Corsicana Daily Sun from Corsicana, Texas • Page 1

THE WEATHER MARKETS AT A GLANCE and low Wednesday, 80 and 60. atra mixed Cotton, arregular, trading slow. Last Texas--Cloudy with scattered than- NEW YORK. May lower: list dershowers tonight and Friday, Local high retreats slowly. Bonds, Governments steady: corpor78 82 82.

82 83-7 83 1 83 1 83 up $21.85, to Cattle, expectations. Hora. 50 cents higher. Top 81 9 10 11 1 12 11 211 locate distillera' buying. steady: seeding not Complete Weather Report on Market Pare active: mostly alcady to strong.

Top Thermometer Headings: Corsican crop report, Corn. weak: believe Government to alSun $30.75. G0-Wheat. weak: selling prior to Government of the Daily Sun and Semi-Weekly Morning, Ligh! I FULL LEASED WIRE ASSOCIATED PRESS SERVICE-AP TELEMATS 288. CORSICANA, TEXAS, THURSDAY, MAY 10, 1951.

-TWENTY-FOUR PAGES TWO SECTIONS. PRICE FIVE CENTS Unfairness Alleged As Dawson Denies RFC Probe Charge WASHINGTON, Presidential Aide Donald 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 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 Fulbright (D-Ark), who heads the group, Dawson denled that he had spread rumors about Fulbright and the committee, or that the White House had sought to prove Congress members 'had taken improper fees to influence RFC loans.

Under questioning, the President's patronage adviser testifled 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 of my knowledge, have done nothing in connection with the RFC that 18 improper in any way." Senator Fulbright chairman of the subcommittee, asked (D.Ark), him if appointments to the RFC board first were cleared at Democratic headquarters. "Yes, they were cleared," Dawson said. Members of the board were critIcized in a subcommittee report which said they yielded to "Influonce" in handling loan applications.

The report named Dawson as one of those who exerted influence. But Dawson differed the committee's size-up of the since-reorzanized RFC. Marshall's Word "Exact Truth," Declare Truman May 10-(P)- President Truman today described Secretary Marshall's testimony of the MacArthur ouster. as the exact truth, word for word. Mr.

Truman's tolta: news: conference was in response to requests for comment on the senate. inquiry Into Far Eastern and his firing of Gen. MacArthur from the Far Eastern commands. Mr. Truman said he is' 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 to MacArthur.

He has contended MacArthur was 80 out with administration policy that there was no alternative exsept to relieve him of his commands. Mr. Truman had only one other comment on the Korean situation. 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 be a genius. Big Reduction In Wheat Forecast WASHINGTON, May 10-(P)- The Agriculture Department today forecast this year's droughtplagued winter wheat crop at 196,000 bushels. This 18 a reduction of 44,316,000 bushels from the 726,512,000 bushelg 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 good job," he said.

"I think the organization has done an admirable job and that it is well worth while." He conceded he hasn't studled the loans that were criticized by the subcommittee. Although Fulbright pressed him. Dawson had trouble remembering who--besides Democratic headquarters-had recommended the RFC directors. Nor could he remember the names of unsuccessful candi'dates for the jobs. fresh your memory," Fulbright said, "You've had four, months to seems to be an Important matter." Surprise Appointment.

Dawson said his selection boss of the President's personnel department came a en complete surprise even though he had known Mr. Truman since he was 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 he was Involved in a "web influence" that Improperly affected FRO loans. Fulbright 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, Dawson said: "It is true that I am well quainted with the directors of the RFC, 88 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 per80n8 or inquiries regarding loans to the RFC." Dawson testifled. "I merely presented the matter and have not urged or requested action one way or the other." The subcommittee in a report to the Senate had described the Presldent's adviser as a member of clique "who appear to have exercised influence over the RFC." It charged specifically that Former RFC Directors Walter L. Dunham and William Willett were subservient to him.

"Asinine" Mr. Truman called, the report asinine. Dawson told the Senators he "had nothing. whatever to do" with A $1,500,000 0. lost the Saxony See DAWSON, Page 2 Congress Acts Quickly- NEW COMMITTEE CHAIRMAN.

-Rep. 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 56-yearold lawyer-farmer, replaces Rep. John Kee (D-W. who died.

