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Salt Lake Tribune, The (Newspaper) - February 19, 1949, Salt Lake City, Utah RADIO NEWS am am pm Intelmountain Network Station KALL Monday Through Friday fibtin WEATHER Fair no change in temperature Details on Page 25 VOL 158 NO 128 SALT LAKE CITY UTAH SATURDAY MORNING FEBRUARY 19 1949 PRICE FIVE CENTS Lack Denies Profiting From Liquor Deals Judge Refuses Defense Motion For Dismissal State Rests Case Cyrus V Lack after denying that he had embezzled any Stateowned whisky Friday was subjected to a grilling cross examination that revealed his M the deliveryman in numerous case lot sales to locker system clubs The defendant admitted that he had split a premium payment from the Ogden Elks club with Harold V Leonard and Robert S Harries but hastily ex plained that he was only a little boy in the deal and that he re ceived less than a case in the 100case deal Lack Heads Parade The defense with Lack himself beading the parade to the witness stand struck back at the states case which sought to prove that the former operator of the Brig ham street pharmacy package agency embezzled some 307 bot tles of Seagram Seven Crown Whisky valued at more than between Oct 30 1947 and March 1 1948 The prosecution also has claimed that a March 1 1948 burglary at the pharmacy was phoney planned by Lack to cover up his shortage The state rested its case Friday morning and after Dist Judge Albert H Ellett denied the de fenses dismissal motion Lack testified Paid Shortages Lack a more than willing wit ness said he had conscientiously paid all shortage demands made by the commission that he had never kept any records depending upon Mr Rogers to prepare the vendors reports and the inven tories As to state testimony that Lack had charged Henry McGean with robbing the store the witness de nied the statement adding that McGean is a friend of mine The defendant wound up his di rect testimony with a blanket denial that he had ever converted any liquors or receipts to his own use The cross examination brought out Lacks admissions that he had often sold case lots and that Mr Rogers as Lacks agent had de livered large orders to the Fort Douglas Golf club and the Provo Elks lodgewith numerous checks received by the bookkeeper being turned over to the agency oper ator Had Always Paid Claiming that he had orders from higherups to deal in case lots the defendant said that while he did not deposit the checks to his liquor accounts he had al ways paid the commission for premium merchandise Lack admitted that he Leonard and Harries had divided a bonus from the Ogden Elks club but said he was the little boy in the deal and received less than a case The check bore Leon ards endorsement Harries former commission en forcement inspector was convicted of bribery the case now being on appeal A liquor conspiracy in dictment against Leonard was dismissed for lack of evidence fol lowing several days trial The defendant said that upon orders from higherups his agency sold liquor to every club that had a locker system When quizzed as to whether he had converted numerous checks running into thousands of dollars received from clubs for wartime rationed liquor the defendant ex plained that he never ran any paper through the liquor account but that he always put up the cash to pay for the bottled merchan dise Among Witnesses The defendants daughter and former Margaret L BUILDING ISSUE among the afternoon They testified that Beal 1112 E 4th South and Mrs Jessie S Thurgood 2528 Beverly at were witnesses Lacks 1947 sedan which a state witness had placed near the pharmacy within a few hours of the purported burglary was parked at the Beverly street home throughout the night the car hav ing been loaned to Mrs Beal The attractive Mrs Beal smiled at her father as she left the witness See Page 2 Column 4 Official Cites Misquote Bv Senator Dr Emile Waltzing state build ing board superintendent Friday said he was misquoted by Sen Ray P Lund R who Thursday told the senate Dr Waltzing had said a former chair man of the board had warned against public disclosure of an architectural contract Sen Lund quoted Dr Waltzing successor to A B Paulson as state building board superintend ent as saying that the former chairman of the board had warned that if a single word about this gets in the newspapers you will lose your jobs Discussion on the senate floor at that time centered on a fee paid Mr Paulson for plans for a new state office building Name Wasnt Mentioned Dr Waltzing said his first meeting with Sen Lund was Thursday morning and the name of a previous engineering com mission chairman was never men tioned I did not tell Sen Lund any one had ever threatened my job if I disclosed any information Dr Waltzing declared He also took issue with the senator on a statement that the board was operating outside the law in a remodeling jobof a building at Snow junior college Ephraim Dr Waltzing said bids were called on the job and Woody Stevens Murray contractor made low bid of Because he was unable to furnish adequate bond the board told him to