The Courier News from Blytheville, Arkansas on July 16, 1954 · Page 1
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The Courier News from Blytheville, Arkansas · Page 1

Blytheville, Arkansas
Issue Date:
Friday, July 16, 1954
Page 1
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BLYTHEVILLE (ARK.) COURIER NEWS FRIDAY, JULY 16, 1954 Can 'Windfall' Profiteers Be By JAMES MARLOW WASHINGTON (AP) — Promoters have admitted making millions in "windfalls" out of mortgages on apartments built with government-insured loans. Did they commit a crime and, if so, can they be prosecuted? Theft * no simple answer. Getting a "windfall" profit is not, by itself, a crime. This can be said in a general way: X would b« a crime if the promoter, in ord«r to get the "windfall," deliberately deceived the fovenunent on hie application for a government-backed loan. Even so, prosecution would depend on wiMfc it happened. X it w« before 1961, there could b* ao prosecution. There could be * it happened since then. The r«a*on: one kind of law covering thto field ended in 1950. Another law, similar to it, began in 1951. ]• order to punish a man for a pre-1911 fraud, the government would have had to pro«ecute with- m. *r*e years. It's too late now. MMt of the "windfall" cases brought to light in the Senate Banking Committee's fiery hearing* occurred before 1951. It's beginning now on cases that happened tince then. MOT* But the government could move M another direction — that is, in the tar field — against promoters who got "windfalls," whether or not they committed any fraud in obtaining the guaranteed loan. X a businessman can report his income as a capital gain he pays lea* tax than if he reports it simply a* income. The government hM rules as to which way income can be reported. It a promoter reported his "windfall" as a capital gain, the government, claiming now he should have reported it as income, can try to collect the difference. It's questionable whether it can collect. During and after the war Con- greM wanted to encourage the building of apartments because of the housing shortage. It passed & law — under Title S of the National Housing Act — which expired fe 1950. tFnder this a promoter who wanted to build apartments could get a loan from a bant — with the gov- •^™»":^-~ix^"'».<«"-^.. jftiwf *?!"!}* y^Myirv i t ^ - r ', JV?\ s . *• \ ^ X -; , 5 - -,-,;-*',, f'^ ?- ' ^ -•*-, ^ " ^ ,'^', -' • ! :;/- % ;4^'-%\ v ' x'* *-- ernmeat guaranteeing the bank agatoit IOM up to 90 per cent — X the Federal Housing Administration approved. To g«t FHA approval, the promoter had to file an application with Hiat agency, giving his estimate of the cost. Then, if FHA investigators approved, the bank would make the loan. Hi* estimate would include the price of the land, the builder's fee, the architect's fee, and so on. Say Joaee estimated his cost at a million dollars, the FHA approved, and the bank, with a government • guarantee up to 1900,000, made the loan. Then Tones completed the project at a cost of only $700,000. That was $300,000 below the .estimated coat. Was this crooked? Not necessarily. Jones may have found, when work began, a way to eut the actual cost by $300,000. That $300,000 has been called the "windfall." Say, further, Jones' company split this $300,000 up among foe stockholders. The full loan of a million dollars still had to be paid. Was this then a $300.000 profit for the Jones company? It .could be because the government fixed the rents that could be charged in Jon**' apartments according to the total estimated coat. So long as the loan was paid off, the .government lost no money. The only ones who got stuck were the tenante since they'd have to pay higher rents than the FHA But Jones would have committed a crime if he had deliberately falsified the estimates on his application for the government-guaran- LIFE'S A BIG HOP—Squeaks, a two-legged pup, is showing his neighbors around Cleveland, Ohio, that he can overcome his handicap with plenty of spirit. The seven-week-old puppy belonging: to Mrs. Dominic Guerra, has shoulder blades attached to its rib cage, but his front legs were missing at birth. At first, Squeaks was pretty helpless, but he's learned to balance, to sit 'up instead of standing and - to hop around like a kangaroo, except that he uses his hock bones. Dentist Charged with Murder Claims Temporary Insanity teed loan. Tet, FHA investigators, having checked his estimates, had **id his one million dollar estimate w»« All right. luppoee there was crooked work — collusion — between Jones and the FHA investigators. Could they be prosecuted? Not if it happened before 