Corsicana Daily Sun from Corsicana, Texas • Page 1

THE WEATHER LOCAL cloudy and warm through Saturday with widely scattered afternoon and evening thundershowers. Thermometer Readings: 81 9 1C I 11 I 12 II 3 80 84 88 92 99 Oomplntr Wmtbiu Brpori On Markel JHcmecfthtDailySUnandSemi-WitMyMomingligMi LEASED WIRES OF THE ASSOCIATED PRESS IN TERNATIONAL NEWS SERVICE AP TELEMATS MARKETS AT A GLANCE NEW YORK, Juno (IP) Higher; rise. government! down. Cotton liquidation. CHICAGO: rain damage.

Corn heavy ralni. offerings light. VOL. 19 CORSICANA, TEXAS, FRIDAY, JUNE 28, 1957 PAGES PRICE FIVE CENTS 'Audrey' Death Toll Guesses From 200 To 4,000 I Dulles Opposes Red China Policy Changes HURRICANE front of a market near downtown Port Arthur lies toppled as part of Hurricane Audrey first hurricane of the season to strike land, passed through. Winds up to 100 miles per hour vere reported in Port Arthur, Texas.

This building suffered unusually heavy damage compared with the rest of the area. Wirephoto) Tiles' Bills Gain Approval SECRETARY REJECTS ALL ARGUMENTS Says Recognition Would Hurt U. S. And Her Allies SAN FRANCISCO, June 28 of State Dulles denounced Communist China today as an uncivilized, hostile regime and said "It would be folly" to establish relations "which would enhance" the Reds' ability to hurt this country and its friends. In his first major speech on Red 3hinese policy in three years Dules rejected every argument for major change in the United States policies of nonrecognition, trade embargo and cultural isolation.

Phase' He said U. S. policies are based on the assumption that Communist rule in China is "a passing phase." This country intends to do all It can to epeed the passing, Dulles said, and ruled out arguments that change would be promoted by U. S. diplomatic, trade and cultural relations with the Reds.

"There are occasions when others, and not we, should provide the change," Dulles but he did not hold out any hope that the Communists are about to revolu- tlnolze themselves. Depends On People The hope he did hold out was that the Chinese people, to whom he said communism is as "repugnant" as to the people of Soviel satellites in Europe, will eventually bring about the end of Red despotism in China. Meanwhile, Dulles argued, the United States must stand firm on the policies it tci be right WASHINGTON, June Seriate Judiciary Subcommittee followed up grave warnings from Attorney General Herbert Brownell, today, by rushing approval of legislation to limit the opening of secret FBI files to criminal case defendants. The subcommittee unanimously approved the administration bill after Brownell testified that informants could be killed and criminals could go free if judges continue to "misinterpret" the Supreme Court's recent ruling that confidential files should be made available to accused persons. Seek Quick Action Subcommittee Chairman Joseph C.

O'Mahoney said he will seek swift approval of the measure by the full judiciary committee Monday so that it can be given immediate Senate action. A House Judiciary Subcommittee Thursday approved an even stronger measure which would go further than the administration's proposal. O'Mahoney's criminal code subcommittee approved administration measure in a three-minute closed session after a public hearing at which it was strongly supported by Brownell and Assistant Treasury Secretary David Kendall. Two Main Provisions Testifying before a Senate Judiciary Subcommittee, Brownell supported an administration bill pending before the group which he said would: that "only reports or statements which relate to the subject matter" to which a prosecution witness had testified would be subject to production. See FILES, Page 12 Ask Cage Return AUSTIN, June Gov.

Price Daniel's office was advised today that the U. S. Secretary of State's office at Washington has asked Brazil to "deport" BenJack Cage to Texas to stand trial on charges of embezzlement. Loftus Becker, legal advisor to the Secretary of State, informed Daniel's office that the request for deportation of Cage has been se'nl to the U. S.

Embassy in Rio De Janeiro. Volunteers Disarm Dud Atomic Bomb Prosecutor Says Austin Probers Face Much Work AUSTIN Travis County grand the collapse of BenJack ICT Insurance Co. of Dallas and alleged bribes offered Texas report "sometime in August," a jury spokesman said Thursday. August Earliest Asst. Atty.

Gen. Joe Carroll, who is assisting, the district attorney and the grand jury, said it would be at least that long. The 12-person investigative group talked to Tyler registered public accountant Dick Mallard Thursday about the Income tax reports filed by ex-state insurance commission chairman J. Byron Saunders. Mallard stayed less than a half- hour with the grand jury.

