Corsicana Daily Sun from Corsicana, Texas • Page 1

THE WBATHEB Bait Cloudy with scattered thnn- tonight and Friday. Local high and low Wednesday, 86 and 604 Thermometer 8 I 0 10 11 I 18 I 78 1 I 3 I 82 I 82 82 83-1 83 I 88 Complete weather Benort on tlarkit Put 183 HWmeortnt Daily Sun and Morning liVh'H FULL LEASED WIRE ASSOCIATED PRESS TELEMATS MARKETS AT A GLANCE NEW YOnK. Mny lower: lint rrttrals nlowly. lldndn, Governments itcmly; corporate" mixed Coin rrwilar. trading pplllnff prior to Govrrnmcnt prou report.

Corn, wi-ak: bclifire Government to nl- lorate dliitlHeri' buyinc. flendv: needing not to expectations, iinet. 2fi lo BO ci-nln hinder. Ton Cnltle, nclive: mostly (rnr)y to utronir. Top VOL.

288. THURSDAY. MAY 10, 1051. -WEXTY-FOL'R SECTIONS. PRICE FIVE CENTS Unfairness Alleged As Dawson Denies RFC Probe Charge WASHINGTON, May Presidential Aide Donald S.

Dawson denied Senators' charges today that the White House had tried to their Investigation of the alleged political influence on Reconstruction Finance Corporation (RFC) loans. Dawson went before a Senate banking subcommittee and swore he never abused his White House post by tampering with RFC affairs as the group has charged. In turn, he accused the sub-committee of having been unfair to him. Under a raking cross examination by Senator Fulbrlght (D-Ark), who heads the group, Dawson denied that he bad spread rumors about Fulbrlght and the committee, or that the White House had sought to prove that Congress members had taken improper fees to Influence RFC loans. Under questioning, the President's patronage adviser testified that all appointments to the RFC board of directors were cleared first with the Democratic National Committee.

Dawson began his appearance before the Senate investigators by reading a statement: Nothing Improper. "To the best of my knowledge, I have done nothing In connection with the RFC that is improper In any way." Senator Fulbright (D-Ark), chairman of the subcommittee, asked him if appointments to the RFC board first were cleared at Democratic headquarters. "Yes, they were cleared," Daw- ion said. Members of the board were criticized in a subcommittee report which said they yielded to "influ- cnce" In handling loan applications. The report named Dawson as one of those who exerted Influence.

But Dawson differed with the committee's slae-up of the slnce-re- orzanlzed RFC. Marshall's Word "Exact Declare ruman WASHING 1 May 1 President Truman today described Secretary Marshall's testimony of the MacArthur, ouster the exact truth, word for word. "i.Mr. 1 statement news; conference was in response to requests for comment on the senate inquiry Into Far and hla firing of Gen. MacArthur from the Far Eastern commands.

Mr. Truman said he la 1 satisfied with Gen. Marshall's statement of the administration's position. And he added that Gen. Marshall told the exact truth, word, for word.

Marshall, 70-year-old secretary of defense, has been the administration's lead off witness in reply to MacArthur. He has contended MacArthur was so out of sympathy with administration policy that there was no alternative ex- to relieve him of his com- Mr. Truman had only one other comment on the Korean situation. A woman reporter wanted to know how it would be possible to unify Korea if the Chinese Reds are not driven out. Mr.

Truman told her if she could answer that question, she would bo a genius. Big Reduction In Wheat Forecast WASHINGTON, May Agriculture Department today forecast this year's drought- plagued winter wheat crop at 682,106,000 bushels, This is a reduction of 44,316,000 bushels from the 726,512,000 bushels forecast a month ago. Poor weather and destructive Insects In the southern great plains region have damaged the crop, leading to the abandonment of many million acres. "I think the RFC has done a good Job," he said, "I think the organization has done an admirable job and that it Is well worth while." He conceded that he hasn't studied the loans that were criticized by the subcommittee. Although Fulbrlght pressed him, Dawson had trouble remembering Democratic recommended the RFC directors.

Nor could he remember the names of unsuccessful candidates for the jobs. "You've had four months to refresh your memory," Fulbrlght said, "It seems to be an Important matter." Surprise Appointment. Dawson said his own selection as boss of the President's personnel department came a a complete surprise even though he had known Mr. Truman since he was a senator. Dawson said the President appoints about 200 key men each year.