1951. Title 6 of the National Xoueing Act expired in 1950. But In 1950 Congress passed Title I of the act. This was to encourage rental housing near military installation!. It works similarly to the old Title 6 except that the Defense Department has to agree the hous- inf 1» needed before the project is backed by a government-guaranteed loan. ALLEGAN, Mich. L¥? — "There I was standing in a room. I saw my wife in shorts. There was Jules Lack. There was a gun going off. He wa s aU bloody. There were people screaming. ... I guess I shot him. I don't remember. I must have." Thus in terse, vivid sentences Dr. Kenneth B. Small, 31, a Detroit dentist, described yesterday before a packed courtroom ajj he remembered of the May 29 shooting of his wife's suitor. Dr. Small claims he was temporarily insane when Lack, 45, New York playboy-industrialist, was shot and killed in a southwestern Michigan rendezvous with Mrs. Edith Small. He was expected *o take the stand again today at .iis first-degree murder trial. Nice Children The dentist, hi s voice quavering with emotion, described the scene when iis wife, returning from a vacation alone in Florida, told of meeting Lack and asked for a divorce. Dr. Small said: ''I asked her if this man had said he loved her. "She said she did not know but She loved him. " 'He has two kids nicer than ours,' she told me. "I said: 'Do you mean to sit there and tell me another man's children are dearer to you than your own?' "She said again that they were nicer than our children." Mrs. Small, 30, a dark-eyed brunette, is the mother of three young sons. Dr. Small said his wife, who left the courtroom while he was on the stand, also told him: "You don't know how to live. I .want to live big now." The dentist told of tracing his wife to the plush summer home near Douglas, Mich., where the shooting occurred, through a phone call she made home. She had said she planned to spend the ill-starred Memorial Day weekend with a former college roommate in Chicago. Dr. Small told of tracing the call to Fennviile, Mich., and "I started to drive. There was rain and storm that night. I had to see •. Make 4^|^#Mi»iii SAL E S JUMP •• • •/<•.•..>*••:;?; *,' ''* .•..;••:.••»••••;• ••;•!•';>|: ..f :T,r ,;;' Jf*i;!f!iM^ for myself if she was with Lack. ... I prayed she wouldn't be there. ... It was like you get some place but don't know how you get there, or what way you went or how many red lights you went through." Psychiatrists Called The dentist's stay on the stand \. , ...;srrupted late in the day when Defense Atty. Leo Hoffman called the first of three psychiatrists who wiil testify for the defense. Dr. Harry August, chairman of the Michigan Mental Health Commission, said Dr. Small was insane when he killed Lack. Hoffman asked him when did the dentist "become insane to the point of being unable to restrain impulses?" "It was when h£ received the phone call from Fennville," Dr. August said. "The mental turmoil nad mounted to the point where his restraint was nullified. He was unable to restrain himself when he saw his wife and Lack together." Before he left the stand, Dr. Small told of trying to commit suicide "but I couldn't pull the trigger. I thought of the boys. I wanted them to grow up to know their dad." Hoffman introduced four suicide notes which he claimed Dr. Small had written after his wife had asked for the divorce. One to Mrs. Small said, "I wish you had given me a second chance. ... I have no weapons and no defense and now no will to live." A. baby electric eel can give you a 120-volt shock. RHEUMATIC AKTHUT1C WCTOU JT «•**• M«>4 »trmn» from i*«wt*m«. Wffl ** nmni«*t.. lUdoow •!•!« meli. k. longtr k*t!nf r»li«f to d««*- KtRBT DRUG STORES Cooled inttriori draw more «u*tomen..-.makt employee* reflctent! Packaged- AIR CONDITIONING • Qvffk M4 MM? 'mtMlhitf**, •Mil tm MTVIMff. tor FMI luivrr. SENERALfffl ELECTRIC SERVICE Phont 3-6984 DOYLE YOPP Candidate for Commissioner of State Lands A Veteran of 6 Years Service In Europe and Korea • A Member of VFW Post No. 77, V. S. Army Reserve Corps and American L«fion • Active In Many Civic and Community Welfare Organizations • Experienced in Recorder Work and Has a Thorough Knowledge of Land and Land Descriptions • MOTTO AND GUIDE . . . Courtesy and Promptness in All Dealings with All People • YOUTH ASKING FOR A CHANCE TO SERVE THE PEOPLE OF ARKANSAS Political Advertisement Paid for by J. Lawrence Yopp Father Dies In Futile Bid To Save Son HAGUE, N. Y. (£>}— A father died with his infant son last night in a futile attempt to save the boy he rolled in a runaway automobile down an embankment into Lake George. Witnesses said the man, Carl Vaux, 39, of Philipsburg, Pa., chased the car on foot and followed it into the water. The bodies of Vaux and his son David, 20 months, were recovered from the lake shortly afterward. Dr. Hilton H. Dier of Lake George, a Warren County coroner, issued verdicts of accidental death by drowning. Elmer Hoffman, a desk clerk at the nearby Island Harbor House, said Vaux, his wife and four older sons had gotten out of the car to view the scenery around the lake. They left David in the automobile. Hoffman said the car rolled down UTTLI uz— If you give a man enough rope he'll probably b* tied up at the office. •*** Firemen. Give Up DENVER (-•?)