ustxtxb_obs_1956_03_07_50_00007-00000_000.pdf

LET’S GET BEHIND C. T. Johnson “THIS IS THE HOUR OF DECISION” He is the Only Man who Singlehandedly Is Breaking the Thsek et the Political Machine in Texas. Your Moral Support and Contributions are Greatly Needed Today. C. T. JOHNSON FOR LIEUTENANT GOVERNOR CAMPAIGN HEADQUARTERS, 1901 RALEIGH AVE., AUSTIN, TEXAS GALVESTON An example of how the Galveston gamblers will spread their chips around in order to keep the game going came last election when attorney Jim Simpson, a former FBI agent, sought the county attorney post. Running on a “complete cleanup” ticket, Simpson won the first primary. Just a few days later, the “reformer” was offered a payoff of approximately $30,000 to drop out of the race. The gamblers, in effect, offered Simpson what they would term “a sure two-toone shot.” They wanted to pay him twice the salary he would receive for a term in the county attorney’s office. All he had to do was nothingjust drop out of the race. Although he had borrowed $500 from a local bank to help finance his campaign, Simpson emphatically declined the .offer. He lost by eight votes AUSTIN Automobile and title insurance are coming in for Insurance Commission scrutiny. A rate hearing on automobile bodily injury and property damage liability and physical damage has been set by the commission for March 15. And title insurance abstracter agents in Texas have been asked for detailed profit and loss information with a reminder that new insurance laws require commission approval of title premium division between underwriting companies and their appointed representatives. Last week the commission gave two small mutual life insurance firms Western World Mutual Life of Fort Worth and Trans-Western. Mutual Life of Dallas—-permission to go out of business. Wes Weems of the former firm accused the commission of picking on small firms. and letting the big ones go. He said he had taken over a failing .Houston firm on the basis of its license from the Insurance Commission, only to find it had been operating wrong since its inception. The board cannot “hold every officer’s hand,” Insurance Commission AUSTIN Defense of freedOm of the college press has been taken up by the Texas Intercollegiate Students’ Association, made up of representatives of many Texas colleges and universities. By a vote of 19 to 10, T.I.S.A.’s resolutions committee urged such a defense after a University of Texas student representative, Bob Keith, argued that full discussion of public affairs in the student press is a part of college education. All is relatively quiet on the University of Texas campus pending some official reaction from the Regents to a letter they received from the custodians of The Daily Texan, which they have sought to censor. The letter defended the right of the student editor to express his opinions on controversial issues if the .Texan has given a factual background. One of the nine Regents, all of whom were appointed by Governor Allan Shivers, said Saturday that Editor Willie Morris’s comments on state issuessuch as his hostility to the Harris-Fulbright natural gas bill makes the Texan subject to a civil law suit pit* a state appro,,priatiou rider Bob Bray in some 25,000 cast to Marsene Johnson, Jr., whose name was on the gamblers’ “preferred voting list” with Gov. Shivers, Rep. Jean Hosey, and Sheriff Frank Biaggne. Simpson was neither the first nor the last to refuse money from the gambling or bawdy house interests here in the past few years. Only a few months ago Mayor George Roy Clough sent back a wad of bills from the gamblers. \(The writer is a former The mayor has repeatedly charged that some Galveston city officials are receiving payoffs, but he hasn’t been able to prove it. Despite the fact he favors gambling and prostitution for the island as an “economic necessity,” Clough told the voters during his campaign: “I’m not a collector and I’m not go ing . to be controlled by the gamblers.” This stand, many Galvestonians say, Chairman J. Byron Saunders replied. “You shouldn’t wait until we catch you.” Weems said afterwards,: “If I was told to whip somebody, I’d go out and pick some -little ones. That’s what they’re doing.” Permanent receiverships yere ordered last week for American Home Mutual Insurance Co. of Dallas and Trans-County Mutual. Insurance Co. of San Antonio. Meanwhile, the San -Antonio Light reported that at the suggestion of the Insurance Commission, Benjack Cage, formerly of ICT Insurance Co. of Dallas, drew Stewart Hopps, California insurance promoter charged with “defrauding and fleecing” Rhode Island Insurance Co. of $8 million, into attempts to salvage General American Casualty of San Antonio in 1954. Hopps foresaw that General American “could make some real money forthe management” in a letter, even. though he states therein that Cage had found that General American’s entire capital and surplus had been lost and its 1953 annual statement had been window dressed” to the tune of $1.5 million. that prohibits use of state funds to in fluence state legislation and politics. The nine-member board meets April 2. Morris has throttled under the Texan. A.week ago he was publishing blank space every time an editorial was held out, but at mid-week the faculty members and student government officers on the student-faculty publications board met without any of the student publications editors, and it became known afterwards that Morris had in effect been warned to go easy or take the consequences, whatever they might be. The non-editorial members of the board took the position, it is understood, that they had defended the Texan’s independence to the Regents, and that Morris should not aggravate the situation until the Regents’ reaction became known. The Texan has been markedly noncontroversial.in its most recent issues. Morris won’t comment but is reported to feel he is biding his -time and will lath out again if the Regents’ decision does not leave the Texan free. THE TEXAS OBSERVER MARCH 7,1:56 JA ACsi Z 0 was a principal reason why Clough, in spite of his views on allowing gambling to continue, was staunchly opposed by the gamblers last election. ISN’T necessary to be a law enforcement officer in order to get a payoff from Galveston gamblers or bawdy house o pe rators. Former Rep. -tried .to force Gov. Shivers and Col. Homer Garrison to crack down on isle _vice, was twice offered payoffs. One of these offers was made by the late Sam Amelio, a male madam of Postoffice Street, who said he had lined up eleven bawdy houses which were immediately ready to pay Kugle $50 monthly per house to “quit cans ing all this trouble.” All Kugle needed do, Amelio said, was to stop agitating for shutdown of the Postoffice Street bawdy house district. Kugle tape-recorded the offer and took it to a grand jury. Amelio was indicted for perjury when he denied making the statement to Kugle that Officers and directors of General American are now defendants in a suit charging they conspired to mislead policyholders and asking for almost $6 million in. damages. The Light said Cage is now living in a palatial New York home formerly occupied by a famousw ,movie star. Hopps, too, is living in an expensive home in California. Cage recently became dissociated from ICT. He had persuaded AFL unions in Texas to invest in it, and he built up a $15 million insurance-industrial empire before stepping out last month. Garland Smith, former insurance commissioner, asked directly if A. B. Shoemake of U. S. Trust had ever given him any gifts, replied no to the House Investigating Committee Monday. Commissioner Mark Wentz was also questioned for the first time. Felix Einsohn confirmed Tues6lay that eBnJack Cage recommended him to audit U.S. Trust in testimony to be reviewed next week. Police Commissioner Walter L. john. ston would also be paid off. Johnstc” bitterly denied any knowledge of the alleged bribery deal, and Amelio died before reaching trial. Kugle, whom the gamblers referred ID a S A “The Bugle,” was also approached by one of Galveston’s leading hotel men with an offer of $7,500 yearly to play another tune. The hotel operator explained that “all the bad publicity” resulting from Kugle’s periodic calls for the Rangers to stop gambling was “hurting business.” His proposition was to retain Ktigle as his attorney and pay him the aforementioned legal fee just to keep his was destined to lose his next election to a gambler endorsed candidate, turned down the offer with a louder blast at isle vice activities. While it is easy to find citizens who admit being offered payoffs, getting anyone to confess he actually took money from the gamblers is tougher than filling an inside straight with no joker. LOCAL OBSERVERS have never had much trouble understanding why local officers allow gambling and prostitution to flourish. The big mystery through the years has been exactly how isle gamblers have been able to control interference-from the Rangers and other state law enforcement officers. Despite requests from Kugle, then state representative and head of the Galveston County Citizens Committee for Law Enforcement, and others, the Rangers haven’t Made any serious attempt to close isle gambling in several years. Col. Garrison explained to newsmen that the Rangers were, too busy solving major crime to control Galveston’s gambling. At Kugle’s insistence, Garrison barracked t w o Rangers at the Buccaneer Hotel for several weeks. They closed down dice and poker games, but ignored bookie joints, bingo, tip books and other gambling operations. Isle gamblers are frankly afraid the Rangers may well find time to crack down on Galveston if another man begins sitting in the governor’s chair, which explains their intense interest in the approaching gubernatorial race. . \(Next week: So ffle Galveston PerPayoffs a Part of the System Clough, Simpson and Kugle Said No in Galveston Muffler on Texas AUTO TITLE INSURANCE EYED