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Globe-Gazette (Newspaper) - December 1, 1964, Mason City, Iowa Negroes starting own banks Difficult path I toward success By JOSEPH R SLEVIN New York Herald Tribune News Service WASHINGTON A new bank has been dedicated in St Louis Its name is Gateway National Bank and its main difference from most new banks is that it is owned by Negroes Gateway is one of six Negro banks that have received char ters this year The others are in New York Los Angeles Birmingham Dallas and Wash ington DC Six banks is not many But there were only 13 Negro banks in the US when the year be gan The growth in Negro banking institutions is a sign of the prog ress Negroes are beginning to make and a disturbing clue to the difficulties they face It would be nice to be able to say that Negroes are scor ing a major breakthrough by establishing themselves in the potent financial community But what actually is happening is that Negroes are developing a segregated banking system be cause white bankers are not meeting the needs of Negroes Deputy Assistant Secretary of Commerce Andrew F Brimmer said Negro banks have two jobs to do They must make loans to Negro businessmen who find it difficult to get credit from white bankers and provide mortgages to Negro homebuyers The 37yearold official speaks with authority He is a profes sional economist with a Harvard PHD and he is the first Negro to hold secretarial rank at the Commerce Department Brimmer carries no brief for segregated banks as such He suggested that one of the best functions strong Negro banks can serve is to force other banks to be more sympathetic to the nthhour bid to avert U N showdown fails UNITED NATIONS NY A meeting of Big Four diplo mats with UN SecretaryGen eral U Thant failed to produce a formula for heading off a US Sdviet showdown in the General Assembly over peacekeeping payments Soviet Delegate Nikolai T Fedorenko however said he be lieved the four and other key UN diplomats were close to agreement after talking for 90 minutes The UN announcedthe dis cussions would be resumed at pm 15 minutes before the scheduled opening time for the assembly session It appeared almost certain that the resumed negotiations would delay the opening US Ambassador Adlai E Stevenson said I am always optimistic but he referred di rect questions about the situa tion to Thant In addition to Stevenson and Fedorenko others in the noon conference with Thant included British Minister of State Lord Canidon French Delegate Rog er Seydoux current assembly President Carlos SosaRodriguez of Venezuela and prospective as sembly president Alex Quaison Sackey of Ghana Behindthescenes diplomatic activity was intense as the open ing approached without a solu tion Soviet Foreign Minister An drei Gromyko proposed that the opening meeting of the assem blys 1964 session Tuesday after noon confine itself to routine ac tions by acclamation These would include election of Alex Quaison Sackey as president and perhaps of the 13 vice president and the admission of Malwai Malta and Zambia to UN membership Then the as sembly would recess for a day or two to allow more time for negotiations on the financial is sue now confronting the UN This would forestall a formal vote ou which the United States could invoke Article 19 of the UN Charter It provides that a UN member move than two years in arrears on its dues shall lose its vote in the assem bly The Soviet Unions refusal to pay peacekeeping assess ments has put it m that catego ry Informed sources doubted the United States would agree to the brief postponement They said the United States wants a longer deferral of the matter and also a Soviet commitment to negoti ate on future peacekeeping ar rangements SecretaryGeneral Thant had proposed such a temporary so lution providing for the assem bly to take uponly noncontro versial matters on which there was unanimous agreement un til its Christmas recess This would permit negotiations until February when the Christmai recess ends Gropjyko rejected Thanti proposal Monday saying the Soviet Union categorically op poses postponing important matters on the assembly agenda for a long period or indefinite ly He said his government believes the General Assembly should start and continue its work in accordance with normal procedure The newspaper that makes all North lowans neighbors Home Edition VOL 104 MASON CITY IOWA TUESDAY DECEMBER 1 1964 UOe Paper Conslsti of Two Associated Preu Foil No 253 Viet Red support grows need of Negro borrowers There is evidence that banks have liberalized terms for Negroes in loan cities where Negro banks have set up shop he said In addition to the 19 banks Negroes own some 50 life insur ance companies and 34 Federal Savings and Loan Associations Brimmer said Negroes are forging ahead in the professions as lawyers doctors and dentists and are gaining in engineerhfg chem istry and other physical sci ences he went on But Brimmer has been mak ing some studies that convince him Negroes are not doing well in