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Winona Republican-Herald, The (Newspaper) - April 13, 1954, Winona, Minnesota Fair Tonight; Wednesday Cloudy, Continued Mild McCarthy Story Continue It Tonight On Page 10 NINETY-EIGHTH YEAR. NO. 121 SIX CENTS PER COPY WINONA, MINNESOTA, TUESDAY EVENING, APRIL 13, T954 TWENTY PAGES Suspended Oppenheimer to Fight Charge He Delayed H-Bomb Work New FHA Head During Inquiries WASHINGTON President good Christian gentleman" but said Eisenhower today named Norman i he might be'held partly responsible P. Mason of North Chelmsford. for abuses under the repair pro- Mass., to run the Federal Housing I gram because "I believe he has Administration while a variety of [been aware of it and did not act." government agencies probe into I Hollyday, appointed by President possible multi-million dollar scan- dals running back into the Truman administration. The new acting FHA commis- sioner, a lumber dealer, succeeds Guy T. 0. Hollyday, Baltimore mortgage banker, whose resigna- tion, accepted yesterday, was the first signal of the swiftly develop- ing affair. In Office, a Year The allegations of irregularity, disclosed shortly afterward by Housing Administrator Albert M. Cole, centered on fleecing of home owners on loans for modernization and repair, and over-appraisal of apartment projects for mortgage insurance. Cole described Hollyday as "a Eisenhower, had been in office a year. The new acting commissioner has been treasurer of the William P. Proctor Co., lumber dealers in Truman Warns Against Adopting Totalitarianism Sees Demagogues Playing on Fears Of Americans FUITON, Mo. (J) Tru- man declared Monday night that North Chelmsford since 1937. He is M fighting a fifth column in the a native of Willsboro, N.Y., and is zt United States We should be sure Clyde L. Powell ago. But Cole said complaints abou overcharges and shoddy work in the home repair field have been coming in for years right up through 1953 when the Eisenhower administration came to power. Many May Go Cole said the activities of 14 of FHA's senior officials will be helc ap to the light and he indicated ie expects many of these to go. He made known too that he has withdrawn his acceptance of the resignation last week cf Clyde L. Powell of St. Louis, assistant FHA commissioner for rental housing since 1936. His resignation was to lave taken effect Friday. Cole said ie wanted Powell to stay until "i1 can be determined whether he is personally responsible for what I deem very negligent opera- Jon, Powell had no immediate com- ro tu j ment. He said he had-been think- before the weekend. Dg of qujttjng since ibe first of Under a virtual umbrella of 75 the' year because most of FHA's All-Out Assault On Dien Bien Phu Still Expected HANOI, Indochina Vietminh artillery blasted the defenders of Dien Bien Phu again today, but the Communist-led rebels still held back the massive all-out assaults the French Union forces expect 57 years old. Announcement of Mason's ap- pointment coincided with an indi- cation from Chairman Capehart (R-Ind) that his Senate Banking Committee may join in the investi- gation. The Housing and Home Finance Agency headed by Cole, which is the over-all agency of which FH is a part, already had an inquir going. To Check Projects Cole also said the FBI will chec on alleged "illegal or unethical a. tion" in the handling of apartmen project financing by FHA officials Here, he said, investigators wii search for evidence of "collusion between apartment builders an federal officials in the insuring o mortgages on inflated appraisals- something that he said already ha cost the government better than 75 million dollars. Cole indicated he expects few criminal actions, but he added tha "the great number of these cases indicates there was either gros; negligence or collusion." Allegedly off-color apartmen' project financing was said to have developed under the post-World War II "middle income" housing program, which died four years and 105mm. barrages, the Viet- minh sent out squad-s to gather up the hundreds of their comrades killed or wounded in vain attempts earlier to retake the east- ern hill position the French seized Saturday. The vital strongpoint is only five eighths of a mile from the deeply bunkered heart of Dien Bien Phu. The French still held it today, aft- er beating off violent rebel coun- terattacks Sunday and Monday, Heavy fog under the leaden skies