Herald and news. (Klamath Falls, Or.) 1942-current, October 23, 1958, Page 2, Image 2

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HERALD AND NEWS. KLAMATH FALLS. OREGON
THfRSDAV. OCTOBER 23. 1953
Transfer Of Scientists
Opposed By Army Group
WASHINGTON UPI - The
Association of the U.S. Army was
on record today in opposition to
any transfer of Army missile sci
entists to tho new civilian space
agency.
The association's annual meet
ing, attended by 2,700 civilian and
military supporters of the Army,
called on President Eisenhower in
a resolution to thwart the pro-
Aeronautics and Space Adminis
tration. Other resolutions adopted
Wednesday included a demand
fho tVia Afr.ii Via onlnrftrd fmm
the present strength of less than
sou.ooo men to at least a miuiuu.
and that the Army be provided
wiin us own licet oi iroop trans
port planes.
Two top Army generals sharply
Annlomnnfl (Via pnnlrrtirnrtinl mic.
Vuiiu;iiiii.u ..it. bum. u . - J.. '
eile transfer proposal at a news
conference late weancsoay in con
nection with tho association meet
Ing. Both Lt. Gen. Arthur G
Trudeau and Mai. Gen. John B
Medaris said such a transfer
would interfere with the "momen
tum" of America's satellite and
Other space work.
FlcAtiVinufai' InlH a nnuic rnnfor
enco last week he would make the
final decision on what research
teams and facilities are trans
erred to NASA. This may come
ut the Oct. 28 meeting of the u.b,
Space Council, of which iisenhow
er is chairman.
The exact form of the NASA
has not been disclosed officially
But it was understood NASA chief
T. Keith (ilennan told Army Sec
retary Wilber M. Brucker he
would like to take over 2,100
German-led scientists and tech
nicians and their laboratories at
the Army Ballistic Missile Agcn
cy, liuntsvillc, Ala.
Glennan also was said to have
proposed taking over the Jet Pro
pulsion Laboratory of California
Institute of Technology at Pasa
dena which now does satellite and
missile work for liuntsvillc.
However, Glennan was under
stood to have toned down his pro
posals in a recent letter to De
fense Secretary Neil II. McElroy.
The Army team has launched
America's Explorer satellites and
developed the licdstone and Ju
piter ballistic missiles. Both gen
erals hinted they thought inter
service rivalry as well as mili
tary-civilian competition figured
in tne NASA proposal.
Ends TONITE!
1 .--r
leaven
m
Mnflllison
lavage queen Ft
to I1STMAN COtOI
Marion Michaels
It lIC"l( JUDOl
Hinly KnjJM
ALSO
PROTEST PLANE SALE
MEXICO CITY (UPD Several
hundred Cuban refugees at
tempted a "march on the British
embassy" Wednesday night to pro
test Britain's ofler to sell jet
fighters to the Cuban government
Police riot squads broke up the
mob some distance from the em
bassy. Sixty eight men and 15
women were arrested, but there
was no report of casualties.
"DENNIS THE MENACE"
Six Cent Levy Helps State's Labor Politics
" ni;i,r.t nr0an
By LYLE C. WILSON 1
Untied Press International
WASHINGTON (UPI) The
political activities of Big Labor
in Michigan are financed by a
six-cent-per-month levy on AFL
CIO members. This gentle head-
tax on Michigan union members
'CO M3U REALIZE THAT IF YOU MARRY AM ITALIAN GIRL ,
LIKE 6INA, yOUli HAVE TO EAT SPAGHETTI FOR BREAKFAST?
Tax Case Singer Relates
Borrowing Of $1 Million
OPEN DAILY 6:00 P.M.
McCREA lAlBOn HACGERTY
rN- FEATURE AT:
HANSHtLD RANDALL j,X,J
11
nisi nut
DRAKE BLONDELl
SHOWN AT 8:15 ONLY
LAST DAYt
DOORS UPtN 6:3D P. M.
Sicud& FRIDAY
As hilarious as the couple next
door who forgot to pull the shades!
LOS ANGELES (UPI) Singer
Gordon MacRae told a tax court
Wednesday how as a top-salaried
Hollywood personality he had be
come involved in high finance and
borrowed one million dollars part
ly to salvage some of his earnings
from Uncle Sam's income tax
bite.
The handsome entertainer who
said such deals were common
among movieland's upper class,
appeared in court to oppose a
Couple Fetes
Anniversary
LOUISA, Ky. (API "Grand
ma hprousc celenraies ncr twin
birthday today and the teen-ager
she married in 1946 will be there
to help.