getting jobs as senior man agerial employes and as busi nessmen in their own right Negroes owned 1300 manu facturing firms and 2600 whole sale concerns in 1960 but most of the manufacturers were pro Seek new image in GOP ranks By GEOFFREY GOULD WASHINGTON AP Much phone calling letter writing anc huddling is going on among younger House j Republicans The subject Can they and should they try to change the image of their partys congres sional leadership The latest bubble to surface from this inner ferment is a call by a group of socalled Young Turk Republicans for a party caucus in midDecember House Republican Charles A Halleck Leader of Indiana ducing cosmetics and barber shop Negroes and the wholesale firms were distributing the supplies to Negro outlets One byproduct of the gradual breakdown of segregation is that Negro storekeepers are being hurt Brimmer said He is think ing of the neighborhood stores and restaurants that account for most Negro retail establish ments Segregation helped these local mediants in the way a protec tive tariff protects an infant in dustry Brimmer declared Looking to the future he pre dicted that the segregated Ne gro firms will have increasingly difficult sledding and that the successful Negro businessmen will be those who break into nonsegregated lines Brimmer has no illusions that it will be easy Those are big volume lines that take capital skill and an ability to attract white as well as Negro customers He was thinking of clothing hardware and furniture stores and automobile dealerships groes now own less than one half of one per cent of these establishments or fewer than 1 000 throughout the nation Deaf mute sues Lost speech when he lost fingers MINNEAPOLIS UR A deaf mute Joseph Kollar 60 has brought suit for claim ing he can no longer use sign language as the result of hav ing lost four fingers in an in dustrial accident The suit was filed against two companies connected with manufacture of a machine that broke while Kol lar was using it North Iowa Weather outlook Cloudy through Wedrwsday Snow ending Tuesday night with some locally hazardous driving Lows Tues day night in the teens Co4der with northerly winds Wednes day highs 1525 Weather Details en 2 had set the meeting for the morning of Jan 4 the day Con gress reopens This presumably would leave time for only the usual routine party matters not for a major discussion of party policy Halleck is the main projector in the House of the Old Guard image which some younger Republicans object to and want to change Halleck vacationing in the South doesnt appear to be wor ried He relayed word through a spokesman Monday that if the members want to meet earlier and beauty its all right with me supplies for pusning the December meet ing is a group led by Reps Charles E Goodell of New York and Robert P Griffin of Michi gan This is the same group that New evidence in Baker case WASHINGTON UP Star Witness Don B Reynolds opened new fields for inquiry in the Bobby Baker investigation Tuesday as he testified at a closed meeting of the Senate Rules Committee Hugh Alexander committee counsel told reporters Reynolds lad agreed to disclose to the senators matters he had de clined to discuss with their aides when they interviewed tiim Friday Alexander declined to discus the nature of what he called the extraneous Reynolds matter was tossing he san into th Photofax WARRIORS WELCOME from their wives welcome hometwo Belgian paratroopers on their return to Brussels after duty in the Congo where they took part in rescue1 of hundreds of white hostages from rebels at Stanleyville and Paulis In background is photo of King Boudouin greeting an African tribal chief in happier days before the Con go was granted independence and civil war swept the infant nation committees investigation Baker and an alleged politlca payoff to the I960 Kennedy Johnson election campaig staged a minor revolt against Hallecks wishes two years ago Inside The Globe Editorials 4 Society news 121314 Sports news 1516 Latest markets 18 Mason City news 1819 Comics I 20 North Iowa news 24 Farm news 25 Transit timetable 26 Classified pages 2627 Hughes asks for withholding costs DBS MOINES AP The State Tax Commission present ed its fiscal budget request to Gov Harold Hughes Tuesday but did not include any esti mates of what it would cost to operate a withholding system for state income taxes Hughes told the commission that it should present an esti mate to him because a with holding bill is going to be intro duced in the legislature and we should know all we can about what it would cost The Democratic governor has long favored withholding of state income taxes He also has recommended that the three member commission be re placed with a single director But neither he nor commission ers X T Prentis and Andrew George bothRepublicans dis cussed this proposal Tuesday The third commissioner Demo Potter is attend the ill and budge TEARS OF JOY Janet Perring 15 of LeRoy 111 bursts into tears as she learns her Angus steer Charger is grand champion at