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mORIHIlG LAS VEGAS, NEVADA, WEDNESDAY )AY, NOV. 28, 1951 Exteit teg|gf rvice; Municipal Halts 14 Die, 33 Escape In U.S. Air Crashes By United Press Fourteen persons were killed in air crashes around the nation Tuesday hut 33 oth­ers survived dramatic brushes with death. In the worst accident, a Navy patrol bomber crashed into the Pacific off San Diego, Calif., and the Air Force said all 11 crewmen aboard were killed. The PBM crashed only 25 minutes after taking off. An Eastern Airliner carrying 20 persons collided with a small civil air patrol plane over Ocala, Fla., but managed to land with­out injury to any aboard. The pilot of the smaller plane was killed. Near Riverside, Calif., 13 Air Force men parachuted from their burning B-29 moments before it crashed. One man was injured in- the jump. An Air Force pilot and crew­man were killed at Minneapolis, Minn., when their training plane hit a power line. sion of Ve Water WHERE I STAND By HANK GREENSPUN TOKYO, Wednesday, Nov. 28 (UP)—The Communist truce dele­gation today rebuffed United Nations demands for a post armistice freeze on armed strength and- the right to send armistice inspection teams-behind-the Iron-Curtain in North Korea. The chief Communist negotia­tor said the principles of the UN suggestion were “inappropriate and impractical recommenda­tions.” i No heat, no water, no telephone service. Might as well put out the lights and turn the area back to the Indians. Power , company announced a few' weeks' ago that it could no longer furnish electricity for heating purposes in new homes. There might be some justification for it because of a limited allot­ment. At least it was not done as a penal measure but it "was for the, purpose .of . conservation, and there are other methods of heating besides electricity. But when) the Public Service Commission announced yesterday that it had given tile Las Vegas Lapd and Water Company author­ity to refuse to install any new water mains to new subdivisions, ? pending a public hearing Jan. 23, it ceased to be a Public Serv­ice Commission and has become a private service commission. A commission with the designation of Public Service is supposed to serve the public. • Holding Up the construction of thousands of new homes which are so desperately, needed in T.=s Vegas is not serving the public. Yesterday alone, there were four cancellations of subdivision developments that were in escrow and had already made all neces­sary financial" commitments. It is conceivable that, arrangements can be made -to heat a home by methods other than electricity, but it is impossible to secure FHA or any other financing whefe there is no city water'. I wonder if. the .commission thought of the hardships that might accrue by such an arbi­trary action. Water js . the key to the growth of our-city. Las Vegas is bursting at the seams and crying out for a more rapid growth. Instead .of helping the . cjcygiopinent^- our: utility com­panies and the Public Service Commission are approaching our needs in a rear foremost manner. There might be many reasons for this action but my conclu­sions point to the Las Vegas Land and Water Company “wanting out.” They have despaired of the Water District-ever taking them off the hook. They are therefore using the Public Service Commis­sion as a wedge to create a gen­eral public indignation which will culminate in the municipal acqui­sition of the water company. The Public Service Commis­sion is appointed by the same person who is chairman of the Colorado River Commission, Gov. Charles Russell. Before yielding to a request for water for Las Vegas, the CRC had first to de­termine what the lessees at Basic thought about it., The Public Service Commission asks the pri­vate utility companies what they think about it. No one has yet asked the public what it thinks about it. I’m beginning to think that no one gives a “hoot in Hades” what the public-thinks. The private utility companies are making out a swell case for ? ’ (Continued 09 Fagr %) Punchboard 'Industry' Hit By US Order WASHINGTON, N o v. 27. (UP) — The Treasury Depart­ment eracked down on the SI,000,000,000 • a • year “punch board” industry today as a fed­eral court heard the first chal­lenge of the constitutionality of the government’s new $50 li­cense tax on gamblers. Internal Revenue Commission­er John B. Dunlap ruled that punch boards are lotteries and anyone accepting wagers on them must buy a gambler’s li­cense, even in the punchboard pays off in merchandise. Dunlap said any agent, clerk or other employe selling a chance I cm ? a' punch board "ifiust purchase" a government stamp. He said it is “immaterial” whether taking 'the bet “is merely incidental to the primary purpose for which the employe or agent is hired.” Officials pointed out that under the ruling it would cost an em­ployer $650 a year if he hired 12 clerks