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St. Louis Post-Dispatch from St. Louis, Missouri • Page 3

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St. Louis, Missouri
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-If ST. LOUIS POST-DISPATCH SUNDAY MORNING. OCTOBER 29. 1961 ST. LOUIS POST-DISPATCH 3A LOSSES CLAIMED Start of Flight to Base in France LOUISANS lSome on Scho1 Board Oppose PAROLEE SEIZED oeeKing lax increase opnng CASINO RUNNING BY SERMON FIRM IN INDEPENDENCE DEALQUESIIONED They Feel Presently Authorized Rate of $1.77 Is Sufficient and Want It Renewed at Election.

cent connected with the foundation program is being given to the teachers." Although there is some question regarding application of the 80 per cent requirement to the schools here because the school board does not have a "teachers' fund" as such, the school board has honored the spirit of the law in the past and will continue to do so, he said. "It is not a question of whether teachers will get the foundation funds in salaries," he said. "They will. It's more a matter of how to cut it up." He said, however, that any increase must be set up within a stable salary structure which can be financed by board revenues in coming years. I By a Post-Dinpstch Phntoarapher, F-S4F jet fighter planes of 110th Tactical Fighter Squadron taking off from Lambert-St.

Louis Field yesterday on first leg of a flight to France. More Men of 131st Fighter Wing 1 uuuit iu i i ante CI iu uc i lumi Additional personnel of St. Louis' 131st Tactical Fighter Wing will be flown to base in France in the next week or 10 days, depending upon the availability of troop transport planes, the Post-Dispatch learned yesterday. All planes and about 100 members of the wing's 110th Tactical Fighter Squadron left St. Louis yesterday and Friday night for France.

The squadron's F-84Fs were flown from Lambert-St. Louis Field to an unannounced base in this country and from there will go to Europe. A detachment of maintenance men from the squadron left Lambert Field Friday night. It was announced previously that the unit would go to Toul-Rosiere base, about 20 miles southwest of Nancy and about 150 miles east of Paris. An advance unit has been there for about one There is strong sentiment among members of the St.

Louis Board of Education against seeking a tax increase when the scuool tax rate is submitted to the voters next spring, the Fost-Dispatch was told yesterday. While no formal discussions have been held yet, some members were said to feel that the presently authorized operating rate of $1.77 for each $100 assessed property valuation will be sufficient to finance budgets in the coming two-year tax period. The rate will be sufficient, it was said, because the need for additional money for teachers' salaries has been reduced by full financing of the state school foundation program. If the $1.77 rate is authorized again at the polls, the net effect for taxpayers probably would be a 3-cent rise in the rate, because the board would be expected to set the rate at the limit. The present rate was approved two years ago, but the board set the actual levy at only $1.74 for this year.

Studying Salary Rises. Full financing of the foundation program, which will yield about $2,500,000 a year more in state aid to the public schools here, has prompted school officials to study several salary increase proposals. One such proposal, which provides for $200 increases this year, next year and the year following, has drawn sharp criticism from members of the Teachers Federation of St. Louis, an organization representing about 1000 of the school system's 3800 teachers. Mrs.

Ruth Ellinger, member of the federation's executive board, said the proposal had been discussed by school officials at a meeting with teacher representatives last week. At a subsequent meeting of the federation's members, the proposal was rejected as "too small in relation to the extra $2,500,000 the school board is now receiving each year," she said. Noting that under the law a minimum of 80 per cent of the foundation funds must be placed in the teachers' fund, Mrs. Ellinger contended the $10,000,000 the board now receives annually should support a larger, more immediate pay increase. In rejoinder, Superintendent of Instruction Philip J.

Hickey said yesterday that "every available health. A week after the former St. Louis group pulled out of negotiations for the Thunderbird and got their money back, Hicks died. His family now is operating the hotel. Wyman and Rich transferred their operations from St.

Louis to Las Vegas about 10 years ago. Wyman bought an interest in the Sands Hotel in 1953, borrowing $100,000 from three St. Louis banks to make the deal. He also Under present schedules, teach' ers' salaries range from $4600 for a beginning teacher to $7200 maximum for those with master degrees. If the "three-step" plan, or a variation of it, were adopted, beginning salaries would be increased to $4800 in January, and the maximum increased to $7800 for the 1963 64 fiscal year.

