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May 04, 1957 - Image 1

Resource type:
Michigan Daily, 1957-05-04

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See Page 2


Latest Deadline in the State





Tax Charge
Makes Beck
Give Self Up
Quiet Labor Chief
Awaits Arraignment
WASHINGTON (R) - Teamster
President Dave Beck, lacking
some of his usual bounce and ex-
uberance, gave himself up yes-
terday and posted $5,000 bond on
an indictment charging income
tax evasion.
Beck, wearing dark glasses,
spent about two hours in the Fed-
eral Court Building being routine-
ly fingerprinted and arranging his
bond for arraignment later.
He then hopped a plane for an
Atlantic City. N. J., Teamsters
Union meeting.
Not Talkative
The round, stubby labor chief-
tain, who has acknowledged per-
sonal use of some $300,000 to
$400,000 of Teamster Union funds,
was not his talkative self as he
waited for an aide to show up
with a cashier's check to free him.
He is to be arraigned either here
or in Taco'ma, Wash., on May 13.
Asked for comment on his in-
dictment Thursday by a federal
grand jury at Tacoma on charges
of failing to pay $56,420 in taxes
on 1950 income, Beck said:
"I wouldn't say one word about
it because I don't know no more
about it than you do now. I have
to consult with my attorneys."
He is due for more quizzing by
the Senate Rackets Investigating
Committee next Wednesday.
Refuses to Answer
Beck a month ago refused to
answer comniittee questions on
his use of union funds, invoking
-the Fifth Amendment on grounds
his answers might tend to incrim-
inate him.
He pointed out then he faced
probable income tax prosecution.
Beck has said publicly he "bor-
rowed" large sums from union
coffers but claims he repaid the
He refused, however, to repeat
this under oath to Senate investi-
The committee has charged
Beck never treated the money as
loans or intended repayment un-
til the government began investi-
gating his tax returns.
Brace Texas
For Floods
DALLAS (A) - Cloudbursts of
more than six inches in north-
central and central Texas yester-
day brought new flood threats to a
state hit by 16 days of deluges
and floods.
The cloudbursts hit several
areas. Some tornado funnels were
Wichita Falls near the Red Riv-
er was bracing for possibly the
highest water in seven years, a
group of communities on the up-
per Brazos River about 40 miles
west of Fort Worth found water
rising again, and the Bosque Riv-
er watershed about 60 miles north
west of Waco in central Texas got
heavy rains.
A thunderhead dumped about
.60 of an inch of rain in 15 minutes
at Gainesville yesterday afternoon
and a flash flood warning was is-
sued for Elm Creek in the city,
which is directly north of Fort

Earlier high water near the
mouths of a half-dozen rivers dis-
sipated except on the swollen Sa-
bine in east Texas, and the threat
eased there.
Two t o r n a d o funnels were
sighted on the north side of Wich-
ita Falls but did not touch ground.
Another was sighted near Burk-
burnett, 13 miles north of Wichita
The Red Cross has estimated
that up to 9,000 persons have been
driven from their homes at one
time or another during the 18 days
of heavy rains.-
Thousands of acres of croplands
and pastures have been flooded,
and considerable replanting will
be required.
Positions Op en
On Joint Judic

McLeod Reveals
Security Charge
Testimony Exposes Near Dismissal
Of Noted Career Diplomat by Dulles
WASHINGTON ()-Scott McLeod, State Department security
chief, has told investigating senators that Secretary John Foster Dulles
almost fired him "as a security risk" four years ago.
- This was disclosed yesterday when the Senate Foreign Relations
Committee made public 160 pages of secret testimony on McLeod's
controversial nomination as ambassador to Ireland.
Under questioning this week by Sen. Robert Kennedy, D-Mass.,
McLeod said Dulles called him into his office to question him about a

