worked tirelessly with a staff of 20 accountants in turning out the 1500-page report, charged the Grand Jury, handled by two special attorneys of the Justice Department dis-

patched from Washington, white-|

washed the affair. Efforts to obtain the report at various governmental agencies were unsuccessful.

Orders Issued

At the White House, Assistant].

Press Secretary Irving Perimeter said the report was there but that orders had been issued to withhold it from the public. Sen. Richard Nixon (R. Cal.) . joined The Times and other newspapers in appealing, without success, to President Truman to make the report public. Officials of the Securities and Exchange -Commission said the report was “at the White House” and no copies weré available elsewhere, H

Department|

owever, Justice attaches admitted they had a Lory of the report under lock and hastened to add “that’s ¥ Mee 0

“ > : 4 vs ny Fema L

duplicate or additional]

Herman Kahn, director of the library, acknowledged that the report was at the governmentsupported Roosevelt library. He claimed, however, that it was screened ‘because we don’t make public any document which contains derogatory remarks about anyone.” ‘Classified’

The document was classified as confidential by a special staff, he said, and the screening was approved by three former Roose(velt aids. He identified the aids as former Judge Sam Rosenman, {the late Harry Hopkins and

Death For Peacetime Urged By House Red Hunters

Times Man,

Ed Kennedy of The Indianapolis Times is on his way to Korea to see what is happening to your blood. Before the day is over, Mr. Kennedy will be landing in a C-54, probably at Pusan, and with him on the plane is blood collected here in Indianapolis from Hoosier donors. Blood from enough donors to fill a blood locker was selected here at random, then flown to Philadelphia, where it was processed into plasma.

Grace Tully, the President's former secretary. | Explaining the secret classifi-| {cation of the report and other documents, Mr. Kahn said:

Then, in Mr. Kennedy's custody, the blood began its long flight to the veins of American soldiers wounded in the bitter winter fighting of Korea.

| “There are some papers which lask for political favors, call 'some big shots nasty names . . .!| we can’t release those. We don’t] want to embarrass anyone.”

Late Donors

Zoom Times

{

Fund Total

Clothe-a-Child Donor List, Page 4 By ART WRIGHT The record-breaking support given The Tires Clothe-A-Child| ‘for 1951 zoomed even higher with added help after Christmas. The final tally is $87,536.50. Here is how the public contributed the generous amount before and after Christmas: Cash Contributions ... $27,519.40 Spent by direct donors who took a record number of 1445 children to the stores (conservatively esti-

mated at $35 per child) ...oeeseeesess.50,575.00 Mile-O ~Dimes (more

than a mile) ....... 9442.10 Last year the public spent $84,157.76 to buy new clothes for needy children through The Times Clothe-A-Child. . When shopping was completed Friday, 2733 had received new warm clothing through the generosity of the people of Indianapolis who each year support The Times Clothe-A-Child as the city’s outstanding Christmas service for needy youngsters. Clothe - A - Child headquarters {closed yesterday. No more shop{ping will be done this year, The 1952 Clothe-A-Child will start [the day after Thanksgiving.

Times to Carry *

Tax Primer Again

- Every year about this time, The Times takes great pity on the taxpayer. He's the poor guy that stays up late nights trying to figure out what to do with his federal income tax blanks. Some of the questions Uncle Sam asks sound like so much gobbledegook . . , a’ lot of words with some kind of a meaning in them sometimes. With this in mind, The Times once again plans to run “Your

Income Tax Primer,” By Richard A. Mullens. He's an expert on such

things , . . a ranking Washington ‘tax authority and a graduate of the same training course given federal agents who scan your return. This series of -13 articles starts Monday in The Times. So cut ’'em out, set ‘em aside and when you have: a tough problem about income taxes you can find the answer ,, ; in The Times.

There is something unusual in this. Normally, such blood loses its identity, But arrangements were made for Mr. Kennedy to fly from here to Philadelphia, then to Washington, and then to Korea—with the blood.

A Lucky Guy So Mr. Kennedy’ knows, for example, that with him is the blood contributed by Willis Kelly of Mooresville. “Willis Kelly is 28 and considers himself a lucky guy,” Mr. Kennedy wrote after meeting this donor. “He served in World War TI and came home without scratch.” “I know lots of guys that got it,” Mr. Kelly told The Times reporter. “I consider myself lucky I didn’t, and I want to do everything I can do to help bring a guy back well—as well as I am. “Those fellows over there want to come home, get married and

Plasma

Due in Korea Today

able to save 97 out of every 100 wounded men.