However, as this year's "step" Increase would become effective in the middle of the fiscal year, teachers would receive only half the annual "step," or $100, for this year, it was pointed out. Would Cost $412,0110. Asked what such a proposal would cost if It were approved by the board, school officials estimated the cost at about $412,000 for the remainder of this fiscal year. The balance of this year's in extra foundation funds would then be carried over to next year, where it would be used not only for increases becoming effective then, but for the hiring of additional teachers made necessary by expanding school enrollments, they said. Moreover, any salary increase given in one year costs the board considerably more in ensuing years because of the teacher's automatic progression u( the pay scale for his category, it was staled.

As a result, a major across-the-board increase this year, such as the immediate $600 Increase requested by one teacher group, could not be supported by school revenues in subsequent years, even including the addi tional foundation funds, it was atated. obtained interests In the Royal Nevada and Riviera Hotels. After a run of bad luck at the gaming tables, Wyman sold his interests, A change in his fortunes enabled him to get back into the hotel business, associates reported. Rich last year settled federal claim for $157. He has been in the laundry business in Las Vegas as well as the meat business.

weeK maning preparations tor a chartered piane carrying an-the arrival of the planes and other Army Reserve unit from the three tactical squadrons are trained in air-to-air and air-to-ground gunnery, bombing and rocket firing. Before being called to active duty with the Twelfth Air Force, the local units were elements of the Missouri National Guard. They were ordered to active duty as part of President Kennedy's build-up of the nation's military forces as a result of the Berlin crisis and other international problems. Fifty-seven member! of the 219th Transporation Company, a St. Louis Army Reserve unit of the Eleventh United States Army Corps, arrived at Fort Polk, Friday.

The company, an aircraft repair and maintenance unit, will remain on active duty for up to 12 months. Secretary of Defense Robert S. McNamara, in announcing the call-up last Sept. 19, said the reservists might be released earlier if world conditions improve. Chicago stopped here to pick up the Transportation Company before continuing the flight to Fort Polk.

The company is commanded by Capt. N. Allbaug'i, 8701 Villa Crest drive, Crest-wood. Most of its members live in the St. Louis area.

Seventy-five St. Louis area members of the Naval Reserve patrol squadron, VP 793, will report Tuesday for one year of active duty. Fourteen are commissioned pilots, and the others en listed Darsonncl. The men have Hen ordered to report at the Naval Air Station at Memphis and will go from there to the Naval Air Station at Willow Grove, where they will augment another reserve squadron, VP 933, building it up to fleet strength. St.

Louis area members of reserve squadron VP 793 at Memphis were members of two Naval Reserve squadrons based at the Naval Air Station here until their dissolution in 1957. Senior officer of the group called to active duty is Lt. Comdr. Eugene R. Morgan of Arnold, Mo.

nH PUADPC fit um uimauL ui Man Judge Nangle Put on Probation and Companion Accused in Assault. Kelly E. Ervin, a former convict paroled by Circuit Judg James F. Nangle last year on burglary and stealing charges, was arrested early yesterday on complaint of a 36-year-old barmaid who said Ervin and a corp. pan ton attacked her.

A warrant charging Ervin and Donald Murry, 3000 block of Bailey avenue, with assault with intent to do great bodily harm, was issued by James Roche, assistant circuit attorney. Ervin lives in the 7300 block of Mari. 1 eita avenue, Maplewood. Th mM. a divorcee and i iiiwuh i mice Oman Ljinuirn, said Ervin and Murry forced her into their automobile about 2 a.m.

as she was waiting for bus at Jefferson avenue and Arsenal street. They took her to a secluded area near Gumbo, In St. Louis county, and committed the assault, she said. The sutomobile ran out of oline about 4:40 a.m. at Vande-venter avenue and Gratiot street as the three were returning from the county.

Sgt. Harold Prough and Patrolman James Ramsey made the arrest when they stopped to investigate the stalled car. They said the woman was lying on the front seat. She was taken to City Hospital and treated for bruises and abrasions. Her glasses were broken in the scuffle with the men, she said.

