Allied Jewish Campaign Divisions Hold
Rallies Preceding Drive Opening May 6

30,000 Members of Federation
Called to Action in '52 Effort

Nearly 30,000 members of the being called to action for the
Jewish Welfare Federation, official opening of the 1952
sponsoring organization of the drive, to occur at a dinner meet-
Allied Jewish Campaign, are ing 6:30 p.m., Tuesday. May 6,

Cross-Section, l'. S.

.

Agency's Reply to Schmorak Report

By ALLEN LESSER

An American Jewish Press Feature

Defiant, angry, and occasion-
ally spiced with sarcasm. the
Reply of the Jewish Agency Ex-
ecutive to disclosures of scan-
dalous mishandling of public
funds and gross administrative
inefficiency of its treasury and
other departments, made by its
Controller Dr. Emil Schmorak,
has just been made available
here following its publication in
Jerusalem two months ago. The
reply accuses Dr. Schmorak of
gross inaccuracies, deliberate
bias. and failure to "indicate
the general background" of the
emergency created by the war
for independence in 1948 and
the mass immigration which
followed.

(An edited
C CSion of the disclosures
nia•li• last .1 ul.v by Dr. Sch moral: is
Agenes 's
Published
along with the
Controller's Report to the
rep!' .
considcr-
7iionst. Congress
presented
div•rsom
of
able
alleging
A geilt•N- funds to private uses. swollen
esotemte accounts, favoritism in a wa rd-
over-
ontraets
with resultant
in
and waste. failure to butl,,et
ch.,
(...pendit tires and to maintain records
properly when they were kept at all.
ain't ll'a tion and similar forms of
The Conti olt,•••,
ailintnisti at ion

Imp

p , ),•! covert 11..c.,xeriod
critical
...rit•
its
gene rally

31' de.

tone.
it
voiees high praise for the adm
tool of t he Agency's TECa•Of flee
New
York. and for the .lowish
National Fund. Dr. Schmorak. a for-
mer mernber of the .1e, ish Ag•ncy
Executive.
resigned as • Controller in

NoVi•Mlw

r I 951

The Agency's Reply in cases
where there is agreement on the
'facts usually takes one of three
forms: it may dispute the Con-
troller's interpretation, provide
an interpretation of its own. or
simply brazen it out, as in the
following example on diversion
of foreign _currency for private
use:
In what Dr. Schmorak
charges might be a criminal
offense, the director of the
finance department of the
treasury spent for his private
needs several thousand Swiss
francs and several hundred
thousand French francs of
Agency funds (the amount
given by Dr. Schmorak is dis-
puted by the Agency) during
1949-50 on the understanding
that the total would be de-
ducted from his salary which
was paid in Israeli pounds. A
similar privilege was extended
to Shlichim and other Agency
representatives abroad.
The Reply terms these allega-
tions "misleading". and a - dis-
tortion" of the facts. It omits
reference to Israel's need for
foreign currency but stresses
that at the time of the trans-
action, which it admits, "there
was no marked difference be-
tween the value of the Israeli
lira abroad and its value in
Israel." It adds moreover that
it was "established custom" for
the Agency to provide its repre-
sentatives abroad with foreign
currency against repayment in
Israeli pounds because "our
representatives, while abroad.
must dress differently than they
do in Israel, particularly in
winter, when they need warm
clothes which are unnecessary
at home."
Again, when the Controller's
office investigated alleged mis-
management of an Agency ware-
house for lumber in Israel, it
found considerable confusion in

the records of incoming and
outgoing materials which it
blamed on the fact that the man
in charge was a carpenter. not
an accountant. To this the
Agencji retorted: "We regard his
former trade (of carpenter) as
an advantage in connection with
calculations of building mater-
ial costs."

Similarly, to the disclosure
that its Paris office maintained

four automobiles and three
chauffeurs when it could have
used taxis at a considerable
saving. the Agency replies with-
out elaboration: This was nec-
essary"; then adds that "when
conditions changed. the Treas-
ury instructed its Paris office
. .. to do without" the cars and
chauffeurs.