The South Carolinian has been in congress 18 years. (AP Wirephoto) Acheson, 0'Dwyer To Keep Offices, President Says WASHINGTON, May President Truman Said today there is no foundation in fact to A reports that Secretary of State Acheson may leave office within A few months. Truman also told a news conference: Reports he will recall William O'Dwyer as ambassador to Mexico likewise are rumors, with no dation in fact. He is backing completely Price Administrator Michael DiSalle's 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 tread on somebody's toes, he's 'going to scream. the order was put up to him advance and a it.See ACHESON, Page 2 Korean Gl Denied Admittance At VA Hospital Because "Not War Veteran" WASHINGTON, May Congress voted swiftly today to give veterans of the Korean fightIng the same medical benefits now available to World War I and II veterans. President Truman said today vetWASHINGTON, May erans of the Korean fighting should be given every benefit made avail.

able by the government to veterans of other wars. He said it was up to Congress to change the law under which hospitalization was denied by the. Veterans 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 throat cancer. Arellano is er 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 ficially recognized as a war. Mr. Truman was asked his tion to the Veterans tion's refusal.

Conditions Were BleakTruman Letter To MacArthur Last January Outlined Policy In Korea WASHINGTON, May President Truman wrote Gen. Douglas MacArthur a letter 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 A MacArthur that "steps which might in themselves be fully and might help the campaign in Korea "would not be beneficial" it they should result in spreading the fighting to Japan or Western Europe. In congress, Rep. Rankin (D- Miss), chairman of the House Veterans Committee, quickly introduced such a bill and sald 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 10-(P)-The British government announced to day it is cutting off all rubber exports to Red China for the rest of 1951, The decision was made known in the House of Commons few minutes after Winston Churchill demanded such a step in the Interest of better relations between Britain and the United States. Allies Hurl Back Reds; Ridgway Sees Victory U. S. POLICIES TOWARD CHINA INVESTIGATED Senators Probe Marshall About Far East Stand WASHINGTON.

May Senator Smith (R-NJ) said at the senate's MacArthur hearings today he had been told the Truman administration gave "the green light to Great Britain to recognize the Chinese Communists." Smith asked Secretary of Defense Marshall whether that WAS true, and "did imply we would go along with them?" Marshall said he did not know that Smith would have to ask Secretary 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 are inquiring into the 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 framing it. Some of the high spots: 1.

Smith said he had a letter from a "pretty good authority" sayIng that MacArthur proposed, shortly after the 1945 victory over Japan, a forced settlement of the war between Chinese Nationalists and Communists. He said the proposal was that the Communists should lay down their arms, in return for assurance of the right to the partici- Compate in elections, and--if munists did not agree surround and disarm them. Marshall said he had no recollection of such a MacArthur report. 2. Smith suggested that Lt.

Gen. Albert: Wedemeyer, who made a 1947 report, long suppressed. favoring ald to the Chinese 'National1sts was given a West Coast command. la. September, 1949, to him out of- Washington.

Smith said Wedemeyer's appolntment to command the Sixth Army In Callfornia "looked. like a promotion but really took him away from any further consideration" Chinese policies. Assignment Requested replied that Wedemeyer asked for the San Francisco assignment "a's his special desire." He added that it was "considered very favorable assignment." (Wedemeyer only this week, after the Korean section of his 1947 report was made public, asked retirement from the Army. He refused to discuss the reasons. His report had forecast a possible "SoKorea.) controlled" attack on South 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 and REA. The REA stated some trouble was experienced northeast of Kerens. TP and said scattered interruptions of a minor nature was suffered.

Long distance circuits to Kerens were out of order for several hours. Utility spokesmen said the ter. rific electrical display was "high" and for that reason little damage I resulted. When the lightning is "low," the damage is greater. Reports from the various communities Include: Emhouse-Big rain, electrical storm, with the biggest rain of the year reported north and northwest of town.

Roanc-Good rain, lighning, no damage. Rice--Big rain and some hailno damage. Blooming a bit of wind and a good rain." A fine Jersey milk cow belonging to O. G. Rascoe was killed by lightning.

Frost--Electrical storm and good rain, some wind, telephone lines out. Richland--About an Inch of rain, some lightning, no damage. Dawson--Good rain. GRIEVED FATHER--Harold 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, and an attending physician sald he entertains hope for her recovery. She. suffered a crushed chest, skull-Injurles broken wrist. Sho had been playing In an alley when the driver started the truck, In background, a neighbor comforts the mother. (AP Wirephoto).

Gross Receipts Bill Dies Texas Appropriations Pass AUSTIN, May multi-million dollar appropriation bill won final legislative approval in the house and went to the governor today. THe vote wag 72 to 61 after heated debate. Earlier the senate passed the omnibus tax bill designed to care for these gencral state running expenses during the next two years. Senate action on the tax bill came by voice vote. Thig back to the house now for concurrence In or rejection of senate amendments.