He went in with a briefcase, evidently full of workpapers on Saunders 1 income tax, which the jury requested. Mallard said he has computed Saunders' income tax since 1950. Witness Missing Another witness scheduled to appear was absent. He was Ray Thurmond of Tyler, one time law partner of Saunders, who has been with a Dallas insurance firm since leaving the commission in December, 1956. Thurmond was out of town and never served with a subpoena, said Asst.

Dist. Atty. Frank Maloney Jr. "We develop something every time we see a witness," Carroll See AUSTIN Page 12 Judge Upholds Miller Conviction But Kills One Count Of Indictment WASHINGTON, June S. District Judge Charles F.

McLaughlin today reaffirmed the conviction of author-playwright Arthur Miller but struck down one count fthe two-court indictment for contempt of Congress. The judge, acting on a defense motion to reverse himself on his finding May 31 that Miller was guilty, held that the Supreme Court did not rule out the conviction. Once Within Rights The judge said that Miler, who Is Marilyn Monroe's husband was right in refusing to answer one question asked him by a House un- American activities subcommittee concerning a Communist party writers' meeting in 1947. On the other hand, the judge ruled, Miller was wrong in refusing to identify any persons present at the 1947 meeting. The question which the judge Miller did not have to answer was: "Wes Arnaud D'Nsseau chairman of this meeting of the Communist party writers which took place in 1947 at which you were in attendance?" Question Not Pertinent The judge held that this question was not pertinent to the subcommittee inquiry on whether or not Miller should have received a passport or whether there should be new passport legislation.

On the other hand, the judge said that Miller was guilty of contempt for refusing to answer an earlier question: "Can you tell us who were there when you walked Into the room?" This referred to the same writers' meeting In 1947. CcLaughlin said that Miller did not object to this question on grounds of pertinency and that the committee was not therefore See MILLER, Page 11 By CHARLES DENTON YUCCA FLAT, June atom bomb failed to fire when scientists pulled the trig ger today, leaving thousands of goggle-blinded Marines and observers petrified in surprise unti a daring team of scientists pulled the bomb's fangs. Trio Scales Tower The Atomic Energy Commission announced four and a half hours after the scheduled detonation time of 4:45 a.m. (PDT) that the device was disarmed by three scientists who scaled a 500-foot tower to where It lay. It was the third misfire In the history of Nevada nuclear weapons testing, but it was by far the most spectacular because it came while newsmen and Civil Defense observers were on hand to witness the failure and 2000 Marines were poised for the maneuver that was to have followed the shot.

Blast Fower Failure The AEC announced that tesl director Dr. G. W. Johnson held a conference with scientists technicians who had worked on the device after a power failure turned the bomb into a dud. While the conference was in progress the test site was cleared of observers and Marines, most of whom were in trenches 4000 yards from ground zero.

Only a group of 17 AEC and Naval radiological defense labora- See A-TEST, Page 12 Weather Finally Permitting Work On City Streets A "sltuationer" report on the work being done by city street construction and maintenance crews was issued Friday by City Manager Morgan Works. Street crews Friday were pouring the' north wall of the new concrete box-type bridge being built over Post Oak Creek on Bowie Drive. The bottom slab and south wall had been previously poured Month Delay Ahead The city expects to pour the bridge flooring by next week and then a curing period of approximately 28 days will have to be allowed for the span to set up properly -before it is opened to traffic. The city also is putting down the gravel on the section, of North Twenty-fourth street between Elmwood and Sycamore avenues preparatory to hard-surfacing the street. City Manager Works noted that Sycamore is the farthest south the city has obtained right-of-way for this work at this time.

Oiling Now Possible Works said weather conditions are just now allowing the city to effect the oiling today of North Twenty-eighth street between Syca See STREETS, Page 1 Boost Defense Bill Near Billion Steel Price Hike Effective Monday New Questions Face Humphrey Monday Session WASHINGTON, June Sen. Gore (D-Tenn.) said today the new steel price increases would be made an issue in the Senate Finance Committee's probe of the nation's financial condition, U. S. Steel the nation's largest steel producer, announced Thursday night an increase of about $6 a ton In steel prices effective Monday. Other steel companies are expected to follow suit.

Gore, a member of the Finance Committee, said in ah interview that questions about the price bopst will. be asked when Secretary of the Treasury Humphrey resumes the witness chair before the group Monday. Tha steel price increases were announced just a day after President Elsenhower said at a news conference that inflation will become a "real danger" unless business and labor exercise restraint in price boosts and wage demands. Sen. O'Mahoney (D-Wyo.) commented that the U.

