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Trxas Obitrurr We See It

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Trxas Obitrurr We See It 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.
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