A gross receipts tax measure wag killed. Today's fast work in the senate and the houge on money matters were major steps forward In cleaning up the 52nd legislature's tasks. 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 Panama's President Restores 1946 Constitution, Ending Mob Rioting PANAMA, Panama, May 10-(P) -President Arnulfo Arias bowed to police and public pressure today and ordered restoration of the 1946 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 the president's ouster.

Arias' hold on the presidency was disputed by Vice President Alcibiades Arosemena, who WAS sworn in as president before the national assembly before midnight' last night. The assembly, which Arias had dissolved Monday, met in a newspaper office, get itself up As 8 high court, and Impeached the president. Then it summoned the vice president. Arias got powerful backing today from Col. Jose Antonio Remon, Panama's strong man and the head of the national police--the country's only army.

Declaring "what the people wanted has been achieved," by Arias' return of the 1946 charter, Remon announced his support of the president. Such support could be decisive. Police headquarters today hailed the as a "Ifty and patriotic decision" and appealed the people to lay aside their bitterand support Arias president. Arosomena indicated when he appeared before the assembly to take the oath that he knew Remon would not support him, but Panel Passes Corporation Tax Hike WASHINGTON, May The house ways and means committee tentatively approved a 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 (FOE HARD HIT BY LACK OF WAR SUPPLIES Armored Patrols Push 21 Miles North Of Seoul TOKYO, Friday, May 11-(P)- Allied forces continued Thursday night to roll back the hard-hit Reds on the Korean front--a battle which Lt. Gen. Matthew B. Ridgway said may have started the defeat of Communism's grasp for world power.

Armored patrols stabbed into Munsan, 21 miles northwest of Seoul, after wiping out a Korean Red threat to flank the rubbled Republican capital. Another tank column punched within 10 miles of parellel 38 19 miles north of Seoul and eight miles north of Uljongbu. General Ridgway, supreme Allied commander, replacing Gen. MacArthur, said history possibly will record action in Korea hasherokton dithe of the Communist No Opposition Tanks and South Korean infantrymen searched Munsan without opposition, then withdrew. Elsewhere along the 100 mile front greatest obstacles encountered by tank patrols were mine flelds covered by small arms fire.

Chinese armies are "wilting on the vine" because of lack of supplies, sald Lt. Gen. Edward M. Almond, commander of the U. S.

10th Corps. The Reds have dithdrawn to keep out of range of U. N. artillery. Nevertheless, Almond cautioned, they presumably are preparing for aonther attack.

are prepared for them," he sald. "We are killing large ties of the enemy and will kill them in future." 6,000 Reds Lost. An Eighth Army spokesman said 6,000 North Korean Reds who had threatened to outflank Seoul were either killed or routed. South Koreans were mopping up' remains of this force Thursday west not the Seoul-Munsan road. said Reds, fighting delaying Correspondent John.

Randolph tion, were firing down on the Republicans from the Hills. On a highway between Uijongbu and the parallel, another armored force small Chinese See KOREAN, Page 2 HD He said he had no comment other than to say that he thought the Veterans Administration had swered the whole question. He said that 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 vetorans affairs committec meantime asked the VA regional office at Tucson for an explanation.

The VA central office here affirmed that, under the law, Arellaas a "peacetime" veteran would be entitled to hospitalization only if he had disability discharge or was drawing inc compensation for 8 disability. But the VA said a determination See VETERAN, Page 11 Committee Maps Christmas Plans For Corsicana A daring plan to make Corsicana "Christmas Conscious" early In September was approved by the retall 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. Nix, the other chairman, will work on general Christmas plans, while Goldberg will work out details for the earlier Yuletide season. In discussing the Christmas plans it WAS suggested schools throughout the county be Invited to participate In the Christmas parade and thus make Corsicana's mas period 8 county-wIde event. Hoyt Moore, J.

W. McAdams, C. B. McClung, Alton Truitt, Herb Jacobs and Alvin 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.

5:30 p. m. weekly, with a closing hour of 7 or 8 p. m. Saturdays.

Early Closing The committee suggested merchants be presented with the plan for earlier closing between June 17 and Aug. 31, and to try It for 30 definite closing hour for 'Saturday was set. It was decideu to adopt the hour favored by the most merchants. The committee on drug store closing said it didn't believe these See COMMITTEE, Page 2 get rid of state cars, and a retroactive loyalty oath requirement for all state employes, Reps. W.

