The one great rule We will serve so group or party but of composition is to will hew hard to speak the truth'. the truth as we find it and the right as —Thoreau Trxas Obitrurr we see it. An Independent 'Liberal Weekly Newspaper

Vol. 47 TEXAS, FEBRUARY 1; 1956 10c per copy No. 39 Whites Accused Officials' Loans Reported AUSTIN 'political adviser to Reuben Senterfitt, a month from Feb. 1, 1954, through In Negro Death an announced candidate for governor. Dec. 1, 1968 and the balance on Jan. 1, 'A wholly-owned subsidiary of a VanCronkhite told the Observer in 1969. Houston insurance company has 'Playful Night of Gunfire' Austin he believes the interest rate is VanCronkhite s.a id his loan was made mortgage loans on the homes "about five percent." The loan is on "the same kind you'd have on your of three Austin officials and one .Ranger Quotes Accused his home. , house." He resides at 2414. Harris .specialist in pOlitical public 'relations A spokesman for American General Blvd. in" Austin. - His $25,000 note is AUSTIN here, but there is no indicatiOn at Investment- Corporation told the Cob- 'payable $197:47 a month from Jan. 1, TWo white men, 21 and 22' years this time that they were other than server from Houston: 1956 to Nov. 1, 1970, and the balance of ,age, may face trial in East Texas ordinary loans. • "I can definitely assure you that Dec. 1; 1970. It is dated Nov. 28, 1955. on a charge that they .murdered a they would be • nothing but routine Mark Wentz, •the other insurance American General Investment Cor- Pi-year- business'. Our operation is entirely commissioner, also boUght a home af- Told Negro boy, John Reese, poration, a mortgage loan house en- and injured- . two . younger, Negro separate *pm the insurance com- - ter his appointment to the board. tirely owned by American General In- - If Great .National Life Insurance Co. girl:, in what a pany., . Ranger caPtain said surance Company' of Houston, ac- carries his $15,000 note on his home. • they called "a playful night of gun- He said he didn't recall any of the , cepted indebtedness notes on homes fire' near Longview October 22. from - rnsttrance 'Commission Chair- loans but the one to Saunders. He said the company has "several hundreds of . L AST• WEEK. the Houston The two were arrested' la_St week. man J. Byron - .Saunders; Herman Post reported . that Garland Smith, They both made Begeman, head of the automobile de- thousands" of dollars in loans out- . statements. standing in Austin. Deed records for now resigned from the Insurance District Attorney Ralph Prince told partment in Saunders's casualty commission, borrowed . $6,000 - at 4 sion of the Cominission ; and Jack Dil- the county reflect extensive company the Associated .Press it was "a case of activity here. . percent on two Austin lots from In- two irresponsible boys who were at- lard, appointment secretary to . Gov- ternational Life Insurance Co. of Aus-. ernor Allan Shivers. American General Investment is one tempting to have some fun by scaring of the large mortgage lending tin. This was done two weeks after the NegroeS." Later he told a Houston re- firms in The sums of the promissory notes the state. It represents a number of state's new rental agreement with the porter that the :two - acctised parties were .$17,500, $9,500; and $17,000, out-of-state financial institutions, such firm went into effect. felt their acts were not racial. respectively. The deed of trust records as Metropolitan Life. The -Board of Control 'explained the "That was their impression. The in Travis County courthOuSe do. not E. R. Barrow, vice-president of fact that the state had agreed to pay boys. They didn't feel it' was racial," specify the interest rate :of the loans, International Life `$6,643 rental a Prince said-. ' but Begeman stated his was 4.7.5'per- Ainerican General. Life Insurance of Houston, told the' Observer that the month for the Insurance Commission's . Asked if he agreed with them,- cent and Dillard is paying 5 percent. offices in the International Life Build- Prince replied : These • are standard charges,* the Ob- going •iiiterest rate for such loans in Austin is now about five percent. ing, in spite of the fact that it had re- • "Oh, certainly it . was part racial. server is informed. . . . ceived- a. lower bid, because the low The impression we've been having to Dillard said: '"I had several com- bidder' did not ,have as much space as Saunders: could not be reached early pa.nies I could have Made the loan smother is •that -it is racial." this - week.: His note -provides for re the Insurance CommiSSion needed.. Ranger Captain Bob Crowder was through."' He said he had an insur- Will Knox, former state insurance payment of $113.09 on March 1; 1954, ance policy with American General quoted- as stating last. week and each month through Jan. 1, 1974, liquidator, now ,general counsel for Life:before he joined the Governor's -• "In our investigation, . we failed to and the balance'Feb. 1; 1974. , International Life, explained his fail- find anyone—including Dean ROSS— staff in September, 1954. The note, All of these notes were consutn- tire to file the deed -of trust. on the dated December, 1954, is payable $6,000 note to Smith by saying: -mated after 'these officials accepted $109,86 monthly to December 1, 1974 Observer editor accused; replies. their present positions in the state- just couldn't see any sense of spending Pad; 7. and the balance Jan. 1, 1975. It is on the $2 for filing." government. • • • his home at 3513 Lakewood Drive. The same investment company has Charles -McCormick, president, - of who will say there is a racial disturb- Bergman said he became head of the the company, said. it was "a routine alSo extended a $25,000- mortgage loan ance issue at alt at any time, in theSe auto department in. 1951. His loan— loan" and he would guess "most of the shootings.'" . - • to John .VanCronkhite, former cam- on his home at 3313 Bomtie Road—is paign aide to Shivers and presently a • Prince_Said would call an Austin dated Dee. 1953, and is payable $73.90 Continued• o n page 5) weekly newspaper editor •before the grand jury to explain why he failed to turn over "important evidence." • The Observer's editor said he would be Smith Quits; Turmoil Continues "delighted" to appear. Prince charged the - editor "tried to create the insinua- AUSTIN Ex-Commissioner Says Rentte Allred. former attorney for tion that a .racial .issue .was at stake Turmoil continues in Texas in- the 'state's liqUidator, suggested the and the 'lives of Negroes were • in surance as the Waco 'grand jury re- Critics Aim at Shivers House committee call Atty. Gen. John jeopardy." (See related story, page 7) sumes its probe this week. Garland Ben Shepperd to elaborate on state- Crowder arrested Dean Ross, 22, Smith has resigned the Insurance Dallas, .prdvoked the remark by rec- ments . Shepperd made indicating he ommending a - one-commissioner in- while he was on his way to the chemi- COmmission, Governor Shivers has did not trust the Insurance Commis- surance authority. Ralph Yarborough sion with advance information on a cal plant near. Marshall where' he blasted the industry, Rep. Sadler works. Joe . called Shivers's complaint "a shocking legal action against an insurance com- Simpson, 21, was 'arrested says maybe Shivers shOuld be im- in Houston. They are both from Ta- confession of governmental incompe- pany and that he was getting resist- tum, near Longvieviz:. peached, more -companies cloSe. It tence.", • ance in prosecutions. The Ranger said Ross told him he alniost takes a program to find -one's • Legislators called for a special ses- way -through the maze of charges Tzvo reporters, Torn Martin of the -and Simpson had been drinking beer sion. A Houston Chronicle question- 'Houston Post and Ronnie Dugger of after seeing a movie in Longview and and events. naire drew statements from 17 'solons the .Observer; should also be -called, "the thought ,occurred to • us,- 'Let's that - they . see such a need. Rep: Jerry Allred told the . committee, to detail make a raid'." - Smith quit under fire Monday. He Sadler, Percilla, agreed, said impeach- said his doctor said he needed to "rest quotes they published from' Commis- Crowder was quoted as saying that metit of Shivers should be considered sioner Saunders that he might have for an indefinite period of time." if he keeps backing the insurance com- Simpson admited responsibility . for . -Allred in mid-1954 that U.S. firing into a Negro school bus down Shivers accepted the resignation with missioners, and .called for impeach- told regret, noting that although Smith is Trust was 'insolvent. Allred testified the road from the cafe at which the ment of some legislators who were Saunders told him it was "broke," and, fatal bullets' were fired Oct. 22, and being criticized for clOsing unsound paid by U.S. Trust & Guaranty, resig- companies, , "I believe - the future will Saunders flatly denied it on the stand. that Ross admitted firing into the home nation of House Speaker Jim Lindsey The Observer (Dec. 21) and the Post of John Beckworth, a Negro and a commend him for initiating this because he's also holding a-private job worthwhile program." Smith, who (Dec. 25) had quoted Saunders that relative of the school principal in (executive vim-president of the Texas he might have said it was insolvent. Mayflower. (Mrs. Beckworth has came up the political ladder with Shiv- Good Roads Assn., backed, says 'Sad- stated she was kneeling at her bedside ers, stepped down as commission ler, by cement interests trying to sell Senate investigators were told by saying her midnight prayers and that chairman earlier in January and then the state their products). • • • Paul Connor, legal examiner of the the bullets narrowly missed her.) entered a hospital when his ulcers be- House probers heard'A. J. Bristany, board, that "actually there was no dif- Crowder stated Ross told him in the gan bleeding. U.S. Trust claims attorney, tell of ference" in the board's position be- presence of newsmen that he was also Smith said his conscience was clear Dallas C.P.A. -Felix Einsohn's mYster- tween June, 1955, when it found the responsible for other shootings in the of "any sense of wrongdoing" and ions. role as manager of the company company insolvent, and . December, Negro community of Mayflower in that any error he made had been "of from July through September. "Ein- 1955, when it closed the company—it March, April, and June last year< judgment." He told, the Governor he sohn seemed, to be a front man of says -now—to prevent a. run on its as- Rangers were reported searching had been made a "whipping boy" and some kited," Bristany said. "He had a sets. ( See page '6.). through driftwood along the banks of that the real motive of criticism of heck of a lot more authOrky than I realized, btat he seemed. to be getting U.S. Trust officers and directors the Sabine.,;River for the .22-caliber him was "to strike at you by attacking said in Austin court Monday that they rifle that was reported to have been me." Sen. William. Fly, chairman of his orders from somebody else, who, I don't know." Bristany felt 'Shoemake were merely "employees with titles" tied to a log and set adrift on the the Senate investigating group, said and that Shoemake was the "king bee." Sabine. 4We have hopes it may have "It is best that Shiith has resigned." was "bound" by whomever Einsohn lodged in a drift," Crowder said. Ear- represented. ( See Observer for Dec. The Waco D.A., Tom Moore, told lier police reports said 27 bullets were The Governor, who said in January 28, subsequent issues. The Observer Houston Jaycees unanswered ques- fired, but news re-ports cited the figure he has "full confidence" in all the com- has been informed by Sen. Parkhouse tions abotit U.S. Trust include these: 24 last week. missioners, charged the insurance Sin- of Datlas that BenJaek Cage of Insur- why did the commission allow U.S. Justice of the Peace W. M. MeHar- dustry has "done very little" to avoid ance Company of Texas was to be a Trust to operate 18 months after it its -present trouble. James Swift, vice member of the prospective new man- knew its general- condition ? have other Continued on page 5), president - oi Sout,lkisrgliem Life gtotlix): ,(Continued on page 4), Let those flatter who fear, it is not an American art. e —JEtTERSON