In his opening statement, Dawson made a blanket denial of the sub-committee's charges hu was Involved In a "web of Influence" that Improperly affected FRO loans. Fulbrlght said It may take three days to complete the questioning he and other members of his subcommittee have prepared for Dawson. Dawson Is President Truman's personnel (political patronage) adviser. In his prepared statement, son said: "It is true that I am well acquainted with the directors of the RFC, as I am with many other officials of gavernment agencies. "It Is also true that I have at no time ever attempted to 'dominate' or 'Influence' any of them." On occasion I have referred persons or Inquiries regarding loans to the RFC," Dawson testified.

"I have merely presented the matter and have not urged or requested action one way or.the other." The BUbcommlttee In a report to the Senate had described the- President's adviser as a member of a clique "who appear to have exercised Influence over the RFC." It charged specifically that Former RFC Directors Walter L. Dunham and William E. Wlllett were subservient to him, "ABliUne" Report. report as- i Dawaon told the Senators he "had nothing 40" with Saxony See DAWSON. Page 2 NEW COMMITTEE CHAIRMAN James P.

Richards (D-SC), who Is taking over the chairmanship of the House Foreign Affairs committee, poses in his office in Washington. Richards, a 66-year- old lawyer-farmer, replaces Rep. John Koe (D-W. who died. The South Carolinian haa been in congress 18 years.

(AP Wirephoto) Allies Hurl Back Reds; Ridgway Sees Victory Acheson, O'Dwyer To Keep Offices, President Says WASHINGTON, May Prosldent Truman said today there is no foundation in fact to reports that Secretary of State Acheson may leave office within a few months. Mr. Truman also told a news conference: Reports he will recall William O'Dwyer as ambassador to Mexico likewise arc rumors, with no foundation In fact. He Is backing completely Price Administrator Michael DISalle's meat price control order. DISalle's order has brought a flood of protests from packers and others.

Commenting on the protests, Mr. Truman said It was the same old fight. He added: When you trflarl on somebody'! toes, he's-going to ld.tb«. order wan-put up to advarfce and he-approved it. See ACHESON, Page 2 Congress Acts Korean Gl Denied Admittance At VA Hospital Because "Not War Veteran" WASHINGTON, May Congress voted swiftly today to give veterans of the Korean fight- Ing the same medical benefits now available to World War I and II veterans.

WASHINGTON, May President Truman said today veterans of the Korean fighting should be given every benefit made available by the government to veterans of other wars. He said it was -up to Congress to change the law under which hos- pitalizatlon was denied by the Administration to a Korean veteran for a non-service disability. David R. Arellano, 21, of Tucson, was denied admittance there yesterday to a VA hospital. He was then taken to Pima county hospital and operated on for a throat cancer.

Arellano Is a former Marine bazooka squad member, discharged after Korean service. VA officials said they could do nothing about the case because the Korean conflict has not been officially recognized as a war. Mr, Truman was asked his reaction to the Veterans Administration's refusal. Conditions Were Truman Letter To MacArthur Last January Outlined Policy In Korea WASHINGTON, May President Truman wrote Gen. Douglas MacArthur a letter deal- Ing with Korean war policy last January when conditions there were bleak for the United Nations.

Senators who reported this yesterday said the President's letter told MacArthur that "steps which might in themselves be fully justl- led" and might help the campaign In Korea "would not be beneficial" if they should result in spreading the fighting to Japan or Western Rep. Rankln (D- Europe, In congress Miss), chairman of the House Veterans Committee, quickly Introduced such a bill and said It hopes to have It ready for a house vote in several weeks. Paraphrased excerpts read Into the record of the Inquiry into MacArthur's dismissal showed that Mr. Truman "recognized the continued British Will End Rubber Exports To Red Chinese LONDON, May iBrltish government announced to (day It Is cutting off all rubber ox- ports to Red China for the rest of 1951. The decision was made known In the House of Commons a few minutes after Winston Churchill demanded such a step In'the Inter- eat of better relations between Britain and the United States.

resistance might not be militarily possible with the limited forces available to General MacArthur." The letter was dated Jan. 13. United Nations forces then were rapidly backpedallng before the first big onslaught of Red Chinese. The President's letter was furnished to the senate armed services and foreign relations committees. Senator Saltonstall (R-Mass) said It was supplied from records of the joint chiefs of staff.