to run his. drug store, for example, and permitted them to accept punchboard wagers.. The emptbyer would have to pay the new 10 percent tax on the money wagered. Government witnesses before the Senate Crime Committee • es­timated that the punch boards rake in from $100,000,000 to $1,- 000,000,000 a year. In the court test of the consti­tutionality of the gambling tax, Washington Attorney Myron G. Ehrlich told a, three judge court the license's are unconstitutional because they are not a tax but ,a penalty pm criminal activity. Assistant U. S. Attorney Ross O’Donoghue said the law is “in every respect constitutional and the complaint, should be “dis­missed.” He said Congress'.has a right to tax, even if the levy “discourages” the business taxed, j The' special tribunal took the case under- advisement after hear­ing from both sides. Circuit Judge Henry W. Edgerton, who presided, did not indicate when a decision will be reached. The conference, hoping to com­plete armistice arrangements be­fore the 30-day provisional cease­fire line agreement expires, ap­peared heading toward another deadlock over ways of supervis­ing the armistice. Vice Admiral C. Turner Joy, the chief United Nations delegate, FIFTH AIR FORCE HEAD­QUARTERS, Wednesday, Nov. 28 (UP)—Three enemy MIG-15 jets were destroyed and four damaged today when 40 Com­munist planes challenged 28 F-8G Sabrejets high over Sinan- ju near the Yalu River, the Fifth Air Force announced. indicated this when he told Gen, Nam II of the Communists that “the UN will not agree, to any "armistice' that 'does riot provide minimum safeguards against the resumption of hostilities.” , It was Nam II, the senior Com­munist delegate, who told Joy that the Allied principles of in­vestigating teams were “inappro­priate and impractical recom­mendations.” Even before today’s meeting he had expressed disap­proval. The 29th plenary session began at it a.m. (9 p.m. EST Tuesday) in the flapping Panmunjorri cir­cus tent- and adjourned at 12:39 for lunch. The delegates returned to the tent at 3 p.m. (1 a.m. EST) for an afternoon session. Nam II said yesterday he could not accept the principle of the Allied suggestion but promised to study it overnight and give his views today. His views were neg­ative, as had been expected. Joyi in a -seven-point proposal yesterday, asked the right to send inspectors “anywhere in Korea” —to the boundary of Manchuria if necessary — to see that the truce is earried out and that neither side secretly builds for a sudden onslaught. NAVY BASE THEFTS SACRAMENTO,'Nov. 27 (UP) Eighteen men, including the chiefs of police and public works at the Mare Island navy yard, were indicted by a federal grand jury tonight in connection with a series of thefts from the big base. 111 :,i Get Your Tickets Now For Installation Dinner TUESDAY, DEC. 4tll at HOTEL FLAMINGO Featuring' JACK BENNY ant» JANE POWELL Tickets Available at FLAMINGO HOTEL and the GOLDEN NUGGET Preliminary Hearing On Racetrack Fraud Case Opens in Court Today i Preliminary hearing of W. A. AlbTrry on charges1' 6f ffilstr'Sfng" funds of stockholders in the Las Vegas racetrack corporation of Which he is a former, vice presi­dent, will get underway this morning in justice court! The hearing will follow arraign­ment on similar charges of Sey­mour Voris, another former offi­cial of the corporation, one of five charged in the mass face- track criminal action. Voris is scheduled to appear at 9:30 o’clock accompanied by his at­torney George Franklin. Meanwhile Herman Miller and M. Bert Fisher, now in Los An-' geles, were expected to arrive in Las Vegas late tomorrow or Fri­day morning to surrender on a three-count complaint charging embezzlement. Dist, Atty. Roger Foley, who filed the 11-count, felony com­plaint said they would be ar­raigned ' before Justice of the Peace James Down. as soon as they arrive and submit to arrest. Joseph M. Smoot, president and promoter of the Las Vegas Thor­oughbred Racing Assn., who is among those listed ijy Foley as having been subpenaed as state’s witness in the Albury hearing this morning, will himself appear before Justice Down Friday for his preliminary hearing on em­bezzlement charges. FEARFUL OF REPRISALS against families, two refugee Ukrain­ian Catholic priests wear hoods while describing Russia’s cam­paign to destroy, religion at press conference in New York. (International) Two Local Race Books Ask For Licenses From State Two. licenses for race books here will be sought Friday when the Nevada Tax Commission meets in Las Vegas. Applications have been submitted by Sam Taylor, 111 North First St., in the Swinging Door Saloon; and by Sam Cohen for a book in the Embassy Club in North Las Vegas. It was pointed out that the tax Mickey Ordered Released on Bond By Federal Judge LOS ANGELES, Nov. 27. (UP), Gambler Mickey Cohen, jailed without bond following his con­viction five months ago on in­come tax