“Soon Indianapolis blood will be made into plasma right at home. This will be later next month when the Eli Lilly & Co. open their new blood plasma plant,

“After plasma is made, what happens? y. “The big plan by the Defense Department calls for the stockpile of X number of pints. At the end of World War II they had a stockpile, not ‘enough for atomic attack, but a fairly adequate reserve. “For almost 14 months this stockpile served the needs of the Korean War, Suddenly last August officials woke up to the fact this supply was exhausted. Meanwhile the blood program was starved by public apathy. “In September the reserve was wiped out and hospitals and aid

to day ration of plasma. “The next month Indianapolis women, under the sponsorship of The Times, paced the nation’s blood drive with "their Minute Women gprogram. Again blood was coming from the civilian population to save the lives of our fighting men. October and November saw records made and broken in Indianapolis and over the nation. December should also be a record month. But will it?

Your Blood Needed

partment of Defense. turn send it by ship or Korea, Little is

raise a family, too. Who could refuse an American the : blood that will ‘allow him to lead the rest of his natural life? It’s our duty to give blood.” -. That's what Mr. Kelly told Mr. Kennedy, and now his blood nearing the front line to perform the mission’ Mr. Kelly has assigned it—to save the life of a man serving his country. Another whose blood is on the plane with Mr, Kennedy is Bob Miller, 47-year-old Allison’s employee, who lives at 246 N. Addison St., who told Mr. Kennedy here; “I was too young for the first war, and too old for thé second.” But he has been a regular donor, during World War II, and during the Korean conflict. Some of the blood from the center here is not identified as to donor. It might be yours. Mr. Kennedy went through the blood processing center at Sharp & Dohme in Philadelphia, where he saw blood from the Indianapolis blood donor center turned into plasma. , From Philadelphia he wrote:

Immediate Use “In powdered state the blood will last many years until needed. But now it is urgently needed and won't Have to wait long for use, “At the point of use a liquid is added to the powdered plasma. It is shaken and given *o -the patient by direct injection into the veins. “Battle wounds are wretched, jagged things that tear great gashes into men’s bodies. Even at best, medical attention is not always Johnny on the spot in the front lines. As a result, one of -the greatest killers of soldiers is shock. The shock that. comes when the human system has suffered a terrible wound. “This plasma, made from blood contributed in Indianapolis by you, is the greatest weapon doctors have to combat battle shock. “Officials here at the Sharp & Dohme Co, say that in World War II, 94 out of every 100 wounded men were saved by the use of plasma. From Korea the doctors now report that by development of new techniques and

BLOOD FLIES—Bob

THEIR FLIESha loft with sheie blood for Korte,

increased use of plasma they are

ea i

must be

this blood is who gets

rea—in a few days.

story -of the bloodline to the frontline, join in with an active part. Get a pint of your blood in the big pipe carrying life from Indianapolis to Korea. “Call LIncoln 1551 today and pledge to give a pint of your blood. Then read these stories— meet. the people who get the blood —kgpowing a part of you is making the same trip. : “Pledge now.”

U.S Takes Wraps Off Secret Jet

By United Press WASHINGTON, Dec. 20—The Air Force's mystery sky giant— the eight jet-engined XB-52 heavy bomber—was taken out of wraps for the first time today. The hush-hush plane, under camouflage since its completion, was unveiled at the Seattle, Wash., plant of the Boeing Airplane Co. The plane is a fast, long-range aircraft designed to replace the slower B-36 intercontinental bomber. y The camouflage was removed because the ship had to be moved to an exposed area to undergo engine tests. The Air Force also released a photograph of the plane. Probably not more than this XB-52, or one more, is ready for tests. After the engine tests, taxi trials will be made before the plane is flown. The XB-52, nicknamed the “Stratofortress” is powered by eight Pratt and Whitney J-57 turbo-jet engines. Unofficially, the jet engines are reported to be the

Miller (left) and Wik Kelly (right) talked with Ed Kennedy before

most powerful in the world,

stations in Korea were on a day’

*From the plant here the blood plasma is turned over to the DeThey in plane to 3 ) stoek-| piled at this time, but this reserve