Men Idled
By Strikes
Mt Chrysler
DETROIT () - Wildcat walk-
outs at Chrysler Corp. yesterday
shut down production of Plymouth
Dodge and Chrysler cars, idling
more than 40,000 workers.
Only DeSoto division kept go-
ing, but the company said all its
major operations in the Detroit
area would be closed down today
until Monday morning.
The shutdown followed a dis-
pute that flared on the local level
over what Pat Caruso, president of
Local 212, United Auto Workers,
called "job security protection."
Not Authorized
Both the company, and the un-
ion said the strikes were not au-
Caruso said all union members
were instructed to report for duty
on yesterday's afternoon shifts.
A compny spokesman said,
however, a wildcat walkout of
125 stamping division truck driv-
ers triggered a chain reaction sim-
ilar to the truckers' strike that
started the shutdowns Thursday.
The company said failure of the
truck drivers to report on the 4
p.m. shift yesterday resulted in
5,500 workers being sent home at
the Mack plant. This plant makes
bodies for Plymouth.
Trucking Facilities
Lack of trucking facilities be-
tween plants also caused the
Dodge main plant to send home
6,500 workers after they had
worked 1V hours on the second
The outer drive plant sent home
600 after a group of 80 workers
walked out.
During the day the company
sent home 25,000 workers, includ-
ing 8,000 in Chrysler division, be-
cause it said strikes of a compar-
atively small number of inter-
plant drivers halted movement of
"Forcing Me
To Socialism,'
Truman Says
Truman came to town in fighting
trim yesterday and declared the
Eisenhower administration is driv-
ing him toward socialism.
In his old "give-'em-hell" style,
he jumped on Secretary of the
Treasury Herbert Humphrey for
wanting, he said, "to choke us to
death with interest rates." And he
charged administration policies
are forcing the little fellow out of
"I'm not a Socialist," the for-
mer Democratic president said
"but they're driving me that way."
His audience was the Electric
Consumers Information Commit-
tee, an organization formed by
labor and farm groups and the
electric cooperatives fighting for
public power development.
"You ought not to get me start-
ed on it. I'm all steamed up,"
Truman said when the subject of
the government's atomic energy
program came up.
He asserted the most dangerous
thing facing the country today is
what he called an administration
plan to "turn the 18 billion or 20
billion of the taxpayers' money
that developed the atomic energy
program over to private owner-
When the atom is developed
fully, Truman said, it can be the
source of all the world's power

and bring the great desert areas
into flower.

4"leak" to a Washington newspa-
per-the old Times Herald.
Report Misgivings
The newspaper reported misgiv-
ings by McLeod about the then-
pending nomination of the careerI
"Dulles said he had been au-
thorized to discharge me as al
security risk because of this leak
that appeared, obviously from me
in the Times-Herald, but he de-
cided not to."
McLeod vowed he was not the
source of the leak, and he said
Dulles became convinced he had
nothing to do with it and there-
fore was not a security risk.
McLeod is strongly anti-Com-
munist, and many critics have ac-
cused him of damaging State De-
partment morale in his campaigns
against employes he suspected of
being risks.
Ireland Ambassador
When President Dwight D.
Eisenhower recently nominated
McLeod to be ambassador to Ire-
land a considerable controversy
arose as to McLeod's fitness for
the job.
President Eisenhower said he
made the nomination on the "seri-
ous and earnest recommendation"
of Dulles.
Dulles told a news conference
that in the past four years Mc-
Leod "has grown in stature and
understanding" and is qualified
to be an ambassador.
Thursday the Senate committee
approved McLeod 9-6.
McLeod's attitude toward the
Bohlen nomination, which was ap-
proved by the Senate in 1953 after
a bitter fight, was a factor in
senators' questioning of him on his
own nomination as ambassador to
Bohlen has now been named am-
bassador to the Philippines and
the Senate committee has'unani-
mously approved him.