Scandal As the lawyers say, the credit in- Legislature has refused to regulate surance story is per se a major scan- loan sharks; not only providing them dal. The Legislature has legalized with what the Texas Secretary of and the Board of Insurance Commis-, State calls "a usurious subterfuge on sioners has promulgated official, le- the statute books," but refusing to gal animal charges of 140 percent make usury a crime, refusing to On small loans. This flies in the face limit total. annual charges, refusing of all- the theories that the , state to do anything but help the sharks should protect its needy citizens fleece the people. . from 'greedy . exploitation. How has Texas come to be so We will grant that the ten percent blighted with fake' companies and interest limit in the Texas Constitu- slick promoters ? tion is probably too low to support a • ith bribes, that's how. - small loan business without addi- The press of the state is at last ..-11-34r., • tional charges, but 36 percent total awaking to the long-ridden - Corrup- charges are standard in the states tion of _their state capitol. We are that regulate the loan sharks, and happy to see it. We hope the clamor here we wake up to find Texas offi- won't • die down till Austin' is VA! cials have legalized 140 percent. scourged of the parasites, ready-cash Behind the "face of it," there is lobbyists, and -politic! whores Who Bartlett Appears Exclusively in The Texas Observer an even worse scandal—the loan haVe so long infested it. The cry is shark racket. Texas is the worst going up from the innocents in of- usury state in the United States, fiee, "Save us - from the tide !" They U.S. Senator Langer says. ("The will have to save themselves, because JAILHOUSE BLUES Loan Shark State," say the wags.) the tide is the people, and. it is com- AU,STIN I imagine Bascom would lagt longer Ply is this so ? Because' the 'Texas ing. I see where the *district attorney than I, seeing as he has so many good out in Longview is going to have me lawyers who could .get to the grooms- up before the grand jury to explain man who - could get to the horses be- n AccuJation why I suppressed evidence that was fore the 'race:- btit. I'd be in there try- reported in t h e Observer last No- ing. The editor does not wish to com- crime. The newsman asked a 'deputy vember. He also says • I was stirring I'd not lack for contacts with the tip the Negroes out there and the outside world. "Oh, the disgrace of ment here on the charge of a district sheriff if Ross had been questioned, - it !" my spouse sobbed this morning. attorney in Longview that he ham, and the answer was no. Officers an- Observer was a constant source of irritation to his officers of the law. - 'I asked her if she'd wait for me and pered the investigation of the Reese nounced on January 26 that Dean she said she had neither Indian nor murder by failing to turn a bullet he Ross had confessed. I have always been curious about Mexican blood in her. But she is true found three weeks after the killing. prison -life. Maybe I could get a job blue. I would have asked her to pack The Observer commented editor- in the prison library and. catch up on However, we feel that we should ially on Nov. 2 : my bags by now, but when she read my reading.. Leadbelly did some of his about all this to-do about the lost bul- call attention to three matters. "Let us hope the incident was not best singing in jail, 0. Henry some racial. The evidence is not certain; •let this morning and said she seemed writing. With luck I might' get sent to to remember 'seeing it and thinking, The Observer, on Nov. 2, 1955, it is merely Obvious. But if it was Huntsville, where I could send out published the first comprehensive re "Qh, I'll just throw this old bullet racial, let no white man in 'East periodic exclusives on Bascom, the In- away," .1 decided rd. better pack m- port of the murder of 16-year-old Texas think he or the system of dis- ner Man. He told the warden he does-, Reese and the of two own. She cooks a mean spaghetti cas- criminations in which he lives can n't want to see any reporters, but the serole, and lately she has been using other Negro teen-agers by , night- take comfort in the hope that the jailhouse camaraderie might break the Sunbeani on pies..,.Then Minnie riders who also shot up a nearby him down. Maybe they'd 'even let us Fisher Cunningham lives only a few killers were 'young thugs on a be cellmates—I can see it now : Negro community, apparently firing spree.' For six months Mayflower miles from Huntsville, down at New 27 bullets in all. No conclusion was "Exclusive — Cellmate Tells All !" Waverly, and I know -she'd come to has been terrorized—bullets into I don't much want to be assigned to 'drawn in this story. three Negro homes, two Negro see me in the rodeo, anyWay. Unfor- the lidense plate-making section with tunately I don't know of any young The Observer editor now accused cafes, the Negro bus, the Negro him, though. License plates • don't ap= ladies who'd - make an annual pilgrim- of hampering the investigation. re- school -a-- and" not a voice raised peal to me. They might let me do pub- age, in a black shroud, but better yet, ported to the Longview. sheriff what against it, not a man, not a. woman, licity for the Prison Rodeo. I know a the Governor might send me a Christ-, may prove to have. been a -vital clue not a newspaper. If they were, in lot about horses, having been thrown mas,turkey on-the theory that I might the week after the ,killing. Then, on deed, teen-agers, then their parents over a fence by one once, and being go back to reporting when they spring his second trip to the . scene three must answer for them, and every blessed with numerous acquaintances me. man in East Texas who is an acces- whose phpiognomies bear marked weeks after the killing, though a similarities to aspects of the eques- I. wouldn't have to stop crusaclin - stranger in the area, he was told by sory to the climate where a Negro is trian genus. Who knows .... entirely. Maybe they beat the prison- townsfolk of a likely suspect in Ta- held as' less than a than and only "Out of Chute One comes 13ascom ers: Maybe the food's lousy. I'll find tum. He interviewed this suspect, slightly more than a mule." Giles, riding that rip-snorter from something. Then I'll stir up the pris- whose name was Dean .Ross, and Austin, 'Easy Money' ! And _Chute Jiners against the hated authorities. I The two white men now accused -wonder if BaScom will help. who denied any knowledge of the are 21 and 22 years old. Two it's Digger 'board 'East Texas Railroad' I" R.D. that the Lyndon Johnson-Price Dan- iel bill• to• exempt gas producers from Siate3man44.ir federal regulation is good for four states, including Texas, and bad for . KEEPING .„ YALL BEEN It is disgraceful to watch the the other 44. It will cost consumers AN EYE ON 'THINGS United States wrangle away the of natural gas hundreds of millions. RIGHT ALONG,HUH? opening Weeks of the 'Congress be- When we heard Daniel say two weeks ago that "we're not being cause Texans are pushing a special- selfish," we tried to follow his rea- interest bill, pure and siMple: We soning but were lost. Is Texas in agree with Senator Paul Douglas the union of these states or not? MIrk &I•xas Obstrurr

Staff Correspondents : Bob Bray, Galveston; FEBRUARY 1, 1956 Anne Chambers, Corpuschristi; Ramon Garces, Incorporating The State Observer, combined Laredo ; Clyde Johnson, Corsicana; Mike Misto- with The East Texas Democrat vich, Bryan ; Jack Morgan, Port Arthur ; and Ronnie Dugger, Editor and General Manager reporters' in Dallas, Houston, Beaumont, El Paso, Sarah Payne, Office Manager Crystal City, and Big Spring. Published once a week from Austin, Texas. Staff Contributors : Leonard Burress, Deep Delivered postage prepaid $4 per annum. Adver- East Texas ; Minnie Fisher Cunningham, New tising rates available on request. Extra copies 100 Waverley, Bruce Cutler, Austin ; Edwin Sue each. Quantity orders available. Goree, Burnet ; John Igo, San Antonio ; Franklin Entered as second-class matter April 26, 1937, Jones, Marshall; George Jones, Washington, D.C.; at the Post Office at Austin, Texas, under the J. Henry Martindale, Lockhart; Dan Strawn, act of March 3. 1879. Renedy; Jack Summerfield, Austin : and others. We will serve no group or party but will hew Staff cartoonist: Don Bartlett, Austin. Car- hard to the truth as we find it and the right toonists: Neil Caldwell, Austin; Bob Eckhardt. as we see it. We are dedicated to the whole Houston: Etta Hulme. Austin. truth, to human values above all interests, to the MAILING ADDRESS: Drawer F. Capitol Sta- rights of man as the foundation of democracy; tion. Austin, Texas. we will take orders from none but our own EDITORIAL AND BUSINESS OFFICE: 504 . • conscience, and never will we overlook or mis- West 24th St.. Austin, Texas. Phone 7-0746. represent the truth to serve the interests of the HOUSTON OFFICE: 250.1 Crawford St., Hous- powerful or cater to the ignoble in the human ton, Texas (Mrs. R. D. Randolph, director, sub- By Etta game for The Texas Observer spirit. scription drive; Richard Kennedy, field director). 'Junior' Senator and the Hot 'Draft'

