The Abilene Reporter-News (Abilene, Tex.), Vol. 75, No. 188, Ed. 2 Thursday, December 29, 1955 Page: 1 of 34
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The Abilene Reporter ~32ems evening
— A FINAL
VOL. LXXV, NO. 1M
"WITHOUT OR WITH OFFENSE TO FRIENDS OR FOES WE SKETCH YOUR WORLD EXACTLY AS IT GOES" —Byron
Associated Press I) ABILENE TEXAS, THURSDAY EVENING, DECEMBER 29, 1955—TWENTY-POUR PAGES IN TWO SECTIONS
Scandal Hinte
In U. S. Trust
I
er Checks
A sizzling question smoking up
from the U.S. Trust and Guaranty
Co. of Waco Thursday had to be
answered by state investigators-
who got the $25,000 in checks made
out to “cash.”
Three checks, one for $15,000 and
two for $5,000 each, were used to
pay for “legal services" and were
issued between January and June
during the last Legislature.
Senate investigators, who will re-
sume their inquiry Jan. 11, have
asked full information on U.S.
Trust spending for legal fees, pub-
licity, advertising and related ex-
penses.
Unusual Situation
State Auditor C. H. Cavness said
Wednesday be considered it “un-
usual" that the company would
have made out hecks to "cash",
rather than to an individual in pay-
ing for legal services.
Just how much money depositors
and other creditors might get back
remained in doubt.
District Judge Charles Betts,
who placed the firm in temporary
receivership last week, said the
guesses as to what percentage
would be recovered were unfortu-
nate.
“Most of the c>-editors and depos-
itors I have heard from are in a
bad financial situation. To raise
their hopes and then let them suf-
fer another disappointment is not
just," he added.
Estimates ranged from 15 to 100
per cent on the money the 5,600
depositors may receive.
Sen. Searcy Bracewell, who
SAFETY FACTOR'
heads the Senate investigators,
said a special session of the Legis-
lature might be necessary .
Favors Special Session
Bracewell said he favored a spe-
cial session if the Insurance Com-
mission needs more money to en-
force the new insurance laws.
Insurance Commission Chairman
Garland Smith had said earlier
that his field staff of 38 examiners
was not enough to examine foe
1.300 of the state's 2,028 insurance
firms that must be studied.
The $25,000 in checks were seen
by Cavness’ assistants when they
DPS Orders
Tickets on
All Violations
By THE ASSOCIATED PRESS
The director of the Department
of Public Safety has ordered pa-
trolmen to "make an arrest in
every moving traffic violation."
The holiday highway death toll in
Texas rose to 72.
“The time for kid-glove handling
of traffic violations has passed,”
Homer Garrison Jr. told foe high-
way patrolmen Wednesday. He
ordered them “to throw away your
warning ticket books.”
"Some stern measures must be
taken in order to halt the greatly
increased slaughter on Texas high-
ways," he declared.
Since last Thursday midnight,
Dec. 23, when the count of the long
holiday death toll started, 126 vio-
lent deaths have occurred in the
went to Waco to check on U.S. 1
Automotive Service, a subsidiary state. Besides the 72 who died in
of U.S. Trust. Checks also were
found made out to state Rep. Bert
McDaniel, Waco lawyer for the
firm, and other lawyers.
Sens. Carlos Ashley of Llano and
Jep Fuller of Port Arthur have
said they worked for the company
as attorneys.
McDaniel was quoted by the
Houston Chronicle as saying he
knew in June the U.S. Trust was
in “deep financial trouble.”
McDaniel and A. B. Shoemake,
president of the firm, appeared be-
fore the Insurance Commission in
an effort to prolong the life of the
firm, the paper said.
Asked why he took that position
when be represented the people of
Texas in the Legislature, McDaniel
replied:
"I don't have any apologies-1
wanted to try to save the company
and keep the people from losing
their money."
highway crashes, 54 perished in
fires, shootings and other violence.