evasion charges, beamed jubilantly and kissed his lawyer when informed today he had been ordered freed on bail. The order for Cohen’s release was signed in San Francisco by Federal Judge William Denman of the Ninth Circuit Court of Appeals who set Cohen’s bail at $5,000. “At last I got a break,” Cohen told his attorney, Morris Lavine, who brought him the news at his cell in county jail. “It’s wonder­ful, it’s wonderful.” U. S. marshal said Cohen prob­ably would be released tomorrow morning after Judge Denman’s airmailed order is received by the U. S. attorney’s office here and the gambler’s bond is ap­proved. Judge Denman earlier this year denied Cohen’s plea for freedom on bail pending an appeal of his conviction on Charges of evading more than §150,000 in income taxes. Cohen had been sentenced July 9 to five years in federal prison. When Cohen reapplied for bail, the judge granted it because, he said, “there js a substantial ques- tion ffihpthet part -Olthe.Jnlerrial Revenue Cod© under which he was. convicted has been repealed.” Cohen- for "years the gambling (Continued on Page 2) commission has not met since the new federal 10 per cent tax took effect Nov. 1, and the group has pot had an opportunity to setjjfiwn any policy governing booKma"k]Tig operations under the new setup. Taylor reportedly plans to op­erate an old fashioned handbook, making bets and paying off on published track information. Cohen, formerly a licensee in the Boulder Club race book, plans to split the 10 per cent tax with the player, each contributing five per cent, to the government on every bet. He said Continental Press Serv­ice will not supply an> individual book, arid that ke has arranged for another service to provide the essentials, with results about 10 minutes after a race has been run. Order Bans Future Growth State permission for the Las Yegas Land and Water Company to ban future water supply to new residential and commercial outlets yesterday stirred a furore in official circles which may lead city commissioners to move for municipal ownership of utilities. On the heels of yesterday’s in- Dr. Kassabian Jailed On Driving Charge Aiter&Car Crash A reckless driving , c h a r g e growing, out of a three-car col­lision put Dr. Lavon Kassabian in a city jail cell last night where he remained until $300 cash bail was posted for his release. He is scheduled to appear this morning at 8 o’clock before Mu­nicipal Judge Walter Richards on the reckless driving count which arresting- officer reported result­ed after it was learned he drove on the wrong side of the street, and crashed into a cab and an other vehicle at 13th and Fre­mont Sts. at 7 o’clock last night. Two youngsters who were pas­sengers in the cab were shaken up but otherwise unhurt accord­ing to police reports, No other persons were injured. The Union cab driver was identified as Al­bert W. Hart. Driver of the third vehicle in the crash was listed by police as G. O. Talbot, of Los f Angeles; Compromise Plan For El Encanfo Evictees Stalls Ouster 30 Days El Encanto apartment tenants tonight will be offered a solution to their housing problem, a small raise in rent, from Dec. 1 to Jan. 7, according to the compromise reached between the new lessees, city commissioners and the, legal representatives of the'tenants yes­terday, . - * The new lessees of the multiple unit apartments, Charles Ketch- am and Frank Scott, agreed to abandon eviction action until Jan. 7, providing the tenants drop their protest againsj. a "city permit; ; The present occupants of the apartments will be charged $2.50 a day between Dec, 1 .and Jan. 7. They are now -paying $68.50 a month. Attending yesterday’s confer ence were Scott and Ketcham representing the Ranch Inn Mo t.ej; City Commissioners Rex. A Jarrett and Bill Peceole; Asst. City Atty. Ralston Hawkins,' and Atlys. J: K. Housseis, Jr., George Rudiak and Edwin (Ted) Dotson, the legal aid Committee, from the Las Vegas Young Lawyers- Club, who are furnishing legal counsel to the -tenants without fee,, in the public interest, 23 5*1 FIGHT Ji TB# WchrfstaasSeals terim order by the Public Service Commission forbidding extension of water lines, Mayor C. D. Ba­ker said,last night: “The public utilities here must keep pace with our growth, oth­erwise the city will step, in and do it.” City commissioners on a num­ber of occasions in the past few years, have publicly expressed their determination to move for public ownership of utilities. The water company on an “emergency relief” plea, appealed on Nov. 23 to the Nevada Public Service Commission for authori­zation to refuse to install any new water mains to new subdivi­sions, effective Dec. L The utility was granted an in­terim order yesterday pending a public hearing which it set for Jan. 22 in Las Vegas’ city hall chambers, over which PSC Chair­man Robert Allen will preside. Chairman Allen from his office in Carson City said the