anaheim-gazette 1950-10-12

ANAIEM GAZETTE published afternoons, Monday through Friday, at 259 East Center, Anaheim, California. Phone Anaheim 3208. Entered as secondclass matter at the Anaheim, California, Postoffice on June 6, 1879, under the Act of March 3, 1879. The Gazette is a member of the Associated Press, the National Editorial Association, and California Newspaper Publishers Association. All rights herein are reserved. Subscriptions: 50c per month by carrier or $1 per year by carrier or mail. MEMBER OF THE ASSOCIATED PRESS—The Associated Press is entitled exclusively to the use for republication of all the local news printed in this newspaper as well as all A.P. news dispatches. THEODORS B. KUGHEL Publisher MAX BEILER Assistant Publisher WILLARD GREGORY Editor ERNEST BRYER Assistant Editor MYLES BRADLEY Picture Editor NEIL STANLEY Advertising Manager G. E. MELLEN Assistant Advertising Manager MARY ROULAND Assistant Advertising Manager RALPH ROULAND Classified Advertising Manager New rules on home buying... The government—starting today, is making it tougher to buy one and two family homes. But there are exceptions. The government has issued new rules, under a law passed by Congress, which compel you to put up a bigger down payment and pay up faster on any: 1. Newly built or existing home if the government—meaning the Federal Housing Administration (FHA) or Veterans Administration (VA)—has a hand in the deal. That is, if it guarantees a loan on the home. 2. Newly built home whether it's the government, a bank, or a loan company which guarantees or makes the loan on it. But—and this is where the exthe board—on new and existing homes—whether the government was mixed up in the loan or not. Reasoning behind the rules: 1. By making home-buying tougher, to cut down on the number of new homes being built, thus leaving more materials for the government's defense program. 2. By making home-buying tougher and new houses fewer, to keep prices down and put a brake on inflation. But what about those existing homes where the new rules don't apply so long as no government loan is involved? Will the prices on them go down? Or since they'll be easier to buy, will their prices even further? We'll have to... 1. Newly built or existing home if the government—meaning the Federal Housing Administration (FHA) or Veterans Administration (VA)—has 6 hand in the deal. That is, it guarantees a loan on the home. 2. Newly built home whether it's the government, a bank or a loan company which guarantees or makes the loan on it. But—and this is where the exception comes in—the new rules do not apply at all to existing homes where the government has no part in the loan. Examples: 1. You want to buy a newly built home or have one built. The rules apply to you, whether you get the loan from a bank or the government. 2. You want to buy a home which is not new. If the FHA or VA guarantees the loan, then the rules apply. But if in the case of such an existing home you get a non-government loan, the rules do not apply. These are the rules in all cases where they apply: Non-veterans will have to make cash down payments ranging from 10 per cent on houses costing under $5000 to 50 per cent on houses of $25,000 or more. Down payments for veterans will be lower, ranging from 5 per cent to 45 per cent. Mortgages will have to be paid off within 20 years on all houses costing more than $7000. For under $7000 houses, 25 years will be allowed. Right here something needs explaining. Under these new rules, what is considered a "new" home? One upon which construction was started on or after August 3, 1950. An "existing" home is one which was built before August 3 or upon which construction had started before that date. Suppose a man arranged a loan on a new home between August 3 and now. Do the new rules apply to him? Do the terms of his loan have to be re-arranged? No. The rules apply only where a loan has been arranged after today. Here's a question which you probably have in mind at this point: Why is there an exception in the rules? Why don't they apply in the case of an existing home where no government loan in involved? Congress did that, when it passed a law September 18 giving the government power to set these controls. Government housing officials to cut down on the number of new homes being built, thus leaving more materials for the government's defense program. 