S. Steel boost he said, "than for the United States to operate on the theory that if hostile and evil forces do See DULLES, Page Industrial Unit Names Directors And Officials Twenty stockholders and lenres- ontatives of stockholders by proxies re-elected four of the five retiring directors and named one new board member at the annual meeting of the Corslcana Industrial Foundation Friday at the Chamber offices. Jack R. Young, president of the State National Bank, was the new director elected to the position formerly held by Jerry Roe. Directors re-elected were Joe E.

Butler, B. L. Sanders, Fred DuBose and J. M. Dyer.

Terms are for three years. There were 10 carry-over directors. Officers Renamed Following adjournment of the Foundation's business, the -line of the fifteen members of the board present held a brief session in which they re-elected the same slate of officers including: John Corley, president; J. M. Dyer, vice president; Embry Ferguson, secretary-treasurer, and R.

W. (Dick) Knight, executive vice president. At the meeting's outset, President Corley announced It was believed that a quorum of the voting stock was represented and the meeting would proceed on that basis. No check of the voting strength present was made in the open meeting, and no stockholder called for a check. However, at the close of the meeting when a reporter cought to check with Knight to determine the stock represented, Corley objected saying he considered it none of the press representative's business whether a quorum was present or not.

Statement Reviewed The president briefly reviewed a financial statement listing iprox- See FOUNDATION, Page 2 the leaders 'of business to stop inflation by voluntary action." "It is clear that if the government intends to stop Inflation It must take strong measures rather than making amiable and polite requests," he said. O'Mahoney added that he did not believe the administration was getting anywhere "with Indirect methods like tight money which hits everyone and not the few." See HUMPHREY, Page 12 Midland Seeking Deadly Capsule MIDLAND, June Air Force helicopters were brought into a pressing search today for a capsule of radioactive matter described as dangerous on even casual contact. The object disappeared Thursday afternoon from the back of a truck belonging to the Western an oil well servicing firm. H. C.

Chiles company president, said the inches long, 1 1-4 Inches thick and enclosed in steel jacket with a 4-foot result in severe radiation burns." It probably was taken while the truck was parked outside Western's laboratory, Chiles said. Midland police armed with five Geiger counters roamed the city through the night but reported no clues. Two helicopters from Webb Air Force Base at Big Spring were flown here today to pick up two of the Geiger units and fly low over the city. Police Capt. Dewey Hockettsaid the counters would detect radioactive material within 100 to 150 yards GASOLINE REFUND TIME WASHINGTON The Agriculture Department advised farmers today that July I la the date when they can begin to file appll cations for refunds on federa gasoline taxes.

Farmers will be en titled to a refund of 3 cents a gallon of pasollne bought for farm production purposes during the 1 months eliding June 30. RFC, Spending-Lending Colossus, Is Nearly Dead; Total Loans Unknown WASHINGTON, June The Reconstruction Finance a spending and lending colossus that primed the depression-dry pumps of American business in the 1930s, breathes its last gasp today. The RFC has been a dying organization for two years. Today is its last day of business, although its corporate life doesn't officially end until Sunday midnight Started Under Hoover RFC came into being Jan. 22, 1932, when President Herbert Hoover signed a bill just passed by Congress.

It started with a capital of 500 million dollars and authority to borrow 1V4 billions more. No one quite sure even yet just how much RFC pumped into the economy in the years that followed. It was at least 50 billion dollars, possibly more. Jesse Jones, the Texas millionaire who headed the RFC tor years, described this picture of the depression scene upon which RFC entered: Five thousand banks had failed and 7,000 others were in trouble, heavy industrial production had shrunk to nearly nothing. Consumer buying was about as low as It could go if the nation were to keep body and together, farm prices' had hit bottom and about 12 million persons were unemployed.

Meyer First Chief Eugene Meyer, then a governor of the Federal Reserve system and now chairman of the board of the Was. Post was RFC's first chief. nder his leadership the RFC jumped into the banking crisis, then expanded to other fields. In the years that followed, RFC spending am', lending touched almost every facet of American life. When the United Statec got into See RFC, Page 12 PITTSBURGH A new round of price increases in the steel llth since Monday.

U. S. Steel the nation's Dlggest steel producer and traditional Industry pacesetter, announced it will increase its basic prices about $6 a ton. Others To Follow Other steel firms are expected to make similar price adjustments. Although steel products vary widely in price, the new composite price will be an estimator $146 a ton.

It is the sixth boost in many years. Ijast year the industry hiked prices $8.50 a ton, The increase came just a day after President Elsenhower said in flation may become a "real danger" unless management and labor show restraint in wage and price boosts. Officials in Washington had anticipated a much higher increase, possibly as much as $12 to $14 ton. Most of them took the attitude that the increase might have been worse, but all agreed it will be Inflationary. Hood Clifford F.

