20% of Nation's Families
So Deeply in Debt That
Their Credit is Exhausted
LOS ANGELES, OP)—Some 20
percent of the nation’s families
are so deeply in debt that their
credit is exhausted, says a witness
before a state legislative subcom
mittee.
Morrie Rabinowitch, a debt
counselor, gave ths testimony Fri
day in urging state regulation of
such counselors, also known as
pro-raters.
Regulation is imperative if rack
eteers are to be kept out of this
growing industry, said Rabipo
witch, president of a San Fran
cisco firm of pro-raters.
In California, pro-raters are al
lowed to accept fees up to 15 per
cent for assuming the responsibil
ity of arranging w’ith creditors for
a program of paymtnts on a cli
ent’s debts. The client makes a
monthly payment to the pro-rater
and he, in turn, apportions it
among the creditors, according to
a prearranged plan.
The Assembly subcommittee on
fiscal agencies is studying this op
eration.
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Convention Debates Rule*
But Withholds Action
Until After Recess
FAIRBANKS, (#)—The Alaska
Constitutional Convention yester
day engaged in an hour-long de
bate on rules and observers said it
was fresh evidence delegates want
to keep the door of decision open
until they return from the forth
coming 15-day recess.
The debate started when an at
tempt was made to set aside the
rules to allow the judiciary article
in the future constitution to be
amended by a simple majority un
til after the convention reconvenes
on January 4.
The judiciary report already has
passed out of second reading, en
route to the Committee on En
grossment and Style, when dele
gates asked whether the report,
while still in second reading, could
be amended by 3 simple majority
after it had left the floor.
The Rules Committee held it
could not.
Anchorage Delegate Barrie
White proposed keeping jt’ne report
open to simple amendment until
after the recess. This way, he said,
the public would have a chance to
change the delegates’ minds.
FORMER UNION PRESIDENT
IN PSYCHIATRIC HOSPITAL
NEW YORK, (jP)—Joseph Ryan,
71, president-emeritus of the In
ternational Longshoremen’s Assn,
is a voluntary patient in the psy
chiatry division of Bellevue hos
pital.
Hospital officials said he en
tered the hospital Wednesday.
Ryan, under-federal indictment
on income tax evasion charges, is I
scheduled to go on trial next April. I
Rep. Hiestand Says
Walter Reuther Is
Public Enemy No.l
LOS ANGELES, WP>—Rep. Ed
gar W. Hiestand (R-Calif) charged
Friday that union leader Walter
Reuther is “a socialist” who seeks
to hand pick the 1956 Democratic
presidential candidate. The accu
sation brought a sharp retort from
Reuther’s United Auto Workers
Union.
It branded the statement “a be
low* the belt campaign of distor
tion, vilification and falsehoods.”
Heistand told a news conference
Reuther is in his judgement “Pub
lic Enemy No. 1” and he felt the
1956 Democratic candidate must
have Reuther’s approval to win
the nomination.
“Reuther is emphatically against
all the basic principles that have
made the country what it is,” said
Hiestand, congressman from Cali
fornia’s 21st District.
Hiestand called Reuther the
“No. 1 socialist in the U.S.” and
said he had studied Communism
in Russia and written a book, with
his brother, predicting the world
would eventually be communized.
The UAW said Reuther had vis
ited Russia with his brother in the
early 1930s but did not study
Communism.
Nor did the Reuther brothers
write a book of any kind, let
alone as Mr. Hiestand charges,
one predicting world Commun
ism,” the union statement said,
and added: “It is obvious from the
statements credited to Mr. Hie
stand that he has identified him
self with the reactionary elements
of the ^Republican Party which is
attempting to confuse the Ameri
can people . . .”
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