of the threatening key policy jobs were being taken over by Republicans. Powell is a Democrat. Detailing allegedly shady man- ipulations in apartment project fi- nancing, Cole said private promo- ters obtained FHA-insured mort- gages for twice the value of their property. Then, said, the housing chief, they would collapse their corporations and declare them- selves "liquidating thereby raking in sizable "wind- falls." Cole said probers have dug up cuTthe French" aerial''as-1 251 such cases in wnich the promo- ii_ _ i i. -ii i total ta Vo TIFQC OVCT 75 ssults against the junsled hills sur- taKe was rounding j Dien Bien Phu. But the million dollars. American supplied fighters and bombers ranged far to the north- east and north of Hanoi, blasting out big sections of the main high- ways over which Red China sends thousands of tons of war ment to the rebels. The worsening weather offered a boon to the Vietminh, who still could send in human waves of foot soldiers where the French tanks and other mechanized equipment would bog down as the area grows muddier. No GOP Split on Any Issue, Says Hall NEW YORK Lfl Leonard W. Hall, Republican National chair- man, says there is "no split what- soever in the on any issues as of the moment." In a question period following a talk before the Women's National Republican Club Monday, Hall skirted questions about Sen. Joseph R. McCarthy He said the clash between Mc- Carthy and Army officials "has been blown up to proportions it doesn't deserve." He said it is all a matter of conflicting claims be- tween "the senator and one of his assistants" and two Army men. that we do not fall into the trap of adopting the totalitarian tactics of the Communists themselves." I "The nature of the Communist] conspiracy is such that in combat- ting it we have had to scrutinize, very closely, the lives of many the former President said. "This is part of the struggle against espionage. But in resisting the enemy, we must not tear our- selves apart." He said that demagogues in this country "are playing on our fears to further partisan political ends." Speaking about "political bogey- men who proclaim themselves cus- todians of our he ap- parently referred to Sen. McCarthy (R-Wis) without mentioning his name when he remarked: "There is even one among them whose torrent of wild charges is calculated to damage the faith of I Americans in the integrity of their government, Army, schools, lurches, their labor unions, and the press. Most of all he is threat- ening, to undermine the respect and confidence Americans must have n one another. "The cause of freedom both at! lome and abroad is damaged when a great country yields to hysteria." The former President spoke at Westminster College, where he scheduled to give another talk .oday on his presidential papers. He delved into "mass hysteria and witch hunting in American listory" and said that witch hunt- ers "are on the losse again, often cloaked with immunity, and armed with subpoenas and the cruel whip-; ash of uevaluated gossip." He said history is filled with ex- network ln Australia, amples of temporary mob excite- Menzies said a royal commission ment, stirred by false or been appointed to investigate ated charges, resulting in injury the information supplied by the n irmnpont i cr J Former Romanian businessman Valeriu C. Georgescu and his two sons, Peter, 15, right, and Constantin, 20, are greeted by Mrs. Georgescu on their arrival at Idlewild Airport in New York today. The boys were held captive by Red Romania for seven years in an attempt to blackmail their father into spying for the Communists. (UP Telephoto) Sons Held by Reds Reunited With Mother NEW YORK from prying eyes, Mrs. Lygia Georgescu was tenderly reunited today with her two sons who were hostages in Romania for seven years. Government officials and crew, together with other passengers, understandingly first left the big Pan American plane that carried Constantin, 19, and Peter, 15, from Russian Diplomat Reveals Red Spy Ring in Australia CANBERRA, Australia W Prime Minister Robert G. Menzies announced today that the Soviet embassy's third secretary here had fled the Russians and dis- closed a widespread Soviet spy o innocent people, lowan Slays I In Argument With stranged Wife ._ Soviet diplomat, Vladimir Petrov. London to Idlewild airport. Then a public health official sig- naled to Mrs. Georgescu who had waited in an office. She walked