Hood, U. S. Etcc president, said the increase is necessary to compensate for a company-estimated 21-cent hourly package wage increase effective Monday for the firm's production workers under a three-year contract with the United Steelworkers, Hood, in Utah for the forma opening of a nitrogen byproducts plant of U. S. Steel's Columbia-Ge- See STEEL, Page Gomulka Claims Satellites Slaves In Secret Speech BY HEMEN RAY BERLIN, June 28 (INS) Wladyslaw Gomulka, the Polish leader who defied the Soviet Union In October, has described the relationship of the satellites to Moscow as slavery.

His outspoken denunciation ol Soviet leadership was made at the ninth plenary meeting of the Central Committee of the Polish Com munlst party in May. The speech has been kept secret. Repeats 'Servility' A well-placed Polish source, who heard the speech and has now visited Berlin, said that Gomulka used the word "servility" severa times In his speech to describe Soviet-satellite relations. Gomulka said he would not ac cept Soviet leadership and not think of asking for Sovle "counter in Hun armed help in case of ntt revolution," as occurred gary. However, he did say Poland wanted friendship with Russia on a basis of equality, not as servan to master.

Goaded By Mljal The Polish First Secretary apparently was goaded into this forthright defense of his Indepen dent policy by Kazlmierz Mljal, a Stalinist member of the committee who criticized Gomulka's policy See GOMULKA, Page 2 Korean Capital Sees Supersabres In First Sweep BY SID WHITE SEOUL, F-100 American Supersabre. zoomed over the Republic of Korea capital of Seoul today In the firs Allied show of modern weapons In Korea since the 1953 Armistice The historic flyover, reported by the ROK Defense Ministry, oc curred at eight minutes past noon Seoul time. Week After Scrapping It came just one week after the United Nations Command informet the Communists the UN wa scrapping that part of the Armis tlce banning introduction of mod ern weapons into Korea becausi of repeated flagrant violations the same rule by the Reds. A Fifth Force spokesman at the same time said he coulc not disclose whether any new planes actually had arrived in South Korea. An announcement from Fifth Air Force headquarters at Osan south of Seoul, did say that al types of aircraft used by the Fifth Air Force In the Far East "are or will be" flying the airways over South Korea.

'Routine Flights' But the announcement addet that while such warplanes woult See JETS, Page 12 WASHINGTON, June -President Eisenhower scored a major budget victory today when he Senate Appropriations Commit- approved a 34 and one-half bil- lon dollar defense bill, restoring learly one billion dollars of a House cut. The committee acted unanimoua- in approving a bill drafted by Its subcommittee. AF Gains Most It gave the Air Force the biggest share $560,873,000 of the addi- Jonal money. Among the effects of the action is to prevent elimination of some 50,000 flying hours which the Air Force said it would se if the House cut stood. Chairman Dennis Chavez (DN.

of the subcommittee which handled the bill, said: "I feel that with the money allowed by the Senate committee if we can keep it when we go to conference we.will have a well rounded defense program with no hazard whatsoever to national security." The House, after hot debate and over GOP protests, made a two and one-half billion dollar slash. In defense funds. However, President Eisenhower said that more than half of this was a "paper" cut because it Involved transfers of funds. Transfers Continued Chavez said the Senate unit continued these transfers and made its restoration in hard cash. The action still must be upheld by the Senate, which Is to open debate on the bill Monday, and then it will go to conference where a rugged battle with House members may ensue.

The Senate committee put back See DEFENSE BILL, Page 2 West Germany Refuses Blanket Weapons Promise BONN, Germany, June West Germany can "under no circumstances" give the Soviet Union a blanket promise to renounce atomic weapons, a govertimcnl spokesman said today. Press Chief Felix von Eckhardt declared the question of equipping West German soldiers with A-woap- ons is not immediate, but depends on the outcome of the UN disarmament conference in London. The Soviet Union demanded In a note delivered In Moscow Thursday that West Germany promise not to manufacture atomic weapons use them to equip Its army, or permit any third power to stockpile them on West German territory. Von Eckhardt repeated at a news conference the government's statement that West Germany does nol now possess A-weapons and has nol yet asked for them. fha.t Is what Bonn told the Russians In a note May 22, But In Thursday's reply the Kremlin dismissed this declaration as "election campaign propaganda." Von Eckhardt said the Bonn government hoped for a positive result from the London conference which would remove the necessity for making any decision on atomic armament for West Germany.