Grandma and Delbcrl
"Shorty" Sprouse, who was IB
when they married, will entertain
quietly in their small home in the
mountain community of Catt
Creek.
"Grandma" says she is not as
sprightly ns she used to he, but
still enjoys lite with bhorty,
now 30.
"Ho never stayed away from
me a night in all Ihe years wo
been married, she said,
"lie's awful good helpin' out
around the house and washin'
dishes."
, LINIMaScOOS
i JOANNE GILbTrTjIM BACKUS
GENA ROWLANDS
BOBBY TROUP
i rus CO-HIT
3? mMi
mmttf nuxio whim n kamini 5jfcf5f V"""
KF Soldiers
Car Victims
Two 18-year-old Army privates
from Klamath Falls, both home
on furlough Inllowinc completion
of basic training at Ft. Ord, were
taken to Lakeview Hospital Mon
day afternoon, after a car acci
dent a half mile from the summit
of Quartz Mountain.
Donald Collins, son of Mrs. John
Quigley. had Gary Grimes, son of
Mr. and Mrs. Henry F. Grimes,
as his passenger on a hunting trip
when Ihe accident occurred. Col
lins reportedly told state police
that his car apparently went off
the road when he fell asleep at
the wheel.
The youths were taken to Lake-
view In the Lake County disaster
car. Collins, who had sustained a
broken thigh, was taken to Let-
ternian Army Hospital, San Fran
cisco, Tuesday morning by Army
plane.
Grimes, whose injuries were
only superficial, returned to Klam-j
ath Falls Tuesday morning. He
I return to Ft. Sam Houston,
San Antonio. Texas. October 27.
where he will attend Medical
Corps School.
Collins was scheduled, before his
accident, to report to Ft. Mon
mouth, New Jersey, following his
furlough. However, he may be hos
pitalized in San Francisco (or six
weeks.
federal tax claim that he owes
$139,938 in unpaid taxes for 1952
and 19o3.
As MacRae explained the finan
cial deal which the government
has branded as "a financial mer
ry-go- round in a preconceived
plan entered into solely for in
come tax purposes," ho did little
more than sit back and let the
money roll in.
Late in 1952, MacRae said, at
torney Samuel Norton of Beverly
inns askea mm now ne a like to
buy one million dollars in U.S
Treasury notes.
"I said, 'Sure but where do 1
get one million dollars?' " Mac
Hae testified. "He said I could
borrow the money and I asked
him where in the world I could
find someone to loan me that
much.
"He said he had a broker who
would do it and assume the risk.
He said I might profit by buying
the government bonds and, in any
event, it would benefit my income
tax.
"So I told him to go ahead,
MacRae said.
MacRae, who said he had
earned "between $200,000 to $300,-
000" in the years from 1951 to
1953, explained that he and his
associates bought five million dol
lars in government bonds and se
curities since 1952 and that the
holdings returned 4 per cent in
terest. The money, he said, was bor
rowed at 3 per cent interest from
Jack Bernstein of New York, head
of Gibralter Enterprises Inc.,
which in turn had borrowed the
money at n per cent interest
from an undisclosed source.
The singer testified ho was able
to list the 1 per cent earnings
from the holdings as capital gains
which he said was taxable at only
25 per cent compared with the
95 per cent in taxes he was pay
ing on his personal income.
Mark Townsend. chief counsel
for Internal Revenue, said the
government would attempt to
prove that no securities chanced
hands in the deal which he
charged was nothing more than
a "paper deal."
The singer's case, one of sev
eral hundred to he tried here, was
to continue today.
On The Record
KLAMATH FALLS
BIRTHS
BOYS
CUNNINGHAM Born to Mr. nd
Mn. Bill L. Cunningham October 20
in Klamath Valley Hospital a boy,
weighing 9 ID!.. B'- oa.
SWEET Born to Mr. and Mn.
Paul Sweet October 20 in Klamath Val
ley Hobpital a boy, weighing 7 Iba.,
7 '.-a ozs.
BEARDSLEY Born to Mr. and Mrl.
John O. Beardiley October 17 in Klam.
ath Valley Hospital a boy, weighing
Q IDs., 02S.
BRAMWELL Born to Mr. and Mrs.
Robert E. Bramwell October 16 in
Klamath Valley Hospital a boy, weigh
ing 9 lbs.
HUFFMAN Born to Mr. and Mrs.
Clyde F. Huffman October 17 in Klam
ath Valley Hospital a boy, weighing
8 lbs.. 10 ozs.
