Tampa Bay Times from St. Petersburg, Florida • 2

2-A GENERAL St. Petersburg Timet, Saturday, August 25, 19(2 JACOBS SUGGESTS MILLER PANICKED Rail Merger Gets Examiner's Okay SEC Study Raps Mutual Fund Industry WASHINGTON (UPI) The Expense Bills In Hanna Case Being Probed Editorial, Page 6-A. WASHINGTON Wt The Gen The two lines submitted a clan Ex-Official Says Aide May Have Lied On Estes Report I EMERY- JACOBS TESTIFIES at probe of Billie Sol Estes case. (from i-a) rter operating rignis ana De granted trackage rights now held by the Atlantic Coast Line. The consolidation would abolisn an estimated 4.257 jobs and cause relocation of 4,439 employes to other jobs in the company.

It was estimated that this would re-, suit in annual savings within five years of $25.5 million in wage and employe benefit costs plus $3.1 million in payroll taxes. The examiner recommenda tions might ultimately become the order of the commission. However, there are several steps left in the complicated ICC procedures before a final decision is reached. A 30-day period is provided for filing objections to the exami ner's recommendations; a zo-aay period after that for replies to the exception. Frequently the parties involved request an oral argument before the commission itself, prior to the final decision.

The Justice Department, rail way labor organizations, some other railways serving the area and various communities affected by the proposal are likely to pro test the merger recommendation The protests already have ques tioned the justification for the merger in view ot tne souna ti- nancial condition of ACL and Sea board. They also emphasized the po tential loss of rail competition resulting from approval of the consolidation of the two. ACL now operates more than 5,500 miles of line. Seaboard operates more than 4,000 miles of track. Atlantic Coast Line railroad of ficials in Jacksonville indicated yesterday that they were pleased by the ICC recommendation However, a spokesman said that ACL President W.

Thomas Rice was on vacation and would have no official comment until the firm's attorneys had studied trren report. John W. Smith, president of the Seaboard Air Line Railroad, contacted in Richmond, yester day welcomed the recommendation that the merger of the rail roads be approved. He too re fused, however, to comment on the report until it had been studied. The railroads said that their merger proposal would produce greater flexibility and availabil ity of routes, time-saving shorter routes, and possible future rate reduction through savings.

Part Time Fathers' Story Told -UFI Tdephoto Space Flight Electricians Back At Work HUNTSVILLE, Ala. in More electricians returned to their jobs at the Marshall space flight center yesterday. A spokesman for the center said: "We certainly are heading back toward a nor mal situation." Construction crews numbered 75 per cent of the pre-strike level, the spokesman said. Of the electricians themselves, who went on strike 11 days ago, the spokesman said 82 per cent were at work, compared with about 33 per cent Thursday. The stepped-up movement of the electricians back to their jobs on vital space exploration projects followed a meeting Thurs day night.

At the meeting, James Haygo Dusiness agent lor the electricians local, read back-to-work orders from a federal court judge and from the international president of the union. Then Haygood, in line with the federal court order. directed the electricians to re turn to work. WASHINGTON W) A dismissed Agriculture Department official testified yesterday that he believes former subordinate panicked and swore falsely that ne was insuuticu uumn whitewash report on Billie Sol Estes. By indirection, Emery E.

Jacobs accused Thomas H. Miller of lying to save his own skin In testimony this week before the Senate Investigations Subcommittee which is trying to determine whether the Texas promoter received improper favors from within the department in his extensive operations. Miller had testified that Jacobs instructed him to return a report favorable to Estes when Miller was assigned, early this year, to carry out an investigation in Texas of Estes' 1961 cotton-acreage allotment deals. Asked if he gave such instructions, Jacobs told the senators: "I say I did not." Jacobs acknowledged before the subcommittee that his denial of Miller's statement carried with it a clear implication of perjury. Jacobs denied also that he had indicated to Miller that a report favorable to Estes was desired by Undersecretary of Agriculture diaries S.