Chicago Internationa Story on Page 2 crat Lynn could not hearing Hughes told newsmen later h is studying the proposal for a single director but has not de cided on a final recommenda tion The budget requested by th commission was year compared with a mi lion it was given by the 196 legislature for each year of th current biennium Among the increases asked b the commission was money ire an industrial appraiser rho Prentis said would help ounty assessors appraise large ndustries and other big opera cms such as railroads Were in hot water now be ause of appraisals of rail oads George said No one ow is qualified to appraise a iig industry He estimated it would cost 15000 to a year to hire a qualified appraiser Study electronic data center for chores of state DBS MOINES ment officials are looking int the possibility of setting up huge electronic data processin center here to handle chores fo a wide variety of federal stat and local governing bodies Federal officials have bee asked to help pay the estimate cost of a study to se whether the system would feasible to set up Gov Harold Hughes said promises fantastic possibil ties for increased efficiency an economies if the many obst und main subject of the in uiry Alexander said the commit e as a result of these de elopments had postponed until uesday afternoon the start of ublic hearings at which Rey olds was tentatively sched led to be the first witness Reynolds has said Baker a ormer secretary to the Senate Democrats and Matthew H Mc Closkey a veteran Democratic iund raiser were linked in an llegal diversion of to the 1960 KennedyJohnson cam paign fund McCloskey ambassador to Ireland in the Kennedy adminis tration has denied knowledge of anyr payoff Baker in earlier hearings invoked his constitu tional privilege under the Fifth Amendment to refuse to testify on matters that might incrimi nate him The new round of hearings stems from a speech Sen John J Williams RDel made to the Senate Sept 1 He charged that the alleged payoff came from the government contract a Mc Closkey corporation held construction of the Washington DC Stadium Quoting Reynolds Williams said McCloskey paid the Silver Spring Md insurance man 000 too much for a performance bond on the project with Reyn olds to keep and the remaining of the over payment to be funneled through Baker into the KennedyJohnson fund Federal law forbids cor porations from contributing to Ihotofnx BAKER PICTURED AT EARLIER HEARING financial and hu overcome The system is estimated to cost more than million Gov ernment units using it ranging from local school boards to the federal government would share the cost political campaigns Republican committee mem bers tried unsuccessfully to have the politically explosive investigation conducted during the presidential campaign They were overruled by the Demo cratic majority Report 155 are saved in Congo Rebel gains LEOPOLDVILLE The Congo h i t e mercenaries have rescued from 155 to 160 rebel leld hostages in a cottongrow ing region about 260 miles north of Stanleyville a Belgian Em bassy spokesman said Tuesday This news came shortly after other reports that rebel fire closed the airport in Stanley ville Monday night and heavy fighting continued around the field The reports indicated that rebel forces had regained al most complete control of the city in the northeast Congo which Belgian paratroopers and mercenaryled Congolese troops captured from the rebels last week A fourth American mission ary William McChesney 28 of Phoenix killed by Ariz was the rebels reported Although there was no confirmation of this in Leopoldyille his parents in Phoenix said his organiza tion the World Wide Evangeli zation Crusade had informed them he had been found dead near Wamba The US State Department said one other American mis sionary Mary Baker of Bala cynwyd Pa was unaccounted for She was last reported a Bopepe About 500 to 1000 whites are still believed to be in rebelcon trolled territory Congolese government troops led hy 30 white mercenaries captured the town of Bunia Monday north of Stanleyville Pope asks for prayers during trip VATICAN CITY AP The worlds halfbillion Roman Catholics were asked Tuesday to pray for the success of Pope Paul VIs trip to India The Pope leaves before dawn Wednesday for the International Eucharistic Congress in Bom bay Plans were made for a spe cial program of prayers in the Vatican and in Rome during the four days of his absence It will be the longest absence from Italy of any Pope since Pius VII returned in 1814 after five years in France as a pris oner of Napoleon The Vatican newspaper LOs servatore Romano said Catho lics everywhere were asked to pray that the Popes mission to India may be realized The Eucharistic Congress is a gathering of Roman Catholic where several hostages were hundred believed white held None was found It was be lieved they had been taken farther north by the rebels About 680 Belgian paratroop ers returned home Tuesday Church representatives from around the world The Popes rip is a personal