THURSDAY. MAY 20, 195 E
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rings to Reaiume
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•
onddy, Ike
t, in.-Accord
WASHINGTON;' May 19 (/P)—The Eisenhower administration threw the switches today to start
the McCarthy-Army hearings rolling again next Monday.
President Dwight D. Eisenhower personally called for a resumption of the televised inquiry
"Let the chips fall where ,they may," he declared.
with. the President's endorsement, Secretary of the Army Robert Stevens took
bility on behalf of the Army for
the actions that led to its head-on
collision with Senator Joseph Mc-
Carthy (R-Wis).
In the wake of , this one-two
team play; Acting Chairman Karl
E. Mundt (R.-S.D.) said the tem
porarily sidetracked inquiry will
resume Monday. He told news
men the hearings should not last
more than another week or ten
days.
French Hit
Red Forces
In Indochina
HANOI, Indochina, May 19 (W)
—Fre.nch planes launched massive
air attacks today on Vietminh
rebels moving men and heavy ar
tillery anti-aircraft batteries from
Dien Bien Phu toward the Red
River Delta. Revising a previous
estimate, a Frevich high command
official said the rebels could at
tack in Strength within four
weeks.
While the bombers were plas
tering the Communist-led rebels,
the high command announced the
arrival in Hanoi of 24 more
wounded French Union prisoners
from the fallen fortress of Dien
Bien Phu. This made a total of
54 evacuated thus far.
A Vietminh delegation source
said in Geneva Dien Bien Phu's
heroic French nurse, Genevieve
de r7Talard Terraube, would be re
leased ao me time Wednesday.
However, there was no confirma 2
tion at a late hour from Hanoi
and a French News Agency dis
patch - quoted evacuated soldiers
as saying she would remain until
the last wounded are taken out.
The French threw all their
available helicopters and small
aircraft into the task of speeding
the airlift of the wounded. They
hoped to step up the rate to at
least 80 a day. Vietminh General
Vo Nguyen Giap agreed to the
initial release of 450 of the most
serious cases among the 1,300 to
2,000 wounded at ' the fortress
when it fell.
Ike Calls Arms Shiment
To Guatemala‘Disturbinf:'
WASHINGTON, May 19 "(2Eo—President Dwight D. Eisenhower
said today an arms shipmdnt from Red Poland to Guatemala is "dis
turbing" and it would be a "terrible thing" to have. Communist dic
tatorship establish an outpost' on' this' continent.
Asked at a news conference for his reaction to a State De.
ment announcement Monday that
Communist-dominated Poland has
shipped arms to the Latin Amer
ican nation, Eisenhower paused,
reached for a word, and replied:
"Well, it is disturbing. I think
that, above all, it highlights the
circumstances, the background
that led to the adoption of the
resolution at the Caracas confer
ence of the American Republics
regarding communism in this
country.
"To have the Communist dicta-
Mundt said he expected Stevens
would be asked to repeat under
oath today's denial that the Ar
my's moves were masterminded
by White House or other top of
ficials.
The hearings still, did not have
a clear track, however.
Eisenhower flatly refused to lift
his secrecy order which—to his
astonishment, he told a news con
ference—stalled the inquiry last
Monday.
McCarthy, who has blasted this
order as an "iron curtain," bar
ring him from presenting his full
case against his Pentagon antag
onists, shifted figures of speech
and said the order makes him
play against a "stacked deck."
Stevens came up, and Eisen
' 'lower registered full agreement,
with a firm answer to one hither
to unanswered question.
That was the big question which
bogged down the inquiry last
Monday: Were Army officials act
ing on their own, or were the
White House and Justice Depart
ment calling the signals, when the
Pentagon charged McCarthy and
aides with improper pressure to
get favors for Private G. David
Schine?
Eisenhower's secrecy order for
bade Army witnesses to talk about
conversations with the White
House and other officials. •McCar
thy and some of the investigating
senators took the position this
made it impossible to fix respon
sibility for the Army's acts.
torship establish an outpost on
this continent to the detriment of
all, • the American nations, of
course, would be a terrible thing,
and that was the reason for the
Caracas resolution."
Wl:ite House permission for di
rect quotations on Guatemala un
der•scored the obvious concern
over the arms shipment within
the administration, .
In New York, Colonel Hubert
F. Julian; who says he is military
rHE DAILY COLLEGIAN STATE COLLEGE PENNSYLVANIA
30 Are Nominated
For Reelection
In Pennsylvania
PHILADELPHIA, May 19 (JP)—
Pennsylvania's 19 Republican and
11 Democratic members of the
U.S. House of Representatives
were nominated in Tuesday's pri
maries to try for reelection in
November.