“This is go v p impersonal, ‘me-| chanical side of the blood stery.| | What is important to you who other end of the bloodline—in Kos] “Se while you're following the|

By United Press NEW ORLEANS, Dec. 29 ~— Four-year-old Charlene Salter’s condition after a six-hour brain operation changed from critical to “very satisfactory” today. But physicians still couldn't tell whether her ordeal was futile, Charlene, whose curly chestnut hair was shaved off for the operation yesterday, was “conscious,” according to nurses at Foundation Hospital, But her father, 1st Lt. Earl Salter, 31, flown back from Korea despite a foot wound, said

government

Plenty of jobs at good Other Features:

Amusements «...o.000 18,19 Henry Butler scooveeeess 18 Bridge «cccceceveccceses 28 BOOKS s.eesscsnscvacsees 20 Churches seesccecesssece 40 Crossword sesesesseccses 19 Editorials ...eeoesescess 16

cesses

Fix-It-Yourself ....cce.s' 39 Harold Hartley seeceesecs 29 In Hollywood ..ceveeees 19

FATE IN THE BALANCE—Litle Charlene Sa flown in from Korea to be at her bedside.

Baby Rallies After Brain Surgery

she was only half-conscious and that she was under opiates. “Charlene has been half awake several times since the operation,” he said. “One time she wanted to get out of bed. She insisted that we let her sit up for a minute.” Charlene could survive the operation, only to die of the tumor a neuro-surgeon tried to excise. If it was malignant, the roots, deep in her brain will only keep on growing. But if it is not, she may live but never see again. Both physicians and nurses

were surprised at the speed with

Inside The Times

President Truman has named 15 prominent persons to serve on a special commission to study the nation's health needs........ 3 The penny post card will be a thing of the past after Jan. I. It's part of a boost in postal rates....... ATE . The. President has opened income tax returns files to a Senate subcommittee which is trying to drive out fraud and waste in

Page

grave 4

cervas 4

pay is predicted for Hoosiers in 1952.... 7

Radio, Television «.essv. 14 Real Estate .......e0s 29-31 Robert Ruark secseeeeee 18 Records ....... secssense 39 Sermon of Week «c.cseaes 40 Ed Sovola .c..ocavevneee 15 BPOrts ieaveiersssnsee ® 13 Earl Wilson «.eoveeveees 15 Women’s ...ooeeerese 21-28 World Report ....eeoeoe 17

Train Sideswiped;

Dozen Passengers Hurt CLINTON, la., Dec. 29 (UP) —The Northwestern City of San Francisco, packed with holiday travelers, was sideswiped tonight by a railroad car on a side track and more than ‘a dozen passengers were injured by flying glass. "A gaping hole was ripped in the first diesel unit of the crack streamliner and every window on one side. of the train was shattere§l. The accident happened near Gault, Ill, 25 miles east of here, but the train rolled in here before passengers were treated. Several Clinton; doctors were called to the Northwestern station and one room “was transformed into an emergency ward. Two eye specialists were called

to remove fragments of glass from the eyes of .several pas-

priAA,

Sheriff-Prisoner Case Status Quo

Sheriff 8mith was still investigating the disappearance of one

of his star boarders from the[ities

feminine bastile last night—four days after she took French leave. Mrs. Lissa Hanson, 35, one of two women prisoners who walked away from the jail Christmas night, still had not been apprehended last night. The 17-year-old juvenile prisoner who also departed llkewise was still footloose and fancy free.

Police Hold Test Run

For New Year's Eve

The score was 16 to 1 last night as Indianapolis police” ‘made a test run of their roving blockade for drunken drivers. : In an hour and a half last night, the 16 policemen caw # only one tipsy suspect. They wee

serigers. Doctors ‘said the first|practicing for New Year's Eve, check showed no one seriously Whels She¥ ugpect the dotre 1a be + hurt, i ; ,i : much higher, » y * . Si * 6 » aE homies SL RE a i i ou i” ho Be

Iter hugs her Daddy before her

pies

Want ‘Rules

|plonage cases should |ened.” ‘

Of Evidence Loosened

By United Press °

WASHINGTON, Det, 20==

The House Un-American

Activities Committee asked today for the death penalty for peacetime spies. The group proposed a joint Senate-House committee to study espionage and strengthen the laws against it. One suggestion would allow the courts in espionage cases to ade mit evidence obtained by wire. tapping, hidden microphones, cen sorship and other methods now inadmissible. “The laws of this country provide that a person who takes the life of another may be given capital punishment,” the committee said, “Espionage, which has the ultimate purpose of taking the lives of many, should be considered no less an offense.”