MARSHALL FRANKLY SPEAKING sue" and the school kiddies- rivaled The strategy of Senator ( junior that whiCh surrounded George Hull's grade) Daniel in his bid for the gov- Cardiff Giant. Rescue by legislation is tion was made by the coat-tails of ex- -ernor's chair is becoming increas- not the'. desire or prize of many law- 'I'm Ashamed' ingly. clear. First, he is being drafted Shiverites running away from the yers who can't win their cases in court by the grrreat masses as the only gathering storm, in the knowledge the Senator employed politics as 4,To the Editor : that they could do business at the same " Please accept my thanks and appre- nian who-can lead. Texas in this cru- a means of making this seem an honor. old. stand under his banner. True, the The most dangerous hoax for the -ciation for doing a very difficult task cial period. Next, he. is -above poli- "smart money" of those who think liberals to overcome is that Shivers's well "While truth often hurts, it tics, as one journal reverently put• they have a vested interest in the gov- is essential for intelligent decisions heir apparent can't be defeated. Even it, almoSt like (genuflect) Eisen- ernor's office is available to him, but it those who would detest seeing him and social progress. hower himself. Lastly, he has al- I heard over the radio—and see by elected engage -in a form of head- Ways been solely for God, for Coun- shaking "Torn of 'unreasoning defeat- the press—that Texas Rangers have try; found the killer of John Earl Reese, and for Baylor, and can't be de- ism. They seem to forget his party, in the Mayflower. Community, East feated anyway. Interpretive perfidy of 1952, his connection with Texas. I notice it took some one whose . All of these premises are as phony state government during the time that abuses were being piled up to later job did not, depend upon local people as the mermaid sometimes exhibited to get the murderer identified. Of at county fairs. His supposed draft erupt in the land and insurance scan- course, 'not by name, but by descrip- creaks so heavily in its manipulation wasn't drafted—it came a-running. dals, his affinity and political kinship tion, the Observer was condemned for that it would be laughed out of exist- The cruelest deception of all would with the Shivers machine, and count- less other points. tryino- to make a racial incident out of ence anywhere outside of Texas. be the belief' that junior is above poli- this killing.6 The radio reporter quoted Scouting expeditions among the liber- tics, a belief akin to the aura of infal- We are indeed confronted with a the Ranger as saying it was thing of als to sell them a bill of good were libility that has been permitted to paper tiger, a noise on the stairs with nobody coming down. the kinds': Just a group of young men tried, with very. poor results. gather around the figure of St. Ike. who decided to have a little fun by The only genuine draft in his direc , The pure hokum of the tidelands "is- FRANKLIN JONES scaring the Negroes! Not a racial incident, indeed ! It is nothing else but just that ! It does not take the shadow of justified revenge LEGISLATOR - LAWYERS SCORED BY EDITORS or anger to make a racial incident. The two men involved would not ,AUSTIN warrant a demand that ;the commission of political- pay-offs not only for mem-. have thought of shooting into a group Texas editorial writers turned on itself be subjected to a thoroughgoing bers of the Legislature, but for others. of white people for fun. It could have influence-peddling by legislators last legislative investigation," said the Ex- a few senators and a few rep- been only Negroes., And why? Be- week. One of them also turned on press. resentatives, when elected to office im- cause Negroes do not amount to any- Corpus Christi and found himself The News said the "show solvency" mediately go on the payroll of some thing anyway (in their thoughts). If threatened with a subpoena to give order of last week was "an excellent special interest or of some special cor- one is hurt, or killed, the 'law' will do facts or tell why he wasn't ."suppress- headline maker" but "obviously be- poration. While this isn't the general nothing about it. If they are kept ing facts of crime." lated." "Its defect is that it should rule, yet it is a widespread activity .. have been made at the first sign of scared, it helps keep them in their The Dallas News said that state of- "Certainly not all the various place and prevents trouble. Of course, trouble." branches of government in Austin are ficials who take a box of cigars at The Houston Chronicle said : "The these young men are as much the vic- Christmas, a trip to some resort, or a crooked, nor a majority of them. But tims- in this thing as the one who was whole disgusting .mess is a shameful it has long been known that the en- loan duly recorded and repaid, are do- indictment of official supervision and killed (but of course not to the ing wrong. "Both the offer and the ac- •forcement• agencies in Austin pro- ; degree). - betrayal of public trust by public offi- tected the gambling in Corpus Christi ceptance are improper" and should be cials.". The- pattern of community life is made a legal offense, said the News. and the gambling in Dallas. And Cor- which made this murder pos- the thin.- "It is not enough for trustees to be pus Christi, Galveston, Austin, and sible—the way people regard one an- EL PASO Herald - Post, Dallas for many years were the No. other, and why—the way Negroes are honest, they must be scrupulously honest." , which has. opposed Shivers, called for cesspools of crime and corruption,_ thought of, and treated .... And who his impeachment, "If he doesn't quit, with the newspapers and law enforce- is basically responsible for this? The In Fort Worth the Star-Telegram Governor Shivers should be impeached-- ment at-encies in. these towns standing church.• It is the function of ' the asked why the State Bar failed to in- and forced out. He is responsible for around and pointing their fingers at church to teach and inspire our people vestigate legislators involved in the the insurance scandal because his ap- other communities in order to hide the to live above the mistakes we have in- veterans' land scandals as they are pointees allowed it. He was a member shaine .... • herited. - - - but our church has been now investigatinc, U.S. Trust's legisla- of the Veterans Land Board which • "Just think ! This insurance scandal --- content to be identified with the mores tor-lawyers. Theb fact that 16 percent was supposed to protect the $100 mil- and land office• scandal have brought of the community, rather than to of the Senate admits they were paid lion the people voted to lend veterans great shame and disgrace to the entire purge it of its dross. As a minister in by U.S. Trust "raises a question about to buy farms and ranches. He didn't state of Texas, and probably there's a church, I am ashamed. other members,"• said the paper. A law ... many members of the Legislature hardly an agenCy in Austin without a SHERWOOD S. DAVIS should be passed spelling out what is should also be inapeached." high degree of equal crookedness. Alamo Methodist Church and what is not legitimate employment The Herald-Post condemned the "The distinction of being the most San Antonio for a salon. It "would not be easy to trips to Hawaii, Mexico, and Cuba by By the way, I have been draw" but "would greatly enhance the corrupt, state in the nation must be P.S. commissioners and asked why Shivers shared by • the newspapers of Texas •: deeply disappointed by seeing you prestige of the Legislature." hadn't fired Garland Smith and Byron carry- beer ads. Can't you succeed, ei- for their lack of editorial integrity in: Editor George Carmack of the Saundei-s. "Would they talk if you refitsing to -print honest and truthful! . ther, without accepting orders from 1-louston Press asked how big the to- acted, Governor ? Do they have any-. them ? I wrould like to help you find criticism of situations.which have been---' tal "legal fees" paid legislators could thing to talk about that would dis- so evident for so many years." a better_ way. be, seeing as U.S. Trust is only one please or ,embarass you?" "The head " (Rev. Davis is chairman, San An- company. He said. the Austin question of the state's most corrupt administra- tonio Committee on Race Relations.— M AYOR FARRELL Smith is not one of "right" or "left" but is tion. remains mute. Why ?" asked the of Corpus said he would ask his DA' Ed.) one of right or wrong. He said Ralph newspaper. • to subpoena the Laredo editoria_ Yarborough does Texas no •good by writer. "If that writer has any infor.. From Kenedy putting the U. S. Trust matter .in poli- MOST SWEEPING charges mation on corruption here, he has the To the Editor : tics and that Allan Shivers should not came from the Laredo Times. An edi- duty under law to come •before the The relief article (Observer, Jan. be silent. torial charged: grand jury and present the facts. 18) caused some consternation here. San Antonio Express slammed at "State agencies have been for sale Otherwise he is guilty of suppressing The 'banker is made at me and the "moral flabbiness permeating '(the) at a price in Austin for many years facts of crime," Farrell said. He called Mexicans are made afj. K. Thigpen . state government" and asked : "What ... Austin is riddled with corruption, the editorial "shotgun character assns.- ... There are ,getting to be too damn other scandals may be cloaked by the probably greater than any other city sination" and: "perversion of freed_ om many subscribers here—more conserv- creeping secrecy that has afflicted our in the nation. The land department of the press." "I .am not aware of any, atives than liberals. Hope Price runs state government ?" Indications of the scandals were merely samples ... For gathering storm in the... knowledge and cleans up this mess. Insurance Commission's "reluctance many years the handling of insurance The DA—Sam Jones, Jr.—said he DAN STRAWN to play fair and open with the public companies in Austin has been a source saw no basis for such a subpoena. Kenedy Some One Might Say Talk On Suddenly, all men arise to the noise GOOD LUCK To the Editor : To the Editor : of fetters breaking It is amusing to hear an aspirant for And everyone smiles at his neighbor To the Editor : public office say that he is waiting a "Let's not forget the insurance mess and tells him his soul is his own." .... Good luck on your tussle with in Austin ...." Those were the words Call from the people, when this opens We do not fear and will not flatter the Gregg County grand jury. I be- the door for someone to allege that he of Ralph Yarborough two years ago. `(or falter) in 1956. lieve in the "Final Triumph of Right- tally waiting a draft from a few Shivers answered by hollering "poli- ELGIN WILLIAMS eousness," but it is certainly easy to tics:" Now thousands ... have lost Iple with big fat pocketbooks 624 Lamar Blvd., Austin say with the Psalmist, "The wicked J. J. BATES their savings and security ... and watches the righteous, and seeks to 1107 Medical Arts Bldg., Waco Shivers is still hollering "politics" .... Separated Texan slay him" (Ps. 37:32). Talk on, Judge ! To the Editor: God be with you ! With It CLYDE E. JOHNSON What 'a relief it is to have your REV. GUS BROWNING Box 156, Corsicana newspaper ! Why, a separated Texan the Editor : DANIEL HIT lea put my name on your mailing Motto for '56 could get mighty mixed up if he had f`O 'a year: >I appreciate your Jef- to depend on what -he hears around To the Editor: 61ian, blovvs • for Jeffersonian de- To the Editor : here for his news about Texas. For- (Your) Editorial stated that Price racy 1_ -On with the battle! I say let Minnie Fisher Cunning- tunately, I have enough old copies of Daniel was honorable. But in this BONNPR FRIZZELL ham quotation be our motto for 1956 The Texas. Observer to refresh my writer's opinion Price Daniel is a 712 Ics,c0e,e3,St:r Palestine. "So when the world is asleep, and memory about the truth in Texas .... traitor to the Democratic Party there seems no hope of her waking EDWARD F. SHERMAN Can a traitor be honorable? TexaEk Obsex*e., Out of some long bad dream that Box 980, Georgetown U, MRS. ALLIE TUNE Pay ;3 - F414 .411956. makes her mutter and 11104.14 Washington, D. C. 141*San Francisco, San Antonis a law partne7.