Saltonstall read this paraphrased excerpt into the record: "The President emphasized that pending the buildup of our National strength, we must act with great prudence Insofar as extending tho area of hostilities was concerned. "Steps which might In themselves be fully justified, which might lend some assistance to tho campaign in Korea, would not bo beneficial If they would involve Japan or Western Europe in largo scale hostilities. "The President recognized the continued resistance might not be militarily possible with tho limited forces available to General MacArthur. In any event, the United Nations forces must bo preserved as an effective Instrument for the defense of Japan and elsewhere. A successful resistance in Korea, however, would serve the following purposes." Saltonstall said the letter listed 10 such purposes, tho first of which was "to demonstrate that aggression would not be accepted by the free He said he had no comment other than to say that he thought tho Veterans Administration had an.

swored the whole question. He said Lhat tho VA obeyed the law, and It was up to Congress to change the law. And he said he thought that the Korean veterans were entitled to all the benefits that go to other veterans. The House veterans affairs committee meantime asked the VA regional office at Tucson for an explanation. The VA central office here affirmed tho law, Arellano as a "peacetime" veteran would be entitled to hospltallzatlon only If he had a disability discharge or was drawing compensation for a service-connected disability.

But the VA said a determination Page 11 Committee Haps Christmas Plans For Corsicana A daring plan to make Corsicana "Christmas Conscious" early In September was approved bv tho retail trades committee of the Chamber of Commerce Thursday. In addition, the committee discussed summer closing hours and decide to approach merchants with a volunteer trial period of earlier closing for 30 days. The early Christmas season plan, which committee members stated would mean Increased business, especially In lay-aways, was Introduced by Abe Goldberg. Later Goldberg was named co-chairman of a special committee on Christmas season activities. Work Out Details R.

L. Nix, the other chairman, will work on general Christmas plans, while Goldberg will work out details for the earlier Yulctlde season. In discussing the Christmas -plans Ir was suggested schools throughout tho county be Invited to participate In the Christmas parade and thus make Corslcana's Christmas period a county-wide event. Hoyt Moore. J.

W. McAdams, C. McClung, Alton Trultt, Herb Jacobs and Alvln Marks reported on summer closing hours, It was reported most merchants had been contacted and the general feeling was for hours of 8:30 a. m. to 5:30 p.

m. weekly, with a closing hour of 7 or 8 p. m. Saturdays, Early Closing committee suggested mor- U. S.

POLICIES TOWARD CHINA INVESTIGATED Senators Probe Marshall About Far East Stand WASHINGTON. Mav Senator Smith (R-NJ) said at the senate's MacArthur hearings today he had been told the Truman administration Kave "the green light to Great Britain to recognize the Chinese Communists." Smith asked Secretary of Defense Marshall whether that was true, and "did we Imply we would go along with them?" Marshall said he did not know that Smith would have to ask Secretary of State Acheson who is to be a witness later. Marshall, for the fourth day, was before the senate armed services and foreign relations committee which ar fi inquiring Into tiie ouster of Gen. MacArthur as Far East commander and nolicv. Many Questions In a long series of questions, Smith dug into the formulation of American policy toward China and the men who had a hand in fram- Intr It.

Some of the high spots: 1. Smith said he had a letter from a "pretty good authority" say- Ing that MacArthur proposed, shortly after the 1945 victory over Japan, forced settlement of the war between Chlneso Nationalists and Communists. He said the proposal was that the Communists should lay down their arms, In return for assurance of the right to participate in elections, and if the Communists did not agree to surround and disarm them. Marshall said he had no recollection of such a MacArthur report. 2.

Smith suggested that Lt. Gen, AlberfC. Wedemeyer, who made a 1M7 report, long suppressed, favoring aid to the Chinese 'Nationalists was given a Wert Coast command 2949, to- get him out of Smith said Wedemeyer's appointment to command the Sixth Army in California "looked, like a promotion but really took him away from any further consideration" of Chinese policies. Assignment Requested replied that Wedemey- asked for the San Francisco assignment "a's his special desire." He added that it was "considered a very favorable assignment." (Wedemeyer only this week, after the Korean section of his 1947 report was made public, asked re tlrement from the Army. He refused to discuss the reasons.

His report had forecast a possible "Soviet-controlled" Korea.) The chants be presented with the plan for earlier closing between June and Aug. 31, and to try it for 30 days. No definite closing hour for Saturday was set. It was decided to adopt the hour favored by tho most merchants. Tho committee on drug store closing said It didn't believe those Beg COMMITTEE, Page 2 attack on South GBIEVED Dahler bends over' the crumpled form of his 17-months-old 'daughter, Mary after she was run over by a truck In West Los Angeles, Calif.

There- was good news, though, Thursday The critically Injured little girl Is Improved, arid an attending physician said he entertains hope for her re cowry. She, suffered a crushed chest, skull-Injuries and-a broken wrist. Sho had been playing In an alley wnra-the driver started the truck. In background, a neighbor comforts tho mother. (AP Wirephoto).