But, he added, the possibility of failure had to be taken Into ac- See PROMISE, Page 11 Banks Deposits Top 1956 Figures Deposits In local banks at the close of business, June 6 totalec $20,953,654.35, according to publish ed statements Friday, showing an increase of $381,191.28 over the nearest corresponding date In 1956 Deposits at the close of business June 30, last year were $26,572,463.07. A decrease Is shown in deposits as compared with the March 14 this year, report when $28,732,999.08 was recorded, down $1,779,344.73. ONE CAMERON DEPUTY HIGH FIGURE Reports Confused As Rescue Efforts Are Concentrated LAKE CHARLES, June battered southwest Louisiana counted a mounting death toll today with official anft, unofficial estimates ranging froih 200 to 4,000 fatalities. Official sources have accounted for 107 dead, 87 of them in storm ind wave-ravaged Cameron sh. But one Cameron Parish deputy said he believed the toll would reach 3,000 to 4,000.

Send Helicopter i An Air Force helicopter left Hou ton today for storm-ravaged Camaron, where 18 persons, Including five new-born babies, adrift In three small boats In marshlands: The 'copter left on its mercy rescue mission about 6a.m. after the Cameron sheriff's office for help. "This la an emergency," flashed the sheriff, "need this helicopter a'fc quickly as possible." About an hour after the 'copter left, the Tennessee Gas Transmission Co. dispatched two seaplane! Into the area. Somo Skeptical The Weather Bureau in Washington said today its latest from storm-stricken Louisiana indicate 200 to 300 persons were.kilt cd In the Cameron area south of Lake Charles.

The Emergency Warning Section of the Weather. Bureau said that information was based on from Louisiana Civil Defense authorities. n'f Itnftlsou'teported hearsay thaf the Lake Charles radio had said as many as a thousand had been drowned In area. It quoted the meterologlst See AUDREY, Page 11 Old South Gets Tornado Aleri Alter Hurricane ATLANTA, June Heavy rains, and scattered torna- dic winds slapped at portions of Alabama, Georgia, Tennessee and Kentucky today. The broad area was alert for severe thunderstorms with local damaging winds.

The severe, potentially dangerous weather conditions would continue, the Weather Bureau said, until 10 p.m. (EST) tonight. Alabama Hit A tornado struck Evergreen; some 100 miles from Montgomery today, cutting all communication facilities. The Civil Aeronautics Authority radio station broadcast that tornado had been spotted, and' three minutes later said the sta 1 tlon was being abandoned. The station did not get back on the a In.

A windstorm struck MontgoraS ery, unrooting trees, but there apparently no serious damage' og injuries. Several Injured Strong winds lashed Davenport; 20 miles south of Montgomery, damaging a number of houses and injuring "several parsons. 1 There wore no reports of fatalities. The Weather Bureau warned possible tornadoes in extreme! northern Alabama, central See TORNADOES. Page 11 POSTAL BILIi SIGNED WASHINGTON Iff) President Elsenhower signed without mcnt today a bill providing an' tra 133 million dollars for the Post Office Department In the -fiscal year beginning Monday, a supplement to the $3,102,000,000 previously voted by Congress.

Far East Troop Withdrawals Indicate Introduction Atomic-Capable By DARRELL GARWOOU WASHINGTON, June j. Pentagon drive to modernize weapons and bring thousands of overseas troops home by Christmas apparently will mean the introduction of atomic-capable missiles into South Korea this year. Defense Secretary Charles E. Wilson has made clear that there Is "no ban on anything," In Korea or elsewhere, In the campaign to save.manpower by deploying more powerful weapons abroad. Remarks Enigmatic Pentagon officials eald the Army Is pressing for permission to send a battery of "Honest John" rockets to South Korea in connection with a reorganization of the U.

S. Seventh Division there, scheduled to start In August. Wilson told a news conference late Thursday that "nothing Is banned" In the decision to modernize U. S. arms in Korea, but said enigmatically "there are just some things we haven't decided to do yet." Other Cuts Dus He added, however, that he pecta within a year or two U.

troops in Korea will get "exactly the same" weapons as those Issued to American forces elsewheMS These would Include the Honest John, the "Corporal" and tht "Matador" guided mtsalles capon ble of carrying atomic The Pentagon chief said troop cuts now sought are In addl-l tlon to the 25,000 to 30,000 soldlerM that are to be withdrawn froral Japan under an agreement ed last weekend by President senhower and Premier Klshl He eaid there will be no oral withdrawal" from positions, but that he definitely be-1 lleves U. S. military headquatl' personnel can be reduced by per cent during the year begln.