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Evening star. [volume] (Washington, D.C.) 1854-1972, February 05, 1962, Image 1

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THE WEATHER:
District and vicinity—Windy and becom
ing colder this evening, possibly a few
showers. Low about 28 tonight. Tomorrow,
mostly sunny, windy and much colder.
High and low of past 24 hours: High, 60,
at 2 pm. today; low, 32, at 7:16 am. today.
No. 36.
110th Year.
N.E. Robbers
Get $19,000
In Car Holdup
Two Bandits Force
Vehicle to Curb
In Broad Daylight
A $19,000 holdup of week
end grocery receipts was re
ported today by a store employe
who yielded the loot after a
struggle to two bandits who
forced his bank-bound Volks
wagen bus to a curb.
The holdup occurred In front
of 1002 Rhode Island avenue
N.E., a few blocks from the
Buckingham Super Market, Inc.
office at 1311 Rhode Island
avenue.
Kenneth Jones, 30, of 610
Morton street N.W. had started
from the market for the Bank
of Commerce, Fourth and
Rhode Island avenue N.E.,
with the money shortly after
10 a.m.
Driver Tussles for Gun
When the car forced his
little bus to the curb, one of
the bandits opened the bus
door, began pummeling Mr.
Jones and forced his way in
side. Mr. Jones said he tussled
with the robber in an attempt
to wrest away his gun.
At the corner Pvt. Aubrey
B. Jasper, 43, of 912 Evarts
street N.E., a District fireman,
was attracted to the struggle
when the bus rolled a few feet,
striking the rear of a parked
car.
Pvt. Jasper said he saw Mr.
Jones fall out the right side of
the bus, and a minute later an
other man emerged from the
driver’s side with a large paper
bag. This man got into the car
and drove away.
Auto Is Recovered
The car, a 1955 blue Olds
mobile, later was recovered at
Second street and Ascot place
N.E. Capt. Murray Kutner of
the robbery squad ordered the
car and bus removed to head
quarters for fingerprint tests.
Mr. Jones went to Providence
Hospital for treatment of facial
cuts and X-rays.
He told police the bandit
who attacked him, described as
about 6 feet tall, had his face
smeared with a white cream
as a disguise. Both robbers
were Negroes, he said.
Stanley Greenberg, a Buck
ingham official, requested
those who cashed checks at the
Rhode Island avenue store Fri
day and Sunday to inform the
store of the amounts and types
of the checks. Mr. Greenberg
said part of the money involved
in the theft was insured.
House Group
Acts to Raise
Debt Ceiling
The House Ways and Means
Committee voted today for a
$2 billion increase until June
30 in the temporary $298 bil
lion national debt limit.
This boost to S3OO billion
falls short of President Ken
nedy’s budget message recom
mendation last month for a
S3OB billion temporary ceiling
until June 30, 1963.
Secretary of the Treasury
Dillon told the committee the
$2 billion increase until the
end of the current fiscal year is
satisfactory to the administra
tion at this time. He added,
however, that he expects to re
turn before June to ask the
committee to approve a further
increase to the S3OB billion
figure.
The temporary limit of $298
billion established by Congress
last year would revert auto
matically to the $285 billion
permanent statutory limit next
June 30 unless extended or in
creased. The current public
debt is near the $298 billion
limit and is expected to reach
almost S3OO billion by June.
When Margery Michelmore
wrote her much publicized
post card from Nigeria, the
Peace Corps exploded into
the headlines.
Crosby S. Noyes, The Star's
roving Foreign Correspondent
reports from that African
country on what the Peace
Corps is doing to prevent
such fiascos in the future.
... In Today’s Star
Page A-10
®he jEticiunii Mir
s J WITH SUNDAY MORNING EDITION Q-Z
Phone LI. 3-5000
? UMIMBP MURHIMi
| II
JU J
PRESIDENT RECEIVES ASTRONAUT
President Kennedy chats today with Astronaut John H. Glenn, jr., at
the White House. Lt. Col. Glenn is expected to return to Cape Ca
naveral today or tomorrow for another launching attempt on Febru
ary 13. —AP Photo.