- of Cain who appeared with him before the commission rep- . Dearth of Statements resenting Home Life and Accident and who handled the credit insurance AUSTIN Credit Insurance mittee March 8, 1949. He recalls that bill before the House Insurance Com- Three of the state's high officials Will Knox of the Insurance Commis-. mittee in 1949—said about the bill at —Governor Allan Shivers, Attor- sion• had .written it. "I thought it was the 1952 commission hearing on. credit Not Often Discussed insurance : "Price Daniel will tell you' ney General John Ben Shepperd, a good bill and still do," he .told the for Price Daniel; assisted in • filing Observer. He argued.in .1949 that it I spent many hours -with him on this and former Attorney General (now would regulate credit insurance, which bill." Senator) Price Daniel—do not seem about two dozen local ,suits seeking to . curb credit insurance early in 1948. he said was a schethe and deVice to In'Dallas, 'Bergman told the Ob- to, have exerted any decisive influ- Frank Can Chairman of the board of extract usurious interest from bor- server that Daniel .had co-operated ence against the development of the other large credit insurance firth rowers, he recalled. with the Dallas district attorney's of-' credit insurance as a hefty "income (Home Life and Accident), talked to During a 1951 hearing on credit in- lice, with which Bergman was then.as. supplement" for Texas small loan Daniel about a "regulatory" bill be- -surance before the commission, Cain sociated, in bringing cases against loan companies — and a corresponding fore it was passed in 1949. said the industry and the people owed companies using. credit insurance in "income deduction" .. for small bor- A report from informed sources in- the commission and the state gratitude 1948., "He (Daniel) was working on rowers. dicates that Cain quoted parts of a "along with the Attorney General of credit insurance," Bergman said. "At that time many had high rates, no As far as can be ascertained, none telephone Conversation he had with Texas who in 1949 saw' the serious of these three has made a statement Daniel early in 1949 which Cain said problem. According to the . official policies. were issued, there was no reg. against credit insurance. committed Daniel to Cain's idea of a transcript, George Butler; chairman of ulation whatsoever. Price Daniel's of- Shivers has urged "needed re- "regulatory" bill. Daniel's associates in the commission at that tithe, said : "It fice "collaborated with a number . of . forms" to the "code of criminal pro- Austin insist Daniel sought to curb was finally left up to myself person- people and Daniel wrote a credit in-, cedure" in connection with "loan credit insurance at that time, not to ally, and General Daniel, and David surance regulatory w—ifla he didn't legalize it, as the Cain-promoted bill Irons (a Daniel aide) ... and Mr. actually write it he helped on it." This shark legislation" but his press aide in did not remark on his credit insurance did Cain maintains " it also • reduced Will G. Knox (counsel for the com- bill then passed . the Legislature abuses then prevalent. mission) in drafting a bill to be pre- 1949, Bergman said. comments. Shepperd has condemned 7 "loan sharks" but no statement has Martin Harris, who had been on sented to the Legislature. As you In Austin, Martin Harris corn come from him on credit insurance. , Daniel's staff in 1948 but entered pri- know, that bill was passed two years . mented: "The only (bill) I looked at, Daniel, when assistant attorney gen- vate law practice at the end of that ago." This would be a reference to S. Will Knox wrote." . eral, evidently was involved in consul- year, testified in favor of Senate Bill B.' 208 legalizing credit insurance. Knox is now an employee of Inter- tation which preceded passage of the 208 before the Senate Insurance Corn- Rep. Douglas Bergman of Dallas— national Life Insurance Co. of Austin. credit insurance law. On Jan. 12, 1955, in his address to the Legislature, Shivers said: Turmoil Continues "I hope you will again study care- Smith Quits; fully our code of criminal procedure, (Continued from Page 1) announced he had been. engaged by a field report indicating one of the three including bail bond statutes, law en- state • officials accepted favors like in- Houston law firm to defend a U.S. companies selling GI's auto insurance forcement, crime prevention, and loan Trust policyholder in-a car - damage is charging -216 percent of the legal shark legislation. Needed reforms surance commissioners have admit- ted.? suit tried in Angleton. His fee was rate. should be adopted at this session." He $150. He billed it to the Houston firm, Another company — Texas Union The "influence' picture simmered. did not go into this further. - County Mutual of San Antonio — Straus's of Hallettsville, who which sent it to U.S; Trust;' which On March 29. 1955; Shivers urged Sen. Gus. paid the bill. Phillips said. he was not went under. The commission failed to passage of the general securities regu- told the Observer in 15ecernber hiS law notify the press of this as it had prom- - A. B. Shoe- hired by U.S. Trust and has never lation bill over the wishes of what he partner had -worked 'fori ;met A. B. ShOemake. Phillips was one ised ; the Housttn Chronicle had to make, announced he will not run ,for _ called "greedy promoters." This per- of a group of senators Who tried to dig' it out. A ,Dallas investment com- tamed to stock - selling companies, re-:election because of poor health:- pass out of a committee a bill that pany, Colonial Investment - Corp., and some of which use the "investment Sen. William Shireman, Corpus, said would have regulated Shoemake's op- five subsidiaries, were put into receiv- certificate" lending plan, but it does he will return the $3,000 cash "fee" he erations. The fee was paid after this ership in Dallas. Joe Irwin of Ameri- not bear directly on credit insurance. got from Shoemake without doing any 'legislative fight. can Atlas in Dallas won a court vic.- Shepperd appointed a small loan in- work for it. - (The cash payment The Insurance ComMission. an- . tory when a federal judge in Dallas "should have made me suspicious," he - dustry- grievance committee in 1954. nounced it will re-license or fail to re- _asserted jurisdiction o v e r One of its original five members was said.) One ex-employee of U.S. Trust -- license all 1,400 Texas companies by banlcruptcies, leaving the state's ac- '_,Wright- Titus, president of one of the said Sen. Jep Fuller, Port Arthur, May 31. Searching forms, are being tions against Irwin (see recent iSsues)' . state's two biggest credit insurance -earned his fees from U. S. Trust; _sent to• them •all. They will be filled in_ in abeyance. companies (Bankers Health and Ac- another said a U. S. Trust subsidiary . by company-hired aoccuntants. The Then, Monday, two more San An- cident) and therefore closely con- for • which Sen. Kilmer Corbin, Lub- much-touted "statewide C.P.A. audit" tonio companies — Great American nected with hundreds of small loan - bock, said he handled legal cases in of all the companies now seems in Loan and Trust and .the Assurance .companies. A borrower is asked if he return for $500 didn't have 'any law doubt, at least' in part. Shivers hailed Society of San Antonio—folded, the -would object to the complaint being sits in 1955. Rep: Bert McDaniel, the new plan as "another constructive first voluntarily, the second - when the referred to the grievance committee. Waco, Shoemake's attorney, said he. step." The commission also released a commission refused to license it. -If he does not, it is turned over to •has conducted his business "on the that group for action. highest -legal- and ethical level," had Shepperd's predecessor, now Sena-. never been paid for his legislativ.e work, and __knew of no other solon.s Bert McDanie on Lobbying who had. (Did- he discuss bills with AUSTIN ister the sources from which they ac- .Second Report Next Week Shoemaker he was asked. "Yes. He cept such? was a constituent of mine," he ie- It is interesting, in . light of Rep. The Observer will present the . plied.) Sen: Ottis Look of Lufkin au:- Bert McDaniel's testimony last week . A. Yes—Unless such violates the second of two reports on the about his employment by-u.s. Trust & attorney-client confidential relation. tkovid a comnaittee resolution asking you moneylending situation for small the state Bar to help write a bill to Guaranty Co. to review his replies Q. Are you on a retainer ? Do borrowers in Texas next week, "regulate the practice of law by mem- last May to the -Observer's question- feel it influences your vote, or might? certain other matters having en- bers of the Legislature before state naire on lobbyists and-influence ped- A. No. •gaged the attention of the staff executive agencies." The bar said it dling.noItv O. What is your Opinion about the prior to this week's edition. would. . . willM be recalled that McDaniel did representation of clients by legislators Senator Jimmy Phillips of Angleton vote on H. B. 240 when- it was. before state boards and agencies on passed overwhelmingly by the House. matters affecting a state prograrn? •. This was the bill to regulate- U.S. Have you clone such work? Trust as a bank. A. Yes. As attorney and represen- Lots of companies , The 'Observer received responses tative I have found it necessary to aid' Sell life insurance from 59 legislators on the lobbyist the poor and the rich alike in present- questionnaiTe (see special report on ing. their causes before state agenCies, BUT lobbyists, May 23, 1955).. Here are So' that they would be assured of fair some of the questions and McDaniel's and impartial administration. NDUSTRIES LIFE answers: Q. Should a legislator disqualify OIL I himself from voting on an issue af- SELLS MORE INSURANCE Q. What is your opinion about the fecting .interests from which he has SETS MORE RECORDS acceptance- of retainer fees by legisla- benefited financially? - torsA. ? A. - Yes, and the Constitution so AND IS FRIENDLIER Some should not be accepted if provides. Than Most. intent of hirer is to irifluence legisla- Q. ... Do you believe improper in- tor to give or withhold a vote on any fluence by lobbyists is the exception or measure; if legitimate law business the rule? not connected with legislation, no ob- , A. Yes. jection. Q. Will you please list any instance Q. Do you think legislators should of ... improper influence (omitting be required to enter into a public .reg- names) which . you think should be called. to the public attention ? IF YOU BUY A CAR— - A. I have no personal knowledge of affiliated with IF YOU BUY A HOUSE- such and if I had I feel same should . IF ANY OF YOUR POLICIES EXPIRE—; CALL be made public. Q. Do you think lobbyists should 'BOW' WILLIAMS he required to enter into a public reg- -r Automobile and ister the money they -spend, and fo.. General Insurance . what?. • A. Yes,. No [both .marked].. A good Represents ICT registration act would be in my opin- Western Indemnity Life Insurance Company ion for the best interests, of the state. The Company Owned by Union .Members // Home Office : 5011 Fannin, Houston, Texas 624 LAMAR BOULEVARD AUSTIN. TEXAS AGENCIES THROUGHOUT TEXAS TELEPHONE GReenwood 2-0545 The Texas Observer "LET'S ABOLISH THE POLL TAX" Page 4

