bolon 1 hreatens sJbt. lioss
With CoritemDt of
' . . , X
Congress
By WILMOT HERCHER
WASHINGTON UP The head
ef the Securities .Exchange Com
mission wes threatened with pos
sible prosecution for contempt of
Congress Tuesday in connection
ith the Dixon-Yates row. !
The possibility was raised by
Sen. Kefauver D Tenn, after
SEC Chairman J. Sinclair Arm
strong refused to testify whether
his agency was free from White
House "influence" in handling fi
nancial aspects of the Dixon-Yates
private power contract.
But Armstrong stood firm on a
declaration that he couldn't dis
cuss the question because, of a
gtsnding presidential order not to
di.-c!ose confidential exchanges be
tween executive departments of
the government
"I don't mean to imply by as
serting privilege that there were
ny such communications," Arm
Strong told a Senate antimonopoly
fubcommittee headed by Kefauver.
Ordered Cancellation
President Eisenhower ordered
the controversial Dixon-Yates con
tract cancelled Monday after i re
ceiving assurances from the city
of Memphis that it would build a
generating plant to supply the
lectricit" the federal government
had ordered from the private in-
. teresis. , ! r
At the Senate hearing, ' Sen.
O'Mahoney D Wyo) complained
"an iron curtain is being erected
'between Congress and the SEC."
Armstrong s refusal to answer
questions, he asserted. Is "another
instance of the gradual attempt cf
the executive branch to extend
powers over the whole government
of the United States."
For Three Hoars
, Kefauver and other members of
the subcommittee pounded at Arm
strong for three hours in an at
tempt to find out why an SEC
hearing on Dixon-Yates financing
was postponed at what Kefauver
called a crftical stage in the case.
Finally Kefauver told the SEC
chairman:
"Under penalty of possible con
tempt of the senate, I order and
direct you to answer these ques
tions."
"With great respect," Armstrong
Appeal
Fund Okehed
For Military
Construction
Three Judges
Deny
Of Sheppard
CLEVELAND Ufi Three Judges
Tuesday denied an appeal by Dr.
Samuel F. Sheppard for a new
trial. They held the 31-year-old
osteopam s conviction tor me mur
der of his pregnant wife ended "a
fair tria'" and that "there was
sufficient evidence to support" the
Jury verdict. i -
The defeat dees not mean . an
end to -.Treppard's battle to upset
his conviction last Dec. 21 iof sec-!
end degree murder in the killing
ef his wife Marilyn.. 31, at their
lakefront home early on July 4,
1954. - . ;
The appellate court still has to
rule on another new trial motion
based on what the defense claims
in newly-discovered evidence.- But
In rejecting a new trial Tuesday
en contentions of error,, the ap
pellate judges left little reason for
Sheppard to hope they would grant
him a new trial later this month
when they make their second rul
ing, r
Defense attorney Fted W. Gar
mone said an appeal would be
earned to the Ohio Supreme Court
Ohioan Chosen
As Defense Aide
,? i ' '
WASHINGTON (UP) President
Eisenhower Tuesday Dominated
Reuben Buck Robertson Jr.. Ohio
industrialist, to be deputy defense
secretary, succeeding Robert B.
Anderson. : :
'Anderson submitted bis resigna
tion Monday, effective about Aug.
15. -
Robertson, 47, is president of
the Champion Paper and Fiber
Co. in Hamilton, -Ohio. He is a
Republican.
AGREEMENT SIGNED
VIENNA, Austria Ml Austria
and the Soviet Union signed a
reparations agreement in Moscow
Tuesday. The pact calls on Austria
to deliver to Russia ISO million
dollars in goods within the next
Six years.
WASHINGTON UPt More than
43 million dollars for the Pacific !
Northwest was included in a $2, j
471,745,000 military construction
bill approved Tuesday by the
House Appropriations Committee.
Washington would get $33,638,
000 for 13 projects, Oregon $4,030.
000 for three and Idaho $5,961,000
for one.
Many of the projects were au
thorized only Monday in the mili
tary public works authorization
bill.