U.S. Budget
Given More
House Cuts
Refuses To Finance
Flood Insurance Aid
Appropriations Committee boosted
its budget cuts to $1,263,457,124
yesterday, mainly by refusing to
finance the federal flood insur-
ance program approved by Con-
gress last year.
It struck out of a $79,840,788
omnibus appropriations bill the
entire $50 million requested by
President Dwight D. Eisenhower to
institute a new and experimental
subsidy program of government
flood insurance.
By a separate vote of 19-14, it
refused to provide a smaller
amount, $14 million, for the pro-
The committee said the program
presented was "too indefinite and
costly" and contemplated that 40
per cent of the cost of premiums,
and all administrative expenses
would be borne by the federal gov-
ernment, which also would have
underwritten all losses.
However, the committee ap-
proved use of $325,000 in available
money for "further study to de-
velop a more workable plan."
Informed of the committee's ac-
tion, Frank J. Meistrell, commis-
sioner of the Federal Flood In-
demnity Administration, said, "we
are hopeful that the Congress will
recognize the urgency of affording
the American people a measure of
protection against flood disasters,
rather than having them rely
solely on relief measures and
He added the denial of funds to
his agency came at a time when
the program was about to be put
into operation.
The legislation stemmed from
heavy, uninsured losses in New
England floods and a hurricane.
.AMC Spurns
Union Talks
DETROIT A) -- American Mo-
tors Corp. yesterday turned down
a proposal from Walter P. Reuth-
er, president of the United Auto
Workers, for the auto makers to
join with the union in talks on a
shorter work week.


ArsRed Attl


Cite Profit
As Kidnap
MARRAKECH, Morocco () -
Money-perhaps millions of dol-
lars in cash-emerged yesterday
as a prime motive behind the bold
seizure of five sons of the late
Thami el Glaoui, Berber leader
called the "Lion of the Atlas
The five sons, heirs to the vast
holdings of Glaoui, were whisked
away on Wednesday by troops of
the Moroccan army of liberation.
The audacious action apparently
strengthened the hand of the
army of liberation, a outfit of
irregulars and guerrillas as com-
pared with the government's own
royal Moroccan army.
The irregulars occupied the Gla-
ouis' yellow-walled palace - re-
putedly a storehouse of valuable
treasures - in Marrakech, about
180 miles southwest of the seat of
the government of Sultan Moham-
med V in Rabat.
Reliable sources in Marrakech
said Moroccan government offici-
als were investigating transfers of
capital out of financially pressed
Morocco by the Glaoui family..
The seizure of the five sons
caught the central government in
Rabat by surprise.
The action was belatedly given
official status in an Interior Minis-
ti'y communique issued 36 hours
after the Glaouis were taken into
Glaoui, the Pasha of Marra-
kech, had been despised by ardent
Moroccan nationalists because of
the support he gave to the French
f when they dethroned the Sultan
and shipped him off for a two-year
exile in Madagascar.
Senate To Pay
Last Respects
To McCarthy
seph R. McCarthy (R-Wis) will
play his final role in death Mon-
day in the United States Senate
chamber, scene of his rocketing
rise and fall on the American
political horizon.
Arrangements were announced
yesterday for a 30-minute funeral
service at 11 a.m. Monday, after
which McCarthy's body will be
taken from in front of the Senate
rostrum and flown to Appleton,
Wis., for church services and
burial Tuesday.
Flags were at half-staff Friday
on the Capitol, the White House
and other government buildings
for the once-swashbuckling sena-
tor who died at 48-years old
Thursday night from an acute
liver ailment.