SIMMERS Born to Mr. and Mrs.
Harold W. Simmers October 18 in
Klamath Valley Hospital a boy, weigh-
ing 8 lbs., lO's ozs.
VAHCAMf Horn to Mr. ana Mrs.
Vern VanCamp October 17 in Klam
ath Valley Hospital a boy, weighing
7 IbS., 15'3 ozs.
GIRLS
METCALF Born to Mr. and Mrs.
Henry A. Metcalf October 17 in Klam
ath Valley Hospital a girl, weighing
lbs.. 11 "A ozs.
WILLIAMSON Born to Mr. and
Mrs. Lynn Williamson October 17 In
Klamath Valley Hospital a girl, weigh
ing 7 lbs., 3 ozs.
IBAI HUUMIUJ
Boys: 408 Girls: 398
SISK1TOU COl'NTT
BIRTHS
CAPOVILLA Born to Mr. and Mrs.
Dante J. Capovtlla, Mount Shasta, in
Mount Shasta Community Hospital,
October 13, a daughter.
GARCIA Born to Mr. and Mrs.
Louis J. Garcia, Weed. In Mount Shas
ta Community Hospital, October 13, a
daughter, ,
KLAMATn COUNTY
MARRIAGE LICfcNSER
LeRoy Charles Rauch, 19. and Bar
bara Butler, 18, Sedro Valley, Wash-
Inston.
Harley Krebs, 23, Tulelaka, and Don
na Shaw. 22.
James Henry Hallmark. 18. Malin,
and Annie Nannie Twilight Galbreath,
17, Malm.
DIVORCES
Marilyn D. Davig vs. WUliatn O.
Davie, seeks divorce.
Doris J. Jacobs vs. Elmer Jacobs
Jr., seeks divorce.
raises about aO0,ouu in goou
times but will gather in only
$300,000 in this year of Michigan
recession and unemployment. The
fund supports all activities of the
Michigan Ai'L-CIO.
Even so, the end political re
sult of this lew on union mem
bers should arouse- the envy of
Republican campaign fund rais
ers, perhaps causing them to
wish they could lay a head tax
of even a nickel a month on
somebody. They cannot do that
Neither can the heads ot tne
great corporations lay a head tax
of even one cent per month on
their stockholders, or employes, a
device which, if feasible, would
raise funds beyond relief to be
available for expenditure for pur-
Doses of Dolitical education.
Ihe Republicans and some 01
the managers of the great cor
porations are accusing big labor
ot having politically kidnaped tne
state of Michigan, bpeciticaiiy,
they charge that the kidnaper
was Walter P. Reuther. The man
in charge of big labor politics in
Michigan, however, is August
Scholle, president of the Michi
gan AFL-C10 Council, bcnoiie nas
Reuther's active support, of
course, else he could not be so
sure of collecting that head tax.
In response to questions from
United Press International,
Scholle said that only about
... ,w i it,. mn nnn the head
tax will raise this year could be
cited as political expenditures.
His phrase was "lor cuu.
xpenditures in.
field."
This sum is spent, Scholle said,
mainly for printing circulars al
though occasionally the council,
i,,, ..nmompnt will oermit a poli
tical candidate to have something
printed and the council will pay
kin This instead of ordering
the printing on its own. Scholle
estimates that about $10,000 has
been spent so far this year to
pay bills for printing ordered by
candidates.
The AFL-CIO Council received
about $14,000 this year, according
to Scholle, from the international
union treasury. This money, he
said, was contributed voluntarily
hv union members and has been
contributed to the campaign funds
of the politicians the givers ia-vored.
Scholle said everything the AFL
CIO council does in the political
area is both legally and morally
right. He emphasized mat any
union member who docs not want
any portion of his dues to go for
the political purposes decided upon
by the council may specify that
his portion shall go to any chanty
hit
or political organization of
choice.
That, in brief, is the way bis
labor raises and spends Its money
in the state where its political sue.
cesses have Decn tne most re
markable. It may be assumed
that Big Business could do the
same if big business, like big la.
bor, had a membership constituen
cy which was accustomed to pay
ing monthly dues and, moreover,
accustomed to having its leaders
engage deeply in local and nation
al politics.
The law apparently would for
bid either big business or big la
bor to "contribute" to political
parties or to political candidates.
The law at one time forbade, also,
political "expenditures," but the
Supreme Court declared that pro
hibition to be unconstitutional.
The distinction between contri
butions and expenditures may
seem to a layman to be a bit
fuzzv, but it is the law.