PRICE DAILY 5e, SUNDAY 10c
Russ Chief Accuses
Ike <
terference
Dismisses Plan
For Open Skies
State Bank Chief
Warns Investors
AUSTIN (n— Incidents such as
the U.S. Trust and Guaranty re-
ceivership will make the public
"think and ask questions" in mak-
ing future investments, State Bank,
tug Commissioner J. M. Falkner
said today. • ‘
Falkner had been asked if re-
cently-announced raises by some
Texas banks on interest rates paid
on savings accounts might have
been stimulated by the U.S. Trust
case.
Falkner said he felt that ‘‘com-
petition" between banks most like-
ly was responsible.
Bankers in Austin and Houston
Notaries Must
Get New Bond
Taylor County notaries public
bonded by U.S. Trust and Guaran-
■ ty Co. of Waco must file new bonds
and oaths of office with the county
clerk in order to continue function-
ing as notaries public.
J. D. Wheeler, receiver for the
U.S. Trust and Guaranty Co.,
notified Mrs. Chester Hutcheson,
county clerk, that all bonds of the
firm had been cancelled as of Dec.
The number of Taylor Countians
bonded by the defunct firm was
unknown here Thursday morning
Mrs. Hutcheson said each of the
more than 1,500 bonds of notaries
in the county would be checked
and those bonded by U.S. Trust
and Guaranty Co. would be ad-
vised to file new bonds and oaths
of office.
She raid notaries whose bonds
have been cancelled have 10 days
from today to file new bonds and
oaths
She cautioned notaries whose
bonds were cancelled not to nota-
rize any instrument until the new
bond end oath is filed.
The usual $1 filing fee will be
charged in each case, she said.
The letter from the receiver said
that Taylor County notaries whose
addresses were available had been
notified, but that many had not
because of no address.
said that there, had been a recent
trend toward increasing interest
rates paid on savings accounts.
Three Austin banks, the Ameri-
can National. Austin National and
Capital National, announced today
that effective Jan. 1 they would
pay 2 instead of 1 per cent per
year on savings accounts.
Falkner said his department has
had many letters in inquiry by in-
vestors inquiring about U.S. Trust
and other investment institutions
not regulated by the Banking Com-
mission.
“Because they are not under our
supervision, we have not been able
to tell them anything except to re-
fer them to the supervising agen-
cy." Falkner said.
"It is unfortunate that many peo-
ple don't ask questions before in-
vesting their money. They look at
the interest rate and don't con-
sider the safety factor.
"I believe the U.S. Trust case
is going to make the public think
and ask more questions in the fu-
ture."
A bill to put such firms as U.S.
Trust and Guaranty under super-
vision of the Banking Department,
failed in the last Legislature. The
Banking Department supervises
banks and building and loan insti-
tutions in which the inverting pub-
lic puts its money.
Falkner said the banking depart-
ment inspects banks under its su-
pervision twice a year and the
federal government also makes
twice-yearly checks on institutions
that come under its supervision.
On savings account returns, Fort
Worth reported banks have been
paying 2 per cent for many
months. Houston reported that vir-
tually every bank in Harris County
has raised its intereat rates from
1 to 2 per cent.
The DPS has estimated 204 per-
sons will die violently during the
11-day holiday period to Jan. 2. Of
these 112 are expected to be traffic
fatalities.
The latest reported deaths in-
eluded:
Andrews Alcala, 17, was found
shot to death in his San Antonio
home A pistol was found nearby.
William Bass, 56. was killed
when struck by an auto at Ama-
rillo Tuesday.
Gregg Reagen, 8, of Corpus
Christi, was killed in a collision be-
tween a car and a tractor Wednes-
day near Hearne.
Roy Bellair, 65, of Orange, died
of gunshot wounds at Orange Tues-
day.
Patricio Rameriz, 14. of Beeville,
was killed when struck by a car
while riding his bicycle west of
Beeville Wednesday.
Willyne Allen, 32, El Campo, was
killed in auto accident north of
Columbus Tuesday.
Thomas King, 34. Grand Prairie,
died of poison at his home Wednes-
day.
Katheran Venn, (0, Amarillo,
died Thursday by hanging at Am-
arillo.
Kenneth Richardson, 22, Fort
Worth, was killed Tuesday when
struct by a switch engine at Fort
Worth.
Robert Cambers, 14, Murchison,
died of gunshot wounds near
Brownsboro Wednesday.