But the House committee denied
funds for several authorized pro
jects, including two million for
planning work on a new drydock at
the Puget Sound Naval Shipyard,
Bremerton, Wash. Sen. Magnuson
ID Wash) said he hoped for Sen
ate approval of the planning pro
ject, with a chance to get it finally
okayed if the bill should go to con
ference. Northwest projects which the
House committee approved are:
Army
Madigan Army Hospital, Wash.,
$333,000; Camp Hanford, Wash.,
$167,000; Ft Iwis, Wash., $14,-
940,000.
Navy
Bremerton, Wash, shipyard.
$200,000; Tacoma, Wash, station,
$3,024,000; Tongue Point Station,
Astoria, Ore., $92,000; Whidbey Is
land, Wash. Air Station, $1,958,000;
Keyport, Wash., Torpedo Station,
$376,000.
Air Force
Geiger Field, Wash., $1,716,000;
Klamath Falls, Ore., Municipal
Airport, $2,042,000; McChord,
Wash, AFB, $2,959,008; Paine
Wash., AFB, $1,978,000 and $85,000
in separate projects; Portland,
Ore., International Airport. $1,806,
000; Fairchild. Wash.. AFB., $2,.
187.000: Mountain Home. Ida-
AFB, $5,961,000; Larson Wash.,
AFB, $3,682,000.
replied, "my position with regard
to the questions you referred to
remains the same."
Armstrong, 39, is a former Chi
cago lawyer who has been a mem
ber of the SEC since 1953. A Re
publican, he became chairman last
April.
Inquiry to Continue
Despite cancellation of the Dixon-
Yates contract Monday, Kefauver
announced his inquiry would go on
until the senators got "to the bot
tom of this entire matter."
Armstrong balked at testifying
when asked whether the White
House or "any other person in the
executive branch" proposed post
ponement of an SEC hearing on
Dixon-Yates financial setup June
13.
Armstrong was ordered to come
before the subcommittee Wednes
day for further questioning, bring
ing with him all other members
of the commission, its secretary,
Orville Dubois, and the examiner
in the Dixon-Yates bond case.
James G. Ewell
Hearing Delayer
The SEC hearing was postponed
June 13 and resumed June fB.
Ewell told the senators he had act
ed on orders of the commission.
which had said it wished to con
sider procedural matters.
Kefauver said the postponement
was made "without explanation"
just when the House was about
to vote on legislation to appropri
ate 6V4 million dollars for a power
line to connect the proposed Dixon-
Yates plant with the TVA system.
He asserted the hearing was held
up until it was "too late to get
. to the House of Representa
tives testimony of Adolphe H.
Wenzell, former vice president of
the First Boston Corp.j which
might have influenced the voting.
In a vote June 16, the House
defeated an effort to knock out the
64 million dollar item and to
spend the money instead on start
ing a new steam plant for TVA
at Fulton, Tenn.
Crop Surplus ;
Laid to High
Price Props
DIAMOND. Mo. W) High price
supports were blamed by Secre
tary of Agriculture Benson Tues
day for "unmanageable surpluses"
of farm products and shrinking
markets.
The federal crop controls are
lessening the freedom of millions
of small fanners to think and act
for themselves, Benson said at
memorial services for George
Washington Carver, noted Negro
scientist-educator.
"Because we have not faced the
simple facts, of economic life,"
Benson said, "our farmers today
find some of. their markets shrink
ing and our prices depressed
through huge and unmanageable
surpluses that have been brought
about by a program of high, rigid
price supports.
"They find their lands are blow
ing or washing away because
the same supports encouraged the
production of crops that are wrong
for their soil. They find that mil
lions of smaller farmers are still
poor, deriving little real assistance
from the various government price
support programs."
Claiming the administration has
won acceptance of a program of
flexible price supports, 3enson
said the Agriculture Department is
working toward farm programs
under which "people of today and
tomorrow wfll not become de
pendents of government subsidy
and control.'
Refugee Center
Financed bv U. S.