get off the job Dr Waltzing said Separated Bids Since separated the two lowest bids the board decided in stead to have the work done on a force account and no contracts for the job ever were signed the superintendent explained Mr Stevens was hired as foreman on a per diem basis Dr Waltzing said and several subcontractors were signed for particular items on which they already had sub mitted bids Before we proceeded in this manner we obtained an opinion from the attorney general to the effect it was perfectly legal Dr Waltzing asserted He said Dr James A Nuttal president of Snow college asked the board to remove Mr Stevens because he was not fast enough A new foreman was appointed and work continued on a force ac count Dr Waltzing said While Mr Stevens was handling the job Dr Waltzing said it appeared the job could be completed for although the boards esti mate was between and Asks Additional Sen Lund Thursday introduced a bill asking to complete the remodeling costs The matter of architect fees which touched off the senate dis cussion Thursday was prompted by a message from Gov J Bracken Lee requesting each house of the legislature to appoint a committee to investigate the procedure of giving architect con tracts The house committee including Reps John W Rowberry D chairman Edwin Q Can non R Salt and Karl B See Page Z Column 2 Accord Lags On Atlantic Defense Pact Acheson Senators Fail to Agree On Aid Guarantee WASHINGTON Feb 18 An important huddle between Secy of State Dean Acheson and senators failed Friday to produce immediate agreement on the word ing of a proposed north Atlantic the Discuss Progress of Utah Liquor Case Cyrus V Lack on trial for embezzlement of state owned whisky discusses progress of the case with Alfred C Emery right counsel before Lack testified in his behalf in Third district court 17 S Jobless May Hit 4 Million Expert Predicts WASHINGTON Feb 18 UP Clague the govern ments top employment expert said Friday that unemployment may go as high as 4000000 this spring but a seasonal upturn by April may cut it in half He said that if the total should go as high as 5000000 and stayed there a while it would become a serious national problem But he told a news conference there is no sign of that now Clague estimated that unem ployment is now around 3000 000 That is relatively small he said when you remember that there are 57000000 persons at work right now Nourse Backs President Sees Rosy U S Future UTAH LEGISLATURE Heres Resume of Fridays Action by Senate House High lights in Utahs legislature Friday THE SENATE Defeated a resolution proposing a constitutional amendment to permit the legislature to fix the pay of the members Advanced to third reading a bill to provide for a state board of fire prevention and a state fire mar shal Received 20 new bills including two to increase industrial com pensation and occupational dis ease benefit payments and a third to submit a sale by drink propo sition to the electorate Adjourned until Monday at 2 pm to permit appropriations committee to complete appropria tions bill Saturday and Sunday THE HOUSE Approved a bill setting up an apprenticeship training board and director in the state industrial commiission Recalled reamended and re passed a measure providing for popular election of state board of education members Approved a bill appropriating to the state welfare com mission for March relief grants Received1 23 new bills and ap pointed a sifting committee House Agenda Now Up To Sifting Unit The house Friday managed to dispose of three more cluding a measure to set up a state apprenticeship council before turning some 200 other bills over to a sifting committee which will set the legislative agenda from here on out House members rose to the 40th day billintroduction deadline by submitting 23 new measures Two thirds vote of the house will be needed to submit any new bills for the remainder of the 60day ses sion Speaker Ed J McPolin D Summit named Rep W G Larson D Salt Lake as chairman of the 17man sifting committee which echoes the political division of the house as a whole Other Members In addition to the chairman the 10 Democrats on the committee are Reps Anderson Dean Hinton Jack Larsen Luke Munk Olson Poulson and O W Young Repub lican members are Davis Kerr Johnson Tietjen Woolley and W W Young During the morning session the house faced by an adamant senate decided to accept the solons amendment to a houseapproved bill making an emergency appro priation to the state welfare com mission As the bill passed the house it contained an appropriation of to make up relief fund deficiencies to the end of June The senate amendment cut the amount to which will permit the welfare commission to issue March checks at the current level but according to commis sion estimates will not meet an ticipated deficits in and June to Wall Several members explained that they were voting in favor of the bill because our backs are to the wall Unless the money is made available within the next few days March grants would have to be cut it was explained HB 108 to broaden the powers of