utility company felt it did not have suf­ficient water available to permit any further extension of its mains and that the commission agreed, pending outcome of the public hearing. “We gave them an interim or­der, in order to bring before the pedple of Las Vegas the neces­sity of saving water,” Allen said. “If they don’t, they’re going to find themselves in a heck of a hole down there. “They cannot expand their city by permitting any new subdivi­sions unless they find additional water,” he continued. “All we are trying to do is to try to help them find ways of saving water so they can enjoy a real growth of their city.” “We don’t believe anyone will be hurt by this order and the people have been given a chance to voice their ideas on Jan. 22.” On that same day, the commis­sion will hold a public hearing on an order permitting the South­ern Nevada Power Co. to refuse to provide any electricity for fu­ture space heating in Las Vegas. Allen explained that the utility had been given this privilege whenever a shortage of power developed by the PSC in 1948 and that “all we’ve done now is to allow them to exercise this privi­lege and set a public hearing so we can be sure nobody will get hurls” Angry over the utility’s newest (Continued on Page 2) Internal Revenue Bureau To 'Axe' More Agents WASHINGTON, Nov. 27 (UP)—The Internal Revenue Bureau disclosed it will lire or suspend a number of employes in tax field offices tomorrow, but declined to give further details. Meanwhile, the ousted assistant. - attorney general, T. Lamar Cau­dle, testified today he received two free plane trips to Florida in 1947 from a businessman in tax troubles and that the Inter­nal Revenue Bureau’s general counsel accompanied him on one trip. The ousted assistant attorney general appeared before House tax scandal investigators for the second straight day as the reve­nue bureau disclosed it will fire or suspend a num’^er of employes in tax field offic omorrow. No details were gi\ Caudle identil. . the business­man as Thoy Whitehead of Char­lotte, N. G., but said he did not know he was under tax investiga­tion at the time of the trips which included free accommoda­tions at a Palm Beach apartment hotel and fishing from the craft “Naughty Lady.” 1 , He said one of his companions on one trip Was Charles Oliphant,. general counsel of the Internal Revenue Bureau, who went along at Caudle’s personal invitation. While he said he didn’t know about Whitehead’s tax troubles then, he acknowledged White- head telephoned him later and complained the government was about to seize his property for taxes. Caudle said he suggested Whitehead call Oliphant. He said he thought he called Oliphant. “Did, you ever learn that the day after you called the tax liens (seizure orders) were removed?” asked Adrian W. DeWind, coun­sel of the House Ways and Means Subcommittee conducting the in-, quiry. “No, were they?” replied Cau­dle, • In Charlotte, Whitehead con­firmed that he took Caudle to Florida but denied the trip had anything to do with his tax deal­ings. He said he called Caudle, a long-time friend, when govern­ment- agents threatened to take over his plant for1 back taxes. Caudle, he said, told him “the (Continued on Page 2) Army Staff Chief Due In Vegas For Next Atom Blast With AEC technicians and scientists having returned here to prepare for resumption of nuclear blasts at the atomic proving grounds, Gen. J. Law- ton Collins, chief of staff, will J be among distinguished visitors to the site, it was learned yes­terday. At El Paso, Tex., yesterday where he witnessed the firing of guidfed missies, General Collins made the declaration that the Army will have atomic artillery soon which can be used against troops. “Under certain conditions and with; certain limitation atomic missies can be used practically,” the general said. But he added that the means of delivering them “has not yet been tested out.” Collins this morning will in­spect anti-aircraft units at Fort Bliss, near El Paso, which -are being trained in firing guided missies. Then he will leave for Las Vegas, where he will be among military officials to wit­ness participation of Camp Des­ert Rock troops and military equipment in new blasts at the improvised Yucca Pass atomic battlefield. With .weather conditions an important factor in determining when blasts can be detonated, experiments in the second phase of the AEC's nuclear series are expected to begin either tomor­row or Friday. ,, 20 BILLION SHORT WASHINGTON, Nov. 27 (UP)’ Present, taxes will fall about $20,- 000,000,000 short of keeping the defense program on a “pay- as-we-go” basis 'during the next two fiscal years, budget experts said today. BLOOD DONORS—Ted Dotson is one of the many Las Vegans donating blood to the Red Cross during the organization’s drive currently being conducted at Ike lewd Naval Armory. Attending Dotson is Red Cross nurse Beulah Danze. ' (SunftA*''