A Pro-Arab in the
State Department;
Recalling
Sen. Vandenberg
and Quoting
HE JEWISH NEWS
A Weekly Review
Dr. Weizmann
Commentary, Page t
VOLUME-27—No. 2
of Jewish Events
Michigan's Only English-Jewish Newspaper—Incorporating The Detroit Jewish Chronicle
7
17100 W. 7 Mile Rd.—VE. 8-9364—Detroit 35, March 18, 1955
Henrietta Szold:
Exemplar of
Great Tradition
The Metropolitan
Detroit
Building Fund
Editorials, Page 4
$4.00 Per Year, Single Copy 15c
Dr. Schwar z Named to Head
ew Israel Bond Organization
EDITORIAL
An End to Confusion: Just
Solution of Bond Conflict
A firm stand taken by the Detroit Jewish community
against the undemocratic methods that were imposed upon us
by an invading group of Israel Bond officials has forced a solu-
tion of the entire unfortunate situation that accompanied the
conflicts in the sales of bonds in this country.
Since the uncalled-for Indianapolis incident in 1952, there
were a number of conflicts over "timing" in the conduct of
-Israel bond drives. There was another incident in Toledo last
year, a few behind-the-scenes arguments in other communities
and then, last month, the unfortunate and uncalled-for defiance
of democratic decisions in Detroit. By declaring itself "dissolved"
by force of the methods pursued by "outsiders", the Detroit
Israel Bond Executive Committee called the bluff of irrespon-
sible men who sought to impose their will upon them, in spite
of the overwhelming votes of a duly functioning committee
whose efforts had brought excellent results in bond sales.
The selection of Dr. Joseph J. Schwartz as the directing
head of a new bond sales organization, to be organized before
May 1, is a heartening sign. Dr. Schwartz enters upon his new
duties after a very distinguished record of service in behalf of
the United Jewish Appeal and the American Jewish Joint Dis-
tribution Committee. He has earned the confidence of the entire
American Jewish community and of the people of Israel. Under
his guidance we have reason to expect a reorganization of the
bond sales organization not only nationally but also in com-
munities where bond sales managers assumed arrogant roles,
treating bond sales as private business matters rather than pub-
.& trusts.
Thus, a new day dawns for Israel where the methods of
some of the retiring Israel Bond leaders have caused as much of
stir and have aroused as much indignation as in this country.
Israel was harmed by obnoxious methods: Israel now will
be assisted by dignified approaches to a great responsibility.
Gaza Incident Sets Back U.S.
Direct JTA Teletype Wire to The Jewish News
WASHINGTON—Secretary of State John Foster Dulles
indicated at his press conference Tuesday that the Gaza
incident caused a setback to American plans to extend
security considerations to Israel.
The Secretary was asked about the progress of high
level American-Israel discussions in progress for the last
several months. Israel has sought a guarantee of its ter-
ritorial integrity and a redress of balance of power as a re-
sult of Western defense arrangements with the Arabs.
The Secretary said that consideration of the situation
was made far more difficult by recent events which created
a new situation and changed the time schedule. He said
he was hopeful that something would emerge soon if the
situation remains sufficiently quiet so that the United
States would not have to put its plans on the shelf. He said
the situation was not static while discussions were going on.
Mr. Dulles said he and Ambassador Abba Eban had a
continuous and intensive study of the Arab-Israel situation
with a view to finding out what could be done to stabilize
the area and to establish peaceful conditions. He was asked
if his reference to his hope of something emerging had any-
thing to do with defense guarantees for Israel. He evaded
this question, declaring that he could not elaborate.
UN Report and Earlier Stories on Page 3
NEW YORK, (JTA) —A new sales org anization for Israel bonds, under the direc-
tion of Dr. Joseph J. Schwartz, executive vi ce-chairman of the United Jewish Appeal,
is now in the process of formation in this country, it was revealed here by Israel's Fi-
nance Minister Levi Eshkol, prior to his re turn to Israel.