Murphy. Jacobs insisted that his instructions to Miller were "to be objective" and Murphy took a similar position in discussing the matter with Jacobs. Miller first testified that Jacobs gave him to understand Murphy wanted a pro-Estes report but later backed away from this claim. Outside the hearing, a statement denying any wrongdoing was issued by Murphy who was identified on Thursday by Jacobs as the official who made the de cision on Jan. 6 to rescind the department's mid-December order 'canceling Estes' 1961 allot ments.

Murphy said he asked on July to appear before the Senate committee and plans to explain his conduct in detail when he is called. However, he said, all matters concerning Estes came to him in the normal course of his duties and "I dealt with them all strict ly on the merits as I saw them. No pressures or improper influ ences had any effect on my de cisions. Jacobs remained on the stand throughout morning and after noon sessions and when subcommittee chairman, Sen. John Mc- Clellan.

excused him and Negro Ik 0 of eral Services Administration announced yesterday it is investigating expense reimbursement claims made by the Hanna Smelting Co. under the company's contract to produce nickel at Riddle, Ore. Hanna Smelting Co. is a whol ly owned subsidiary of the M. A.

Hanna Co. whose nickel-stockpiling contracts with the gov ernment are under investigation by a special senate subcommittee as part of an over-all inquiry into the nation's multi-billion-dollar strategic stockpiles. Hanna Smelting operates under a cost-reimbursement type of contract with GSA and on July 11 the federal agency asked the smelting company for repayment of $210,605 claimed by the com pany as operating expenses at the Riddle smelter in 1960. GSA claims the items actually were capital improvements, ra ther than operating expenses. In its announcement, the GSA said it will examine Hanna Smelting records from 1957 through the first quarter of 1961 to determine whether to request further return payments.

The GSA announcement said the disputed items have been characterized as capital improvements not only by GSA accountants but by a General Ac counting Office (GAO) team working for the stockpile sub committee and by Mortimer Cap-lin, internal revenue commission er. Senator Raps High Profits In Navy Deal WASHINGTON (UPI) Sen John J. Williams, R-Del. said yesterday the Navy allowed a defense contractor to earn prof its of 82 per cent on repair parts for computers. He called the Senate's atten tion to a report issued Monday by the comptroller general.

It dealt with an incentive contract negotiated by the Navy with Ford Instrument a division of. Sperry Rand Long Island City, N.Y. The report said the incentive- type contract which permitted the company to earn additional profits for performing the work below target costs was not appropriate because the Navy did not know how many parts would be needed. WAV.VWA Mt lf Urf. W.

YAW. VW-VVV if 1 '5 GWENDOLYN DAILEY divorces actor. ST. fETERSBURft TIMES Publtihtrf iraminj by Tt Publishing from Th Tim.i luildinq, tth St. id lit Avt.

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of Cirnlotioni. 'i arette smoke can cause skin cancer in mice but the filter smoke yielded only one-third of the amount, of tar in standard cigarette smoke, During the one-year study, the scientists said, painting of the skins with smoke residues from four unfiltered brands and two of the filter type produced skin tumors on 56 of 136 mice used. "Tumors were induced by every brand of cigarettes tested," they said. However, they added, there were fewer tumors and a slower onset of tumors in mice treated with filtered residues. Of the 76 mice tested with unfiltered cigarettes, 41 developed skin tumors.

Of the tumors produced, 19 developed into cancers within the one-year period, the report said. Earlier Social Security Retirement Proposed WASHINGTON (UPI) Sen. William Proxmire, yesterday proposed that persons under Social Security be permitted to retire at age 60. He introduced a bill which, he said, would require no increase in Social Security taxes because persons electing to retire at 60 instead of the presently specified age of 65 would give up one-third of their monthly benefit payments. O'Brien Predicts Passing Of Bills FRENCH LICK, Ind.

(UPI) -White House congressional adviser Lawrence F. O'Brien predicted yesterday at a 14-state Democratic conference that Congress soon will pass trade, drug, tax and farm bills. "The nation is economically strong," said O'Brien, who is President Kennedy's special assistant for congressional relations. "Our country is in good shape. Unemployment has been conquered.