Neither Dr. Schmorak nor the
Agency mentions names of the
officials involved except when
they are of the top level. One
such instance is the reference
to Director Giladi. of the sup-
plies department, whose pur-
chases of tractors and other ma-
terials in New York at the close
of 1948. made possible by an
American loan to Israel. are the
subject of a lengthy and in-
volved explanation-in the Reply.
Dr. Schmorak cites a number of
irregularities in connection with
the purchase of the 144 tractors
at a cost of 5850.000. and losses
in their transportation to Israel.
He charges that they were
shipped on deck, without crates;
two tractors apparently were
missing on unloading: and spare
parts which had been purchased
were not shipped.
The reply admits the facts
but makes no mention of the
missing spare parts; points to
emergency conditions and the
necessity for improvisation to
get equipment speedily as the
reason for the hasty purchase
and shipment. The missi ng
tractors are said to be the re-
sult of a clerical error.
In connection with losses
incurred in the purchase and
shipment of $2 1 •;, million worth
of American cattle, the Agency
says frankly: "Our staff did
not know how to deal effi-
ciently with the receipt, stor-
ing, examination and distri-
butiori of ea me in large quan-
tities thebeing brought to
the country for the first time."
The reply concludes with an
attack on. Dr. Schmorak for
quoting "irrelevant facts and
figures, the veracity of which
we deny." It goes on to say:
"The Controller's attitude. dis-
playing lack of faith in the per-
sonnel of our offices, bred an
unhealthy relationship between
the investigating staff and
Agency employees. Despite this,
our employees continued to
show an attitude of coopera-
tion."
Published in one volume. the
Agency's reply and Dr. Schmo-
rak's report (from which some
sentences and possibly para-
graphs have obviously been ex-
purgated) cover more than 230
legal - size typewritten pages.
Like our own Newbold Morris
and other famed investigators,
Dr. Schmorak may have been
lacking in tact and diplomacy,
but it is a fact, nevertheless,
that many of the reform's he
advocated and others which
grew out of his suggestions have

cince been adopted.
Previously, in 1950, the Agency
appointed Itzhak Gruenbaum,
then a member of the Execu-
tive, to investigate charges of
fraud and embezzlement against
certain unnamed Agency offi-
cials. According to Mr. Gruen-
baum's report to the Zionist Con-
gress, 14 staff officers resigned
or were dismissed on charges, 31
were acquAted, and 35 cases
were "closed by letters repairing
injury or explaining injustices
of charge."

in the Grand Ballroom of the April 30, in the English Room nual division dinner, 6:30 p.m.,
Sheraton Cadillac Hotel:
of the Sheraton-Cadillac Hotel. Tuesday, April 22, in the Casino
About 4,000 men, women and Leaders in the food division Room of the Sheraton-Cadillac
young adults are participating will be hosts at the second an- Hotel.
as workers in the trades and
professions, women's and junior
divisions in an effort to secure
plus contributions in behalf of
the 50-plus essential Jewish
services supported by the Allied
Jewish Campaign.
Special groups within t h e
campaign are holding advance
gifts meetings building toward
the all-out, across - the - board
effort that will begin on May 6.
Keeping a "promise" they
made to Abe Kasle, campaign
chairman, on the eve of his de-
parture for Israel, pre-campaign
chairmen Milton K. Mahler and
Ben L. Silberstein are fulfilling
their pledges for the best cam-
paign ever—calling an intensive
planning and assignment meet-
ing of all PC workers, at 10:30
a.m., Sunday, in the Grand Ball-
room of the Lee Plaza Hotel.
The real estate and building
division will memorialize Lou
Shown in the last pictures taken before his untimely death
Alper at a meeting of his co- is LOU ALPER, (center) veteran real estate and building division

workers at 6:30 p.m., Tuesday.
April 29. in the Casino Room
of the Sheraton Cadillac Hotel.
Mr. Alper was elected year-
round chairman of his division
by his fellow Detroit Service
Group members. prior to his
passing. The memorial meeting
is being arranged under the
chairmanship of Dsniel A. Laven
and Benjamin Wilk.
Workers in the mercantile di-
vision, led by James Wineman.
will open their phase of the
campaign at another dinner
meeting, 6:30 p.m., Wednesday.

leader in the Detroit Service Group and Allied Jewish Campaign.
A memorial tribute meeting to Mr. Alper is planned for 6:30 p.m.,
Tuesday, April 29, in the Casino Room of the Sheraton-Cadillac
Hotel by real estate and building leaders, including campaign
chairmen DANIEL A. LAVEN (left) and BENJAMIN WILK.