AT OUTS—The most famous sisters in the world, the four surviving Dionne quintup-
lets, are on the outs with their family. Oliva Dionne, father of the girls, shown here
with Annette, Marie, Cecile and Yvonne; left to right, says girls spent Christmas in
Montreal, did not notify their parents about plans or even send them a Christmas card.
For the girls’ story, see Pg. 6-A.
E. S. Price Lease
Sale Set Jan. 3
BALLINGER, Dec. 29 - Sale of
oil and gas leases formerly owned
by Ballinger oil operator E. S.
Price Sr. to satisfy a $301,870 fed-
eral court judgment in favor of
D. Henry Werblow of Vermont will
be held here Jan. 3.
The judgment carries an inter-
est rate amounting to slightly over
$1,500 a month which has been ac-
cumulating since the ruling was
made in the case in Abilene Oct.
3 by Federal Judge Joe Ewing
Estes
The sale involves 30 separate
Traffic Violators
Will Get Tickets
Abilene city police Thursday be-
gan a major crackdown on mov-
ing traffic violations, a campaign
which will continue through Mon-
day. Jan. 2, Capt. W. B. McDonald,
acting chief, announced.
"This is an effort to save lives
and property during the New
Year's holiday period," he explain-
ed. "And we hope the same vigi-
lance will be carried on by our of-
ficers even after Jan. 2."
McDonald and Traffic Capt. F.
M. Pruitt were to hold meetings
with policemen Thursday and Fri-
day. until they had conferred with
every officer on the force.
They were telling the policemen
to issue tickets on every moving
violation from now through Jan. 2.
Acting Chief McDonald said the
local police will work in close co-
operation with the Texas Depart-
ment of Public Safety and other
law enforcement agencies in a
special effort to make the New
Year's season safe.
(Col. Homer Garrison Jr., direc-
tor of the Texas Department of
Public Safety, told Texas highway
patrolmen Wednesday to make an
arrest on every moving traffic vio-
lation from now until midnight Jan.
2.)
McDonald reported that city po-
lice will put on one additional traf-
fic patrol car beginning this week-
end.
Only 2,185 Pay
Poll Taxes as
Only Month Left
BULLETIN
DOVER, Ohio n — An air-
plane crashed to the hills near
this southeastern Ohio city to-
day. First reports were that
one sr two perMas were killed.
Cold, Drizzling
Rain Is Forecast
Nearly 17.000 poll taxes most
sold or exemptions issued before
Jan. 31 if Taylor County is to have
a predicted voting strength of 20,-
000 in 1956.
be
Sun Hides, Keeps
President Indoors
KEY WEST. Fla un—The sun
played hide-and-seek behind rain
clouds today and President Elsen-
hower turned to indoor painting
of a Colorado mountain scene.
The President came to Key West
from Washington yesterday to soak
up some sunshine and build his
strength for resumption of a full
work load next month. He got in
some outdoor activity—even hit-
ting a few golf shots—shortly after
arriving, and that pleased his doc-
tors.
But ft rained most of foe night,
and the skies were still overcast
when Eisenhower got up at 7:30
a.m. today-
Winter weather was making a
comeback in Abilene Thursday
morning behind a cold front font
passed through the city about 6:30
am.
I Thursday was to he cold, and
rather cold weather was to con-
tinue through Friday afternoon, the
U S. Weather Bureau raid
Below freezing temperatures
were forecast for Thursday night.
A trace of moisture was re-
corded at the weather bureau
Thursday morning from fog and
drizzle that hovered over the area.
The moisture was the first to fall
here since the night of Nov 30
and the early morning of Dec 1.
when 25 was recorded. ’
Very light drizzle was forecast
here through Friday afternoon.
end below freezing over a wide
area of Texas were forecast for
Thursday night. There was a pos-
sibility of snow flurries or frees-
ing rain in the Panhandle and
scattered showers elsewhere.
At mid-morning the front ex-
tended from Fort Worth to Sen
Angelo and south of Midland
Early morning temperatures
ranged from a degrees at Dal-
hart to M at Corpus Christi.
Abilene had an overnight low of
40 after a warm 73 was recorded
Wednesday afternoon
The weather bureau forecast a
high of 45 for Thursday afternoon
and of near 30 Friday afternoon
Thursday night’s low was to be 30.