Their 30 opponents for the No
vember general election include
one former congressman, Daniel
J. Flood, Wilkes-Barre Democrat.
Less than 30 per cent of the
Keystone' State's five million eli
gible residents=an unusually light
turnout—voted in the election
that ticketed these two men for
the governor's seat now held by
Fine:
Republican Lloyd H Wood of
Montgomery. County, 56-year-old
lieutenant governor.
Democrat George M. Leader,.36-
year-old York County state sena
tor.
Each swamped two opponents,
Wood running far ahead as top
man on the GOP "harmony" slate.
hidochinese
Peace Unlikely
GENEVA, May 19 7 Hope of
achieving peace in the jungle war
of Indochina faded almost to the
vanishing point at the Geneva
conference tonight. .
East and West suspended nego
tiaions for an armistice for one
day. after . devoting more than
three hours to wrangling over an
old dispute—recognition of the
so-called "phantom governments"
of Laos and' Cambodia.
Pham Van Dong, the Vietminh
foreign minister, spent one and a
half Hours trying to persuade the
West to invite delegations of the
two "resistance" governments to
Geneva.
The West is unanimous in re
garding these governments as
Communist inventions with no
claims to conference
, ; seats. Dele
gates of the Western-recognized
governments of Laos and Cam
bodia spoke after Dong, a confer
ence source said, and restated
their opposition to /bong's pro
posals.
purchasing agent for Guatemala,
said today the U.S. State Depart•
ment refuses to let Guatemala buy
surplus military materials here
and from friendly countries and
this "iron ring" compels her to
buy anywhere she can.
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"GOLDEN MASK"
Van .Heflin
Wanda Hendrix
Marilyn Monroe
Jane Russell
"GENTLEMEN
PREFER BLONDES"
sole responsi
"MIAP•11 STORY"
Barry Sullivan
Luther Adler
Senate Group Votes
To Limit Insurance
WASHINGTON, May 19 (JP) —The Senate Banking Committee
voted today to limit Federal Housing Administration insurance on
home repair loans to 85 per cent of the total loan, and to require
the home owner to deal directly with the banker making the loan.
The committee wrote these and other restrictions into a general
housing measure it is preparing
in an 'effort to end abuses under
which some fast-talking salesmen
allegedly have used the lure of
easy loans to bilk unsuspecting
home owners.
The actions had the effect of
putting on the bankers some of
the burden of making
,certain the
loans are worthwhilel but Chair
man Homer E. Capehart (R.-Ind.)
said this would "not have a deter
rent effect on the program "
Heretofore the FHA has under
written the full amount of the
home repair loans it insured, guar
anteeing •the leaders against any
loss.
Under the new provision, the
lender would be required to take
15 per cent of the risk on each
Such loan, In addition, Capehart
said, the loan documents "must
be signed on the premise of the
lender or in the presence of an
official of the lending institu
tion." s .
This presumably would prevent
a salesman from taking loan pap
ers to a home-owner, getting him
to sign before the work had start
ed,. and then collecting the pro
ceeds of the loan. It would also
tend to prevent banks from deal
ing
in loans for home repairs
hundreds of miles away, where
they might not be aware of con
ditions.
French Bravery Cited
LONDON May 19 (IP)--Briga
dier General Christian de Cas
teries was quoted in a Pieping
broadcast today as saying his of
ficers had elected to defend Dien
Bin Phu to the end rather than
heed French high command in
structions to try to cut their way
out and flee to Laos.
•
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Defense
Fraud Cited
1.-y House
WASHINGTON, May 19 . (M
A House subcommittee said today
it is asking the Justice Depart
ment to investigate "possible
fraud" in a million-dollar con
tract for blood-shipping contain
ers awarded two years ago to the
Bailey Engineering Co., Ramsey,
Most of the containers were de
signed for a civil defense blood
stockpile against atomic attack.
The subcommittee also demand
ed disciplinary action against mil
itary officials whom it accused of
showing "very bad judgment or
incompetence" in awarding the
contract and "serious negligence"
in inspecting the finished con
tainers.
The subcommittee said it is
turning over all of its records to
justice officials with the requeSt
for a full investigation of alleged
changes in specifications, which
it said would have saved the
Bailey firm $lOO,OOO on the con
tract, and other "serious derelic
tions."
Louis H. Bailey had boasted
that the Bailey, Co. was able to
get away with so many devia
tions because 'he had so many
friends' . . , and t h at he took
shortcuts in putting the container
together because no One could
find out about it after the box was
completed.
PAGE THREE