Officials' Loans Gen. Eisenhower at Kasson, Are Reported The Promise.: Minnesota, Sept. 6, 1952 (Continued from Page 1) state officials have loans from insur- ance companies on their homes." "And here and now, without any 'ifs' or 'buts,' vegetables that support our nutritious national diet. McCormick said the loan had no I say to you that I stand behind—and , the Republi- As provided in the Republican platform, the non- connection with the rental of the building "by any stretch of the imag- can Party stands behind—the price support laws perishable crops so important to the diversified ination." now on the books. This includes the amendment farmer—crops such as oats, barley, rye, and soy- The Post reported Smith borrowed . to continue through 1954 the price supports on beans—should be given the same ,prote.ction as $13,500, at four percent from Com- monwealth Life and Accident of St. basic commodities at 90 percent of parity. These available to the major cash crops. Louis, Mo., in Jan., 1950; and was price supports are only fair to the farmer to under- given a clear deed to the property on The Democrats keep saying, 'There is no which the note was written July 2, write the exceptional risk he is now taking ... 1952. On June 30, 1952, Smith bought way of protecting perishables except through the property at 2004 West 9th St. here, "I firmly believe that agriculture is entitled to a Brannan Plan.' But and Franklin Life of Springfield took we can and will find a sound his $14,375 note at 4.5 percent inter- fair, full share of the national income and it must way to do the job without indulging in the moral est. be a policy of government to help agriculture bankriipIcy of the Brannan Plan ... Mrs. Smith said in Austin the Post achieve this goal And a fair share is not merely article was "libelous and .slanderous." "I give you this positive assurance : 90 percent of parity—but full parity! The Repub- "Doesn't everyone borrow money to buy a lot or a home?" she asked. "... lican Party will use all the power it legitimately U most property purchases are financed ... we must find sound methods of obtaining can use to see that American farmers obtain their by insurance companies We are retiring the loan by the usual monthly greater prbtection for our diversified farms ... They full share of the income produced by a stable, pros- payments." yield the rich variety of meat, milk, eggs, fruits, and perous country ..." S MITH, when an executive assistant to Shivers, bought a 125-acre farm under the veterans' land tiro- gram in 1949. A letter published by the Post last week, written by -Smith Eisenhower's Three-Year Record on executive department stationery, began: "Friend-in-Crime : Could this be processed immediately if not soon- On. Farm Prices er?" 52 1953 1954. A Land Board spokesman said there 1955 - is no immediate way to know whether Moo. Jun Doe. Mar. • jam* the letter was written to Bascom is Giles. Smith bought the land at . $25.69 an acre and has 40 years to pay the General_ .Statement on Agricultural Policy by Seely 'Densoil k'fabm 5, 1959s f state back. . . , sPrici Supports should provide.insurance against disaster Too Many Americans are calling on Washiagton'to do for they what they should be Willing-to do-for themselves...Inefficiency should not be-subsidized in agriculture....Delic! Art Censorship Refused programs should'be Operated as such =--not as an aid to the entire agricultural induetry.:..In the administration •of this'Department, the guiding purpose will be to strengthen the individual integrity, freedom, and the very moralfiber of each DALLAS citizen * I i . 1 - I • I. I 1 . .

The "communism in arts commit- Vcoolution.by American Fare Bureau board, Feb. 5, 1953s tee" of the Dallas County Patriotic We commend the Secretary of Agriculture for his forward looking.statem.. Council - . sent on agricultural policy. The general philosophy enunciated by the Secretary has asked the Dallas Museum in hie statement is consistent with lo-standing Farm Bureau policy.* • of Fine Arts to withdraw from exhi- I 1 bition font paintings because of the /Miry Prioes Decline: ig political beliefs of the artists—and the Benson announced Feb. 27, 1959, he would support manufactured dairy pro- museum refused flatly. • ducts at 90% of parity for 1953-54 marketing year--but permitted prices recieved by farmers to drop to an average of only 83% of parity for the year. The museum board of trustees cited I • 'I I . a Dec. 7, 1955, policy statement : "The Price Supports Cut: Oct. 14, 1953--Supports for tong nuts cut from $63.38 to $54.96. policy of the tru-steeg ... is to exhibit Oct. 20, 1953 - -Supports for barley out from .11.24 to $1.15 tbu.; and acquire works of art only on the Oats frog 800 to 75% bu.; Grain Sor hum from $2.43 to $2.28 cwt.; Cotton• basis of their merit as works of art; seed from $54.20 to $54.00 ton. — I I 1/4 T- and to exercise their best judgment to Seely Benson', to Farm Bureau oonvention Dec. 16, 1953s protect the integrity Of the museum as Sect Benson, at *Let me assure you that though the solution of the farm a museum of art and a municipal in- Burlington, Vt., Nov. 18, 1953: •g& problem may still be in the future, considerable progress has stitution." oThis has been a difficult year...but been made along the road to recovery. I believe I finely believe most of the price adjust- that 1953 has marked the turning point--in the right direction.* The board invited the council— ments have now been made. The situation has become fairly stabilized...The retreat 1 made up of -various-civic and patriotic of farm prices and income....seems to have Soy Bean Supports cut--from $2.56 to $2.22 bu., groups—to send a committee of five been stopped a few short months after-we Jan. 22, 1954 to any board meeting to talk about the 'took office.* • I Dairy Supports Cut: Feb. 14, 1954- - -Butter support price situation. Price Supports Cuts cut'from to stile lb.; NanufacturingHilk Sept. 15, 1954: Wheat cut from $3.74 to $3.14•cut. $2.24 to $2.08 bu. Deo. 13, 1954: Grain Sor- Dr Edible Beans--cut Mar. 4, 1954, JOHNSON TESTIFIES ghum from $2.28 to $1.78 cwt.;. from $7.79 to ;7.24 clot: Barley from $2.28 to 94 bu.; 87 Oats from 750.to. 64 bu.; AUSTIN nrx• $1.43 to $1.18 bu.; Sow C. T. Johnson, Austin real estate beans from $2.22 to $2.04. bu. man who ran for lieutenant governor C0TTC6seed from $54 to $46 ton. last year and lost, appeared before the ISINSON.Twtn.Farl, Bureau nonention Dec. 16, 1954: .,:wIle are headed in Travis County grand jury Tuesday at BENSON: —the right direction at last." his request on what he said was a mat, Nat'l Editorial assn Feb. 4, 1955 - -"Farm income has been atabil- 1 1 I ter of "great importance to all of feed now'for some months of one Price Supports Cut: ' Texas." would not comment f ur- thing you can be certaat The better Corn cut from • 1,02. to $1.58 tu. Mar. 24, ther. 1955. Dry Beans cut from $7.24 to $6.36 bu. Apr. 8, 1955. Rice cut from $4.92 to $4.66 bag Hay 13 * * * 1956. Wheat cut from $2.08 to $1.81 bu. June 10, 1955. MER-Nuts cut from $54.96 to $51.06 ton Houston's voters approved a new Oct. 11, 1955. 111.22 cut from $4.66 to $4.09 for $21.5 million bond issue for per- 1956 crop. manent improvements Saturday. Vot- ing margin was between one and a M5:—to Nat$.1. Council of Farm Co-ops Jan. 16, 19561 . half and two and a half to one. new buoyancy in the wirketplace - -a new hope--a new * * * vigor and seat--can be anticipated • surely it should be reflected 1 in ices and iettmal.* Gov. Shivers is reported from Washington taking a leading role in a Southern move for reinstatement of the two-thirds rule for party presi- dential nominations. From the Washington Newsletter of the National Farmers Union, January 20, 1956 The Texas Observer (Advertisement) Page 5 Feb. 1, 1956 • Trust was insolvent." Finally, Saun- ders added, U.S. Trust had a reinsur- ance contract with an Arkansas com- Mr. Shoemake and Humanity pany, and, he said, their examiner had proved the Arkansas firm "insolvent AUSTIN. from its inception." Insurance . Commssioner Says Doesn't Care 'Who Gets It' A. R Shoemake, the man who Commissioner Garland Smith said tried to kill himself and failed, asked At September 16 Hearing on U. S. Trust &. Guaranty . at that interview: "I don't know any, • the insurance commissioners last bankruptcy in the, history ,of Texas vency. Therefore, if you believe that did not know anything about such an that affects more people." Smith said September if they were interested in it is solvent, due to the great public arrangement. Senator William Fly of they were "trying to salvage the com- humanity,' and he got an answer interest involved because of all these the Senate committee asked him if he pany" but were "unsuccessful." that satisfied him.' depositors, I feel that in order to put had heard anything about a report Fly Now it is the position of Saunders, But the import of this exchange and your best foot forward you will have had that Shoemake had to buy his in- on behalf of the board,• that t*T did other puzzling allusions which appear all available operations and recom- terest back, and Saunders replied he not close U.S. Trust for insolvency, in the transcript of the last-gasp hear- mendations ready to be considered as hadn't heard about it. but to preevnt a run on the company ing on Shoemake's U.S. Trust may a part of the consideration going into To this day nobody , knows who's resulting from the board's _announce- not be known until Shoemake recovers the ultimate decision as to how the talking who was in this new man- ment it had denied--U.S. Trust a se- enough to testify—if he does. (He best interests of the public will be agement group. Einsohn.told the Ob- curities dealer's license. served, whether by continuing the was weakening at last report.) server Shoemake did not relinquish company or by liquidation. Is than an THE Sept. 16 hearing, a -- The Texas Observer has obtained a his control, but a voting trust arrange- AT answer?" Stryker, apparently an accountant copy of •the transcript of the Sept. 16, ment was intended at the conclusion .Mr. - 1955, board hearing on U.S. Trust & "That's an answer," Shoemake re- of the audit, he said. employed by Shoemake at the last Guaranty. C.P.A. Felix Einsohn and plied. Saunders testified two weeks ago minute after Einsohn dropped out, a Dallas management group that was "I mean an answer you under- that he does not say the company is or was questioned by Connor and Saun- considering taking over U.S. Trust stand," Saunders pressed. is not insolvent. He said the board did ders on a financial statement. He did had apparently dropped out. At the "Yep," said Shoemake. not have legal evidence the company not know answers to some of the September meeting the board was not . Rep. Bert McDaniel, Shoemakers was insolvent and still doesn't know. questions ; he had not done "one mo- counsel, asked Saunders : "What is the ment's work" on -*U.S. Automotive convinced by another auditor's pre- In an interview with the Observer a sentation of the company's finances. alternative ?" Service. "The company is practically out of few days after the company's shut- Saunders said the new laws in, force "The board= feels that a considera-: the insurance business now," Satin- down, all three commissioners agreed as of Sept. 6 had to be followed in de- tion of the (company's) filing in its ' ders replied. "You have 90 percent re- the company was insolvent. How, termining the present condition of the present form would only tend to prove insurance of the business ; • you are asked the Observer, could they be sure company, "if it is changed and if it is insolvency through 'a deficit in the ap- merely using this company as a shell to it was insolvent if 'they were not sure worth saving." praisals," Commissioner J. Byron get money from the public to operate about the value of the assets in deben- McDaniel said : "We are not trying Saunders said in September. Saunders • the U.S. Automotive Service." ture bonds—that is, U.S. Trust's' to hide anything." ordered company-paid appraisals of its (This is the auto agency network claim on U.S. Automotive's assets? Shoemake was examined by. Connor properties "in order to have a legally which Shoemake also owned. U.S. Saunders replied by citing four rea- on the value of certain properties. He defensible position, either for solvency Trust was selling "trust certificates" sons. First, he said, U.S. Trust's defended values that the company was or insolvency-." - to the public.) $800,000 cash Would not liquidate $6 Maintaining, He sajd that his home- (In his formal statement to the million 'in trust certificates, nor were stead - in Waco.— a Mansion sur- Senate committee in January, . Saun- W: PlEs SIIHUNIINS NHH the debenture bonds "liquid." Second, rounded by a moat-like pond----consists ders said of 'this Sept. 16 meeting: "I don't care who gets it," he presum- their examiner had said the insurance of 16 city .lots, the mansion, a. guest "All the official 'statements presented ably was referring to negotiations company had $1 million premium in- home, and .tennis courts. He said he by the insurer showed that both cor- with a third party Shoerna.ke and Ein- come, but the payout for claims and rented' it from his brother-in-law but porations were solvent, thus substan- sohn had proposed on July 5. Eirisohn expenses exceeded $2.2 million, so didn't pay any rent.- (It was carried as tially contradicting the board's earlier proposed that he audit the company they thought "the difference might be a company asset.) allegations of insolvency." and that a new management group Coming from the depositors' funds." Shoemake explained some of the "I would like to ask just one ques- then put up more capital. in 'exchange Third, an appraiser had given them a shifting of assets -back and forth be- tion," Shoemake told Saunders at the for a voting trust agreement with temporary report which indicated ."at , tween U.S. Trust and U.S. ;Automo- September session. "Is the board in- Shoemake. In July Shoemake twice least $600,000 overvaluation on two tive . since the July 5 'hearing in this terested in humanity ?" referred to a third party he called pieces (of land)" belonging to the. manner : Saunders, the only commi ssioner of simply "they" which he said was will- Shoemake company' s y s t e m. And "We were trying to clean up U.S. the three present who said anything ing to put up money ; he said he had fourth, said Saunders, "If he trails- Trust & Guaranty...." during the hearincr, replied : "assigned my interest." ferred. book value to U.S. Automotive, The transcript of the Sept. 16 hear- "Well, put it this way, and this is Saunders, questioned about this by and he took back U.S. Automotive ing han not been put into evidence at on U.S. Trust. personal and not binding on the other legislative investigators, has stated he book value, thatowould indicate U.S. the legislative hearings - two gentlemen because. I haven't dis- cussed it with them, but nothing in the past has proven to be adequate to get the company in shape. T don't care Politics Goes Slightly Askew who gets it or who recommends it or- AUSTIN Colorful Charges Crop Up on each farm is taken out of produc- What arrangements are made on these tion or put • into soil-building. •Lobster. dinners, "the deal ticket," appraisals, but at this time I do not In Week's Oratory Daniel has. said he may run for gov- think it will stand the test of legal sol- Biblical honesty, and mandatory bed ernor without resigning from the Sen- companions=-Texas politics went all ate until he :knows . whether he wins the state government and in the county in which MASSEY BROTHERS DRILLING COMPANY askew last week and anybody Who the Democratic .nomination. If he does RUSSELL A. MASSEY not, he'll serve out his Senate term. LEGAL ADVERTISEMENTS EDWARD MASSEY tries to string a thread- through all Sworn to and scbscribed before me, this the Senterfitt and Phillips,% of course, are TO WHOM IT MAY CONCERN: the news will get an eyelid flicker. 13 day of January, A. D., 1956, by the said Rus- annclunced gubernatorial candidates. Notice is hereby given that Marian H. Gurney, sell A. Massey and Edward Massey, certified Jimmy Phillips charged Price Dan- doing business under the firm name of Carrousel which witness my hand and seal of office. .Children's Shop, in San Antonio, Bexar County. -Another 'unannounced but " certain (s) GLENN E. REESE iel with permitting 64 of the 300 vet- Texas, intends to incorporate such firm immedi- Notary Public in and for candidate, Ralph Yarborough, took to ately under the name of Carrousel Children's Parmer County, Texas erans' land "block" deals to go through Shop, Inc., at the same place of business, said while he was Attorney General and a the hustings at Abilene - with some corporation to acquire all the assets and assume colorful rhetoric. - all of the liabilities of said business. ' NOTICE TO CREDITORS OF THE ESTATE OF Land Board member, and a former Such change is to be effective as soon as MARION POLK CLARKE "New laws are not enough," he authorized by law. Notice is hereby given that original Letters Daniel aide replied Phillips was using SIGNED this 30th day of December, A. D., Testamentary upon the Estate of Marion Polk "half truths." of the current state scandals. 1955. Clarke, Deceased, were granted to me, the under- CARROUSEL CHILDREN'S SHOP signed, on the 26th day • of July, 1955, by Ithe The ,true facts are hurting the jun- "We need men of Biblical honesty, By: MARIAN H. GURNEY, Owner. County Court of Travis County, Texas. All per- men of old-fashioned decency and sons having claims against said Estate are hereby ior senator, Phillips said. "My speech STATE OF TEXAS required to present the same to me within the contained nothing but facts, all of morality; men more interested in their COUNTY OF NUECES time prescribed by law. My residence is 870 Fifth TO WHOM IT MAY CONCERN: Avenue, New' York, New York, and my mailing which are a matter Of record." good names and how their epitaphs Notice is hereby given that Philip Lieberman, address is c / o William A. Brown, 702 Brown The Daniel spokesman (Joe Green- will read and how their sons and doing business as Lieberman's, intends to incor- Bldg., Austin, Texas. porate such firm, effective immediately, under the MARION CLARKE COOK hil of 'Austin) said Daniel was the daughters will remember them, than firm name of LIEBERMAN'S OF ROBSTOWN, Independent Executrix of the Estate in the size of their bank balances or in INC. of Marion Polk Clarke, Deceased "first person to object to promotional PHILIP LIEBERMAN type block sales" and helped establish hovicmany airplane trips they take -to SHERIFF'S SALE foreign pleasure -resorts: : a lobster STATE OF TEXAS BY VIRTUE of a certain Order of Sale issued "definite official policy against such COUNTY OF NUECES by the Clerk of the 53rd District Court of Travis transactions." dinner, a paid flying vacation to Ha- TO WHOM IT MAY CONCERN: County, Texas, on the 12th day of January, 1956, . Notice is hereby given that Philip Lieberman, in a certain Cause No. 100,344, wherein First Reuben Senterfitt needled Daniel a waii, a costly airplane junket to Cuba doing business as Lieberman's, intends to incor- Federal Savings and Loan Association of Austin, or Mexico, or California, or freshly porate such firm, effective immediately, under is Plaintiff, 'and E. 0. Smith, is Defendant, in bit, too. In the course of it the ex- the firm name of LIEBERMAN'S OF TAFT, INC. favor of the said Plaintiff for the sum of Six engraved $100 or $500 bills." PHILIP LIEBERMAN Thousand Nine Hundred Ninety-seven and 38 /100 speaker of the House said!' ($6,997.38) . . ..Dollars, with interest thereon at "I will oppose with all my will ... Senterfitt persisted in hi-s charge the rate of 6 percentum per annum from the NOTICE OF DISSOLUTION OF FIRM 7th day of December 1955, together with all costs any and all efforts of the politically that Yarborough and- Daniel backers AND INTENTION TO INCORPORATE of suit, that being the amount of a judgment re- are pushing "the deal ticket." He 'sug- Notice is hereby given that the undersigned covered by the said Plaintiff, in the 53rd District selected and appointed Supreme Court Rudy J. Kunetka, sole owner of the business firm Court of Travis County, on the 7th day of Decem- . to tell the people of Texas how to gests that leftists and rightists .are in of Rudy's Poultry and Egg Company, located at ber, 1955. 