No measurable rate was report-
Tax Assessor-collector Raymond
Petree said Thursday morning that
2,185 polls had been paid and 1,025
exemptions issued The deadline
for payment of poll taxee is Jan.
31
Between Jan. 1 and Jan. 1S
branch offices will be opened in
rural Taylor County towns for
sale of polls, Petree said. His
schedule for each loom has not
been worked out yet
Petree has previously predicted
that there will be 20,000 or mere
eligible voters in Taylor County for
the 1956 elections.
In the 1952 presidential election.
20,827 persons paid poll taxes or re-
ceived exemptions.
Taylor County's voting strength
last year - an off-election year -
was 10,040.
leases, on which five or six pro-
ducing wells are currently opera-
ting, located on about 3,200 acres
of land between Ballinger-and
Crews.
Some of the land involved in the
sale was formerly owned by Price
but has since been sold in fore-
closure action ordered in other
suits against the Runnels County
Bun.
Attorneys for Werblow pointed
out Thursday, however, that the oil
and gas leases included in the Oct-
ober judgment are still valid even
though other parties have since
purchased foe land.
In the October judgment Wer-
blow obtained a judgment fore-
closing an equitable as well as a
legal lien against the property but
failed to gain personal judgment
against Price.
The sale of the oil and gas leases
Jan. 3 will constitute the major
claim which Werblow has against
Price. ... .
Bids on the property will start
sometime between 10 a.m. and 4
p.m. The public auction will be
conducted by the United States
marshal's office for the Northern
District of Texas.
Werblow’s suit against Price for
control of the Runnels County acre-
age ended here Oct 7 following a
bitter week-long non-jury trial be-
fore Judge Estes The ruling in the
case was made the following day.
Werblow. South Shaftsbury, Vt
investor, sought a judgment to
foreclose for mortgage held by
him.
He contended that the mortgage
had been obtained when he invest
ed $262,066.38 in the property in an
oil speculation venture with Price.
Werblow was joined in foe suit by
Washington, D. C., attorney Thur-
man Hill, trustee for Werblow,
Price warned at the close of the
trial that the judgment in favor
of Werblow would be appealed to
foe Circuit Court of Civil appeals
The threatened appeal died when
foe record of foe case was not
filed with the appeals court in New
Orleans within the to-day limit pre-
scribed by federal rules of civil
procedure
The appeal was dismissed on
stipulations filed by Werblow’s at-
torney and Davis Scarborough, rep-
resenting Price, when the stipula-
tions were approved by the circuit
court.
Polio Fund
Gains $850
Though only one day old, Taylor
County's 1956 March of Dimes
drive had $850 in the pot before
MOSCOW (—Nikita Khrushchev
today accused President Eisen-
hower if “crude interference”
in the affairs of Communist na-
tions, and dismissed his open skies
arms inspection as "nothing more
than military intelligence.”
He boasted that the Soviet hy-
drogen bomb “can be considerably
increased in power,” as be criti-
cized Secretary Dulles as "‘advo-
cating massive retaliation and
other absurdities."
The Communist party chief
spoke for two hours before the
Supreme Soviet (Parliament).
“Some Western politicians have
a strange idea of the Geneva
spirit,” he asserted. “They want
us to disarm our army and also
to disarm morally and politically."
Khrushchev said he spoke about
Eisenhower critically "most un-
willingly" because he respected
the President "so much.” But,
| he declared, the President's Christ-
mas message to the people of
Eastern European Communist na-
tions “is quite incompatible with
the Geneva spirit."
This referred to a presidential
message broadcast by Radio Free
Europe saying:
“During the Christmas season I
noon Thursday, according to Wal-
ter Johnson, chairman of the big
gifts campaign.
Included in that was one con-
tribution for $500, and several for
$50 each.
During the 1955 MOD drive, Tay-
lor County raised money at the
rate of 76 cents per capita, (1950
census), according to Robert J.
Tiffany, overall campaign chair-
man, and he said that the chapter
is hoping to equal or better that
figure this year.