Mr. Eshkol said that the underwriting a greement between the State of Israel and the
American Financial and Development Corp oration for Israel—of which Henry Montor
was executive head—would be terminated by mutual agree-
ment because of what he termed "honest differences" over
sales policies. He paid tribute to Mr. Montor and empha-
sized that there would be "complete continuity" of bond
sales during the transition period.
The text of a formal statement issued by Mr. Eshkol
reads:
"Throughout my brief visit in the United States on
this occasion, during the course of which I have had the
honor of discussing the. affairs of Israel with the leadership
of many Jewish organizations, I have been greatly im-
pressed by the spirit of responsible concern which I have
met on all sides for the problems of Israel and the Jewish
people. I return to Israel in full confidence that the sup-
port and understanding of American Jewry will continue
in the'future as in the past to sustain and help Jewry over-
seas through the United Jewish Appeal, to enable us in
Israel to continue to absorb Jewish immigrants seeking re-
fuge and dignity in our midst, and through State of Israel
Bonds, to press forward to the goal of Israel's economic
consolidation on the solid foundations which have already
Dr. Joseph J. Schwartz
been firmly laid.
Eshkol Explains Reason for the Change
"It is with deep regret that I announc e that the Underwriting Agreement betweeen
the State of Israel and the American Finan dal and Development Corporation for Israel
for the sale of State of Israel Bonds by th e latter will shortly be terminated by mutual
consent. However, the-American Financial and Development Corporation for Israel will
continue the sale of Israel bonds, as hitherto, until a successor organization is estab-
lished to carry on the sales function.
"The sale of Israel bonds under the Underwriting Agreement between the State
of Israel and the American Financial and Development Corporlation for Israel will
shortly be terminated, by mutual consent, because of honest differences with respect to
policies of sales. On March 1, 1954, the State of Israel signed an underwriting agree.
ment with the American Financial and Development Corporation which provided, among
other things, for the exclusivity of sale of Israel Bonds by the American Corporation
and which gave full power to the American Corporation to determine the times, places
and methods of sale of Israel bonds.
"However, in the light of a variety of considerations, the State of Israel subse-
quently stated that certain modifications were required in this broad grant of authority.
The officers of the American Corporation f elt, however, that the enterprise which
they led could be managed most effectively only in relation to the Underwriting Agree-
ment as it had been originally drawn. As a result, the State and the American Finan-
cial and Development Corporation agreed that the American Corporation should not
continue its activities.
Israel Minister Thanks Leaders of Bond Organization
"On behalf of the State of Israel, I war_ to express my deepest appreciation to the
officers and directors of the American Fin ancial and Development Corporation for
Israel - for the extraordinary service they have rendered to the State of Israel during
the past four years, in initiating and successfully conducting the sale of Israel Bonds,
first, in the United States and now also in 28 other countries. I want particularly to rec-
ord the gratitude which the State owes to R udolf G. Sonneborn, president of the Cor-
poration, Julian B. Venezky, chairman of t he executive committee, Samuel Rothberg,
national chairman of the Bond Organization in the United States, and Henry Montor,
chief executive officer of the Corporation.
"I want especially to pay tribute to He nry Montor whom we in Israel regard as
one of those who distinguished himself in mobilizing the material and moral resources
that made possible the establishment of the State and who, since the State of Israel
was established, has been in the forefront of those who have stood by our side with in-
genuity, skill and devotion to proVide vast sums, first as director of the United Jewish
Appeal for 13 years, and now during the past four years, as chief executive officer Or
Continued on Page Z8
Tribute to Butzel
As Historic Citizen
At an impressive ceremony Monday
evening, in the Hall of Citizenship of the
Detroit Historical Museum, tribute was
paid to the - memory of Fred M. Butzel
who was acclaimed Historic Citizen of
the Month. In the photo, from the left:
William Norton, George W. Stark, Michi-
gan Supreme Court Justice Henry M.
Butzel, Samuel H. Rubiner, Henry D.
Brown, Judge Theodore Levin, Robert
Palmer and W. Calvin Patterson. Mr.
Rubiner is shown presenting a citation
from the Jewish Welfare Federation to
Henry D. Brown, director of the Muse-.
urn, in recognition of the Museum's
sponsorship of the American Jewish Ter-
centenary exhibition.
Story an Page