6403 Bayway Drive, formerly known as 301 I, on the 24th day of January 1956 at 9 :40 eduacte our children ; with whom we an, unholy alliance to run Daniel for o'clock A.M., have levied upon, and will, on the North Market St. Road, Baytown, Harris County, or cannot eat and sleep and work." governor and Yarborough for senator. Texas, intends to dissolve such business firm of 6th day of . March, 1956, that being the first Tues- can Rudy's Poultry and Egg Company and incorporate day in said month, at the Court House door, in Senterfitt then patted Daniel on the Daniel has called this "abs-rd." and the same without a change in the firm name the City of Austin, within legal hours, proceed to Senterfitt lashed back that this was a thereof, the corporate name to read Rudy's Poul- sell for cash, to the highest bidder, all the right, back for his tidelands fight in the try and Egg Company, said business dissolution title and interest of E. 0. Smith, as the same "cleverly phrased avoidance of the is- and incorporation to take place after the expira- existed on the 29th day of April, 1954, and at all Senate and said what he should do is tion of thirty (30) days from this the 20th day subsequent dates existed and still exists, in and stay up there and get the Congress to sue." of January, 1956. to the following described ,property, levied upon a one- -- RUDY J. KUNETKA, sole owner as the property of E. 0. Smith, to-wit: enact a law overriding the court's Nettled, Yarborough issued of Rudy's Poultry and Egg Company Lot No. Seven (7), in Breezy Hollow Addition usurpation of legislative power. statement : "If I run for any No. 5, Section Two (2), an Addition to the City office in 1956, it will be for governor THE STATE OF TEXAS of Austin, Travis County, Texas, according to the Daniel said in Washington he is COUNTY OF FARMER map or plat of said Addition, recorded in Vol. 6, of Texas," Senterfitt said at Once: TO WHOM IT MAY CONCERN: Page 102, of the Plat Records of Travis County. against Ezra Taft Benson's farm pro- Notice is hereby given that Russell A. Massey Texas. gram and supported a plan advanced the deal has now blown up. This and Edward Massey, partners, doing business un- THE ABOVE SALE to be made by me to sat- has been a devastating blow to profes- der the firm • name of Massey Brothers Drilling isfy the above described judgment for $6,997.38, by two Plainview spokesmen for the Company, intend to corporate such firm without a in favor of 'the plaintiff, together with the costs Grain Sorghum Producers Associa- sional 'kingmakers'!" change of firm name, and that the said corpora- of said suit, and the proceeds applied to the satis- tion shall be known as Massey Brothers Drilling faction thereof. tion- which included 90 percent of par- Company, Inc., that this notice shall be for four T. 0. LANG, Sheriff, The Texas Obser consecutive weeks at least once a week, in each Travis County, Texas, ity on all basic crops and feed grains, week in a newspaper, published at the seat of By: HENRY KLUGE,, Deputy provided, 15 percent of all tillable land Page 6 Feb. 1, 1956 said firm has its principal place or business. Austin, Texas, January 25, 1966. • AUSTIN just a couple of irresponsible boys out District Attorney Ralph Prince of having a good time. They shot three Longview says he is planning to call EDITOR ACCUSED Negro children and then fired in a- the editor of an Austin weekly news- - Negro school bus, a Negro mail box, paper before the grand jury there on Longview D.A. Says Will Call Him Before Grand Jury; a Negro car, a Negro home at _mid- night, and the Negro School at the murder of 16'-year-old John Car- Dugger Says 'Delighted'; Racial Issue Discussed Mayflower. I am ashamed of anybody roll Reese, and the editor of the Ob- who would apologize for such actions server has replied from Austin he The Associated Press story from `Mr. Prince,' Dugger added, 'does on grounds they were just having a will be "delighted to appear and tell Longview stated : not appear interested in the comment good time, and other Texans should be the grand jury everything I know." early in November of R.A. Shaw, the, ashamed, too." Prince did not identify the 'newspa- According t o Associated - .Press, white superintendent of the Tatum- per or editor in saying 'important evi- Mayflower school district, who said Prince said in Longview that the edi- dence' had not been turned over to PAUL BOLTON, news ed. tor would•be asked to explain to the that the shootings were "a scare cam- itor of KTBC-TV 'in Austin, gave authorities, but said the editor claimed paign and coercion" ' designed to scare grand jury about the paper's investi- to have found a bullet at the scene of this account of the story and his com- the Negroes "out of their citizen- ment on a television newscast Friday: gation of the crime, especially why he some of the shootings. ship." ' 'failed to turn over "important evi- 'He bragged in his newspaper that `I dence." Prince said the' editor claimed am a reporter who sought facts in, he had picked up evidence which offi- a shooting that should shock every A newspaperman who reported. the to have found a bullet at the scene Of cers were unable to locate and he some of the shootings and "bragged man of Civilized conscience,' Dugger facts of an East Texas killing months failed to deliver such evidence to offi- said. ago • was threatened with grand jury in his newspaper" about it but failed cers or anyone in authority as required to turn it over to officers "as required 9/ action today because he dug a bullet by law,' said the district attorney. 'In out of a Negro school bus which offi- by law." my opinion his actions might have An International News story from Long- cerS apparently overlooked. When 16- "In my opinion his actions might been the cause of the officers having to View quoted Prince as saying he year-old John Earl Reese was killed have been the cause of the officers put in three months' extensive hard, would ask the editor of a weakly .and two Negro girls wounded by bul- having to put in three months' exten- -*ark in solving the murder.' newspaper at Austin to appear before a grand jury to state why he did not lets fired at random into a Negro sive hard work in solving the mur- dance hall last October 22nd, - Ronnie der,". Prince said. (It occurred on Oct. The afternoon of the same day the give officials certain evidence he claimed to have. Dugger, went to Longview to investi- 22.) United Press reported from Austin gate. He subsequently wrote articles International News Service quoted that Dugger said he would be ,"de- The INS story reported: in. The Texas Observer, detailing, Prince as further saying. that articles lighted" to appear before the grand •'Prince said lie believed the editor's among other things, that 27 bullets _ in the weekly newspaper "tried to cre- jury and "strongly denied an allega- action might have caused Officers more had been fired—at the dance hall, into ate the insinuation that a racial issue tion he hampered the investigation." time than necessary in trying to solve a Negro school bus, a mail box, and a was at stake and that lives of Negroes Said the UP Story: the shootings. house. He dug one bullet out .... 'He were in jeopardy." "Prince also said articles in the talked with one/of the two men who, News stories quoted Dugger as: stat- The newspaper editor said that weekly newspaper, which is widely yesterday, were charged with murder ; ing he and a friend found a bullet around Nov. 11 or 12 he found a bul- - distributed in Negro - communities, and he reported to the (deputy) sher- the car of a Negro bus driver whose let in the- car of a driver Of a Negro `tried to create the insinuation that a iff .... bus had also been shot into the fatal school bus which had been fired into. -racial issue was at stake and that lives night a few miles down the highway Dugger said that altogether, 27 bullets of Negroes were in jeopardy.' " Today the district attorney at Long- view, Ralph Prince, says he may call from the scene of the murder. were fired into Negro homes, schools, The INS report observed that "the and mailboxes in the area, and into a this newspaperman before the grand Dugger said the bullet . was fdund.. shootings occurred in a section , of East dance hall, the latter fatally wounding jury to explain why he failed to turn Nov. b1b1 or •12; that he stated this in Texas where racial tension has been over important evidence. Dugger said an editorial Nov. 16; and that in Jan- 16-yearold John Earl Reese. heightened by the school segregation `Do they mean to say they didn't issue." today that if 27 bullets were fired, lo-, uary the Department of Public Lafety cat officers surely must have found had asked for.it, but that by that time have one of those 27 bullets ? What From Austin, INS then quoted kind of law enforcement is that? some of them. Dugger denied that.he he couldn't find it. He said he is still Dugger as identifying himself as the attempted to make Where were they—fishing ?' Dugger newsman in question, stating the evi-s a racial incident out - looking. He said 27 .bullets had been asked. of it, but simply reported the facts -fired the night of the murder, Oct. 22, dence was a bullet, and adding he will Dugger said he was asked by the about a murder that should shock ev-+ and asked if Prince meant his officers be "delighted to tell the grand jury ery civilized conscience. hadn't found one ,of them. Department of Public Safety earlier everything I know" but that he had this month for the bullet. been unable to locate the bullet. As an editorial aside, most news■ On the racial point, Dugger was `If the Longview officers were so. on quoted as stating the Observer never On Prince's point about "the insinu- men will concur that Dugger's full re. the job why didn't they ask for that ation that a racial issue was at stake," ports were'entirely objective. drew a conclusion in news stories, and bullet two months ago when I first that in editorials he had stated any- Dugger replied in the INS story: /9 announced in print I had it ?' Dugger "In news stories, the Observer one relying on local law enforcement asked. officers "could not possibly know never drew a conclusion. In editorials, That night on the saile station, Dugger also denied a statement by I stated that anyone relying on the newsman Hal Nelson stated that the whether the shooting was•racial or not Prince that he was trying.. to 'create Observer newsman "apparently was and the Observer did not know either information developed by the law en- racial unrest' in the area. forcement officers could not possibly the target of an irate district attor- —that the evidence was not certain, Dugger quoted from an editorial he merely obvious." _ know whether the shooting was racial ney." He said the Observer published printed in the Nov. 16 issue of.. the Ob- or not and that the Observer did not "the first comprehensive report on the An Austin newsman commented on server which stated that talking know either—that the evidence was shooting." He quoted Dugger to this a television newscast : "As an editorial to enforcement officers it was 'impos- not certain, merely obvious. effect : aside, most newsmen will concur that sible for anyone depending on their "I understand that the law enforce- "He said he considered Mr. Prince . Dugger's full reports were entirely ob- information to know whether these ment officers of that area say it was Was attempting to intimidate honest jective." shootings were racial in motive ..." not racial after all, that these were The same report quoted Dugger as journalisM." denying Ile attempted to make a racial incident out of it "but simply reported the facts about a murder _that should Two White Men Accused in Murder of Negro Boy shock every civilized conscience." ( Continued from Page 1) Prince was quoted as stating that Several news reports said that the Records in Henderson show the rison of • Longview set bond on the nature of the dispute "wasn't clear" fines were $15 for disturbing the the shooting was "a case of two irre- except for the location issue. sponsible boys attempting to have two at $5,000 each. They were being peace. The two were ,cleared of any some fun by scaring Negroes." Dug, held in Gregg County jail. "The school board proposed build- part in the Oct. 22 shootings early• ger was quoted as remarking: "I- am Working on the case ha've been ing the school there . in MayfloWer, the investigation. 