"Taylor County's population is
certainly larger than it was when
the last drive was held, but the
The fog and drizzle cut visibility
to four miles about 7:30 am.
Temperatures as low as 8 de- .
green above zero in the Panhandle Dallas
ed Wednesday. Heavy fogs brought
light drizzles to some points. Early
Thursday fog was reported in the
southern part of the state with
patches as far north as San An-
gelo, Abilene, Mineral Wells and
Vet Permitted
Open Hearing
WASHINGTON • — A hearing
open to newsmen has been granted
to James Kutcher ta his battle to
retain a $329 monthly veterans
compensation payment once sus-
pended on loyalty grounds.
YOU PAY
LESS....
When you pay by the year ter
your Abilene Reporter-News.
Coll or see yourcorrier, or diol
3-4271 Abilene, because the on-
nual rotes ore in effect ter o
limited time.
----------------------------------------
Bankruptcy
Trial Delayed
The first meeting of creditors in
the controversial bankruptcy ac-
tion of Runnels County oil operator
E. S Price Sr. was recessed here
Thursday morning in Bankruptcy
Court being held in the court-
room of the U. S. District Court.
Glenn Smith, U. S. referee in
bankruptcy from Fort Worth, re-
cessed the hearing a few hours
when the court wee unable to se-
cure a court reporter to record
testimony until Thursday after-
noon.
Creditors of Price appearing for
foe hearing, originally set for 10
a.m., included force agents from
the internal Revenue Department
in Dallas.
The agents during the afternoon
against Price by U seveenmen
See BANKRUPTCY, Pg. SA, C.S
equivalent to many million tons of
ordinary explosives and it can be
considerably increased,” he added.
"People who are trying to in-
crease tension should remember
the results of this test.”
(The telephone line over which
part of this story was dictated
was broken by the Soviet censor
for five minutes after mention was
made of Khrushchev’s statement
about the H-bomb.)
Khrushchev followed Premier
Nikolai Bulganin. Both speeches
bristled with attacks on "Western
colonialism."
On the Middle East Khrushchev
put forth these contentions:
1. The Baghdad Pact violated
the Geneva spirit and was signed
almost before the ink on thetGe-
neva agreement was dry. Turkey
is "mistakenly linking her “fate
with the aggressive Baghdad
Pact.” X
2. The Soviet Union sympathizes
with the desire of Arab nations
to win and maintain independence.
Jordan is the latest example of
Western efforts to involve Arabs
“in an aggressive military bloc.".
3 "From the first day of its
See KHRUSHCHEV, Pg. 3-A, Col.3
want you to know that the Ameri-
can people recognize the trials un-
der which you are suffering; join
you in your concern for the restor-
ation of individual freedoms and
political liberty; and share your
faith that right in the end will
prevail to bring you once again
among the free nations of the
world.”
Bozo Found;
Visiting Girl
Happy Again
Also Raps Harriman
Khrushchev criticized Gov. Aver-
ell Harriman of New York for a
similar message. ,-----..
"To pray for a change of regime | her English bulldog, Bozo, which
in the People’s Democracies is had been sought by her family and
crude interference in the internal by police since • woman made off
affairs of those countries and only with the dog Monday.
A man who identified himself as
Jenny Philley, 2, has got back
population figure .we will be using leads toinciting passions and the
are 1 : 1. armaments race,” the stocky Com- | Mr. Lackey took the pet Wednes-
"If anything, the need will be munist leader told the 1,400 mem-..........-
will be the same,” he pointed out
greater this year than it has been
in the past, because more money
is needed for Salk vaccine, for
research in alleviating the
crippling effects of polio on those
who have already been struck by
the disease, and for caring for the
thousands who still need direct
aid,” the chairman continued.
Main portion of the campaign
will start Tuesday, when porters
and coin containers will be dis-
tributed. Throughout the re-
mainder of January a series of in-
tegrated activities, each under a
separate chairman, will take
place.
"Though we ask for the
‘big gifts’ first, they account for
only a small percentage of the
total contributions,” Tiffany de-
clared. “The March of Dimes,
which make dollars to fight polio,
is still the main source of
revenue."
bers of the Supreme Soviet.