President Kennedy is stronger than he was in 1960, as he has the conficence of most of the people." Trick Cheese Toy WASHINGTON (UPI) The government warned yesterday of a "trick Swiss cheese" toy which if eaten may be dangerous. David B. Strubinger, acting commissioner of customs, said the toy, intended for use in practical jokes, is a soft slice of sim ulated Swiss cheese made of plastic and intended to be insert ed between two slices of bread. "Health authorities in the Fed eral Republic of Germany have demonstrated that when in con tact with gastric juices, the pli able plastic becomes hard and the sharp edges cut into the intestines of the victim" Strubinger said. ENA HARTMAN gets TV contract.

ed a middle-aged woman. "Without you, none of us would be here today." The general called back: "There were a couple of other chaps helping, too." Dan Dailey Divorced Dan Dailey's wife divorced the 45-year-o 1 actor-dancer yesterday in Los Angeles Superior Court on testimony that he snubbed her friends and stayed away from home without explanation. She charged extreme cruelty. Actress Nancy O'Hanlon, who said she had introduced the couple, was the corroborating witness for Mrs. Dailey.

Mrs. Dailey, 35, was once married to actor-dancer Donald O'Connor, whom she divorced in 1954. Dailey married the ex-Mrs. O'Connor in Las Vegas, Feb. 5.

1955 and separated July 18, 1960. They have no children, although Mrs. Dailey has a 16-year-old daughter by her marriage to O'Connor. In her divorce complaint, filed June 8, 1961, Mrs. Dailey estimated her husband's income at more than $200,000 annually.

Dailey did not appear in court His wife said he is starring in a musical production, and in Washington, D.C 1 1 Securities and Exchange Com mission yesterday made public a summary of an authoritative study sharply criticizing many practices in the nation $24 billion mutual fund industry. The study found that trading by mutual funds magnifies ups and downs in the stock market. And it warned of possible conflict of interest in several aspects of mutual fund activity. It also concluded the problems do not stem from bigness as such because they occur among both large and small funds. The 600-page study, the most exhaustive examination of the rapidly-growing mutual fund industry in more than 20 years, was made for the SEC at a cost of $95,700.

It was conducted by the University of Pennsylvania Wharton School of Finance and Commerce. SEC chairman William L. Cary said that although a complete evaluation of the study had not yet been made, it was apparent changes were needed in SEC rules and federal law. A compre hensive review by the commission may include public hearings, Cary said. "Publication of the study should not be construed in any way as a reflection upon or criticism by the commission of the investment merits of mutual fund shares," Cary said.

A mutual fund is an investment company which sells shares and uses the proceeds to buy stock in business corporations. Passman Sees Cut In Foreign Aid Sum WASHINGTON (UPI) Rep. Otto E. Passman, concluded yesterday on the basis of his most exhaustive foreign aid hearings so far that the Kennedy Ad ministration needs no more than $3 billion in new aid appropria tions this year. Passman, chairman of a House appropriations subcommittee that handles aid funds, declined to forecast whether the subcommit tee, and the full committee, will support a cut of this dimension.

But he said that if past performance is any guide, they very well might. Passman's estimate of a prop er sum would mean a cut of about $1,672 billion and would draw anguished protests from the White House. Tests Show Less Tar In Filter Cigarettes CHICAGO 0P A team of medical researchers said yesterday that tests demonstrated a tar substance from filter-tipped cig- Following doctors" advice the couple scrapped plans to go to Paris for a brief vacation before returning to Phoenix. In-stead they will stay with Swedish friends for a time to give Mrs. Finkbine an opportunity to regain her strength.

Bette Davis In Crash Actress Bette Davis and her daughter, Barbara Merrill, 15, were shaken up yesterday in an auto collision north of Mali-bu. The California highway patrol said Miss Davis was pulling onto Pacific Coast highway at a motel near Zuma Beach when her car collided with a station wagon driven by Mrs. Carroll Ryan Arndt, of Malibu, who suffered cuts and bruises. The actress continued on to her movie location and went to work, a publicist said. Rudolph Remembered The 36th anniversary of Rudolph Valentino's death was commemorated on Thursday by 75 men, women and children who gathered at the silent film star's crypt for a sober, dignified ceremony.