1 ashamed of anybody who would apol-.. Sheriff Noble CraWford of Longview which has a 99 percent Negro popula- R. A. Shaw, white superintendent ogize for such actions on grounds they and Sheriff Herman Orr of Hender- tion," Crowder said, but the other side of the Tatum-Mayflower school dis- were just having a good time, and son and their staffs ; Texas Rangers wanted the school built in Tatum, trict, theorized about the Oct. 22 other Texans should be ashamed, too." Bob Crowder, E. J. Banks, and Dick "where there aren't so many Negrties." shootings that tentative clarification of. a legal matter that was holding up con, Friday evening Prince told a Hous-., Oldham; and Charles Moore of the As .reported here Nov. 2, the April ton repoPter that the two men who are - Department of Public Safety. Reports struction of the Negro school a week 3 shooting was one night, after Tatum- before—on Oct. 14—might have been charged with the shooting felt it was stated they questioned more than 300 Mayflower school trustees had been not racial. "That was their impression. people in the case. Federal authorities at issue. "It could be an outburst when elected who the Negroes thought they found out this litigation • had The boys. They didn't feel it was were also understood to have taken an would be favorable to the construction interest in the matter. cleared up," Shaw had said. racial." What, asked the reporter, was of a Mayflower school .pufSuant to a' Prince's opinion ? Prince replied: The Texas Observer reported the Prince said at the time: "I can see bond- issue that had been pasSed on no possibility of a racial factor." Atty. ."Oh, certainly it was part racial. situation in' its issue of November 2. March. 2 for that and other purposes. The impression we've been having to As stated at that time, a 1950 or 1951 Gen. John Ben Shepperd said in ,a smother is that it is racial." Ford sped past the cafe where . the (That night, according to reports statement from Austin: "So far as Of the bullet at issue, Prince said: Negro teen-agers were drinking soda from residents in MayfloWer, bullets have been able to determine, this was . "We don't need it now.. We've run, pop and dancing and someone pumped from a pasSing car entered the bus not a case of reprisal nor an act of ballistics tests on the hulls of the nine bullets through the walls and a and car ofithe same Negro bus driver terrorism involving race relations. The shells. But we could have used it window, killing Reese and injuring whose- vehicles figured in the Oct. 22 local authorities, including the district then." . two sisters, Johnnie Merl Nelson, 15, shootings. Seven bullets were also attorney, have made a thorough invest (Dugger said in Austin the one he and Jayvee Faye NelSon, 13.'The night , fired into a Negro cafe near the May- tigation and tell me that this is the found was smashed. It had passed riders then drove up.a farm road lead- flower school. John . Reese was in- that case." through car metal, he said.) ing to Mayflower and fired more bul- cafe, too, it was reported.) Thomas Sutherland, director of the Of Dugger Prince said to the Hous- lets into a Negro school bus and the Deputy JOe. King of Henderson in- Texas Commission on Race Relations, ton reporter : bits driver's car, a Negro's mailbox, a vestigated the April shootings but told in a letter to Shepperd, asked investi- "I intend • to have him before the Negro hoine, and the Negro school at the Observer he "guessed" he • had lOst gation of acts of "terror and reprisal.' grand jury. He might have been the Mayflower. his notes of `them. cause for months of delay in solving Last week news 'reports quoted. In June,:i o. the same farm road WHAT BETTER GIFT for Christmas than the case." an original drawing, painting or sculp- Texas Rangers as saying the Oct. 22 leading .to Mayflower, bullets were ture by young Texas artists? Why buy shootings were in part the result of a fired into two,....N.egro homes. As per reproductions? Eeveryman a Medici! N THE THEORY that school dispute involving Mayflower the Observer Nov..2k: . RENAISSANCE GALLERY some Observer readers may want to 624 Lamar Boulevard, Austin, Texas and the location of a proposed new "Deputy Sheriff King said of this Evening Hours 8 to 11. know in detail how the controversy Negro school at nearby Tatum or at case : `I:,,got them boys.. They were developed in the state press, the news Mayflower, which is a Negro settle- nigger. boys, name of Wallace. They The Texas • Qbserver stories are here reviewed. ment, were prosecuted and fined." Page 7 . Feb. 1, 1956 rglIkrelOrlar• misoVosisr, • 1110

• The, Te:..aS Livestock Sanitary Commission and the federal gov- ernment 'have signed an agreement for This Week in Texas participation in a. brucellosis control program.' • Bascom Giles, serving a six - year law was passed in 1953 is $57.5 mil- senior high schools in Houston last term at Huntsville for .bribery lion. week. • Glenn McCarthy and two others and theft from the state, has been as- . are being sued for $1 million by a signed to the prison license plate-mak:- • C. V. Wynn and Arthur McKen- • Cnero Negroes have asked the lawyer who says they failed to pay ing section as a clerk. He has had no zie, indicted with Bascom Giles On City Council for a,..public swim- hint.- for getting backers to finance- de visitors. In his cell he, like.other pris- bribery in. San Antonio, contend At- ming-pool. velopment of oil and gas lands- in torney General John Ben Shepperd Bolivia. oner's, can have radio or TV if, he ob-. • gave them judicial immunity if they- serves the rules. • R. L. Lewis, a 15-year451d Negro, would agree to turn state's evidence, has been shot by a Latin-Ameri- The Texas Observer - • An Army . colonel faces court but Shepperd 'denies this, saying only can grocer in. Woodsboro. The local martial in San --Antonio on an a judge can- give such immunity. newspaper expresses resentment at im- Page 8 . Feb. 1, 1956 adultery charge. • • • • The Associated Press reports that plications voiced that_Woodsboro. has since • 1933, the 'Texas Railroad discriminatory attitudes: The grocer • Former C i t y. Treasurer Roy said he was lying in wait. for a burglar Floyd has been convicted' of theft .Commission has 'granted ‘,167 discon- tinuations• of railroad . servite, mostly and shot the boy when he broke into of a city-owned house and has re- the store------first in the leg, then three ceived four-year sentence in Houston. passenger service, and that since 1945, it 'has let railroads in Texas drop 91 times .in the back. • Mayor Oscar Holcombe of Hous- passenger trains- while refusing six other such applications. • Gov. .Shivers- continues spotting. ton has ,prohibited drinking; pro-, his regular aides in other jobs. C. fanity, and sports shirts without ties • Gov. Shivers wrote Gov. Stanley Read Granbery is now director - of 'the in Houston's city departthents. of Virginia asking for 'a copy of Texas- Legislative Council. Bob Bald- • Secretary of State Tom Reavley any proposed "interposition" proposal, wini.director of Shivers's-budget diyi- defended honest state nfficials•and which Shivers noted with "great in- sion, has gone to the Valley for a beer called for an insurance scandal clean- terest." This is a new word some distributorship- business,. and Jess Ir- up in a speech at Navasota. Southern governors are using to de- win replaces him. scribe the theory, that the Stipreme • Pat McCormick, the matadora Court legislated in its" integration de- • In Mexico, authorities complained from Texas, was gored • in the cree and the states can "interpose" 115' "foreign" shrinp boats were thigh while practicing -passes on a- their states' rights between the decree fishing in their• waters.. Those' in the breeding farm in \Mexico. Her Condi- and its implementation. know had. a . gentle suspicion that tion is n9t serious. s might mean they are from the Texas • Dr. Cosette F. Newton, who has and Louisiana coasts. • In Minneapolis, Paul Hadlick,. five degrees, including one to let . general counsel of the National her practice medicine, plans .to sell her Oil Marketers' Assn., asserted thatthe $550,000. Highland Park (Dallas) Texas oil proration law is a • great • home to a Negro and has already be- "hoax" - "under the guise of conserva- queathed it to the N.A.A.C.P. Result: tion" by which big oil companies- "con- threatening calls, a burning cross in trol market demand and prices."' her front yard. Highland Park is re- • Ex-Mayor Herbert Cartwright. of stricted. Galveston admits he took $600 • In Tyler,. the Rt. Rev. John F. from the Galveston Housing. Author- Hine;, Bishop of. the Episcopal

ity. He won't say why. ("Let them Diocese, of . Texas, told communicants guess a while," he said.) A federal • they should "weigh carefully the im- official says it Was for his "election plication of a commitment to citizen expenses.' groups with the avowed purrlose of .• Ex-Housing Authority director defying the law of the land" on segre- - gation.o L. Walter Henslee ; Galveston, has • been indicted by a federal grand. jury • In Houston, N.A.A.C.P. officials on eicrlit counts of trying to defraud are studying complaints that Ne- the Public Housing AdminiStration.-. groes were once again turned away • R. • L. Adanie, ,former ..Duval from white elementary, junior, and County s c h 60 l superintendent, pleaded not guilty in Austin on'. fed- eral charges: of evading •3,000 in in-

come taxes. . . • The Valley Chamber = of Com- SUBSCRIBE merce won a summary judgment against a: $570,000 libel suit' .filed by or 38 striking .drivers -of/ . the Valley Transit Company Who objected 'to a Chamber official comparing them to RENEW Port Arthur -strikers. . to 40 . In Washington, Senator .Dahiel BUT WHAT IF HE WERE announced $100,000 worth of mari- THE TEXAS juana has been confiscated at the bor - •der. • The First National Bank in Lew- LAID UP THROUGH isville has failed, an assistant • Cashier has -pleaded guilty to embez- OBSERVER INSURANCE zlement, and a 15-count indictment has •• SICKNESS OR ACCIDENT been returned against another banking, /- PROTECTION FOR official on charges of violations of the For... the Truth About Texas and federal banking statutes. a' Glimpse at Its Future ALL MEMBERS OF • In Austin, the Board for Texas OR SENT TO THE State Hospitals a n d Special YOUR FAMILY Schools reports that patient popula- One Year-52 Issues-416 Pages tion in mental and old age. hospitals ` —1,664 columns—Only $4 HOSPITAL FOR WEEKS has declined, along with the death rate, MIN5titt but that overcrowding and inadequate personnel continue as conditions in the Name and Address: • special schools for epileptics, mentally WHO WOULD PAY THE BILLS? retarded of all ages, orphans, seniles, some blind and deaf, and "even Indian Now is the time to see your "Nablico" Man! wards of the state." • Voters will be asked to go to the polls twice 'the next general elec- Serving over 34 million policyholders tion; the extra time being to vote on the constitutional amendment to in- in 24 states and Alaska crease welfare spending $1.5 million Name and Address: a year in Texas. A $200,000 legislative dating error is blamed.

. 0, • Education Commissioner J. W. Edgar refused jurisdiction on a petition from some Irving citizens that

. 108 teachers who quit last year to sup- port fired superintendent J. W. Beard' lose their teaching certificates. ( ) Subscription ( ) Renewal 1 INSURANCE COMPANY • Land Commissioner Earl Rudder ( ) Money Enclosed ( ) Bill Me

has announced that tidelands in- 4703 ROSS AVE. DATIAS, TEXAS come for Texas since the quit-claim L K. GRAVES, JR., President