—Unable to extinguish a smouldering fire in 250 bales of hay at Denver Union Stockyards, weary firmen carted the whole business off to the near-by city dump last night and let 'er burn. a rocky embankment and into six' feet of water. The family was believed en route home to Pensylvania. DYESS NEWS Mrs. J. E. JACOBS Thomas Blaylock, Junior Scott, Jay Wroten, Raymond Henard, Rodney Rogers and Billy Richards of Dyess spent the weekend at Horse Shoe Lake. School started Monday at Dyess for the summer term. Tom E. Park, Jr., is superintendent and A. T. Edwards is principal. Mr. and Mrs. R. E. Blaylock had as guests over the week end his niece, Mrs. D. L. Nutt, and family of Pontiach, Mich. Mr. and Mrs. Roscoe Phillips of Indiana were in Dyess the past week visiting friends. Mrs. Ruby Cooley of Newbern, Tenn., and son Billy of Memphis spent the week end here with her sister, Mrs. Ruth Williams and family. George Anderson spent last week ir Memphis as guest of his sister, Mrs. Doris Wilker and family. Virgil Warren and family of Odessa, Tex., Mrs. A. O. Warren of Oak Grove. La., spent last week in the Blaylock home. Mr. and Mrs. Joe Bambrezze and Mrs. Henderson Dyess of Memphis visited friends in Dyess Thursday. Rev. and Mrs. J. D. Lundy oi Pascaquala, Miss., spent Thursday and Friday in the home of Mr. and Mrs. R. E. Blaylock. Miss Gienda Williams of Memphis has been the guest ot her parents this week. Mrs. Williams motored Gienda back to Memphis. Miss Mozelle Williams and Miss Ada Anderson spent Friday in Memphis shopping. Mr. and Mrs. Carl Cozart and children of North Little Rock spent Saturday with Mr. and Mrs. Blaylock. Sam Clark of Lake City visited William Jacobs Friday. Mr. and Mrs. J. L. Jacobs returned home Monday, they were called to Camden the week before to the bedside of their daughter, M,rs. Myrtle Lancaster, who underwent a major operation in Warner Brown Hospital in El Dorado. Mrs. Richard Shelton returned Monday from Jackson, Miss. Mr. and Mrs. Guy Nichols returned home from Farmington, HI., Sunday where they had been visiting their children and families. Mr. and Mrs. J. J. Smith of Elmwood, 111., spent last week here with his sister, Mrs. Ira Winningham, and family. Mr. and Mrs. R. H. Wooten of Lewisville, Ark., visited relatives in Dyess this week. A 3/c Bobby Williams left Tuesday for California. From there ne will go to Hawaii. Mr. and Mrs. G. B. Garrison of Dodge City, Kan., are here spending the week with her parents, Mr. and Mrs. John Harris. fine Sentiment— But Wrong Name DENVER (#)—The birthday cake for Mrs. Louise Brotzman, wife of the Republican candidate for governor, was just fine - except the frosting read "Happy Birthday Bernice." The hostell, Mrs. Charles M. Armstrong, erased the error with a diplomatic swipe of her thumb. Service Station Corner Ash & Division Streets Blytheville, Ark. Phone POplar 3-8363 -ONE DAY ONLY- Saturday, July 17 STOP IN AT THE SIGN OF THE FLYING RED HORSE Mobilgas REGISTER FOR THESE FREE PRIZES: No Purchase Necessary—Not Necessary To Be Present to Win Prize! First Prize 4-670x15 Mobil Deluxe Cushion Tires Second Prize 100Gallons Mobilgas Special Third Prize 50 Gallons Mobilgas Special Fourth Prize 1 Table Model Radio Fifth Prize 1-5 Qt* Change of Mobiloil Sixth Prize 1-5 Qt. Change of Mobiloil Seventh Prize 1-5 Qt. Change of Mobiloil Eighth Prize 1-5 Qt. Change pf Mobiloil Nineth Prize 1-5 Qt. Change of Mobiloil Tenth Prize 1 Pair of Ladies Nylon Hose Eleventh Prize 1 Pair of Ladies Nylon Hose Twelfth Prize 1 Pair of Ladies Nylon Hose rication ALSO FREE PRIZES FOR MOM AND THE KIDS! EXTRA BONUS OFFER With Each 10 Gallons of Mobilgas Purchased on OPENING DAY We will Award Absolutely FREE ... A MOBILUBRICATION JOB We Invite our many friends and users of Mobilgas Products to come to see us in our new modern service station. Try Mobilgas Products for complete satisfaction. Mobil Tires-Mobil Batteries-Accessories

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