37th STRAIGHT-Star Barry MacKay (left) and Captain Dick
Potter (right) were the big guns in leading Michigan's tennis
team to its 37th consecutive tennis victory as they whipped North-
western, 8-1. (See story on page 40)
Train Fare Hike Approved
For Six Companies by ICC
WASHINGTON (P)-Six Eastern railroads yesterday got authority
to raise first class passenger fares substantially higher than those of
competing roads, and in some instances above the airline rates in
their territories.
The Interstate Commerce Commission, which early this year au-
thorized five per cent increases in both coach and first class fares for
the industry generally, granted a further 15 per cent advance on inter-
state parlor and sleeping car tickets to the six carriers who chose to
break away from the general fare pattern.
The six, who originally proposed a 45 per cent increase in first
class fares, are: Chesapeake & Ohio, New York Central, Norfolk &

McClellan Calls Missing
Witnesses 'A Conspiracy'
WASHINGTON (P)-Sen. Robert McClellan (D-Ark) charged yes-
terday there is "a conspiracy" to hide four missing witnesses sought
by his Senate rackets probers in the investigation of Dave Beck.
McClellan pledged himself to a never-ending search "until they
are subpoenaed and their testimoney obtained" in his investigation
of charges that the now-indicted Beck, president of the Teamsters
Union, has misusued large sums of union funds.
In other developments in the committee's nationwide investigation
of racketeering and other malpractice in labor unions and industry:
1. Sen. Barry Goldwater (R-Ariz) announced he is handing the

Lo pe

Western, the Pennsylvania, Penn-<
sylvania Reading Seashore lines,
and the Pittsburgh & Lake Erie.
They were authorized to make
the increase effective on five days
notice to the traveling public.
The li-man commission split
6-5 on the further 15 per cent hike.
Some of the dissenters said they
would have voted for a lesser in-
crease, others contended another
rise in fares would drive business
to competing transportation.
The commission majority said
the 45 per cent proposal was not
justified and might destroy the
first class passenger business of
the petitioning lines.
However, the majority ruled
these lines were entitled to another
15 per cent and expressed the view
"that such an increase would not
cause any drastic diversion of
Attorneys for the six railroads,
in urging the full 45 per cent in-
crease, said drastic action was
necessary to get some reduction in
the $125 million a year losses
which the six railroads have been
averaging on passenger business
since the end of World War II.
New Ad visors
Cited by SGC
Advisors to Student Government
Council standing committees have
been announced.
The advisors are: Jean Scruggs,
'58; Ron Gregg, '60; Scott Chrys-
ler, '59E; John Wrona, '57; and
Jan Winklehaus, '57.s

committee evidence of alleged col
Somoza Saysa
War Halted
MANAGUA, Nicaragua 0P) -
President Luis Somoza said yester-
day Nicaragua has stopped fight-
ing on its disputed frontier with
Honduras and will not move un-
less it is attacked.
He instructed his foreign minis-
ter to assure the Organization of
American States in Washington
that his government would refrain
from action likely to "aggravate
the situation" unless it was forced
to "repulse some new aggression
by Honduras forces."

lusion and improper dealings be-
4tween some coal mine operators
and local "officials of the United
Mine Workers in Luzerne County,
2. Sen. Karl Mundt (R-SD) con-
firmed a report that committee
staff investigators are looking into
the circumstances under which the
United Steel Workers of America
re-elected David J. McDonald as
national president.
3. Other committee sources said
violence which marked the recent
strike of employes of the Ohio
Consolidated Telephone Co. in
Ohio is under preliminary investi-
gation to determine whether pub-
lic hearings are warranted.
A trial examiner for the Nation-
al/ Labor Relations Board last
month blamed the company.