Applies to War

The death penalty now applies only to wartime espionage. “While this committes is deeply concerned with maintaining the: rights of the individual, it feels that the provisions for the admissibility. of evidence in esbe broad-

The committee issued a report, entitled “The Shameful Years— 30 Years of Soviet Espionage In The United States,” which was a 70-page rehash of previously dis-

‘Spy Ring Contact

operation, He was

which she recovered from the shock of the surgery. Lt. Salter and his wife took turns last night and today sitting by her

bed. #“I couldn't sleep,” her father said. “I lived my whole life a hundred times.” He said Charlene was being fed intravenously and that she was given a pint of blood during the operation. Physicians told him she might need six more pints. The Salters, who live in Tioga, La., have three other children,

Fear State Floods As Snow Melts

Rapid defrosting of Indiana weather poses possible flood |threats, the weatherman warned {last night. | *Hgavy rains on top of ‘the {rapidly melting snow blanket in the state could bring serious consequences, But Fred Maher, assistant meteorologist at the Weather Bureau here, said the rains predicted for today and tomorrow should be light. “But we're keeping our fingers crossed,” he added.

Baby Found in Locker Wrapped in Paper Bag NEW YORK, Dec. 20 (UP)~— A 2-weeks-old baby, clad in nightclothes and wrapped in a| paper bag, was discovered alive] in a locker today by a customer in Macy's department store. The shopper, Mrs. Helen Stark, sald she was passing a row of 10-cent lockers used by the public when she heard the cry of a baby, She notified store authorwho “got Policewoman Evelyn Emru to open the locker, Inside they found a six-pound girl dressed in nightclothes and two white blankets and placed in a paper bag. The child was taken to New York Foundling Hospital, Police began a search for the mother.

. . y 0) ‘Victim’ Was Just Too Sharp “This is a holdup,” the man with the shotgun announced. That's what he thought.’ Baruch Marks, 63, grabbed a meat cleaver and chased the would-be robber out of his groat 3529 Prospect St.

| The booklet did reveal, howcommittee

The report said the attorney was a contact for the spy ring headed hy Gaik Badalovich Ovakimian, arrested for espionage in 1941 but allowed to return to Russia. “The committee said the attorney was suspended June 17, 1941, and allowed to resign Oct. 31, 1941. He later was employed by the Office of Price Administra~ tion, the report said.

Reds Ask UN To Give In Still Further

By United Press TOKYO, Sunday, Dec. 30—The Communists today accepted the concessions made by United Nations negotiators in their “final” compromise offer of the Korean truce talks yesterday but demanded the Allies give in still further. The Communists said the United Nations had made a “step forward” in dropping demands for aerial observation and unlimited rotation of troops, during an armistice. But Communist negotiators said the Allied-proposed ban on mil. itary airfield construction was “absolutely unacceptable.”

; By United Press MUNSAN, Korea, Dec. 29—A high United Nations source expressed fear today that missing Allied . prisoners of war may end up in Communist slave camps unless the Reds ar forced to give [a strict accounting of the missing men, © : The United Nations source said therq can be no agreement on prisoner exchange until "we are assured that none of our boys will be left behind in some sort of slave camp—there must be no legion of lost souls after this war.” The United Nations charges that more than 50,000 of its miss ing men have not been accounted for by the Communists, x Evasive Co t answers have strengthened’ ‘this belief, the United Nations source sald,

Golden Gloves Opens Friday

Amateur boxing’s top annual event — The Times -Legion Golden Gloves Tournament opens next Friday in the National Guard Armory, 711 N, Pennsylvania St. * Tickets for the tournament, which extends over five weeks, go on sale tomorrow at BushCallahan Bporting Goods Co, 136. E. Washington St; EmRoe Sporting Goods Co., 209 W. Washington St., and Sportsman’s Store, 126 N. Pensylvania

8t. : and

Prices are, $2 first row ral ingaide re-" served; $1 gemeral admission,

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still is