NUERNBERG, Germany tfl
A new U. S.-financed model transit
center for Iron Curtain refugees
preparing to emigrate overseas has
been opened in suburban Zirndorf.
The center will house 350 refu
gees at a time who are to attend
language classes and receive vo
cational training.
Salk Vaccine
Control Draws
Idaho Blast
Bill to Safeguard
U. S. Resources .
On Public Lands
WASHINGTON UFi Congress
Tuesday completed action on a bill
aimed at preventing the exploita
tion of timber and other surface
resources on mininz claims in na
tional forests or other public lands.
The bill would limit uie use oi
such resources to those actually
needed for mining 'operations. It
would prohibit the cutting of tim
ber for sale and would bar the
use of claims for any purpose
other than mining.'
The measure also would rule out
the location of sand, stone, pum
ice and pumicite claims tinder the
mining law.
BOISE. Idaho UB Acting State
Health Director L.J. Peterson cri
ticized the U.S. Public Health
Service Tuesday for "ineffective
controls" over manufacturing and
testing of the Salk antipouo vac
cine.
He told the Boise Ki warns Club
the Public Health Service was to
blame for the release of what the
State Health Department believes
to be defective Salk serum in Ida
ho.
There have been 114 polio cases
in Idaho this year, all but 11 hav
ing occurred since the mass vacci
nation program in April. Peterson
has called off the program, saying i
he believes the serum was the;
cause of the outbreak.
Peterson said the Cutter Labora
tories of Berkeley, Calif., which
manufactured the serum used in
Idaho, could not be blamed be
cause it was a victim of "ineffec
tive controls" imposed by the Pub
lic Health Service.
He said the USPHS had declined
to issue a report on the Cutter
vaccine and that the U.S. Depart
ment of Health, Education and
Welfare had not properly publi
cized instances of live virus which
turned up in serum manufactured
by other companies.:
Gas Pipeline
Due in Boise
Next Summer
BOISE (UP) Construction on
the first natural gas pipeline
through southern Idaho is "pro
gressing nicely" and the fuel
should be in the Boise area by
next summer.
That was the report Mondav
of Frank Skaggs, field man for
Fish Northwest Constructors.
agents for the Pacific Northwest
Pipleine Corporation.
Pacific Northwest is bringing the
natural gas from the San Juan
Basin in Colorado and New Mex
ico. Skaggs is in the area to obtain
right-of-way for the line in Canyon
Payette, Gem, Ada. Elmore and
Twin Falls counties.
Pacific Northwest has announced
that it hopes to have its line into
Idaho by this fall. Idaho Natural
Gas Company holds the distribu
tion franchise for southern Idaho
but this award has been appealed
Dy jntermountam Gas Company,
Burglar Alarm Sounds;
Wind Real Culprit f
HAGERSVTLLE, Ont. UrV-There
were some red faces in ,a bank
here Tuesday." -
The bank's alarm went off at 2
a.m. and police arrived to find the
front door wide open.
Police said the door was left un
locked and was blown open by a
heavy wind. .
Burns Man Fined
For Tax Evasion
PORTLAND (fl Ray O. Apple
gate of Burns, Ore., who pleaded
guilty to a federal charge of
income tax evasion In 1948 and
1949, was fined $1,000 Tuesday.
Burns' attorney said that
amended returns would be filed to
show that he earned only from
Long-Time Slate
Lawyer Succumbs
PORTLAND W Sjur Ness, 84,
who had practiced law in Oregon
since 1902 until his retirement two
years ago, was buried here Tues
day. ' '
$4,000 to $6,000 more than a is
returns indicated.
Trad and High
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BOTTLES BUY TICKETS
VIENNA, Austria 11 In Com
munist Czechoslovakia if you have
a few empty bottles you take them
to the movies. "Bottle pictures"
have been organized recently by
the state's raw material depots.
Czech newspapers report One good
sized bottle is good for standing
room, five for a seat.
SURGING V-8 POWER! 3 TIMES SOFTER RIDE!
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30 FREE TRIPS TO DISNEYLAND
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midnight, July 16, 1955. See your
Hudson dealer for information.
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