Both men denied assaulting her. Police records show that Ervin was sentenced to serve 90 days in the workhouse for stealing in Two years later he was sentenced to nine months in the workhouse for burglary and stealing. Ervin pleaded guilty of burglary and stealing before Judgt Nangle Feb. 4, lfl.iO, Judge Nangle sentenced Ervin to serve 10 years in prison, but suspended execution of the sentence and placed him on probation -for four years. Missouri criminal statutes forbid parole of convicted felon.

FflllMn FlCAf! IU PiTU TUB iiwwiiw uuiu iii wnui iuu The body of Gaylc J. Fuller, a barber, was found yesterday at his home, 4369 Hunt avenue, police reported. He was 57 years old. Officers said Fuller had been shot through the mouth. There was a revolver in the right hand.

The body was found by his brother, Hal Fuller, in a bath tub. Relatives told police Fuller had been despondent and had threatened recently to end his life. MAN MAS THC AOVANTASC RAPING BARMAID Audit Lists Profit at Time Mayor Renegotiated Contract of Company in Which He Had Stock. By ROBERT H. COLLINS A Staff Correspondent of the Post-Dispatch INDEPENDENCE.

Oct. 28 A claimed loss used by the Independence Disposal Co. to justify an increase in the amount Independence pays it for garbage and refuse disposal was challenged today by an auditing firm. William Sermon, then mayor, held 25 per cent of the com pany's stock when payments to the firm from the city were in creased two years ago. The City Council 'authorized Sermon to renegotiate the contract With the firm after it told counr'men it had lost $45,000 in a 10-month period.

Bland, Christenson certified public accountants of Independence, reported today, however, that its audit jf the com- kMl.a na rrnf it of $5797 in the period for a loss. The audit was prepared for the Good Government League, a group opposed to Sermon's political faction. Sermon, a powerful Democratic leader, resigned as mayor Oct. 9. He gave ill health as his reason for quitting.

No Competitive Bids. He negotiated a 10-year contract for the city with the company providing total payments by the city of Independence of more than $2,000,000 in the duration of the contract. There were nD competitive bids for the contract, which was renegotiated in November, 1959. Monthly payments of $11,100 were made by the city to the disposal company under terms of the original contract. The monthly rate from April, 1960, through March, 1961, was increased to $13,287, under the renegotiated contract.

Jack Terry, president of the Good Government League, said that the additional $2187 a month continues- "without explanation even to the present time." He said he will ask the Jackson county grand jury to question both Charles T. Haines, president of Independence Dis posal and Sermon about the difference between the company's financial statement and the figures shown in the audit by Bland, Christenson Co. Another Point for Inquiry. "It also should be determined by the grand jury whether the additional $2187 was justified and if so what was done with it once it was received by the company," Terry said. Haines referred questions about the contract to his lawyer, who to comment.

When the contract was negotiated. Sermon's powerful political organization was in control of this city. The contract provided for payments by the city of in the first year for refuse collection from householders An escalator clause provided for increasing the total payment 1 each year until 1964 when the i citv would have an option to re- new the contract for another five years. I Pavment bv the citv of 60 cents a house each month was provided in the escalator clause for the year ended Dec. 31, 1960.

The rate was increased to 65 cents a home each month during 1961 and would rise to 75 cents in 1962, 85 cents in 1963 and 95 cents in 1964. Stock Trans'rred. An examination of the records of Independence Disposal Co. showed one ledger sheet with William Sermon's name at the Missouri-Illinois Forecasts Missouri (except northwest): Considerable cloudiness, windy and warm with a few scattered showers and thundershowers today; low this morning in middle 50s to low 60s in south; high in afternoon mostly in 70s; tomor-1 row showers ending, windy and turning cooler. i i as IN LASVEGAS Gamblers Wyman, Rich and Others Lease the Dunes, Which Includes Hotel.

A group of former St. Louis gamblers has taken over operations of the Dunes, a 600-room hotel and casino in Las Vegas, the Post-Dispatch was told yesterday. ome members of the group were trying to buy the Thunder-bird, another leadine hotel and casino in Las Vegas last May but switched to the Dunes when i negotiations hit a snag. The group is operating Dunes under lease arrangement that does not provide for purchase of the physical facilities which have an estimated worth of $8,000,000. Members include Sidney Wyman and C.

J. (Kewpie) Rich, partners in the old C. J. Rich once the national clearing house for bets in St. Louis county; George Duckworth, stepson of Rich, and Sherlock Feldman, known to gamblers here as "the diminu tive jester." Another partner is Wendel S.