Kennedy Sees
Congo Premier
Adoula Lunches
With President
• By the Associated Press
Congolese Premier Cyrille i
Adoula arrived in Washington,
today and was given a red car-,
pet reception as an honored
guest of President Kennedy.
It is the first visit to this
country for Mr. Adoula, who is
the United States Govern
ment’s favorite for leadership
of a united Congo.
Mr. Kennedy held a White
House luncheon in Mr. Adoula's
honor. He will stay overnight
at Blair House, the President’s
guest house.
Undersecretary of State
George W. Ball headed an air
port welcoming delegation i
which greeted the Congo leader ’
as he arrived from New York i
aboard an Air Force plane.
After a 19-gun salute, play of
heraldic trumpets and other
flourishes, Mr. Ball said in a
welcoming address that the
United States has watched with
great respect—with admiration
in fact—your efforts to bring
peace and stability to the ,
Congo.”
Pledges Backing of U. N. i
“We regard the development
of an independent and peace
ful Congo of greatest impor
tance to the whole free world,”
Mr. Ball said. He pledged con
tinued United States support
for the United Nations en
deavors to achieve this.
Mr. Adoula said in reply that
his efforts “would have been in
vain, to a large extent, if it
had not been for the help you
have given us.”
Mr. Adoula expressed hope
that United States assistance
would continue. He said peace
I in the Congo “is a task for
us, a task for all men of good
will.”
After the airport ceremony,
Mr. Adoula was driven to the
State Department for meet
ings with Mr. Ball and others.
The 38-year-old moderate
Congolese leader is not apt to
Ibe promised any new United
[States aid while visiting here.
However, informants said,
i plans are afoot to extend fur
ther economic assistance to his
country through the United
Nations.
Visitors Entertained
The stag luncheon at the
White House was followed by
a one hour conference with
Mr. Kennedy. Later today,
Senator Gore, Democrat of
Tennessee, chairman of the
Foreign Relations Subcommit
tee on Africa, is host at a tea
in Mr. Adoula’s honor. In the
evening G. Mennen Williams,
Assistant Secretary of State
for African Affairs, entertains
the Adoulas at his residence.
Mr. Adoula will visit tomor
row morning with Eugene
Black, president of the World
Bank, before returning to New
York.
Yesterday Mr. Adoula con
ferred with Valerian Zorin,
Russia’s U. N, delegate. In New
York. A spokesman for Mr.
Adoula said later that Mr. Zorin
had requested another meeting
with the Premier when he re
turns to the city.
Last night Mr. Adoula had
dinner with Adlai E. Steven
son, United States ambassador
to the United Nations, at Mr.
Stevenson's hotel suite.
Premier Adoula earlier at
tended mass at St. Patrick’s
Cathedral and had a 15-minute
audience with Francis Cardinal
Spellman in the Cardinal’s
residence.
Cardinal Spellman gave Mr.
Adoula a pair of cuff links
bearing the cardinal’s coat of
arms. The two men exchanged
a few words in French.
WASHINGTON, D. C., MONDAY, FEBRUARY 5, 1962-42 PAGES
INVESTORS BEWARE
Various Techniques
Used to Lure Unwary
By MIRIAM OTTENBERG
Star Staff Writer
The techniques for selling low-grade stocks to unwary
Washington investors range from elaborate stage settings to
fast telephone patter.
While the stock promoters pretend the greatest solicitude
for the safety of their customers’ money and act as though
their only concern is to let a client in on a good thing, their
actual goal is to make a killing ■
before the stock they tout be-1
comes worthless.
They can get away with their
gimmicks here longer than in
most other places because
Washington has no law to as- .
sure local controls over the in
vestment firms or their sales- 1
men.
Washington has many reli
able, firmly established invest- .
ment firms but one-third of
those in business here today
would not be allowed to operate
in most other cities.