The mysterious "Woman in Black" didn't show up. The unidentified woman, always heavily veiled and always in black, appeared regularly at the crypt during earlier anniversary observances but hasn't done so in recent years. Valentino, the great lover of silent films, died in New York City in 1926. Ike Returning Home Former President Owight D. Eisenhower wound up his five-week, tourist visit to Western Europe and boarded the liner America in Cork, Ireland last night for the voyage home.

St Colmai's Cathedral bells rang in farewelL Hundreds cheered from the quayside. "0041)1658 you, shout- by which Seaboard would issue 3,839,345 shares of $20 per shara par value common stock In con version of the outstanding shares of preferred and common stock of ACL. Seaboard, as the surviving cor. poration, would assume the obligations and liabilities of ACL and its subsidiaries, including those guaranteed solely by ACL as well as jointly with others. The Atlantic Coast Line Co.

would be the holding company. beaboard and ACL estimated that annual savings within five years after the merger would total-nearly $39 million, resulting irom ana elimination of facilities and duplicate lines. They envisioned establishment of primary freight routes in some cases as much as 400 miles shorter than comparable Seaboard routes and 250 miles shorter than present ACL direct routes. The railroads compete for traf fic to and from 121 common fpdints along their line. The merg er application did not request au thority to abandon lines which no longer would be needed following the merger, however.

It reserved the decision on whether as many as 1,000 miles of track should be kept in operation. U.S. Chessman Accused Bobby Fischer, former United States chess champion, was accused in Moscow yesterday of "slander" in charging that the Russians had used collusive tactics in chess tournaments. Replying to charges made by the 19-year-old Grand Master last week, the sports newspaper Sovetsky Sport said: "It is well known that lies run on short legs. And on such legs it is hard to keep up with those who are ahead." Fischer made the collusion charges after the recently concluded Candidates Tournament in Curacao held to establish a challenger to meet Mikhail Bot-vinnik for the world's title next year.

Fischer placed fourth in the tournament, which was won by Tigran Petrosian of the Soviet Union. Financial Pages 10, U-B km SHVID ALL DAY SAT. II TO I in our Big Lot I I AT0N MUSIC CO. 1203 4th St. No.

Phone 7-5595 'Talent Find' The part time father who sees his children only on weekends or during the summer, is profiled in a moving article in Sunday's Times. Writer Nancy Osgood talks with three part time fathers, telling their stories with unusual candor and clarity. Look for "Part Time Fathers" in Sunday's Family Today Section. AN UNUSUAL AND EYE-FILLING picture essay, "The Unseen World of a Garden," is this week's SUNDAY Magazine cover story. Photographer Johnnie Evans captures some unusual sights that usually escape the eye in his color and black-and-white shots.

And accompanying the essay is a thought-provoking article on unseen dangers in the garden, the untested insecticides that too often find their way into our homes. SPORTSMEN WILL WANT TO READ Red Marston's article on Lake the secret Florida test site for Mercury outboard motors. And those who go for show business and older Sun-coasters will revel in a new song premiered in SUNDAY. It's Elmer Scoebel's "The Senior Citizen," a catchy ditty that just might become a hit. Look for both in SUNDAY, The St.

Petersburg Times Magazine. recessed the hearing, he said: "As far as I have been able to observe you have not attempted any evasion and apparently you have not withheld any informa tion. "You have been frank, as far as I could determine. "If you have not told the truth, the only conclusion that I could draw is that you did it deliber ately. In my view, you cave been frank and cooperative." At the time of his dismissal from the Agriculture Department last April 13, Jacobs was ac cused of accepting valuable gifts clothing from Estes but he denied this a new yesterday.

He said of $1,300 in articles of cloth ing purchased at Neiman-Marcus store Dallas last October: "I bought them. I paid for them with my own money, not money given me by Billie Sol Estes or anyone else. Jacobs added that he had a salary and addi tional outside income and the $245 suit, $195 sports jacket and $f5 slacks included in his order were not out of line with his usu al purchases. Miller still is with the depart ment, serving as acting south west area director for the ASCS. He has been publicly reprimanded by secretary of agriculture Orville Freeman for his favorable report on Estes.