Fletcher of Los An geles. Under the corporate title of M. R. Investment the group purchased a 30 per cent interest in the Dunes last month, then increased its holdings to 50 per cent. The arrangement includes operation of the hotel, casino and restaurants.

The partners declined to say how much they paid for their shares. Wyman Running Casino. Wyman, with a 6 per cent Interest in the Dunes, has charge of the casino. He formerly was co-owner of the "Town Game" here, a floating dice game for high stakes. Rich, who has a 6 pel cent interest also, has operated a business supplying meat to leading Los Vegas hotels and has charge of purchasing for the restaurants and concessions.

Feldman is a "pit" boss or floor boss in the casino, and Duckworth is assistant manager of the casino and the restaurants. Fletcher, who has half of the group's interest, apparently is not active in the operation. Fred M. Malorrus, operator of a novelty company here, was associated with the group in its efforts to gain control of the Thunderbird but declined to invest in the Dunes. Malorrus told a reporter that he was interested in the real estate connected with the Thunder-bird deal.

He said the group had op'in 30 acres owned by the Thunderbird that could be developed profitably but it lapsed when the deal fell through. He said he 'vas offered a share in the Dunes, but declined because "it was strictly an operational matter and did not include any real estate." Stalemate Over Price. Malorrus said negotiations for the Thunderbird were well along, but reached a stalemate over the price of gcod will. The hotel was owned by Marion B. Hicks, veteran gambling figure, who wanted to retire because of ill 9, 11 nnnn 1 II 1 1 1 FURNITURE I I DRAPERIES I Cf ACCESSORIES 1 the remaining personnel.

Lt. Col Robert Smith commands the squadron. The headquarters of the 131st Wing and three subordinate units, all stationed at Lambert Field, also have been ordered to duty in Toul. In addition to the 110th Squadron, the other units of the 131st Wing scheduled for overseas duty are the 131st Armament and Electronics Squadron and the 131st Consolidated Aircraft Maintenance Squadron. About 500 St.

Louisans, includ ing 50 jet pilots, were included under the order. The wing and subordinate units were called into federal service Oct. 1. The 169th and 170th Squadrons of the 131st Wing, also on active duty, recently have intensified their tactical training programs but have not been ordered out of the country. Both the 169th and 170th Squadrons are Illinois units, with home stations at Peoria and Springfield.

The mission of the 131st Wing, commanded by Col. Glennon T. Moran, St. Louis attorney and World War II fighter ace, is support of ground forces. Pilots of top of the page.

One entry on this sheet on Aug. 8, 1960, bears 'the following notation; "To rec "ord purchase of stock from Wi! liam Sermon by C. Haines. Records of the company show that stock certificate No. 5 transferred 25 per cent of the firm's stock to Haines on Sept.

16, 1960. Haines said this was stock which Sermon previously had held. Haines said Sermon originally owned 25 of the company's 100 shares- wh, had hii pot cacemn unfit th. t.vnA aF th until the time of the transfer on Sept. 16, 1960.

Haines stated that although he had paid Sermon for the stock by Sept. 26, 1956, Sermon refused to de liver actual possession of the stock certificate until September 1960. Haines assumed control of the company Dec. 22, 1951, by purchasing 50 shares owned by the late Benton H. Prock.

Records show that also on this date, the late Leo B. Parker, a Kansas City attorney, transferred his 25 shares in the company to Haines. No Revenue Stamps. There were no revenue stamps on Parker's stock, and a certificate in the company's stock certificate book shows that the actual transfer of Parker's shares did not take place until Sept. 16, 1960, Haines said.

The revenue stamps on the original shares of Parker's stock sho'ved the purchase price to be $2500. Haines said Parker was a straw party for Sermon. The records show Parker's stock was not canceled and that in fact he indorsed his stock certificate in blank in 1951, an action which could permit another person to hold the stock. In 1960, a journal entry was made in the books showing payments of $3000 to Sermon in 1954, 1955 and 1956. According to Haines, these payments transferred the stock to Haines from Sermon, although the transaction was not entered in the company's books until Sept.

16, 1960. Records of the company show that on May 25, 1954, in an entry charged to payroll, Sermon received a $1000 payment. Again on March 3, 1955, also on the payroll account, another $1000 payment was made to Sermon. A third payment of $1000 from the same account is shown to Sermon on Sept. 26, 1956.

Stock Payment. The Sept. 16, 1960 entry showed the $3000 transfer from the per sonal account of Haines to Ser- mon, and the ledger carried this as the stock transier payment, Haines said this $3000 entry ac tually represents the $3000 which was transferred before or during 1956 and does not involve an ao tual cash outlay in( 1960, Despite the entries showing the transfer of stock in 1960, Haines said that Sermon had had no interest in the business since 1956 The study of the records showed that according to the income tax returns of the conv pany filed up to Sept. 30, 1960, Haines had 50 per cent of the stock. His mother owned 25 per cent, and the ownership of the other 25 per cent was not in dicated in the firm's records.

Prior to Sept 16, 1960, Haines president of the company re' ceived a salary of $12,000 and had 50 per cent of the stock. After that date, the records showed the salary increased to $18,000 and his interest was shown as 75 per cent. The Post-Dispatch disclosed May 12 that Sermon received one half cent a eallon from the sae 0f D-X Sunray Oil Co. gaso line to the city of Independence. 9i you (pAobkm.

W. H. Hepmelcr suggests yoa see doctor rvoil yourself of our FOUR DIMENSION H.orim Measurement and Evaluation and a demonstration of America's complete lino of Hearing Aids. THREE CERTIFIED HEARING AID AU-DIOLOGISTS in attendance at our office. writ i or phone for "SEVEN STEPS TO BETTER HEARING" TO) OLIVE ST.

fin i nnnn STREET LEVEL til rJiJOiJ 14 yowt Immtawm fr. Lmi wjt jjyj FOUNDERS SALE EXCLUSIVE BlyMoss DESIGNS SECTIONAL DIVANS LOUNGE CHAIRS EITHER PLAIN OR TUFTED BACKS IN FABULOUS FABRICS 2. Ar v. i ri 4 i i ujiiuii'K a w'x I Mid, 1 1 .1 rtf "-T-. --jKjUri(i 'ff 111 JL This sign is proof.

that we re CS one of group of the jft a C3 finest men's shops in America. a' it ii i ii ii i We have always been proud to have been selected as an agent of Oxxford Clothes and have tried to choose our accessories with equal care. Southern Illinois: Considerable cloudiness, windy and warm with a few scattered showers and thundershowers today; low this morning in 50s; high in afternoon in upper 60s to middle 1 70s; tomorrow showers ending, windy and turning cooler. 35- Factory participation in our Founders Sale bringi you savings to 'j. Foam rubber zip-off, oasy-clean cushions, foam rubber backs for as little or less than you would pay for imitation foam rubber saatt, hog hair back filling and no-zip cushions.

Weather in Other Cities (Observation for high at 6:30 p.m., for prrvloiiii 24 hours; row for previous 12 hours.) III Divans Curved sectionals 393.00 2-Pc. Sectionals $249.00 THC WCLL-ORSSSCO kmson's rr.iT 1 UJil SAVE lo WT 3-21 1 1 Uie the Easy Bly-Moss Credit Terms jOptn High. Vtiw. Rain. Atlanta 7 Bismarck, N.D.

47 27 Brwton ft7 3r I Brownsville, Tex. 72 Ohlrnco 54 48 .09 Cincinnati RS 43 Columbia, Mo. 69 4S .37 Denver 38 i Tlelroit 4fi Pajo- sn fio Fort Worth SI fiS Jinnolulu S9 71 Juneau 4 1 34 3 Kin.ri-Citv 71 5 .10 Anieles 71 Miami 7H 7(i 1.60 -Minneapolis til 48 New Orleans 1 r't .04 New York il Oklahoma City 76 65 Philadelphls r7 .10 Phoenix. Arix. 74 52 i Ptttshurirh 64 34 rcrtlanrl.

Ore. 54 42 I ft. Louis 70 SO .5 Seattle 51 40 .04 Washington, C. 60 35 Clayton lindbergh In Uejt St. Lou in County OLIVE STREET AT SIXTH Op.n Mon.

thru Sat. 9:30 A.M. to 5:30 P.M. gl Tights Thurs. end Fri.

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