toward the plane, then broke into a run. As she neared the craft's doorway, the older youth emerged from the cabin and embraced his mother. Then they stepped within the plane and the little family group met privately for a few minutes. Also present was the boys' father, Valeriu Georgescu, 50-year-old oil Dulles Turns Toward Paris For French Aid Secures British Pledge of United Action on Indochina LONDON WV-The United States and Britain agreed today to seek a NATO-type military alliance of 10 nations, pivoted on Southeas Asia, in an effort to safeguard peace from Indochina to New Zea- land. They declared Communist ag- iression, loose in Indochina, threat- ens to spread over all the rich ,ands extending to Australia, the Philippines and Thailand. The decision to press for the for- mation of a new Southeast Asia defense system was announced in a joint British-American commu- nique after a two-day conference between U. S. Secretary of State Dullas and British leaders on a "united action" program. Leaving by A top ranking American official said Dulles was "very satisfied' with the meeting and felt the talks "went far towards establishing the unity of purpose which he sought on Southeast Asia defense." Dulles was leaving by plane for Paris to line up France in what the official said might become "Southeast NATO. Dulles held his fifth conference in three days today with British Foreign Secretary Eden, telling re- porters as he entered the Foreign Office: "We shall have something to say this afternoon." The American secretary planned company executive who met them to fly to Paris later talk with r 1 r t i __ _ _' in Munich Monday. After the reunion, the youths stepped from the plane and told reporters they were "proud" that their father, a naturalized Ameri- can citizen, had refused to spy against the United States in their behalf. The Georgescu case broke into headlines last year when the father disclosed to the State Department Premier Joseph Laniel and For- eign Minister Georges Bidault, and leave for Washington Wednes- day night or Thursday. British informants said Eden, at his talks with Dulles Sunday night and Monday, made this compro- mise offer: British support for the American's proposed anti-Commu- The Prime Minister said Petrov that a blackmail attempt had been had appealed for political asylum in Australia and had been turned over to the nation's security forces for further questioning. Petrov, Menzies said, had given the security forces a great number of documents and oral information listing Australian "contacts or co- made by a member of the Roman- ian legation. The boys, rosy cheeked and healthy looking, smiled constantly during their impromptu meeting with the press alongside the plane. The pair spoke little English, ex- cept for constantly repeating "Thank you very much." Their father translated for them. CHICAGO ffi Warren avenue I some of them under I Constantin said they had heard iolice said a man from Spencer, code names. through friends that their father owa, shot two persons to death j The government chief told the had told of his refusal to spy on oday in an argument with his I shocked House the royal commis- j Radio Free Europe and Voice of stranged wife. Held without charge for ques- ioning after surrendering to police n another part of town is Charles tagel, 30. Those slain were Lloyd Veach, 9, and his sister, Katherine, 30. Angel's wife, 28, also named I sion would investigate these list-j America. Asked for their reaction, ings, as well as activities of agents I Constantin said: 'Man Who Built A-Bomb' Denies Slowing Project WASHINGTON J. Robert Oppenheimer has been suspended' as a government adviser on atomic matters for security cluding accusations that he sought to block development of the hydro- gen bomb. He declared he will fight the accusations. The noted physicist, sometimes called the man who built the A- bomb, disclosed the charges himself today by making public an J. Robert McCarthy Aides To Outline Case Against Army By G. MILTON KELLY WASHINGTON m Senate investigators subcommittee aides go before their bosses today to dis- uss how they hope to back up the ;blackmail" charges they helped .en. McCarthy (R-Wis) level at irmy officials. The two, Chief Counsel Roy M. iohn and Chief of Staff Francis Carr, are key figures in the McCarthy-Army row which the nist alliance in the Pacific around subcommittee plans to explore in Communist