Do youi window! sweat?
STORM WINDOWS
Made to Measure
FREE ESTIMATES
George Clork
Court Holds
Long Meets
Two lengthy meetings, devoted
mostly to preliminary discussions,
occupied the county court's regu
lar Wednesday meeting,
Much of the afternoon was spent
in comnany with city officials dis-
ments on Washburn Way, although
the court emphasized the talks
were most preliminary. City offi
cials present were City Manager
G. S. Vergecr, Mayor Lawrence
J. Slater and Cliff Sanders, acting
city engineer.
An earlier session was held with
six representatives of the Stewart
Lenox and West Mamath additions
who are looking for five or 20
acres ot ground for a playground
and park.
The court also learned that the
Bureau of Indian Affairs office in
Washington has decided that its
Portland area director has author
ity to approve permits which
would consign rock and cinder
pits on the Klamath Indian Reser
vation to the county, which soon
will take over certain reservation
roads.
Game Agents
Note Offenses
TULELAKE The federal game
management agents report the fol
lowing convictions and fines from
the Tulelake justice court, Judge
Victoria Thaler:
Milton Arthur Reichenberg, 20.
Sacramento, exceeding limit of
geese; fined $35.
Allen Toby Reichenberg, 25, Sac
ramento, exceeding limit of geese;
fined $35.
CaVl Laverne Howard, 42, Ar
eata, California, exceeding limit
of geese; fined $35.
Arlie Dee Caltee, 27, Hedding,
exceeding limit of geese; fined $35.
Eugene Wood Groff, 62, Mount
Shasta, exceeding limit of geese;
fined $35.
Robert Lee Jones, 21, Weed,
shooting at waterfowl before legal
hours; fined $25.
Elden Richard Schmidt, 26, Oak
land, shooting at waterfowl before
legal hours; fined $25.
Richard Kenneth Flaharty, 32,
Redding, shooting at waterfowl be
fore legal hours; forfeited $25 bail.
Paul Dean Clark, 10. Weed,
shooting at waterfowl after legal
hours: fined $25.
Donny Harold Freeze. 13, Weed,
shooting at waterfowl after legal
hours; fined $25. i
The arrests were result of co
operative patrols and checks of
Fish and Wildlife Service enforce
ment officers and California game
wardens on the opening weekend
of the season.
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SUBPOENAS
Hollywood Pair
Slates Wedding
HOLLYWOOD (API A Janu
ary marriage is in the discussion
stase between sincer Anna Maria
Alberchetti and composer-conductor
Bud Rresman. her escort for
the past seven months.
Hie Italian-horn soprano said.
"Buddy and 1 are very fond of
each other. We're not encaRed hut
when we set the dale we II let ev
eryone know."
The marriage would he Miss Al
henshctti's first. Bresman was di
vorced in August 1!S7 from co
median Jack Dairy's daughter
Gloria.
A LOT OF JOHNSONS
CHICACO U'PU - Alderman
Kinar Johnson thought it would he
a good idea lo get all the John
sons in Chicago to support his
candidacy for Cook County clerk,
hut he didn't realize how much
territory that took in.
The Chicago telephone directory
recommends that anyone looking
for Johnson to "also sec Johns
ton. Johnstone. Jonson. Jaysson i
.lohnsen and K.uns " Oarad.iGf
Johnson Ins net i50(Tl
Suit Homes
Liz Taylor
LOS AN'GKLKS (AP) Actress
Klizahelli Taylor has been sued
for $3,000 alleged due on Ihe lease
of a Tucson. Ariz., house.
The widow of showman Mike
Todd moved into the house last
summer hot then moved out nc-i
cause sidewalk cawkers thronced
around the gates to watch her;
swim in the pool. Special ofli-!
cers assigned hv the Tucson Po
lice Department were hard pressed
to keep the curious away.
The Superior Court action was I
filed in the name of M. Prosin.1
identified as assignee of the origi-1
nal lease held by Rosa Bloch. The
lease on the furnished house,
dated last July 31, was for $18,000
a year.
The sheriff's office began serv.
ing subpoenas Wednesday upon
witnesses for the forthcoming
grand jury session. Additional sub
poenas were to be served Thurs
day. The seven-member jury will
convene Monday, October 27. Its
members are Nora Cashmin of
Merrill, foreman. Edward Down
ing and Jim Humphrey of Merrill,
and Alice Abbott, Stuart Balsiger,
Nell W. Kinney and Swan Nelson,
all of Klamath Falls.
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