Girl Is i AP Wirephota tent, a sleeping bag, cooking utensils and the gun. Lindgren hiked from Demarca tion Bay on the Arctic Ocean coast near the Canadian-Ameri can Doracr to Arctic village, a tiny Indian community on the south slope of the Brooks Moun tain range 250 miles north of here. It took him four weeks. Lindgren began his trip July 17, An Eskimo, Roy Akootchuk, took him through the pack ice to De marcation Bay in an outboard motorboat. The next day the professor started walking.

He followed the Kongakut Riv er to the summit of the Brooks Range, where he crossed the head of the Sheenjek River. Then he followed the Chandalar River to Arctic Village. Keith Harrington of Fort Yukon, a bush pilot for Wien Alaska Airlines, dropped food to him along the Chandalar River midway in the trip. GAUGQODAlJ EVERY SATURDAY POTATO PANCAKES GERMAN RED CABBAGE HOMEMADE ROLLS COFFEE OR TEA HIKING PROFESSOR A Negro girl, who grew up on an Arkansas sharecrop farm and worked her way to New York, yesterday made the big time, as she became, reportedly, the first of her race ever to be signed to a long-term network television talent contract. Ena Hartman, a pretty, soft-spoken fashion model in her mid-20s, was placed under contract by the National Broadcasting reportedly for five years, as a new "talent discovery." The amount of money involved in the contract was not announced.

"I can't believe it's all true," said Miss Hartman, who has been putting all her spare earnings into singing and acting lessons. "It's something I've wanted so deeply." David Tebet, vice president of NBC Talent Relations, said Miss Hartman had given "excellent performances in a series of auditions." She will continue her studies, under NBC auspices. What shows she will appear on has not yet been decided, and will be up to the program executives, a spokesman said. Rejoined Hand Infected Gangrene has infected the little finger of a bindery worker's hand which was severed in an accident, then rejoined to his arm in an extraordinary opera tion. Despite the infection Arthur Holmes, 41, remained in good condition, a spokesman at Presbyterian-St.

Luke's Hospital in Chicago said yesterday. Holmes right hand was rejoined to his wrist after it was severed by a paper cutting machine Aug. 6. Doctors described the infection as necrosis, or death of body tissues, and said they have not determined what further treatment would be necessary. So far, they said, only the tip of the finger is affected.

They blamed the new development on improper circulation. Mrs. Finkbine Out Arizona housewife Sherri Finkbine left Carolina Hospital in Stockholm, Sweden, yesterday, physically recovered from an abortion, but reported still in need of rest and privacy. The doctors who performed the operation a week ago appealed through her schoolteacher husband Robert to the press in Sweden and America to leave her alone because they said she is physically weak. Free Parking Dr.

Rune Lindgren, 42, poses with gear he carried on Alaskan trek. Swede Crosses Alaska; Greets Bear On Way Planning a HAMMOND For Christmas? 'i FAIRBANKS, Alaska Dr.j Rune Lindgren. 42, a Swedish professor who walked 300 miles alone across arctic Alaska, says he met a brown bear, two grizzlies and three wolves. "None, of the animals bothered me, and I never had to use the mm. luger pistol I was carrying, Lindgren told a reporter Thursday.

"I just said hello' Swedish to the brown bear and he went away." Lindgren, down 20 pounds from his normal 188, is undergoing physical tests at the Air Force aeromedical laboratory here. He leaves Monday to return to Johns Hopkins University at Baltimore. where he is a visiting professor. He said he lired primarily on pancakes during the trek, "but I couldn't resist eating some of the arctic berries." He carried a rucksack, two cameras, a canvas Assure yourself of a Merry Music Christmas by reserving a new Hammond Organ of your choice, today. Pay only a few dollars each week.

Your Hammond wiil be delivered for Christmas. Regular monthly Installments will not begin until February 15th, 1963. Pick our your model today. BEDROOM 12 x10' MASONRY CONSTRUCTION OTHERS MODELS COMPARATIVELY LOW PRICED JOE HIRSCH 34L3971 "The Remodeling Jlan" LICENSED IONDED INSURED if of.