China, but (2) no strong declaration of united action in Indochina until the West finds out at the Geneva conference, opening April 26, whether the Com- spst.ions public sessions Anril 22 April 22. McCarthy has stepped tempo- rarily from the subcommittee's chairmanship while his fellow munists really are willing to ne-.members investigate the dispute. gotiate for peace in Asia. In Paris; French and foreign ob- servers agreed that Laniel and He was reported "somewhere in Arizona" nursing a throat ailment. ever stand the Britons took. S6Cret These sources said the French agreed with the British view that hard talk now would spike any chance of negotiating an Indochina peace at Geneva, the main French Secretary of the Army Robert 14.. Stevens, a storm center in the wnat" dispute, was said to have agreed at a closed meeting with the sub- have done and never lost faith that I Petrov's switch to the West yOU mjght ever commit an act of closely paralleled that of Igor Gouzenko, the code clerk in the Kremlin's embassy in Ottawa who betrayal in order to save us. W. knew you and are proud of you." The boys, who had just one piec Catherine, fled unharmed. A neigh-! in 1945 broke with the Russians ffst Apiece or told police the Veachs and and turned himself over to the iof were then cleared Irs. Angel had lived for about a Canadians. His disclosures broke month in a third floor apartment t 210 S. Francisco Ave., where ie shooting occurred. open the Soviets' wartime aton spy ring 'in Canada and the Unitec States. Airviow Of Alamo, Texas, after an 11-inch downpour last Friday leaves the town flooded. Town of people is under some water. Situ- ated in a shallow basin some 8 miles north of the Rio Grande River, the town now has a ques- tion of how to drain off water that has created a health problem. Typhoid fever vaccine has been used as a precaution against polluted drinking water. (AP Wirephoto) customs officials, and the familj was taken to the airport termina building for newsreel appearances Speaking for the famUy, the father said: "We are all very happy that at long last we are together again It's been a long, long seven years God made this possible. Only God could have done it. It's like a mi- racle. We want to thank everyone for this happy reunion." WEATHER FEDERAL FORECAST Winona and to- night. Wednesday partly cloudy with temperature. Low tonight 48, high Wednesday 72. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today; Maximum, 70; minimum, 54; noon, 70; precipitation, none; sun sets tonight at sun rises to- morrow at AIRPORT WEATHER (No. Central Observations) Max. temp. 69 at noon today. Low 53 degrees at a.m. today. Other noon scatter- ed layers of clouds at and over 15 miles, wind from the south southwest at 24-miles-per-hour with gusts up to 38; barometer at 29.94 falling, hu- midity 34 per cent. Arab Demand Stalls U.N. Debate On Palestine UNITED NATIONS, N. Y. W U.N. delegates sought today to compromise an Arab-Western im- passe so that the Security Council could get on with debate on the dynamite-packed Palestine issue. The Arabs, after two fruitless council meetings, still demanded that the 1-nation group give prior- ity to Lebanon's complaint that Is- raeli forces attacked the Jordan village of Nahalin 28 and killed nine Arabs. The United States, Britain and France at the council meeting Monday again insisted that Leb- anon's complaint, and rival Israeli charges also before the council, should be bypassed for a broad discussion of the increasing vio- lence along all the frontiers be- tween Israel and her Arab adver- saries of the 1948 Palestine war. The Soviet Union's Andrei Y. Vishinsky, council president for April, backed Lebanese Delegate Charles Malik Monday. He said umping together the Arab and Is- raeli complaints was neither "ex- pedient" nor "necessary" and that t would "lead to further compli- The council recessed until Thurs- day afternoon while delegates ought a way out of the conflict. if committee yesterday to give the senators an advance statement "of all the accusations" the Army will make against McCarthy, Cohn and Carr, together with a list of pro- spective' witnesses. Ray H. Jenkins, special .counsel for the inquiry, told a news con- ference he -thought Carr and Cohn would appear as counsel for Mc- Carthy. He withdrew that interpre- tation, however, when Sen. Mundt (R-SD) said McCarthy himself had not made exactly clear whether they