Police Look
For Attacker
Of Costello
NEW YORK ({')-Police search-
ed futilely yesterday for a gun-
man who Thursday night shot and
slightly wounded Frank Costello,
former "boss of the racketeers."
More than 60 detectives were
assigned to the task in hopes of
heading off a possible outbreak of
underworld warfare.
Officials said they wanted to
get the gunman before "friends"
of the 65-year-old Costello caught
up to him.
Post Two Detectives
Apparently believing that anoth-
er attempt on Costello's life also
was possible, they posted two de-
tectives in the lobby of the Cen-
tral Park West apartment house
where Costello lives.
Mystery surrounded the motive
for the shooting of the man known
to millions as a televised witness
in the 1951 Kefauver crime hear-
Costello has been in and out of
prisons since then, ill and fight-
ing government efforts to deport
him to Italy.
Police have given no indication
that he has been active in the
rackets recently.
Gangland Style
But it was in typical gangland
style that somebody shot him as
he was returning about 11 p.m.
from a quiet evening of dining and
wining with his wife and friends
in smart East Side nightspots.
The gunman wheeled up to the
apartment entrance in a big sedan
ran into the lobby, fired a shot
that creased Costello's scalp just
above the left ear, and then fled.
The assailant apparently
thought the wound fatal.
Actually, it was slight enough
so that Costello was allowed to
return home after being treated at
a hospital and questioned by
"I don't know why I was shot,"
Costello said. "I must have been
mistaken for somebody else."
Y'7 1'lf' fi7f1

Say Report
Is Answer
To -M3oscow
Weapon Monopoly
Called Soviet Aim
BONN, Germany () - Foreign
ministers of North Atlantic Treaty
Organization ended their meeting
yesterday .with a communique de-
claring the best hope of deterring
Soviet attack is the terrible fire-
power of modern nuclear weapons.
"Pending an acceptable agree-
ment on disarmament," said the
ministers, "no power can clain
the right to deny to the Alliance
the possession of the modern arms
needed for its defense."
NATO officials said the Foreign
Ministers' Council intended this
as its joint retort to Moscow's re-
cent threats and warnings against
atomic guided missile bases in
S c a n d i n a v i a, West Germany,
Greece and Turkey.
The communique said if the So-
viet Union is really afraid of
Western defense preparations, it
has only to "accept a general dis-
armament agreement embodying
effective measures of control and
inspection within the framework
of the proposals made on numer-
ous occasions by the Western
It added the Soviet campaign is
aimed at giying Soviet forces a
monopoly of nuclear weapons on
the European continent and tart-
ly remarked:
"Such a situation clearly could
not be accepted."
The Council warned that "pro-
longed division of Germany and
the anomalous situation of Ber-
lin" is a continuing threat to
world peace and demanded early
German reunification.
East Germany Warning
Earlier, the ministers joined
West German Foreign Minister
Heinrich von Brentano and
United States Secretary.of State
John Foster Dulles in warning
that East Germany is a turbulent
volcano which might erupt at any
The ministers pledged to use all
possible means to induce the So-
viet Union to honor its agreement
that Germany should be reunified
by free elections - a reference
to the Geneva "summit" talks of
They coupled this with a. new
statement of resolve to intensify
with peaceful means a common.
policy for the restoration of Ger-
many as a free and united state
within the framework of a Euro-
pean security system.
The NATO Council also:
1. Reported "new elements"
which promise to limit Commu-
nist expansion and subversion in
the Middle East-an apparent ref-
erence to the Eisenhower Doctrine
and developments in Jordan
where a pro-Egyptian regime has
been ousted by King Hussein.
The Council emphasized "cur-
rent initiatives" to reinforce the
security of Middle Eastern states
against possible Communist at-
County Supply
Of Free Polio
Vaccine Gone
The supply of free Salk polio
vaccine has been used up in the
county, the County Board of

Health said yesterday.
New supplies are expected with-
in two weeks.

Szigeti, Festival Youth Chorus To Appear Today

Joseph Szigeti and the Festival Youth Chorus will appear with
the Philadelphia Orchestra, in the third May Festival concert at 2:30
p.m. today in Hill Auditorium.
Featured soloist at this evening's performance will be Robert'
Merrill, Metropolitan Opera baritone.
William R. Smith will take over the conducting duties this aft-
ernoon as he directs the orchestra in the opening number, Overture
to "La Scala di Seta."
Szigeti, celebrated concert violinist, and the orchestra will con-


.m en me o

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