2. By making home buying tougher and new houses fewer, to keep prices down and put a brake on inflation. But what about those existing homes where the new rules don't apply so long as no government loan is involved? Will the prices on them go down? Or, since they'll be easier to buy, will their prices go up even further? We'll have to wait for the answer to that one. The new rules do not apply to apartment houses or commercial property. But the government will put controls on them shortly. Here are examples of how the rules will work on homes to which the rules apply: A home is valued at $12,000. You're a non-veteran. You'll have to put up a down payment of at least $2100. If you're a veteran, your down payment must be at least $1900. But when the price of a home is $25,000 or more, the non-veteran must put up a down payment of at least half the price by himself, a veteran a little less. At this point you probably have this question in mind: Say I'm a non-veteran, want to buy a $25,000 home (to use round figures), but don't have the 50 per cent down payment of $12,500. I borrow that $12,500 down payment from an uncle and get a loan from a bank on the rest. Is that all right? No. Not at all. The new rules say you must put up the down payment by yourself—that you can't borrow it from any source, relative or otherwise—if you want a loan from bank, FHA or VA. (There's one exception: you can get a loan on your life insurance to make the down payment. And if sickness or death or fire intervenes, exceptions will be made for your borrowing.) But you say: suppose my Aunt Sally wants to lend me money on a house covered by these new rules. Can't she? Not unless she lends you the whole amount. But if she makes a loan to you on any part of your down payment, you can get no help on the rest from a bank or FHA or VA. Then you say: but the rules then don't apply to me at all if I can borrow the whole loan from some individual who is not a bank. Right? Not exactly. Any individual who makes more than three loans a year to home buyers, and they total $25,000 or more, comes under the rules and cannot give you a loan unless you cut down on the number of new homes being built, thus leaving more materials for the government's defense program. 2. By making home buying tougher and new houses fewer, to keep prices down and put a brake on inflation. But what about those existing homes where the new rules don't apply so long as no government loan is involved? Will the prices on them go down? Or, since they'll be easier to buy, will their prices go up even further? We'll have to wait for the answer to that one. The new rules do not apply to apartment houses or commercial property. But the government will put controls on them shortly. Here are examples of how the rules will work on homes to which the rules apply: A home is valued at $12,000. You're a non-veteran. You'll have to put up a down payment of at least $2100. If you're a veteran, your down payment must be at least $1900. But when the price of a home is $25,000 or more, the non-veteran must put up a down payment of at least half the price by himself, a veteran a little less. At this point you probably have this question in mind: Say I'm a non-veteran, want to buy a $25,000 home (to use round figures), but don't have the 50 per cent down payment of $12,500. I borrow that $12,500 down payment from an uncle and get a loan from a bank on the rest. Is that all right? No. Not at all. The new rules say you must put up the down payment by yourself—that you can't borrow it from any source, relative or otherwise—if you want a loan from bank, FHA or VA. (There's one exception: you can get a loan on your life insurance to make the down payment. And if sickness or death or fire intervenes, exceptions will be made for your borrowing.) But you say: suppose my Aunt Sally wants to lend me money on a house covered by these new rules. Can't she? Not unless she lends you the whole amount. But if she makes a loan to you on any part of your down payment, you can get no help on the rest from a bank or FHA or VA. Then you say: but the rules then don't apply to me at all if I can borrow the whole loan from some individual who is not a bank. Right? Not exactly. Any individual who makes more than three loans a year to home buyers, and they total $25,000 or more, comes under the rules and cannot give you a loan unless you cut down on the number of new homes being built, thus leaving more materials for the government's defense program. 2. By making home buying tougher and new houses fewer, to keep prices down and put a brake on inflation. But what about those existing homes where the new rules don't apply so long as no government loan is involved? Will the prices on them go down? Or, since they'll be easier to buy, will their prices go up even further? We'll have to wait for the answer to that one. The new rules do not apply to apartment houses or commercial property. But the government will put controls on them shortly. Here are examples of how the rules will work on homes to which the rules apply: A home is valued at $12,000. You're a non-veteran. You'll have to put up a down payment of at least $2100. If you're a veteran, your down payment must be at least $1900. But when the price of a home is $25,000 or more, the non-veteran must put up a down payment of at least half the price by himself, a veteran a little less. At this point you probably have this question in mind: Say I'm a non-veteran, want to buy a $25,000 home (to use round figures), but don't have the 50 per cent down payment of $12,500. I borrow that $12,500 down payment from an uncle and get a loan from a bank on the rest. Is that all right? No. Not at all. The new rules say you must put up the down payment by yourself—that you can't borrow it from any source, relative or otherwise—if you want a loan from bank, FHA or VA. (There's one exception: you can get a loan on your life insurance to make the down payment. And if sickness or death or fire intervenes, exceptions will be made for your borrowing.) IN THE DAYS OF LONG AGO From the Files of the Anaheim Gazette By MRS. HENRY KUCHEL 75 Years Ago Indian agent Dryden is on his way to Temecula to inquire into the Indian difficulties. The Centre street folks are clamoring for a layer of straw on that street to keep the dust in subjection. Beebe has been appointed agent for the Los Angeles Soap company and has received a large invoice of their superior soap. The "Grizaba" brought a large consignment of coin for the banking house of Temple and Workman. A dispatch from Washington says that George Devendorf has been appointed postmaster at Los Nietos. Articles of incorporation have been filed in the office of the Secretary of State, of the Commercial Bank of Los Angeles to maintain a bank of discount and deposit and to do a general commercial business. Capital stock $300,000 in 3000 shares. Directors A. H. Wilcox, Q. S. Witherly, M. S. Patrick, J. G. Capron, H. Mayberry, L. J. Rose, S. H. Molt, R. M. Town and Ed Barton. Poblemus has received a large invoice of sugar-coated pills. Rah for Pilhemus. The weather is extremely favorable for wine-making. Mr. Olden has made a sale of land near the "Lone Tree," to some parties lately from Washington Territory. That part of the cake with the ring in it fell to the lot of Dr. Gardiner at the festival at Orangethorpe last night. We have almost forgotten the penalty attached to this event. Mrs. Julia Hagan has resided her home in Berkeley after absence of seven months in Hawaiian Islands. Mrs. Hagan formerly a resident of Milwaukee and is a daughter of the late Mrs. John Hanna, pioneer residents of that section, and many warm friends through Orange county who will be learn of her safe return home her long visit to the island sea. Rev. B. S. Haywood, the appointed pastor of the Temple Methodist church dded his initial sermon morning to a large congregation Dr. J. A. Geissinger made his appearance in his new pulsadena at the same time. The people of Anaheim regio see Dr. Geissinger leave are extending a hearty welcome to his successor. Mrs. Emil Tittman, who has visiting relatives in Switzerfor some months is expected to be in about a week. She visited parents in Erlach and relative her husband in Zurich. ACCEPTS INVITATION—Niles T. Granlund, headman on the TV show "Backstage with NTG," accepts, from four Anaheim Fair Queen candidates, a flower, courtesy Waynes shop, and the invitation to crown Anaheim's Queen October 29 under the Big Top at La Palma Park. Granlund will also present the Queen with a gold Bulova wristwatch. Backstage with him are Eileen June Garcia, Velma Pohlman Neuman, Elaine Newton and Joan Hanson. of Italian-Americans have been able to dominate the big crime rackets of the nation, spreading murder and political corruption in their wake, is one of the least- carrying a concealed weapon, felonious assault, homicide, disorderly conduct, burglary, petty larceny, and first-degree murder. Miraculously, however, he was County CoBy GEORGE Orange County B Election of Orange pervisor Willard Smith to the vice-president Association of Counors last weekend, reer more than just presidency. It assures that thoty man will in 1952 ful state group, wield tant influence in state. It happens that in sociation of supervision is always decided by presidency level. The dent automatically sepresidency, so that e membership knows elected vice-presider be the president a y. Consequently, any leadership always co vice-president's office a contest of sorts th lard Smith defeating Andrew Noon of Ken it was not much of a of Smith's supporters even before the fin the state convention election was held. Th he wouldn't need th he didn't. The election thereafter a tribute to Smith, a tion of the leadership the state group as a board of directors f of years, besides his important posts. The ensue, also is consider honor to the county. It means, as mer the Orange county ACCEPTS INVITATION—Niles T. Granlund, headman on the TV show "Backstage with NTG," accepts from four Anaheim Fair Queen candidates, a flower, courtesy Waynes shop, and the invitation to crown Anaheim's Queen October 29 under the Big Top at La Palma Park. Granlund will also present the Queen with a gold Bulova wristwatch. Backstage with him are Eileen June Garcia, Vclma Pohlman Neuman, Elaine Newton and Joan Hanson. WASHINGTON—How a group 50 Years Ago The Anaheim Turners made a good showing at the turnfest held in San Diego, Saturday, Sunday and Monday. The first prize for essays was won by J. F. Ahlborn of its city, the second prize for racing by John Haberfellner, Anaheim, who also won the third race for turning. Joe Backs carded off the honors of the day. He ran the broad jump, making 20-7 inches over 23 contestants. He nearest to him was a San Diego man, who jumped 17 feet 10 inches. Joe also won the high jump, feet 4 inches, and putting the set, 28 feet 6 inches. The others were not in it. The Turners re-opened Monday evening and Tuesday. They speak in high praise of San Diego's hospitality. The dance given by Co. E., for the benefit of Galveston sufferers, saved a success both socially and financially. At 12 o'clock supper served by the ladies of the internal aid. The amount readied after defraying all expenses is $98. This money will be forwarded to the sufferers. 25 Years Ago According to Principal Louis E. Sommer, 904 students are now attending the Fullerton Union high school. This is within 26 of theember enrolled in the institute last year at this time. Enrollment at the Fullerton Junior college now totals 155 students. Because of additional work in England, a requirement for graduation produced this year, a new instructor has been added to that department. She is Miss Helen Berger, who recently completed aney around the world. of Italian-Americans have been able to dominate the big crime rackets of the nation, spreading murder and political corruption in their wake, is one of the least-known stories of the USA. The complete story may never be told. For it is locked behind the lips of men who have sworn to die rather than talk, and whose campaign contributions to big politicians have largely put them outside the law. Senator Kefauver of Tennessee is the only man, so far, who has had the courage to bear this gang of criminals. Meanwhile, a roll call of their leaders, never before published, gives important insight into the power and ramifications of the Mafia. The roll call begins in New York City with Frankle Costello, the man who carried a suitcase to Ellis Island on the morning his chief, Lucky Luciano, was deported back to Italy. It is significant that Costello had enough power with the federal government so that he—and he alone—went to Ellis Island to see Luciano off. Newspapermen seeking to cross on the ferry to the island with Costello were barred. Early in Costello's career he was financed by New York underworld boss Arnold Rothstein, whose records show a loan of $21,000 to Costello in 1928. Costello is known to have shared quarters with Tammy Hall politician Jimmy Hines at the 1932 Chicago convention which nominated Franklin D. Roosevelt. Underworld Peacemaker It was Costello, also, who made peace in the underworld after the "Roaring 'Twenties." He laid out $25,000 of his own money to call a convention of gangsters at the Hotel President in Atlantic City, where they allotted territories and cemented alliances. Costello operated the slot-machine business through the TruMint Novelty company in New York City, then organized the Pelican Novelty company in New Orleans. He also formed the Alliance Distributors with Phil Kastel, becoming the sole agents for King's Ransom scotch whisky with royalties of $35,000 per month. Joe Adonis (real name Joseph A. Doto) of New York and New Jersey—Born in Italy October 2, 1897, is married and has six children. He was arrested in Cleveland on December 6, 1928 in a raid on a hotel room where the Mafia grand council was reportedly meeting. Thirteen revolvers were found in the room by Cleveland police. For many years he has been operating the Mamma Mia importing company in Brooklyn, which packs olive oil and jobs canned tomatoes. Has a police record in New York and Cleveland. Mike Limandri of New York City and California—Has important Mafia ties both in New York and on the West Coast, and the Narcotics Bureau has been after him as leader of the gang smuggling opium from Mexico to the United States. Limandri now spends the greater part of his time in San Bernardino, is close to the Mafia boss on the West coast. Coast, Jack Dragna, history dates from 1915 was arrested in connection with morphin terfeit money through He was arrested against the Alcohol Tax unit a still. Each time out of convictions. Announ The Opening GRUNER'S 165 W. Center Mrs. Julia Hagan has returned her home in Berkeley after an absence of seven months in the Hawaiian Islands. Mrs. Hagan was merely a resident of Milaflores, is a daughter of the late Mr. Mrs. John Hanna, pioneer resides of that section, and has many warm friends throughout nge county who will be glad to turn of her safe return home after long visit to the isles of sea. Mrs. Estella Johnson of Needles, visiting her brother, Ed Marrand family on the Garden Ave road, has purchased a new kard sedan from the local C. W. Cromer. Mrs. Johnson ends three months each year in northern California during the summer and will return to her home in Needles in a few weeks. Rev. B. S. Haywood, the newly appointed pastor of the White Plume Methodist church deliver his initial sermon Sunday morning to a large congregation. J. A. Geissinger made his first appearance in his new pulpit at Odana at the same time. While people of Anaheim regretted Dr. Geissinger leave they extending a hearty welcome is successor. Ms. Emil Tittman, who has been living relatives in Switzerland some months is expected home about a week. She visited her parents in Erlach and relatives of husband in Zurich. Costello operated the slot-machine business through the Tru-Mint Novelty company in New York City, then organized the Pelican Novelty company in New Orleans. He also formed the Alliance Distributors with Phil Kastel, becoming the sole agents for King's Ransom scotch whisky with royalties of $35,000 per month. Joe Adonis (real name Joseph A. Doto) of New York and New Jersey—Adonis also grew up in the bootlegging industry, mysteriously inherited most of the Brooklyn rackets after the murder of Frankie Uale, was a golfing partner of Lucky Luciano, Meyer Lansky and Jimmy Hines at Hot Springs, Ark., in the 1930's. Following repeal of prohibition, Adonis moved into the wholesale liquor business, is now active in the New Jersey rackets and recently muscled into the automobile business. Antony Carfano, alias "Little Augie" Pissano) of New York and Florida—Carfano is tied closely with Joe Adonis, worked under him in Brooklyn, shared Adonis's inheritance of Frankie Uale's Brooklyn enterprises, now spends considerable time in Miami. Carfano's criminal history dates from 1916, when he was arrested for felonious assault. He was also once a fugitive on a murder charge, has been arrested for grand larceny, carrying concealed weapons and for violation of the Loafer act. Vito Genovese of New York and New Jersey—Genovese was Lucky Luciano's gunman. He gained notoriety helping Luciano terrorize tributes from New York to New Jersey and now is an important cog in the New Jersey Mafia. His criminal history dates back to April 15, 1917, when he was arrested in New York City for possessing a revolver and got 60 days. Since then his power has grown. He has been arrested for County Comment By GEORGE E. HART Orange County Press Bureau Election of Orange County Supervisor Willard Smith, of Orange, to the vice-presidency of the State Association of County Supervisors last weekend, represents rather more than just filling a vice-presidency. It assures that the Orange county man will in 1952 head a powerful state group, wielding an important influence in state affairs. It happens that in the state association of supervisors leadership is always decided at the vice-presidency level. The vice-president automatically succeeds to the presidency, so that every year the membership knows that the man elected vice-president is going to be the president a year later. Consequently, any contest for leadership always centers on the vice-president's office. There was a contest of sorts this year, Willard Smith defeating Supervisor Andrew Noon of Kern county, but it was not much of a contest. Many of Smith's supporters went home even before the final session of the state convention, when the election was held. They told Smith he wouldn't need their votes, and he didn't. The election therefore was quite a tribute to Smith, and a recognition of the leadership he has shown the state group as a member of its board of directors for a number of years, besides his services in important posts. The presidency, to ensue, also is considered quite an honor to the county. Co. K. Guardsmen JACK BILEY TOMMY HARTLEY The election therefore was quite a tribute to Smith, and a recognition of the leadership he has shown the state group as a member of its board of directors for a number of years, besides his services in important posts. The presidency, to ensue, also is considered quite an honor to the county. It means, as mentioned, that the Orange county supervisor will be in position to direct the force of this influential state group upon various governmental affairs affecting the counties, as such, and also the state in general. Because government at the county level has a lot to say about state matters. Election of Smith, incidentally, marked one of the few times when the small-county group and the large-county bloc in the state association got together. Smith had been approached by representatives of both groups prior to the election, asking him to accept the office. Besides being a recognition of his ability and fairness, officials say it was due to his high regard in state circles at Sacramento. His organization is expected to profit from the confidence imposed in him by state officials, and the membership knew it. The farmer-banker from Orange has a broad background of governmental and private business achievement to justify the position of trust in which he has been placed. He is president of the Orange County Fruit Exchange, president of the Serrano Irrigation district, and helped direct construction of Santiago dam, first large-storage structure in the county. He is a recognized authority on agriculture, water affairs, forestry and taxation, among other fields. Spartans Finish Loyola Prepping SAN JOSE (AP)—The San Jose State Spartans wound up practice for tomorrow night's game here with Loyola in better physical shape than expected. Spartan Coach Bob Bronzan said in all probability, his first string backfield would see action intact. Earlier, right half Gibby Mendosa, left half Buddy Traina, and full-back Harry Beck were thought out with injuries. Anouncing The Opening of NER'S BAKERY 165 W. Center St. Anaheim The Opening of NER'S BAKERY 165 W. Center St. Anaheim Friday, Oct. 13 Quality Pastries Complete line of Danish and French Pastries German Cheese Cakes and Pastries Decorated Party and Wedding Cakes Our Specialty Visitors Always Welcome "It's Fresh, It's Good, It's Gruner's"