Gross Receipts Bill Texas Appropriations Pass FOE HARD HIT BY LACK OF WAR SUPPLIES Armored Patrols Push 21 Miles North Of Seoul TOKYO, Friday. May Allied forces continued Thursday night to roll back the hard-hit Reds the Korean battle which jt. Gen. Matthew B. Ridgway said may have started the defeat of Communism's grasp for world power.

Armored patrols stabbed into 21 miles northwest of ieoul, after wiping out a Korean. P.ed threat to flank tho rubbled Re- capital. Another tank column punched within 10 miles of parellel 38 19 miles north of Seoul and eight miles north of Uijongbu. General Ridgway, supreme Allied commander, replacing Gen. MacArthur, said history possibly will record that the U.

N. action In Korea has broken "the crest of the Communist No Opposition Tanks and South Korean Infantrymen searched Munsan without opposition, then withdrew. Elsewhere along the 100 mile Front the greatest obstacles encountered by tank patrols wore mine fields covered by small arms fire. Chinese armies are "wilting on the vine" because of lack of supplies, said Lt. Gen.

Edward M. Almond, commander of the U. S. 10th Corps. The Reds have dlthdrawn to keep out of range of U.

N. artillery. Nevertheless, Almond cautioned, they presumably are preparing for aonther attack. "We are propared for them," ha said. "We are killing large quantities of the enemy and will kill them In the future." 6,000 Reds Lost.

An Eighth Army spokesman said 6,000 North Korean Reds who threatened to outflank Seoul wora either killed or routod. South Koreans were-mopping up remains of this force Thursday west of tho Seoul-Munsan road. AP Correspondent John Randolph said Reds, fighting a delaying action, were firing down on the Republicans from the Hills. On a highway between Uijongbu and the 38th parallel, another armored force hit a small Chinese AUSTIN, multi-million May dollar The appropriation bill won final legislative approval in the house and went to the gov- ernoy today. THe vote was 72 to 61 after debate.

Earlier the senate passed tho omnibus tax bill designed to care for these general state running expenses during the next two years. Senate action came by voice goes back to the house now for on the tax vote. This bill bill Panamas President Restores 1946 Constitution, Ending Mob Rioting 3. Marshall testified that consideration was given, during conferences on the question of recalling MacArthur, to the possible effect See MARSHALL. Page 2 Navarro County's Rains Amount To Nearly An Inch Rains amounting to approximately an Inch, accompanied by considerable wind and electrical disturbances, fell in Navarro county Thursday morning.

The precipitation in Corsicana was reported at .97 inch. Only minor interruption to service was reported by the South western Bell Telephone Company, Texas Power and Light Company bV Ce Phe Sldw Sl of Kerens. TP and said scatter- Alcibiades Arosemena, who was eri interruptions of a minor nature I aw Jn as president before the nntlnnnl otmomnlv minnftrhf concurrence In or rejection of senate amendments A gross receipts tax measure was killed. Today's fast work In the senate and the house on money matters were major steps forward In cleaning up the 52nd legislature's tasks. Cries of opposition against the compromise appropriation bill centered around restoration of five agencies previously knocked out by the house; a provision forcing all state departments to day the and 1946 PANAMA, Panama, May (IP) Arnulfo Arias bowed to police and public pressure to- ordered restoration of constitution which he scrapped last Monday.

By this action, which won over police support, he hoped to stay in office. Arias' decision came after a day and night of rioting In which at least three persons were killed and 110 wounded or Injured as angry crowds surged through the capital's streets, clamoring for tho president's ouster. Arias' hold on the presidency was suffered. Long distance circuits to Kerens were out of order for several hours. Utility spokesmen said the terrific electrical display was "high" and for that reason little damage resulted.

When the lightning Is "low," the damage Is greater. Reports from the various communities Include: rain, electrical storm, with the biggest rain of the year reported north and northwest of town. rain, llghning, no damage. rain and some hall- no damage. Blooming a bit of wind and a good rain." A fine Jersey milk cow belonging to O.

G. Rascoo was killed by lightning. storm and good rain, some wind, telephone lines out. an Inch of rain, some lightning, no damage. rain.

national assembly midnight last night. Tho assembly, which Arias had dissolved Monday, met In a newspaper office, set itself up as a high court, and Impeached the president. Then it summoned the vice president. Arias got powerful backing today from Col. Jose Antonio Remon, Panama's stronc man and the head of the national police tho country's only armv.

Declaring "what tho people wanted has been achieved," by Arias' return of tho 1946 charter, Remon announced his support of the president. Such support could decisive. Police headquarters today hailed the decree as a "Ifty and patriotic decision" and appealed the people to lay aside their bitterness and support Arias as president. Arosomcna Indicated when he appeared before the assembly to take tho oath that ho knew Remon would not support him. but Panel Passes Corporation Tax Hike WASHINGTON, May The house ways and means committee tentatively approved a $2,080,000,000 Increase in corporation taxes today, Members voted to increase the normal tax rate by five points across the board.