Examples of Techniques
Selling techniques of some
stock promoters are shown in
reports of an ex-FBI agent who
"shopped” Washington invest
ment firms for the Better Busi
ness Bureau, in customer com
plaints and in reports of un-1
ethical practices furnished by
Washington’s reputable firms.
Here’s the pattern:
1. To create the impression
that stocks of little value are
being heavily traded, the pro
moter installs a blackboard in'
his office and changes the stock
quotations on it hourly.
While a customer listens, the
promoter calls a well-known
investment firm and asks for
the latest price on a stock.
When the promoter gets the
answer, he tells the customer:
“See, the big boys are trading
in this, too.”
Just Window-Dressing
The impressed customer does
n't realize that the blackboard
quotations are just window
dressing. He doesn’t know that
the answer given by the big firm
was simply read from the dally l
sheet of over-the-counter list
ings and that a reputable firm ]
wouldn’t touch the particular |
stock. He also is unaware that
the buying price of the stock,
given to him is substantially
higher than the price the pro
moter got over the telephone.
Reputable firms are trying to
curb this practice by offering to
call back with the answer when
they suspect a fly-by-night out
fit is on the other end of the
telephone. If their suspicions
are proved correct, they don’t
HARASSED BRASS
'l've Got a Trumpeter
I n the Balcony, Doctor'
LONDON, Feb. 5 (AP) .-De- i
spite a zealous if not too music
ally learned usher, trumpeter
Elgar Howarth carried off his
fanfare in Beethoven's Third
Leonore Overture at the Albert
Hall last night.
Mr. Howarth had climbed to
the top balcony in the great hall
to sound the off-stage solo that
is one of the climactic moments
of the overture. He put his
trumpet to his lips and got
ready to blow when a voice be
hind him inquired?
“And what, may I ask, are
you playing at?”
The usher had decided Mr.
Howarth was a rogue trumpet
er bent on wrecking the con-
j This is the second in a series
' of articles exploring the practices
of questionable investment firms
here. It is hoped the information
included may serve to protect the
investing public.
call back—but they can't de
tect them all.
2. To create the illusion of
respectability, a shoestring out
fit claims it is trading regu
larly with one of the well
known firms.
Letterhead to Impress
To prove it, the promoter
flashes a bill on the letterhead
of the big investment house.
The bill was easy to come by.
The promoter simply ordered
some well-known stocks or
j bonds as any customer could
[do. Even if he lost a little
'money on the deal, he has evi
dence to show the doubting cus
tomers that he does business
[with recognized firms.
3. To attract servicemen with
a few dollars to invest, the pro
moters recruit officers retiring
[ from the armed forces as sales
men or junior partners. The
promoters are attracted by the
service contacts of these former
officers as well as by their
savings.
The ex-FBI agent working
with the Better Business Bu
reau reported hearing a pro
moter addressing several tele
phone callers by their officer
rank, and added: "It has be
come rather obvious during this
investigation that the armed
forces offer a tremendous
market for over-the-counter
dealers.”
* A number of the letters from
customers who lost their sav
ings in the collapse of one
I Washington firm came from
both officers and enlisted men.
Attracting Salesmen
I 4. To attract salesmen with
some money of their own, the
promoters put help wanted ads
for salesmen in the newspapers
on the same day they advertise
spectacular new issues.
When the would-be salesmen
apply for jobs, they have to
agree to invest in these ques
tionable new stocks themselves
before they can go to work.
, They are expected to get their !
See INVESTORS, Page A-8
cert by the Philharmonia Or
chestra.
With no time to answer, Mr.
Howarth came in on cue at
which the attendant grabbed
him and started pulling him
toward the door.
The attendant pulled and Mr.
Howarth blew, the notes from
his trumpet becoming fainter
and fainter.
They reached the door just
as he finished the fanfare.
Outside, Mr. Howarth breath
lessly tried to explain. He was
due for another cue in 30 sec
onds. The attendant, still sus
picious, let him go back.
The overture went on with
out a hitch, and few people
noticed that anything was
amiss.
U. S-Piloted Plane
Shot Down in Laos
De Gaulle Sees
Fast Gains on
Algerian Peace
7 Secret Army
Members Seized
In Security Raid
BULLETIN
PARIS, (AP).—President I
de Gaulle said tonight that [
despite “subversive and crim
inal” resistance by right
wing opponents, France is
moving rapidly toward peace
in Algeria.
The French President, in
a radio-television speech to
the nation, declared he “posi
tively hoped” he would at
tain this goal very soon. He
added that France would
soon make public in detail
her latest proposals to end
the more than seven years of
savage nationalist insurrec
tion.
PARIS, Feb. 5 (AP).—Se
curity officers announced to
day the arrest of seven Secret
Army members caught with
plans to overhtrow the govern
ment. The development came
as the nation awaited Presi
dent de Gaulle’s speech to
night on Algeria, which may
touch off more violence.
Authorities said the arrest
of the men, identified as mem
bers of ttie Secret Army’s oper
ational headquarters, was the
most severe blow to date
against the underground in
France. The Secret Army is
sworn to prevent Algerian in
dependence.
At the same time, a bomb
believed laid by the Secret
Army damaged a television
tower in the northern city of
Lille. This is a tactic used by
the Secret Army to black out
important speeches by Gen. de
Gaulle. Transmission at Lille
was not interrupted, however.
A bomb also blew in the doors
and smashed windows at the
regional administrative head
quarters at Grenoble, in the
Alps, and there were scattered
outbreaks of violence in Algeria.
Elaborate Guards Set
The blows of the Secret
Army came despite elaborate
security measures in both
France and Algeria against vio
lent reaction to Gen. de Gaulle’s
radio and TV speech. He is
expected to make some report
on progress toward ending the
seven-year Moslem rebellion in
Algeria by giving rule to the
Arabs over opposition of white
European residents.
French authorities said the
seven members of the Secret
Army were five officers and
two lawyers. Among them was
a retired colonel. None is well
known. They were arrested
while meeting in an apartment
building on the Avenue Frank
lin Roosevelt in downtown
Paris Saturday night.
Authorities said documents
seized included a list of police
officers to be assassinated be
fore the launching of an anti
government plot. National Se
curity police who studied the
documents have begun a series
of followup investigations.
Thousands of riot police, 32
tanks, 100 squad cars and light
armored vehicles waited on the
alert on the outskirts of Paris.
Troops took over strategic posi
tions in key Algerian cities to
counter the threat of an upris
ing by the underground Secret
Army Organization of Euro
peans fighting to keep Algeria
French.
Paris Leaks Reports
For days high sources have
leaked the word that secret
I negotiations between Gen. de
Gaulle and the Algerian rebels
toward a cease fire are weP
advanced. Few observers be
|lieved, however, that the time
had arrived when the French
president, who has dedicated
himself to settling the rebellion,
could announce a peace settle
ment.
Gen. de Gaulle is a leader
who keeps his own counsel.
There was growing speculation
that he would express guarded
See De GAULLE, Page A-6
African Peace Prize
Now Rebuilds Missions
VATICAN CITY, Feb. 5
(AP).—A $25,000 prize estab
lished for an African person
ality aiding the cause of peace
is ’ ing used instead to rebuild
ravaged missions in Africa.
| The St. Pope Pius V Insti
tute, which handles the prize,
[says the past year “did not
produce a man to whom such
a prize could be given without
I question.”
U. S. Embassy Stoned
By Mob in Indonesia
Flag Is Ripped Down, Employe Injured
As Students Protest Plane Refueling
JAKARTA, Indonesia, Feb. 5 (AP).—A student mob
stoned the United States Embassy and ripped down the
American flag today, injuring one employe. The action
brought a vigorous American protest.
The students, believed to be pro-Communist, were pro
testing because a Dutch plane carrying troops to disputed
West New Guinea was allowed
to refuel on United States soil.
The mob action came before ,
reports reaphed here that the'
United States had withdrawn
permission for Dutch charter
planes carrying troops to use
United States airfields at An
chorage, Alaska, Honolulu and
Wake Island.
Expresses Disappointment
At the Hague, a communique
said Premier Jan de Quay of
the Netherlands had expressed
his deep disappointment and
added that he could not un
derstand the United States i
decision.
The Indonesian news agency
PIA said Foreign Minister
Subandrio expressed regret
about the attack on the em
bassy, although he added he
could “well understand the
anger and irritation of the |
Indonesian people caused by
the permission granted to
Dutch troop-carrying planes
to land on American soil.”
The agency said several per
sons had been arrested on sus
picion of leading the demon
i stration.
United States Ambassador
Howard P. Jones protested the
mob attack to the Indonesian
Foreign Ministry, saying the
United States would hold the
Indonesian Government re
[ sponsible for the damage.
One embassy official, Miss
Mary Manchester, a personnel
Stevenson and Cuban
Trade Charges in U. N.
UNITED NATIONS, N. Y„
Feb. 5 (AP). United States
Ambassador Adlai E. Stevenson
told the United Nations today
that Cuba is trying to wreck
the Alliance for Progress and
that the American republics are
determined to see that this does
not happen.
Mr. Stevenson addressed the
General Assembly's 104-nationj
political committee after a rep
resentative of Prime Minister
Fidel Castro accused the United
States of new plans for aggres
sion against Cuba.
Cuban Delegate Mario Gar
cia-Inchaustegui appealed to
the United Nations to halt the
alleged plans.
Mr. Stevenson immediately
denied the charges. He called
the Cuban appeal to the United
Nations an attempt to divert
attention from the recent anti-
Castro action taken by the Or
ganization of American States.
Hits OAS Expulsion
Mr. Garcia denounced the
OAS expulsion of Cuba from
the inter-American system as!
a flagrant violation of the U. N.
charter obtained by United I
Kt jl
I* xjipH
r |
* If
H
■f yrjM
■ H il r J I
TRYING CHOPSTICKS
Mrs, Robert F. Kennedy, wife of the Attorney
General, tries chopsticks on a good-will visit
to Japan and probably wishes she had tried
them on something easier than Japanese
noodles. (See story, Page A-4.) —AP Wire
photo via radio from Japan.
Night Final
Late New York Markets, Page A-21
Home Delivered:
Daily and Sunday, per month, 2.25
officer, was injured. Several
; others in the embassy were
hit by flying glass.
_ Shouting and singing, about j
100 students believed to be
from the Communist-dominated
CGMI student organization
hurled stones and sticks at the
embassy building and smashed
windows of automobiles parked
in the embassy compound,
j Banners they carried com
; plained against the landing
I of Dutch troop planes on
[ United States territory on their
(iway to the Dutch New Guinea
I area claimed by the Indo
nesian Government.
The Dutch say the troops
, are replacements rather than
j reinforcements for gari isons on
West New Guinea.
ACTION PRECEDED
. EMBASSY ATTACK
In Washington, officials said
. today the United States noti
. fied the Netherlands govern
-1 ment last Friday that a second
planeload of Dutch troops
, bound for West New Guinea
’ could not make refueling stops
, at United States commercial
, airports in the Pacific.
Officials stressed the action
was taken before Indonesian
i students attacked the United
l See INDONESIA, Page A-6
, States blackmail and pressure,
s Mr. Stevenson said:
i “It is Cuba which is inter
’ sering with the internal affairs
: of the American republics and
I it is Cuba which is permitting
i Marxist aggression against the
: free institutions of its neigh
bors.”
> The United States delegate
i asserted that the United States
. is determined to see that Cuba
1 j will not be used to destroy the
I Democratic evolution of this
. hemisphere.
j Mr. Garcia declared the!
. United States went to the OAS
i conference at Punta del Este,
i Uruguay, to try to liquidate
all possibility of negotiating a
'settlement with the Castro
1, government.
Cites U. S. Actions
[ The United States, he said,
[ went to the conference “carry
ing a bag of gold in one hand
and a dagger—a bloody dagger
in the other.”
■ The efforts of President
! Kennedy to isolate Cuba from
; j the rest of the Western hem
isphere, Mr. Garcia declared.
I I See U. N., Page A-6
10 Cents
2 Americans
Killed With
4 Others
VIENTIANE, Laos. Feb, 5
(AP). An American-piloted
transport plane was shot down
by hostile forces yesterday
while flying over the Plaine des
Jarres on an air drop to gov
ernment forces in the area, it
was learned today.
The American pilot and co
pilot and four Lao unloaders
were killed in the crash in the
hill country east of the Plaine
des Jarres.
The C-46 was operated by Air
American, a civilian firm set
up by the American Govern
ment to provide the Laotian
army with air transport.
Hit by Ground Fire
Air American said it was on
a normal mission dropping rice
and other commodities to refu
gees and army units.
Reports said it was hit by
fire from the ground and went
down in flames.
It was not immediately
known whether it has been shot
down by Prince Souvanna
Phouma’s neutralist troops,
pro-Communist Pathet Lao or
antiaircraft artillery manned
by North Viet Namese soldiers.
The names of the American
casualties were not immediately
announced.
Several other American
manned planes have been shot
down or crashed in Laos civil
[war since last year.
Shell Misses Premier
A mortar shell just missed
Premier Prince Boun Oum to
day as he was leaving the be
sieged northwestern provincial
capital of Nam Tha after an
inspection, his finance minister
reported here.
“As we took off from Nam
Tha, a mortar shell fell just
where our plane had stood,”
Finance Minister Phouangphet
Phanareth told reporters. “I
was rather excited but Prince
Boun Oum was calm and laugh
ing as usual.”
The pro-Communist troops
besieging Nam Tha have had
the airstrip there under mortar
fire for several days. It was
reinforced yesterday when
Royal Army transport planes
landed troops despite the
fire.
j Meanwhile. Deputy Premier
Gen. Phoumi Nosavan handed
British and Soviet Ambassadors
in Vientiane a protest of cease
fire violations at Nam Tha.
Britain and France act as co
[ chairmen of the 14-nation
Geneva conference in Laos.
I The three commissioners of
the International Control Com-
I mission held a late conference
[with American, Soviet and
French Ambassadors on a cease
i fire so as to assure resumption
of talks on forming a coalition
government.
Akihito Catches
Cold on Bali Trip
JAKARTA, Indonesia, Feb. 5
(AP).—Japanese Crown Prince
Akihito has been stricken with
recurrence of a severe cold
during a visit to Bali, the
Japanese Embassy said today.
The 28-year-old heir to the
Japanese throne is expected to
cut short his tour of Indonesia,
cancel his visit to the Philip
pines, and fly back to Tokyo
when he recovers sufficiently
to travel.
Prince Akihito, who is
traveling with his wife, Crown
Princess Michiko, caught cold
in Pakistan when he set out on
his tour. He seemed to recover,
but Indonesia's wet, steamy
monsoon weather apparently
brought a recurrence.
NEW PROMOTERS
ARE SMOOTH
A NEW BREED of unscrupulous
but sophisticated promoters is mov
ing in on the stock market, Sylvia
Porter, finance writer, reports today
in the first of a five-part series,
"Gangsters in the Stock Market,"
on Page A-20.
NEWLY LICENSED certified pub
lic accountants who successfully
completed the District Board of Ac
countancy examination are listed
on Page A-11.
Guide for Readers
Amuse’ts A-14-151 Lost, Found _.A-3
Business A-20-21 Music B-18
Classified B-l 1-16 Obituary B-4
Comics B-17-19 Society-
Crossword -B 17 Home ..B-6-10
Editorial ...A-10 Sports ..A-16-19
Fdit’l Articles A-11 TV-Radio A-12-13
Features ...B-18 Weather B 2
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