water conservancy now limited by law to irrigation projects only received unani mous approval Rep J Frank Marble D Davis said the bill is necessary to permit Weber and See Page 2 Column 6 WASHINGTON Feb 18 UP Edwin G Nourse Pres Harry S Trumans chief economic adviser said Friday the nation has entered a healthy period of dis inflation that wont lead to a recession unless public gets jittery He discussed the outlook with Mr Truman and afterward told reporters he shares the presidents optimism but doesnt quite agree with his choice of words The chief executive told a news con ference Thursday the recent price drops amounts to the levelling off that everybody has been wanting Off But Nourse chairman of Mr Trumans council of economic ad visers said hed prefer to keep away from that word levelling off It gives a lot of people the idea that prices are going to be fairly stable at the present level he said Instead of a smooth situation like that I think we can look for a choppy situation with both upg and downs When prices do stabilize he said he expects it to be at a level somewhat lower than at present but still higher than prewar Nourse explained that he chose the term disinflation for the present situation because he be lieves that inflationary forces are waning but still doesnt think the country is in the grip of defla tion or the beginningof a depres sion Warns of Jitters He cautioned however that if the public works itself into a jittery stage recent price adjust ments might snowball into a re cession To illustrate what disinflation means to consumers Nourse pointed to the new car market He said he doubted whether there will be any cuts in the list prices of cars this year but at the same time it is getting much easier to buy a new car at list price without paying a pre mium Clothing is another good exam ple he said I dont expect drastic markdowns in clothing prices but I think you will find more lowpriced lines appearing and better quality in all lines Tin Steel and other heavy durable goods industries also are entering a catching up stage he said with the result that the gray mar ket which flourished during infla tion is now definitely fading A similar diagnosis was deliv ered meanwhile by Board Chair man Philip D Reed of General Electric Co who told the joint congressional economic committee recent price declines are a healthy corrective Aid Seven Others Killed as C47 Falls in Argentina BUENOS AIRES Argentina Feb 18 Gerald E Williams U S air attache here his wife and six U S air force men were killed when an air force C47 piloted by Williams crashed in the mountains of northwestern Argentina the U S embassy announced Fri day Mrs Williams was the daugh ter of Col Arthur Parker who was killed at Corregidor by the Japanese Williams was born at Presque Isle Me Other victims were copilot Capt Charles H Mayo Green ville N C Master Sgts Hugh Willis Newton S C Uriah Horst Tacoma Wash and Rob ber t C Frazer Odessa Tex Tech Sgt Linworth E Stanton Cance Ala and a Sgt Canes tari who boarded the plane in Panama The plane was on flight from Panama to Buenos Aires when it crashed late Thursday some 60 miles west of Salta Argen tina CrossCountry Gem Thief Bares Career NEW ROCHELLE N Y Feb 18 startling story of a crosscountry series of robberies of wealthy homes which allegedly netted a smoothappearing Cana dian in jewels and furs was unfolded by Westchester county authorities Friday The suspect 29yearold Gerard Graham Dennis was uncommuni cative at his arraignment on first degree burglary and feionious as sault charges here Couldnt Recall All But detectives said Dennis talked freely in private question ing and that the only trouble was he had pulled so many burglaries he couldnt remember them all Authorities in Westchester county California and elsewhere said Dennis had Taken valuables worth 000 in the Beverly Hills Calarea worth of loot from 16 Westchester homes and in robberies in Canada Secreted in jewels and in his Beverly Hills apart ment Carried in unset dia monds and in cash at the time of his arrest in Cleveland Wednesday List of Prospects Carried in his wallet names of 22 movie stars and their secret addressesas a list of prospects Maintained a notebook in his California apartment which con tained the names of many wealthy defense pact to strengthen west against communism But another meeting will be held soon to continue the hunt for acceptable language The thorn iest problem is how far the United States shall go in promising aid to nations which might suffer aggression For Three Hours The meeting between Acheson and the senate foreign relations committee lasted for three hours Afterward Chairman Tom Con nally D Tex told newsmen You cant even say any tenta tive agreement was reached While committee members were pledged to secrecy there were strong hints that there is no dis agreement that a security pact is necessary The only question seems to be the form it will take Connally announced It will be some little time yet before it is ready to be made public Several suggestions were made on a phrase here and a word there he said Connally and Senator Arthur Vandenberg R Mich have said flatly they will not agree to a treaty which commits this country in advance to go to war in case any of the signatories is attacked Cites Constitution Connally says his objection does not extend to measures short of war But he argues that only con gress has the constitutional right to plunge the United States into armed conflict Some of the negotiators for western European nations have been urging the United States to make the strongest possible com mitment to act in case of war Thus the state department is faced with the ticklish task of trying to arrive at wording which will be acceptable to the senate yet provide the western Europeans with a sense of security Connally and other committee members gave out very little in formation about what went on behind the closed doors Discuss Pact Connally said the committee and Acheson by mutual consent discussed the proposed pact in its present form He added this form was substantially what it will be finally I presume Sen Bourke Hickenlpoper R la said there was a general dis cussion of the philosophy of the TrumanReminds Vets of U S Economic Limit Implies Pension Disfavor Rankin Spurs Campaign WASHINGTON Feb 18 Harry S Truman told the nations veterans Friday that this United States is theirs but he said in considering veterans welfare it must be understood there are certain limits And those limits he said cannot be stretched Thus indirectly for the second time in 24 hours Mr Truman Demo Spokesman Sees Truman Veto of Vet Bill WASHINGTON Feb 18 UP Democratic congressional leader predicted Friday that Pres Harry S Truman would veto the Rankin veterans pen sion bill if it gets through the house and senate The congressman who con sults regularly with the presi dent on legislative matters said the pension bill has not been dis cussed at White House strategy conferences But he said he was certain Mr Truman would veto it if it reaches his desk Democratic leaders dont think it will get that far They plan an allout fight to block it in the house If that fails they are hopeful the senate will kill it linked the question of a multibilliondollar veterans pension plan with the future of the countrys economy The president has previously let it be known that there is no place for veterans pension in his budget at this time He did not refer specifically Fri day however to a bill by Chair man John E Rankin D Miss of the house veterans committee which would give pen sions to all veterans of World War I and World War II when they reach the ago of 65 Must Maintain Solvency Chatting informally with top officials of the Veterans of For eign Wars Mr Truman called at tention to the fact that there are between 17000000 and 18000000 veterans in the United States He said it is necessary for these veterans to help maintain the gov ernment and to see that the gov ernment maintains the solvency that is necessary for its continu ance Himself a veteran of the first World War Mr Truman told the VFW officials I hope you can continue your constructive program I hope it will be possible for you to help me to help the veterans of this country understand that this United States is theirs They fought to maintain it Certain Limitations But to maintain it he went on we must understand that it has certain limitations It is your government and there are certain limits to which its financial welfare can be stretched I want you to bear that in mind very carefully when you are considering the welfare of the NAM Aid Hits Labor Bill Smear Role agreement Hickenlooper himself favors a pact which would commit this country to go to the im mediate aid of any member at tacked This was Achesons first meet ing with the full foreign relations committee to discuss the proposed treaty Until Friday he had limited his discussions in the sen ate to Chairman Connally and Sen Vandenberg Republican leader in foreign affairs No Even though no commitments were made the meeting gave Acheson a chance to get the views of the individual members of the committee And it generally is agreed this will aid him in con tinuing his talks with the repre sentatives of the foreign countries Connally said Acheson has dis cussions scheduled with ambas sadors and others interested in the pact He indicated Acheson will go ahead with these talks be fore meeting again with the com mittee persons Dennis who purportedly used society pages for tips on his forays is a slender darkly hand some man Det Lt Maurice Kelly of New Rochelle said the Hollywood no tables on the list in Dennis pocket included Jack Benny Bette Davis Eddie Cantor Edgar Bergen Dor othy Lamour Harold Lloyd Mary Pickford William Powell Kay Francis and Olivia De WASHINGTON Feb is UP Ira Mosher of the National Assn of Manufacturers Friday accused Democratic senators of abusing and smearing him during a tem pestuous senate labor committee hearing on the administrations new labor bill The chairman of the N A Ms finance committee warned that Im losing my temper as Sens James E Murray Mont Claude Pepper Fla and Hubert Hum phrey Minn attacked the NAM and charged that manufacturers got rich on World War II profits while the poor people did the fighting Denounces BUI The flareup came after Mosher denounced the labor bill as a backward step and urged con gress to pass even stronger anti strike injunction powers than the TaftHartley law provides He recommended that the Taft Hartley law be broadened to reg ulate industrywide bargaining and restrict the union shop The law bans the closed shop but permits the union shop Pepper berated the NAM for its record on liberal legislation and asserted that manufacturers made excess war profits while the sons of poor people went to war and the sons of manufacturers stayed home in good jobs Losing Temper Just a minute sir Mosher in terrupted Im losing my temper I lost three of my family in the war This talk that manufacturers didnt contribute to the war is pure abuse of an individual witness and I resent it deeply Murray inserted into the record a 10yearold report made by the senate civil liberties committee on the NAM The senator Murray has put that statement in the rec ord in every hearing where Ive testified for no purpose except to smear me Mosher declared veteran Only last night the president reminded another group of vet erans and congressmen that Amer icas economic stability must be preserved in this crucial period of world history Again without mentioning Rankin s bill he said the first consideration of any veterans program should be the welfare and rehabilitation of ill and disabled veterans and the care of their families or survivors Rankin Defends Plan Meanwhile Rankin vigorously defended his program The Mississippi legislator told a group of VFW leaders that his bill which the house would cost first year has already cleared veterans committee only the U SMoscow in Five Or So Solon Says of Plane presumably Olivia De Havilland Clinton Anderson Beverly Hills police chief said among the per sons named in the notebook in the Canadians apartment were Louis B Mayer Lady Furness Mrs Henry Kaiser Jr actress June WASHINGTON Feb 18 Sen Millard Tydings D Md said Friday the air force has a plane that could carry a 10000 pound bomb load from Maine to Moscow in five hours Later he identified the ship as the 600mile an hour XB47 jet bomber In his original remarks to de partment commanders of the Vet erans of Foreign Wars the man of the senate armed services committee said the plane he had in mind also could fly to Moscow return to Maine and then go back to Moscow Air force experts said they knew of no such plane Tydings reached later at his office told a reporter he was re ferring to the experimental jet bomber which recently broke speed records with a crosscountry west Haver and Al Barbee soft drink to east coast hop at an average tycoon of 607 miles per hour Tydings got out an air map of the direct polar route from Presque Isle Me to Moscow showing a distance above 3000 miles Some mileage charts indicate roughly 4200 miles What I intended to say was that if this bomber had a 10000 mile range it could fly to Moscow and back and then start a third trip Tydings said Obviously if it goes more than 600 miles an hour it could reach Moscow in five hours and a few minutes Tydings said he thought he identified the bomber in his speech The XB47 jet is now the air forces fastest bomber It has a top speed of slightly more than 600 miles an hour without a bomb load The B49 flying wing has made the longest flight by a jetpowered miles in 9U hours without a bomb load He said that under the European Recovery plan we spend 000000 for tobacco to send to Europe more than 10 times what this bill could cost the first year Rankins estimate was far un der the tallies of congressional money experts who figured the Rankin plan would cost 000 in its initial year rising an nually to an ultimate peak of a year by 1990 War Rankin told the veterans If we can feed and clothe ev ery lazy lout from Tokyo to Tim buctoo under the Marshall 1 mean the Bevin can afford this bill to put old veterans of World War I and II on a parity with the SpanishAmerican war veterans We are spending billions of dol lars to help the very people who were murdering our soldiers in war and are plotting today to over throw our government We are aiding satellites of Rus sia and sending to the voodooworshipping people of Haiti The international bank is sending to Brazil to build power dams and I have a hell of a time to get money to build power lines for our rural co operatives AntiVeteran Sentiment But Rep Bernard W Kearney R N former VFW com mander in chief told the veterans that Rankins bill as drafted would create the greatest antiveteran sentiment in history Kearney said he objected par ticularly to a provision allowing veterans with other than honor able discharges to share in the proposed pension I refuse to vote pensions for homosexuals drunks and A W O Ls bordering on desertion he said Zamora Dies in Exile BUENOS AIRES Feb 18 Alcala Zamora 72 first president of the Spanish republic died in exile here Friday
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