(As far as U. S. officials could
recall it was the first time any
major Soviet leader had used such
critical language about President
Eisenhower since the summit con-
ference in Geneva; in fact since
the Bulganin regime took over in
February after Georgi K. Malen-
kov quit.)
Khrushchev repeated the state-
ment he made in India after the
recent H-bomb test explosion in
the Soviet Union -- that the new
Russian weapon “was equivalent
to many million tons of ordinary
explosives."
He said that although "we do
not want to boast about our mili-
tary and technical strength." be
wanted to remind the West about
the test explosion.
“The power of this weapon was
day night to the home of George
Philley, Jenny's grandfather, at
234 N. 14 St. He said he had found
Price Daniel Yei
To Make Decision
HOUSTON m-Sen. Price Daniel
said today he has not made up his
mind about running for governor
and will not for some time.
"Matters important to Texas are
pending in Congress,” Daniel said,
“and until those are disposed of
I'll not be able to decide what I
will do.”
CAN'T HITCH
UP BUGGY NOW
This story wouldn’t have been
unusual in the 1890's, but hap-
pening in 1955 it rates atten-
tion.
Somebody has stolen a set of
buggy harness.
City, police were informed by
Sheriff Ed Powell that a thief
took the harness, some, time
since Dec. 12. It was the prop-
erty of Mrs Bud Crow, Route 4.
the dog “a few blocks away" and
having learned that the child’s pet
was missing brought it to the Phil-
Frank Philley, father of Jenny,
made the following statement for
publication Thursday:
“I want to express my apprecia-
tion to the Abilene Reporter-News,
the Police Department, stations
KWKC aid KRBC-TV and everyone
eire who has helped in bringing
about the return of my daughter's
pet bulldog."
Jenny and her parents, of Linch,
Wyo., have been visiting in ths
George Philley home. While they
were here, foe pet bulldog strayed
over to the Hatchett Service Sta-
tion in the 1300 block of N. Treada-
way Blvd., where a woman picked
up the dog and went away with it
Monday afternoon.
The woman who took the dog told
Mrs. Allen Hatchett, attendant at
the station, that she had formerly
had a similar dog, which had been
accidentally killed. Mrs Hatchett
didn't know at the time that the
English bulldog belonged to the
Philley child. -
Frank Philley said Thursday that
the man who returned the dog
Wednesday night was driving a
different make of car from that
driven by the woman who took the
THE WEATHER
cloudy with
-s AM
MERCE
m through
sr
ty. turning
w in Pan
New Dust Threat
Feared for Plains
WASHINGTON (—The threat of
new dust storms hangs over wide
areas of the Great Plains, the
Agriculture Department reported
today.
Reports from the field as of Dec.
1 indicated the department said,
that dry soils and below normal
rain and snowfall have left about
20 million acres of land in M Great
Plaim states in a condition to suf-
fer wind damage
This acreage, however, to about
six million less than that in a
similar condition a year ago. Se-
vere dust storms during too past
winter and spring caused heavy
crop losses and soil erosions, just
as they have done periodically tor
pend,” the department said, “on
such factors as the intensity of
livestock grazing, the type, veloc-
ity and duration of windstorms,
the amount and frequency of pre-
cipitation, and the timeliness of
emergency tillage in blow arena.’*
The department said about 75
per cent of land in a condition to
be damaged by storms is in Kan-
sas Texas and Colorado The
other states include New Mexico,
Oklahoma, Montana, Nebraska,
North Dakota, South Dakota and
Wyoming.
NEWS INDEX
many years.
Of the land subject to blowing,
about 13,886,000 scree is to crop-
land The balance is largely range
grazing land
“The total amount of land that
will actually be damaged during
• tridas vise,
p.m ma.2.
E.m.a
nd as hours and the current blew season will de-
SECTION A
Women’s news ...
SECTION ■
Reat, TV tegs .'..’.
Editorials ........
Comics .uvenmur*
..4,5
.6,7
....9
. .2,3
....3
....4
....6
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The Abilene Reporter-News (Abilene, Tex.), Vol. 75, No. 188, Ed. 2 Thursday, December 29, 1955, newspaper, December 29, 1955; Abilene, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1649987/m1/1/: accessed July 10, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Abilene Public Library.