H. Rampy and Jack Cox defended the bill as the best solution that could possibly be worked out. Rep. Doug Crouch of Denton denounced the bill as being "loaded with Fascistic policy" and said "politics wrote the bill." Rampy, chairman of the house appropriations committee, said the money bill would put a drain of $145,756,000 on the general revenue fund. Other Items from spec-.

lal funds would bring the total In thig measure to more than 200 million dollars. It leaves spending in general for departments, colleges, judiciary, hospitals and other major services approximately at current levels. The house made no changes In the joint conference committee recommendation which was adopted earlier this week by the While there were still some ditferent estimates on the exact amount the appropriations bill would require from the general revenue fund, there WAS general agreement that new money needSeo LEGISLATURE, Page 11 Murder-Suicide Takes Lives Of Wortham Couple sald he would accept the bly's offer. After he was sworn in, the opposition radio called on the people to escort him to the presidentla: palace where Arias was secluded surrounded by Remon's police, The march, however, never came off, and Arosemena finally went home to await developments. Panama looked like a dead city today.

Business houses and stores were shut down. Transportation was at a stanstill and all Industry See PANAMA, Page 2 Corsicana Water Needs Discussed At Meeting Here Corsicana's future water needs were discussed Wednesday night when the mayor, two city commissloners and the city engineer met with representatives of four enginecring firms. At the informal conference, the engineers pointed out what they thought the city needed and their plans included the following: A new reservoir, distribution Improvements and enlarged pumping station. Reconnalasanco or preliminary surveys to determine what is needed and how much it will cost were discussed. It WAS pointed out It would take about 90 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 new city lake could be constructed, distribution and pumping improvements and estimated costs. The commissioners hope to be able to select an engineering firm to make the surveys when they meet Tuesday, May 15. Attending the meetinng were Mayor Ben F. Blackmon, Commissicners Glen Trompson and A.

H. Bonner, City Engineer Fred V. Blucher and representatives of the following engineering firms: Homer Hunter Dallas; Forrest and Cotton, Dallas; Freese, and Nichols, Fort Worth; Bartlett, San Antonio, WORTHAM, Mav 10-(Spl)Mr. and Mrs. Sim Bounds were fatally shot at their home here Thursdav about 7 a.

m. J. H. Wasson, justice of the 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 back and the husband once in the head, officers said. Bounds is survived by a daughtor, Mrs. Evelyn Rankin, Texas City, and three grandchildren.

Mrs. Bounds, who formerly resided In Corsicana, is survived by a daughter, Mrs. Leonard L. Parrish, Java: two sons. N.

D. and James Pringle, both of Corsicana, The bodies were taken to the Burleson Funeral Home. Funeral arrangements are pending. resistance might not be militarily with the limited forces available to General MacArthur." The letter was dated Jan. 13.

United forces then were first big Red Chinese. rapidly backpedaling, before the 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 al strength, we must act with great prudence Insofar as extending the area of hostilities was concerned. "Steps which might in themselves be fully justified, which might lend some assistance to the campaign In Korea, would not be beneficial if they would involve Japan or Western Europe In large scale tilities.

"The President recognized the continued resistance might not be militarily possible with the limited forces available to General MacArthur. In any event, the United Nations forces must be preserved as an effective Instrument for the defense of Japan and elsewhere. A successful resistance in Korea, however, would serve the following purposes." Saltonstall sald the letter listed 10 such purposes, the first of which was "to would demonstrate that aggression not be accepted by the free world." Chian 50 MANCHURIA STATUTE MILES R.C NORTH Changsong. KOREA: A Puk Kusong Hamhung Chongiu HUNGNAM Yonghung Sunchon: PYONGYANG WONSAN Tongchon Yellow Sea Kosong Sariwon Singye Changdo Kumhwa I Hwachon Chor won Hwachon Reservoir 38 Hacqu Yangyang) SOUTH KOREA Inchon SEOUL WHERE ALLIED PLANES BLAST CHINESE JETS--The plane symbols on his map locate the Sinulju area in northwest Korea where some 300 Allied planes ripped part of the Chinese air force. Participating planes in the biggest air raid of the Korean war came 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 east coast. (AP Wirephoto Map). yesterday, the committee In voted, days has found more than 000,000,000 of the additional 000,000,000 revenue President Truman has asked to keep the defense effort on a pay-a8-you-go basis. The individual increase--three percentage points board tax -was adopted yesterday by a close margin. That means a hike of about 15 per cent in the actual amount of taxes persons in the lower Income brackets would pay.

For persons in the class, the hike would be about three per cent..