Leacitte to Award

Topotith Prizes

Mrs. David Kliger, president of
the League of Jewish Women,
asks that all presidents of affili-
ated groups attend a board of
directors meeting scheduled for
12:30 p.m., Thursday. at the
home of Mrs. Irving Small. 1570
W. Seven Mile. A luncheonette
will be served. with executive
board members serving as host-
esses. Election of officers will be
held.
The outstanding young Jewish
boy and girl will be selected for
the Mildred Simons Rosenberg
awards, with a kiddush cup to
be awarded the boy, and s 1
menorah for the most likely wo-

I

man. Honorable mention awards
will also be presented. Mrs. Emil
Rothman, president of the Na-

tional Council of Jewish Wo-
men, is award chairman.
Mrs. Martin Naimark will be

A worker's kit—symbol of honor in the 1952 Allied Jewish
Campaign—is examined by two food division leaders, IRWIN - I.
COHN (left) and NATHAN W. LURIE. Both are sponsors, with
other division members, of the second annual division dinner, to
be held at 6:30 p.m., Tuesday, at the Sheraton-Cadillac Hotel.

Formal Dedication of Bnai Moshe
Religious School Building Is Set
For Week-End of April 25 to 27

Formal dedication of the Con- synagogue shares the building,
gregation Bnai Moshe religious will participate in the ceremo-
school building adjoining the nies.
Commencing with Friday
o n
synagogue
evening services at which Rab-
Dexter and
bi Lehrman's son-in-law, Rab-
Lawrence will
bi Max Lipshitz of Madison,
take
place
Wis., will be guest speaker,
Visa Woes Disrupt
during the
the dedication observance will
Zellman Family Seder
week - end of
continue with Sabbath morn-
April 25 - 27,
ing services, open house on
The Zellman family carried Rabbi Moses
Sunday, April 27 and a dinner
on its plans for a family seder Lehrman an-
that Sunday night at which
during the Passover holidays, nounced
this
Rabbi Solomon Goldman of

chairman and Mrs. Irving Small,
program chairman of the 25th
anniversary luncheon of the
League, to be held next month.

despite the fact that the prin-
cipal was missing.
The seder was to have hon-
ored Mrs. Ethel Zellman, who
has lived in Jerusalem for 20
years and who was to have ar-
rived here to visit her children
and grandchildren during the
holiday.
Unforeseen visa difficulties,
however. delayed Mrs. Zellman's
trip, and 30 members of her im-
mediate family and three guests
carried on the tradition in her
absence at the Zionist House.
Mrs. Zellman will arrive here in
May.

Truman Urges Speedy Action
On Immigration Program

WASHINGTON, (JTA)—Pres-
ident Truman asked chairman

Francis E. Walter of the Immi-
gration sub - committee for
speedy action on the President's
program to bring in 300,000 im-
migrants in the next three years.

20

—

THE JEWISH NEWS

Friday, April 18, 1952

week .
Chicago will be guest speaker.
Bnai Moshe,
Local rabbis and lay leaders
its affiliated or-Rabbi Lehrman will participate in the ceremo-
ganizations and the United He- nies. Details of all programs will

brew Schools, with whom the

be listed next week.

North End Clinic Annual Bailin
Lecture, Dinner, Set for May 7

North .E n d Clinic's annual
Bailin Lecturet will be held this
year following a dinner at 6:30
p.m., Wednesday, May 7, at Hotel
Statler.
Featuring an outstanding fig-
ure in the medical world, the
lectures are sponsored by the
board of trustees and the medi-
cal staff of the Clinic, which
is a member agency of the Jew-
ish Welfare Federation and
United Community Services.
Dr. Abraham Becker is chair-
man of the program committee
for this year's lecture to which
all members of the Wayne
County Medical Society are in-

vited. Reservations may be made

by calling TR. 5-5363.
North End Clinic, Detroit's
only out-patient clinic not con-
nected with a hospital, recently
celebrated its 25th anniversary of
service to the community. The
Clinic supplies medical, dental
and diagnostic care to patients
unable to afford prMate care.
Receiving its deficit financing
from the Torch Fund of the
United Foundation, the Clinic
is included in the 1952 Allied
Jewish Campaign of Federation
for its hospitalization fund.-
David Wilkus is North End
Clinic president.