gesture of friendship by its spiritual ruler to all the nonChristian peoples of Asia As such it underlines the mod ernization and renewal occupy ing the Church since the start o the Vatican Ecumenical Council two years ago The papal visit continued to generate controversy in pre dominantly Hindu India where militant Hindus viewed it as the DON REYNOLDS start of new Catholic conversion efforts Prime Minister Lai Bahadur Shastri was asked in Parlia ment Monday if he was aware of reports that the Catholic Church would use the visit and the Eucharisic Congress to in crease its Indian membership now about 65 million The prime minister said he did not think the two events were intended to increase con versions and he hoped that would not he the result The Pope in announcing the trip said he was going to India as a pilgrim who wanted to meet the Indian people Security problems presented hy fanatic Hindus and their objections to plans for the pontiff to distrib ute gifts to the poor forced a revision of plans Study ordered byLBJ US may bomb supply lines WASHINGTON AT Presi dent Johnson and his top poli cymakers Tuesday reviewed accumulating evidence of creased support from Commu nist North Viet Nam to Red guerrilla forces in the south through the jungle trails of Laos a White House statement reported Johnson instructed Ambas sador Maxwell D Taylor to consult urgently with the South Vietnamese government as to measures that should be taken to improve situation in all its aspects the statement said The President also reaffirmed basic USpolicy of providing all possible and useful assist ance to the South Vietnamese people and government in their struggle to defeat the external ly supported insurgency and ag g r e s s i o n being conducted against them it was an nounced The reference to the flow of Red supplies from North Viet Nam to the south appeared to bear out earlier speculation that the government here was con sidering action against the Com munist supply lines in the moun tainous jungles of Laos But the statement stopped short of disclosing any policy decision by Johnson other than to say that he instructed Tay lor to consult with the South Vietnamese government The statement followed a 2V hour session at the White House with Johnsons chief diplomatic and military advisers Taylor US envoy to Saigon has been conferring with Secre tary of State Dean Rusk Secre tary of Defense Robert S Me Namara and other policy mak ers since Thanksgiving and these officials presumably had recommendations ready for the President in advance of tha White House session For several administration days however leaders have been cautioning against specu lation that radical changes in US policy were in the offing The President himself declared at a news conference last Satur day that he did not expect any dramatic announcement to follow todays meeting Information said any decisions affecting the conduct of the war undoubtedly would be kept se cret until they could be put into action Taylor said in advance of his 2 days behind Mariner 4 Russian Mars probe not working properly By HENRY S BRADSHER MOSCOW AP A Soviet space probe has joined Ameri cas Mariner 4 on the long road to Mars but the Russians an nounced Tuesday their space craft is not working properly Zond 2 Zond is Russian for probe was launched Monday from a heavy satellite circling the earth an official announce ment said Radio reports showed its power supply is ap proximately 50 per cent below the expected the announce ment by Tass the Soviet news agency said This indicated it might not able to send back scientific in formation about Mars even if it succeeds in passing close to the planet Similar troubles silenced the last Soviet Mars probe launched Nov 1 1962 while it was still more than six million miles from Mars Zond I anoth er Soviet space effort launched last April 2 apparently failed on an unannounced mission Scien tific observers thought Venus was its target The Americans who have successfully probed Venus launched Mariner 4 toward Mars on Saturday It is reported working as planned at the be ginning of a trip to the reddish planet The American and Soviet launchings came close together because the position of the earth and Mars are favorable now for the complicated trajectory needed Such favorable periods come only every few years Zond 2 was launched in ac cordance with the program for ipace explornlions Tass said First a multistage rocket went Into orbit and then the space craft was blasted away on its trip This blast imparted to the automatic station a velocity necessary for reaching the tra jectory of the movement toward Mars the announcement said The same technique is used in launching US space probes return to Thursday Washington last that air strikes against the Red supply lines which run from North Viet Nam through the jungles of Laos and against infiltration bases in North Viet Nam could help overcome the Viet Cong driva for control of South Viet Nam He cautioned that there were arguments for and against such courses Y ;