would have authority to speak for him. Mundt, presiding over the in- quiry, told newsmen the idea of getting the advance statements is to try to prevent either' side from gaining unfair advantage by springing a "surprise package" of testimony. Role of Bandit Mike Nearly Fatal tQ Boy MILWAUKEE, Wis. The two roles that five-year-old Michael Ivy played in a Western drama Mon- day almost cost him his life. Playing alone, the lad fancied himself as both Sheriff Mike and Bandit Mike. As the former he or- dered quick justice for some im- agined wrongdoing. As the latter be climbed a railing, about six feet above the ground outside his home. He had noticed earlier that an abandoned rope dangled toward the railing from a tree limb above. exchange of letters with Maj. Gen. K. D. Nichols, general manager of the Atomic Energy Commission. Stories about the charges bad been published by New York morning newspapers. There was no immediate com- ment from the AEC. Nichols1 letter said 16 specific allegations of subversive activities had been leveled against Oppen- heimer. One was that he battled. against construction of the H-bomb, even after former President Tru- man approved it. The letter, dated last Dec. 28, advised Oppenheimer: "It was reported further that you were instrumental in persuading other scientists uot to work on the hydrogen bomb project and that the opposition to the hydrogen bomb, of which you are the most experienced, most powerful and most effective member, has defi- nitely slowed down its develop- ment, Work Suspandtd "The commission has no other recourse, ia the discharge of its obligations to protect the common defense and security, but to pend your clearance (to have atomic information) until the mat- ter has been resolved. "Accordingly, your employment on atomic energy commission work and your eligibility for access to restricted data are hereby sus- pended." In reply, Oppenheimer wrote 43-page letter on March 4, which ie called "a summary account of relevant aspects of my life." In the letter, the scientist took up each of the allegations raised Brother Once U MINNEAPOLIS Ufi Dr. Frank Oppenheimer, brother of Dr. J. Robert Oppenheimer, atomic physicist reported sus- pended by the Atomic Energy Commission for security rea- sons, resigned from the Uni- versity of Minnesota faculty in 1949. Dr. Frank Oppenheimer, who taught physics and did re- search at the University, quit after testifying before a con- gressional committee in Wash- ington that he had been a Communist from 1936 to 1940. Nichols" letter including the tatement that he had argued gainst development of the hydro- en bomb in 1949. At tho White House, press sec- etary James C. Hagerty refused discuss the matter. "Whatever comment there is will ome from the Atomic Energy he said. At the Capitol, Sen. Mundt (R- senior member of the Senate nvestigations subcommittee in the bsence of Chairman McCarthy, eclined to say whether that group as been investigating Oppenheim- r or the "delay" in work on the H-bomb which McCarthy has al- leged. Mundt told reporters, "I've heard the name Oppenheimer but declined to elaborate on the remark. Oppenheimer said he as well M the entire general advisory com- mittee on atomic matters, made up of top-level scientists, argued against the rapid build-up of H- weapons, which the scientist re- ferred to as a "crash program." He said the committee submitted a report to the AEC stating that "such a program might weaken rather than strengthen the position of the United States." But, Oppenheimer said, he and the other members of the commis- sion shifted signals after President Truman announced in January 1950 that the United States would pro- ceed with the H-bomb program. "I never urged anyone not to work on the hydrogen bomb proj- Mike looped the rope about his i Oppenheimer said. neck, with a few extra loops "f" around his body. The extra loops saved him, A neighbor noticed the small boy hanging soveral feet off the ground. Mike was rushed to a hospital. Later, recovered except for blue bruises on his neck, he recounted the adventure as a big joke. After the President's decision was made, he declared, "We never again raised the question of the wisdom of the policy which had now been settled, but concerned ourselves rather with trying to help implement it." Sen. McCarthy (R-Wis) said in a (Continued on 13, Column H-BOMB
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