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Winona Republican-Herald, The (Newspaper) - January 15, 1947, Winona, Minnesota W EATHER oitly clondr mnd continued cold lonlfhi: llfbl Thursday, PROTECT YOUR FUTURE Full Leased Wire Report of The Associated Press Member of the Audit Bureau of Circulations U. S. SAVINGS BONDS VOLUME 46, NO. 279 WINONA, MINNESOTA, WEDNESDAY EVENING. JANUARY 15. 1947 FIVE' CENTS PER COPY TWENTY PAGES Budget Submitted by Youngdahl F.B.I. Seizes Ex-Convict, WAA Official Charges Attempt to Defraud Government Waxhington F.B.I. Director J. Edgar Hoover announced today The arrest of n War Assets Adminis- tration official and an cx-convlct on chnrfics ot fraud. Hoover Identified the men as GforKe A. Oormlcy, an ex-convict, and Loul.i V. Dlonno. WAA expedi- ter, and said they "evolved a scheme" to obtain textiles "through alternation of, sales documents" at sale conducted by the WAA In Alexandria. Vn. Both arc residents of WiwhlnKton, D. C. Hoover said both men are charg- ed with n violation of the "fraud acnlnst the government statute In ih.it they caused n forncd document to be presented to the United States government." "The Investigation thus Hoover said, "has resulted Ll the recovery of textiles costing the rmment 5144.000. This amount of Kood.t was seized In a New York xtonxKC firm after being traced from a terminal of a trucking firm." Hoover's announcement said the two men reportedly met at a Wash- ington hotel bar lost November "and thereafter conceived n plan which assured the delivery to Qormtoy of moro woolen Roods from the government warehouse than ho had formerly purchased and paid for" at the Alexandria Kale. Young Talmadget Elected by Senator Says Legislature As Governor Perham Train Georgia, Is Barred by Arnall Idle in 10-Day London Trucking Strike London By Tom Williams More than Several were struck In this brief encounter outside the gov- ernor's office at Atlanta, Ga., early today shortly after Governor Ellis Arnall had refused to surrender his office to Herman Talmadge, elected by the general assembly to take the place in the executive chair of his late father, Eugene Talmadge. (A.P. Wlrephoto to The Republican-Herald.) Thames lightermen and thousands of stevedores and dockers quit work today in sympathy walkouts, swell- ing to or more tho number of persona idlr In London's muah- TOomlns ten-dny-oia transport strike. The new work stoppages, protest- ing the use cf troops to replace striking truck drivers for delivery of food, come as negotiators hoped for tn early settlement of the truck dispute, cna of an "unofficial" strike which labor partisans feared might upset the labor gov- ernment. Union leaders appealed to the dock workers at a meeting this morning to return to their Jobs, but their speeches, citing the strik- ing truckers' advice ajtolnst further sympathy walkouts, were shouted down. Strike Leader J. E. Evans, in a message to the strikers, said he hoped "some concrete proposals" would develop In union negotiations todny and the Dally Herald, Labor organ, said In a bold headline: Supreme Court Ponders Decision in Lewis Case By Harold W. Ward Washington The nine highest jurists In this country today set about deciding whether the government had any lega right to hale John L. Lewis Into court last November as a strik breaking gesture. It may be weeks before thenupreme court announces Its find- ings, but the themselve may know by Saturday what th answer will be, Hong with the on to this second question: Will Lewis and his A.F.L. United Mine Workers have to pay all o any of tha in fines as sessed against them tor contemp Call-off Likely Today." The public, which already h missed most of one week's me ration because of the strike, plao Its hope for settlement In a no government-sponsored Joint Indu trial council of transport worke and employers empowered to re consider the strikers' demands. Th employers insist, however, that th strike end before the new counc takes action. The council was established yes trrdfiy by obviously worried Labo sovrrnment officials. Fires Destroy 2 Farm Homes Near Glenwood Glenwood, near- by farm homes were destroyed by fire Tuesday despite the efforts of firemen and volunteers who fought the blazes in a near zero tempera- ture against the spur of a 40-mile wind. Olav Neshclm, living near Ter- race, 11 miles south of here, lost a seven-room home to flames which started near a chimney and per- sisted despite the efforts of the Olenwood and Brooten fire depart- ments. Volunteers carried out most of the first floor household furniture. Neshclm's barn was swept away by ,g a tornado last fall. Elftht miles cast of Glen- wood and Villard firemen fought vain battle to quench flre whicl swept the Paul Fischer home. Hose lines were devoted to saving a ma chine shed and barn housing head of livestock. Although all members of, bott families escaped unhurt from th blazes, they brought Pope county fire losses since January 1 to mor than firemen said. Mayon Volcano Erupts Again Manila Muyon volcan erupted violently again todny, A U. S. nuvy pilot, flying a mil away, said Mayon threw smoke an ashes 20.000 feet Into the southern Luzon sklr-i, Muyon'K huge was almas entirely obscured by dense smok rising from lava flowing down th mountain's slopes In scores of molt en streams. Cripple in San Francisco Fire San Francisco A CTlppli bu.-nrd to dcnth cnrly today when Tlnmrs swept his room anu the TOO or the small Hotel Modern In down sown San Francisco. He was Hnlph Mokes. 45. found his brd by H fire department rescue squad nfler police thought all guests had left the buildings. Thr flames, causing damage nsll- matrd at started In Nokcs room, probably from a cigarette J-1rc Chief Albert Sullivan wild. Weather PKDFKAL FORECAST Wmona and vicinity Mostly cloudy ana continued rather cold tonight; low 18 to 20. Occasional light snow Thursday with little chance In temperature: high 32. Minnesota Pfirtly cloudy, con- tinufd cold tonljcht. Increasing c-loudlness and not cold Thursday. I'jirtly cloudy nnd cold north and cloudy with .'.now south portion tonight nnd Thursday. LOCAL WEATHER Official observations for the 24 hours ending tit 12 m. today: Maximum. 35: minimum, 14: noon. 17: precipitation, none; sun M-IS tonight nt sun rises to- morrow lit Man Faces Charge of Burning C. N. W. Depo Chicago Bergan Soott, 24, who he wan part Indian and drank too, much firewater New Year's Ere, waived extra- dition proceeding! In criminal court yaterday and re- turned to Point. WU., where he In charged with anon. The young nun, who traced to home In Chicago, U accused of burning the Chicago North Western railway station In Almond, where he In a farmer. He told Chief Jiutlce Harold G. Ward he name to Chicago four days mgo to flnd work that he might pay the road for the dam- age. On New Eve, he relat- ed, he fell asleep In the aUtlon after having Home Be- coming eold, he built a flre on the floor, he said. ihoei part of the itatlon were burned. SERVICE MEN INCOME TAXES When docs a service man pay Income tax on hl.i service pay? When doesn't he? What special tax advantage does a soldier's wlfo enjoy? For easy answers to Important tax questions, see 'Income Tax Quiz" new feature of The Repub- Ican-Hcrald which appears dally on the Editorial page for the next several weeks. Read it to- Page 14. of court? Saturday is the day of the next regular conference of the nine Juat- ces. If each has made up his mint by then, Chief Justice JRred M. Vin- son will assign one of them to write the court's opinion. That task usually requires sev- eral weeks. The court's next opinion day is Monday, but another will not be due until February 3. That Is the earli- est date a decision appears pos- ilble. Three Hoars of Argument The tribunal wound up three hours of arguments on the historic aso late yesterday. The only incident during the long and tense courtroom drama came .less than five minutes .before the end. Justice Frankfurter was leading Assistant Attorney General John F. Sonnet t through a series of ques- tions and answers about the legis- lative history of the Smith-Con- nally war labor disputes act, under which the government seized the soft coal pits last spring. Finally, when the white signal ight went on, indicating that only flvo minutes. of the attorney's al- lotted time remained. Justice Jock- sin Interrupted to tell Sonnett he (Continued on Page 15, Column 8.) SUPREME COURT With right hand upraised, Herman Talmadge stands at the speaker's rostrum before a joint meeting of the state legislature to take the oath of office as gov- ernor of Georgia from Judge W. C. WorrlU. (A.P. Wlrephoto to The Republican-Herald.) Atlanta Rival claimants to the governorship of Georgia estab- lished offices in the state capital today and each Immediately set up his own military department. The, claimants were Ellis Arnall, who has held the office for the past four years, and'Herman Tal- madge, who was named by the legislature early today to the office which his late father, Eugene Tal- Peril Tax Cuts Subcommittee Hears Plan to Curb Portal Demands By Marvin L. Arrowsmlth Washington Cape- hart (K.-Ind.) said today the po- tential loss to the treasury from portal-to-portal pay suits is "so great" that tax-cutting must be delayed until some "remedy" IB found. The Indiana lawmaker also told a Senate Judiciary subcommittee that the portal pay totaling more than "threaten the very existence of thousands of businesses and Indus- trial units." First Witness Oapehart was the first witness at a hearing on separate bills which he and Senator Wiley (R.-Wls.) wrote to outlaw or curb pending as well as future portal suits. "The magnitude of the economic problem presented by the so-called portal-to-portal suits Impels Im- mediate action on the part of Con- Capehart declared. These suits stem from a Supreme court ruling that workers are en- titled to pay for tune, whether pro- ductive or not, they are required to spend on an employer's premises. Capehart testified that If the pending suits are successful "even in a minor are result "In- evitably would be loss of tremendous sums of money In federal revenues due to reduction or elimination of tax liability and the greatly in- creased direct cost of goods and services to the federal government." 13 of 38 Hurt Crash Hospitalized He added: madge, general won In election. last The November's elder Tal- madge died last month. Arnall refused to heed .the action of the legislature and In a dramatic early morning encounter with Tal- madge and In the face of a yelling mob of Talmadge supporters re- 'used to turn the office over to Um. As his first act upon arrival at his office today, Arnall named Col- onel B. W. Collins, commander of the State Guard, as adjutant gen- iral to succeed Marvin Griffin, who ast .night was sworn in by Tal- madge as his adjutant general. Griffin formerly served under Ar- nall. Then Arnall communicated with Secretary of War Patterson by tele- phone and asked federal recognition f Collins as a brigadier general and tie state's adjutant general. Arnall ecllned to say what Patterson nswered, but when he hung up, Fears Great Loss "In fact, the potential Joss to the government is so great I cannot see how we can even consider re- ducing the tax burden now unless Congress enacts legislation to remedy this situation." The Indiana senator suggested that the subcommittee call before it the secretaries ot commerce, war and the navy as well as other top federal officials "to tell how these suits might bear on the fiscal as- pects of their departments." Capehart, an industrialist him- self, said "We are facing a national problem, which, If not promptly solved, may have disastrous con- sequences on production and com- The engine on the second section of the Northern Pacific's North Coast Limited U shown above rammed Into the rear coach of the first section In a snowstorm at Perham, Minn. Thirty-eight were Injured, 13 hocpltalized. (A.P. Wlrephoto to The Republican-Herald.) newsmen and said, adjutant e turned to This Is the olnttng toward Collins, New Office Set t p (The State Guard was set up dur- ng the war to function in place of le National Guard. Its de.noblllza- on has awaited full reorganization f the National Arnal! said Griffin had resigned nd had accepted office under Tal- madge, "this pretender." When Talmadge, who was in an fflce Griffin had set up for him ust off the main governor's re- iptlon room, heard of Arnall's cal the secretary of war, he told his executive secretary, Benton Odom to "block all communication." Then Talmadge put In a tele- phone call for United States Sen- (Continued on Page 18, Column 2.) TALMADGE Episcopal Presiding Bishop U. S. Ready to Sell or Junk Canol Project Washington Secretary of State James Byrnes disclosed today that Canada has agreed to let the United States junk and sell piece- meal part of a wartime white Canol oil re- finery and pipe line project. Under a pact reached last Fri- day, the United States may sell all or part of Canol project No. 1 to the Canadian government or other buyers, remove what It can't sell, or merely abandon it. The agreement, Byrnes said in a report to Congress, covers a pipe- line running from Norman Wells, Northwest Territory, to White Horse, Yukon territory, a refinery at White Horse, and related facill- Pebam, ot 48 persons Injured Tuesday when ;wo sections of the Northern Pacl- Ic railway's North Coast Limited bound for Seattle collided in a blinding blizzard at Perham re- mained hi St. James hospital today. One victim was In critical condi- tion and three were seriously hurt. The Llmlted'a first section which stopped to permit a freight train to take a, siding was rammed by the second, traveling at slow speed be- cause of limited visibility. Impact of the locomotive on an observation car derailed those and a Pullman but all remained up- right. Passengers on both trains were badly shaken up, with the 30 not hospitalized suffering bruises, cuts and sprains but able to con- tinue their Journeys. Traffic Resumed Traffic was resumed over the line last night with the two sections ties. It does not cover Canol projects No. 2, 3 and set up to distribute the refinery's finished the army has not declared thesa surplus. Byrnes reported an investigation disclosed It is doubtful that "any governmental or private agency will desire to acquire the pipeline and refinery for use in peace." Polish Soldiers Plan to Settle in Argentina group of more than 300 former soldiers of Lieuten- ant General Wladyslaw Anders1 Po- lish corps received visas today to go joined to continue on west. Perham, a village of is 170 miles north- west of Minneapolis. Those most seriously hurt and kept In the hospital were: Master Sergeant H. T. Weaver, St. Louis, Internal Injuries; Fred Axllng. St. Paul. Minn., burned: Ernest M. Luther, Hooper, Neb., head injuries; Joseph F. Polzak, Minneapolis, head, face and shoulder Injuries; Gust A. Carlson, Stules, Minn., brakeman, chest, arm and leg injuries, and William Jackson, Bt. Paul, dining car waiter, burned. Rev. Parish Hurt The less seriously injured Includ- ed the Rev. Herbert H. Parish, form- erly of Minneapolis and now of Chi- cago, administrative director of the National Temperance union. He suffered a laceration on one hand and over one eye. Mr. Parish Is a brother of the late S. L. Parish, for many years minis- ter of the Central Methodist church of Wlnona. Others injured Included: Adolph Jakllsch, 48. Staples Minn., cook, chest and Ti.) injuries Gust A. Carlson, 63. Staples brakeman, chest, arm and leg In- juries, serious. Mrs. Charles Nichols, 69, 21 East Sixth street, Duluth, chest and leg Injuries. Mrs, George E. Bristol, 25, Two Harbors, Minn., expectant mother, aceratlons both legs. Terrl Cecyle Bristol, two, daughter of Mrs. George Bristol, bruises. Clinton A. Mellu, 34, staples, to Argentina and others and rib injuries. expected to have their documents in order within a few days. The Argentine consulate reported that visas were authorized re- cently by the Buenos Aires auth- orities, which at the same time sent a special Immigration mission, now Mrs. Pierre Temals, 22, Interna- tional Falls, cut on nose. Russian Claim To Arctic Isle Termed Invalid London A foreign office spokesman challenged today a new Soviet claim to the Arctic Island of Medvezhl, In the strategic Spits- bergen archipelago, and said Rus- sia remained bound by the 1930 International treaty demilitarizing Che islands. Tho Soviet news agency Toss, quoting "authoritative Soviet cir- said Medvezhl, "actually was a Russian Island" and announced that Russia and Norway hod agreed on "the necessity of Joint defense" In the area, "We are unaware that the Soviet union have- ahy valid claim to any Island in that the spokes- man said. "That is Norwegian terri- tory." Toss said the 1920 treaty could not remain valid because Its sig- natories Included nations which fought against the Allies In World War II. These were Italy and Japan. Consolidated Hearing Planned On Labor Bills Washington (JP> Chairman Robert Taft (R.-Ohlo) announced today that the Senate labor com- mittee will open a "consolidated hearing" on all pending labor pro- posals January 23. The goal Is to have some legislation ready about March 1, ho said. Taft said this program was un- animously agreed upon at an organ- ization meeting of the Senate labor committee. The Ohio ssnator told reporters the hearing will first touch upon the comprehensive labor bill offer- ed jointly by Senators Taft, