Abilene Reporter News (Newspaper) - June 12, 1954, Abilene, Texas
Hfje ¡Htnlene Importer
; "Without or with offense to friends or foes we sketch your world exactly as it goes"—Byr<*i
VOL. LX1II, No. 358
Associar fid Press (AP)
ABILENE.TEXAS, SATURDAY MORNING, JUNE 12, 1954—SIXTEEN PAGES IN TWO SECTIONS
PRICE DAILY 5c, SUNDAY 10c
Young Said NYC Victor
NEW YORK. June 11 uP-Robert R. Young has won his fight for control of the mighty New York Central Railroad by a margin of 1,070.000 shares, it was learned today from an authoritative source which declined to be identified.
The results of the election are to be announced officially by the election inspectors at 10 a.m. (EDT) Monday at Albany.
The official results will announce the election of Young's slate of
200 Housing Finns Profited $40 Million
WASHINGTON. June 11 i.P-Fed-eral Housing Administrator Albert M. Cole today named 200 corporations as having reaped nearly 4« million dollars in “windfall’’ profits on 70 apartment projects. He announced the list is being sent to the justice department.
An investigation of Federal Housing Administration abuses shows beyond question. FHA announced, that some of the apartment promoters were ' aided and guided by 1 H men and a woman to Central s former top FHA officials in the Board of Directors, the source dis-windfal! practices." ; closed, unseating the old board
The Justice Department was |ieaded by Central President Wil-asked to take “such civil or crim ¡jam white.
inal proceedings' as might be in-] y ^US ends 85 years of dicated by the circumstances of domination by lhe financial and
each case. familv descendants of the last cen-
tole made public the list de- t ,.g tRans Cornelius Vanderbilt veloped by his deputy, William b and j Pierpont Morgan. McKenna, who is in charge of the . .
investigation FHA began last April I Th',T for Ure temral v-as tht
biggest business struggle in a generation and the greatest victory Young ever scored in his career.
The 57-year-old. Texas-born fi nancier began his attack by demanding Central's board chairmanship last February. When the Central board refused he launched a blistering attack against his old-time e n e m i e s—-the “Wall St. Bankers."
Back in April when the proxy statements of each side were made
The list released today covers projects in 18 states and the District of Columbia The corporations put $4.141.390 of their own money into the developments and obtained FHA-insured mortgage loans totalling $277.593.500.
But the total cost of the projects was shown as $239,374.770. indicating that the sponsors enjoyed a total windfall of $39.539.833.
The projects listed today are located in Alabama. California. Connecticut, Delaware, the District of Columbia. Florida. Georgia. Kansas, Louisiana. Maryland. Mississippi, New Jersey. New York, Oklahoma. Pennsylvania. South Dakota. Texas. Virginia, and West Virginia.
The corporations listed by Cole, with the amounts of mortgage loans obtained, estimated costs of protects and “windfall'’ amounts, included:
BUly Mitchell Village. Inc . San Antonio, mortgage loan. $3.220.200; reported project cost. $2,742,500. $477.700.
Midway Gardens. Pasadena. $336.500 and $245,900 and $90 600.
Bayou Park Apts , Houston. $1,-382.900 and $955.400 and $327,500.
ALL SMILES — Alfred E. Perlman < above K executive vice president of the Denver & Rio Grande Western railroad, smiles as he boards train at Chicago, Illinois. Perlman has been mentioned to succeed William White as president of New York Central as Robert R. Young's forces gain control of the road.
! his lead was already overwhelming v j the Interstate Commerce Commis-
The slate of Young nominees sion and finally before the election ¡owned or controlled 1,118.880 commissioners at Albany. N. \
shares of the Central's 6.447,410 shares of outstanding common. This was 17 4 per cent.
The Central board owned or controlled only 106.122 shares, or 1.6 per cent of the total.
But 800.000 shares of the Young
where the stockholders' meeting was held.
Young was in New York today but left before the result was disclosed. He plans to spend the weekend at his.estate in Newport, R I.
White was believed to be in New
Duval County Jury Indicts 2 Schoolmen
j SAN DIEGO, Tex., June 11 W— ! The Duval County school superin-' tendent and a former school district tax assessor were indicted today on charges of theft and conversion of public money.
A grand jury investigating financial affairs ot Duval County returned the indictments.
R. L. Adame, county school superintendent, was indicted on eight counts of theft over $50 from ! various common school districts.
D. C. Chapa, former tax assessor-collector of the Benavides Independent School District, was indicted on one count of conversion of public money belonging to the Benavides Independent School District.
Bond for Chapa was set at $2,-500. Bond of $700 was set on each count returned against Adame.
There are two school districts in the county, Benavides and Duval.
It was the second set of indictments returned by the grand jury since it began work two weeks ago.
Last week it indicted C. T. Stan-sell Jr., former county auditor, on 17 counts of forgery and George B. Parr, county political boss, on an assault to murder charge.
Parr failed to have the indictment against him quashed. He claimed he had already pleaded guilty to aggravated assault on Cristobal Ybanez in a county court action.
Chapa resigned Feb. 10 during the height of a state investigation into financial affairs of the county. Ten other county and school district officials quit the same day.
AUTO PLUNGES, WOMAN DIES — Mrs. Thomas P. Rickett of Midland was fatally injured when the auto above plunged off the Albany highway just behind where
the two parked cars are in the photo. This view, looking west, was taken 14 miles northeast of Abilene. «.Staff photo by Don Hutcheson)
, Oil news ......
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Radio, TV .....
group’s holdings belonged to Texas York but could not be reached.
millionaires Clint W. Murchison and Sid W. Richardson and the Central tried to bar these from being voted In this effort the Central lost every round—m the court», before
Also in New York was Alfred E. Perlman, Young's leading candidate for president to succeed White. Perlman. 51. is executive vice president of the Denver & Rio Grande Western Railroad.
Navy Jet Crashes By El Paso Homes
EL PASO. June 11 UP—A twin-engined Navy F9 Pantherjet plane j nora, the seller.
San Angelo Has Top Wool Sale 011954 Season
Fiery Crash KillsWoman
Abilene on State Highway 351
SAN ANGELO. June 11 ‘-P-—
Largest wool sale of the season—, more than one million pounds— Fnday 1en?oon_ was confirmed in Sonora this week
Jackson Hushes. San Angelo. PJ on. a. sharp cune on the and Fred Earwood, So- Albany highway.
Mrs. Thomas P. Rickett. 42. of 1 wreck, Derrell Dobbs. 1410 Ash
1219 Maiden Lane. Midland, died j St.. Abilene, was directly in front
a* few minutes after the car she j of the Rickett auto at the time
was driving turned over and bum- of the accident,
ed about 14 miles northeast of i Dobbs told Patrolman Jacob
Tornado Alert Near Lubbock; Rains Pour
(Trias Weather. P*. $ B>
Flanders Asks Charge Answer
crashed after takeoff tonight near a residential area on the outskirts of El Paso. The pilot was killed but has not been identified.
The plane burned up after crashing.
No houses were repeated damaged.
Two military observers said they
saw the plane fly down an alley, shortly before it crashed, barely missing the tops of at least 25 houses in the Van Horne Park
residential area and clipping the
The Sonora Wool A Mohair Co.,; of which Earwood is executive vice president, sold to Hughes, who buvs for Emery, Russell A Goodrich, Boston. 1.035.000 pounds of graded and original bag wools.
The graded staple, about 450.000 pounds price range was from 78 to 87 4 cents per pound; graded French, about 225.000 pounds, brought 73 to 8014 cents per pound; graded clothing, 60.000 pounds, went at 68 to 73 cents per pound.
that he looked in his rear view mirror and saw the car swerve i The accident occurred about 12:45 j across the highw ay and into a
borrow ditch beside the road.
He said that he stopped and Mrs. Rickett was alone in the i rushed back to the scene and
1950 Ford and no other vehicle j found the victim sprawled across
was involved in the mishap. ; a fence where she had been
Highway Patrolman W. A. Ja-; thrown clear of the car as it
cob. who investigated the accident, overturned. At that time, Mrs. said that an eyewitness to the Rickett was still alive.
She was moved from the fence and up onto the road by Dobbs and other passing motorists.
She died a few’ minutes later.
The auto was traveling north when it ran across the highway into a ditch on the left side of the road. It was almost completely demolished by the crash and burning.
The body was brought to Abilene by an Elliott's Funeral Home | ambulance.
1 Cause of the accident was un* i known.
KINKS STILL NEED IRONING
WASHINGTON. June 11 .P—Sen Flanders <R-Vt> demanded today that the Senate strip Sen. McCarthy of his investigative powers as
for other specific purposes were diverted to his own use.
“Whether Sen McCarthy usedf close associates and members of
Ll’BBOCK. June 11. if* — The Lubbock Weather Bureau at 10 45 o’clock Friday night issued a tor- j nado alert for an area extending from 30 miles northeast of Lubbock to the Childress area as a massive electrical storm continued to dump ram and hail in the area Earlier in the night, rain me as- I urmg up to four inches flooded farms and roads in the area be- i tween Plainview and Kress, forcing the closing of the mam Tub bock-Amarillo Highway,
The Highway Patrol reported! late Friday night that the highway had b»H>n closed eight miles north of Plainview aiter floodwaters * •wept into a lake area Farmers in the Kress area re* . ported 100 per cent loss of w beat ; and cotton crops from hail. Dam- j age was reported at scattered points between Kress and Plain* . view.
Shortly before 11 o'clock a ; second “cloudburst hit the flood ed highway area, located near a small community called Finney Switch.
The storm set off one of the most brilliant electrical displays seen in the area m the past two years.
| a committee chairman until Me j hts family to secrete receipts, in-i Carthy purges himself of “con- i come, commodity and stock spec | tempt ’ by answering “charges” . ulation and other financial transmade against him in 1952 * actions for ulterior motives.
Before delivering this open chal- “Whether Sen. McCarthy’s ae-lenge on the Senate floor. Fland tivitios on behalf of certain special
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ers confronted the Wisconsin senator at the McCarthy-Army hearings and served written notice that he intended to make the address. It was Flanders’ third speech against McCarthy in recent weeks McCarthy’s first comment was. “1 don’t have enough interest in any Flanders speech to listen to it.” Shown a copy of the address later, he remarked
•Get A Net’
“I think they should get a man I w ith a net and take him to a good quiet place. ’
Flanders smiled when he heard about this and said, “Oh. he must i think I m a butterfly who ought to be carried to a quiet place ’ t In calling for McCarthy's ouster j as chairman of the Government \ Operations Committee and its In- j ! vesligations subcommittee, Flanders asserted McCarthy is in contempt of “the whole Senate ’ be- 1 cause ot his refusal to appear two years ago before a Senate group which investigated hi- finances and other activities “It is no defense to call the charges a smear,' the 73-year-old Vermonter N.ud. * \ smear is a most annoying thing and one wluch > i> perhaps <1 would not speak def* j imlely) not unknown to the junior •senator from Wisconsin “But there is this about a Miiear. U can be removes! b> a dry dean ing process which involves a vigor-ous application of the truth That process the senator was unwilling to apply The smear remains, of course
Flandeis was harking back to the work of a three man Senate subcommittee set up in 1952 to investigate charges against McCarthy by former Sen, Benton ID-Conn' and countercharges made by the Wisconsin senator. The subcommittee was eompostxl of Senators Hennings «D-MtH, Hayden il)-Artii and Hendrickson »R-N.D.
I ists i harges ; The “charges” against McCarthy Flanders said, “were summed I up in six questions, which the com 1 mittee worded as follows:”
! “Whether under the circum stances it was proper for Sen Me Carthy to receive $10.006 from the Lustron Corp. (for a booklet about housing N “Whether fundi supplied to Sen McCarthy to fight communism or
interest group*, such as housing,
tops of telephone poles before strik-i In the original bag lot there was ing earth about 50 feet from a around 300.000 pounds that brought group of houses. ' 64 to 74*i cents per pound.
Schine Plan Kidded; Welch, Solon Cross
WASHINGTON, June 11 JL-Sen. j except that the colonel once was
Alert # Satisfactory/ But More
Horns Needed in Parts of City
j McC arthy crossed sugar and t hina were motivated ( Counsei jo^ph N. Welch for by self-interest j sec0nd time in three days at
“Whether loan or other transac-. the McCarthy-Army hearings to-
tians Sen. McCarthy had with Appleton Wis.' State Bank or others involved violations of the tax and banking laws.
“Whether Sen. McCarthy violated federal and state corrupt practice acts in connection with his 1944-46 senatorial campaigns or m connection with hts dealings with Ray K ter mas McCarthy's administrative assistant c” l.ast October. Atty. Gen Brown-
day. and the proceedings were further enlivened by a serio-comic dispute about the “Schine plan to sell democracy through the world.
Welch, who accused the Wisconsin senator of reckless cruelty two days ago, pleaded with him this j afternoon to give a clean bill of health to Pvt G. David Schine s , former commanding officer j “Aren’t you capable of a single affirmative kindness?” W e 1 c h
ell said the 1952 Senate subcom-1 asg^j McCarthy, mittee report contained no evi- . Vaudeviiie ac,”‘ McCarthy hit
dence that McCarthy violated any law coming within the Justice Department's juridiction. Brownell added that the Treasury was still
See FI \NDERS, l*g. I A, Col.
He said he s convinced that Schine’* former commander, Col. ! Earl Ringler, is a gvxxl officer— 3 that he has nothing against him
needs strengthening m some sections of the city.
E. N. Mitchell termed the test satisfactory, but said there are still some kinks in the system that will have to be ironed out it it is to become 100 per cent effective.
He said complete reports from all sections of the city were not
Val Peterson Visits Here
Val Peterson, federal civil defense administrator, returned to Abilene Friday as the guest of cellation of an overseas broadcast- j French M. Robertson, regional civ-ing station :n Jackson s home state d defense director, of Washington. j They came here from Denton.
Jackson disputed this, contending , which is the headquarters of Ro-Sehine withheld technical informa- bertson’s five-state region. Peter-tion from the subcommittee. Cohn son a former Nebraska governor,
i challenged Jackson and announced was accompanied by his aide,
he would answer the senator's er- paui Wagner.
The ex-governor and his aide will leave Saturday for Washington. D. C.. Robertson said.
At Denton, a final bneiing was given in connection with a nationwide civil defense practice alert which will involve 61 cities and will
The test Friday night of Abi-1 available Friday night. However. | The sound of horns was too lene's civil defense and disaster * those reports received were gen* weak at^North Eighth and Pine warning system proved successful according to early reports, but
reported to have called a McCarthy investigati n a “witch hunt”.
New Personal Clash
The 32nd day of the stormy proceedings also brought on a new personal row between Sen. Jackson t D-Wash I and Roy M. Cohn, regular chief counsel of the McCarthy Investigations subcommittee.
It stemmed from a statement by McCarthy during the hearing that Schine. when he was a subcommittee consultant, saved the taxpayers 10 million dollars by forcing can-
erallv favorable. Sts., at South Sixth. Seventh and
Mitchell and Howard Kemper Eighth Sts. on Butternut St. and are communication chiefs of the in some suburban residential areas i Abilene Civil Defense and Disas* in the direction of the Country ter Emergency Relief organiza- Club and possibly other sections tion. ! ol the city
L. R. Lapham is in charge of j It is a big job to install the the horns that make up the warn- air compressor-operated horns, ing system. Mitchell said, because an attempt
i There are now 24 horns placed is being made to utilize existing at various points in Abilene i facilities m order to hold down and the test at 7 p.m. Friday expense of the warning program.
* showed that more horns are need- j Horns are installed at e*oper*. I ^ | mg business firms which permit
! Mitchell said horns were heard j the use of air compressors for
* from three directions at North 1 the warning system.
j Eighth St. and Pioneer Dr, the
| Boy Scout office, south of Mc-j Murry College and at South 11th St. and Treadaway Blvd.
The horn atop the Wooten Hotel wa> heard clearly at North Eighth and Hickory Sts. and several horns were heard clearly in the North j 20th and Pine Sts. area. Horns were heard from two directions at North Fourth and Plum Sts.
More horns are needed in some areas where horns could be heard but not loud enough, Mitchell said.
The test Friday night was held in preparation for the full-scale alert that will be conducted here Monday at 7 p.m.
The alert will be held in conjunction with the national civil defense warning program to be carried out Monday at towns and citiea thioughuui the 1 nited States.
Mitchell said it would not be possible to install the extra horns needed to complete the warning system in time for the alert, but said they w ill be installed as soon as facilities can be found.
roneous statements" Monday.
Cohn then tangled with Robert F. Kennedy, counsel for the Democrats on the Investigations subcommittee. and Kennedy told reporters Cohn said “we are going to get Jackson on Monday.
Cohn said he told Kennedy that ta^e place during a 24 hour period had
WARNS MCCARTHY- Sen Ralph Fenders tR-YD. who previously has bitterly assailed Sen. Joseph McCarthy iR* Wit)on the Senate floor, hands him written notice that he will attack him again on the Senate floor lhe presentation was made to Sen. McCarthy (left! while he was on the witness stand before the Senate Investigations sub committee during probe of McCarthy-Army row.
lie thought Kennedy “had a per-sonal hatrtx!” and asked him it he thought somebody with such a hatred “should sit here and take part in the proceedings by advising Democratic senators “ Democratic Senators Symington, ot Mo . and Jackson set out to get j the McCarthy camps goat with needling questions about Schine— ranging from the alleged loneliness of his girl Inends when the Army drafted him, to the v alue of a plan Schine once submitted to the State Department for a worldwide “denv inform“—an alliance of tree peoples m the battle “tor men * souls “ Plan Is Kidded Jackson lampooned the five-page plan as a hodge-podge of not very practical suggestions. Due of them: appealing to world opinion by su*h means as cartoons and pinups How, lie inquired amid laughter, do vou go about selling democracy through pinup girls'*
McCarthy retorted that pinups at least are better than Communist hooks in overseas libraries-» sub-iect he has explored at length in past hearings.
He said the Eisenhower administration's policy seems to favor
See McCarthy. Pg. 1-A, Col. I •
BURLESON WINS FIGHT
Use of Surpluses In Foreign Aid Voted
to start at 8 30 a m. Monday. Robertson said.
lM«r«Uck >ndm! BY ELIZABETH CARPENTE» .«aurini «he consumption ol Amer-
dear ueapons The only Texts Keporwr Ne»x Corre,poodeol I Kan form Suduses abroac.
«ties to be involved are Fort WASHINGTON, June 11-Rep Burleson, with Rep Walter Judd Worth Dallas and Houston Omar Burleson today won a four j (R.wis . succeeded m getting the
Peterson and Wagner visited vear legislative battle in which he ( House Foreign Affairs Committee
Chilene lost November, also tlie invitation of Robertson.
at has tried to reduce the costs of I the foreign aid program by re
SUNDAY HEADLINERS IN REPORTER-NEWS
Gentlemen with a little fringe on top will be sa uted in the Sunday Reporter-New s.
Some well-known Abilene baldies let themselves be photographed bv Don Hutcheson and told Newsman Stuart Chilton some of the woes—and advantages of
having no or little hair.
That's part of the light side of the news which will be presented readers of the Sunday Reporter-New s. The serious side of the news will be included, too. And all the “specialty” and feature stories which make
a well-rounded newspaper.
You may reserve your extra copies of the bunaav Reporter News with your agent or nearest newsstand for 10 eents.
i unanimously to accept an amendment requiring foreign aid nations to accept a large part of their largesse in surplus goods.
“It will cut down the east ot the program." Burleson maintained. and mean that our big farm surpluses can be channeled abroad, thus relieving the surplus situation and improving the price “
The Burleson-Judd amendment require* that $500 million of the President's $3.5 billion foreign aid program must be taken in the form ot farm surpluses. Under the plan, the foreign countries would have to take the farm surpluses first before getting their dollar* aid.
Burleson has sought to get the measure approved before but it has never succeeded. He predict «Ml the House will pass the bill as the committee reported it out, aft er it takes it up next Wednesday.