The administration had asked for an eight-point increase, which the treasury estimated would have brought in $3,300,000.000 a year above present revenues. Coupled with a $3,000,000,000 Increase In Individual Income taxes voted yesterday, tho committee In two days has found more than $5,000,000,000 of tho additional $10,000,000,000 revenue President Truman has asked to keep the defense effort on a pay-as-you-go basis. The individual iercentage points across tho board each tax adopted yesterday by a close margin. That moans a hike of about 15 per cent in tho actual amount of taxes persona In tho lower Income brackets would pay. For persons in tho class, the hike would be about three per cent, pe in said he would accept the assembly's offer.

After ho was sworn In, tho opposition radio called on the people to escort him to the president- la; palace where Arias was secluded surrounded by Remon's police. The march, however, never came off, and Aroscmena finally wont home to await dovelopmontH. Panama looked like a dead city today. Business houses and stores wore shut down. Transportation was at a stanstlll and all Industry See PANAMA, Page 2 Corsicana Water Needs Discussed At Meeting Here Corsicana's future water needs wore discussed Wednesday night when the mayor, two city commissioners and the city engineer met with representatives of four engineering firms.

At the Informal conference, tho engineers pointed out what they thought the city needed and their plans Included the following: A new reservoir, distribution improvements and enlarged pumping station. Reconnaissance or preliminary surveys to determine what is needed and how much it will cost wore discussed. It was pointed out it would take about BO days to complete such a survey. The engineers estimated surveys would cost In the neighborhood of $2,000. The surveys would point out what is needed, where a now city lake could be constructed, distribution and pumpling improvements and estimated costs.

Tho commissioners hope to be able to select an englneerling firm to make tho surveys when they meet Tuesday, May 15. Attending tho moetlnng were Mayor Ben F. Blackmon, Commissioners Glen Trompson and A. H. Bonner, City Engineer Fred V.

Blucher and representatives of tho following engineering firms: Homor Hunter Dallas; Forrest and Cotton, Dallas; Fi-eose and Nichols, Fort Worth; Terry Bartlett, San Antonio, get rid of state cars, and a retro ictive loyalty oath rcqulremen for all state employes. Reps. W. H. Rampy and Jack 'ox defended tho bill as the bes solution that could possibly be worked out.

Rep. Doug Crouch of Denton denounced tho bill as being "load ed with Fasclstlc policy" and sale 'politics wrote the bill." Rampy, chairman of the housi appropriations committee, said th money bill would put a drain $145,756,000 on the general reve nue fund. Other Items from special funds would bring tho tola in this measure to more than 20 million dollars. It leaves state spending In gen eral for departments, colleges judiciary, hospitals and oine major services approximately a current levels. The house made no changes In the Joint conference commltto recommendation which was adopt ed earlier this week by tho son ato.

Whllo there still some dlf fcront estimates on tho exac amount the appropriations bll would require from tho genera revenue fund, thero was genera agreement that new money need See LEGISLATURE, Pago 11 Bee KOREAN, Page 2 Murder-Suicide Takes Lives Of Wortham Couple WORTHAM, Mav Mr. and Mrs. Sim Bounds were fat. oily shot at their home here Thursday about 7 a. m.

J. H. Wasson, justice of tho peace, Precinct 4, Freestone county, returned a coroner's verdict that Bounds, 72. prominent landowner and cotton buyer, fatally shot his wife whose body was found In the yard and then shot himself. His body was found in the living room, it was stated.

The wife was shot three times In the back and the husband once In tho head, officers said. Bounds Is survived by a daughter, Mrs. Evelyn Rankln, Texas City, and three grandchildren. Mrs. Bounds, who formerly resided In Corsicana.

Is survived by a daughter, Mrs. Leonard L. rish. Java; two sons, N. D.

and James Prlnglo, both of Corsicana. The bodies were token to the Burleson Funeral Homo. Funeral arrangements are pending. WHERE AU-IED 1'LANES BLAST CHINESE JETS-The plane gym- bols on his map locate tho Slnulju area In northwest Korea some 300 Allied pianos ripped part of the Chinese air force. Participating pianos In tho biggest air raid of the Korean war from every United Nations air field In Korea.

On the ground troops (black arrows) advanced north of Seoul; made another crossing of the 38th parallel southeast of Inje, and expanded their bridgehead on the coast. (AP Wirephoto Map)..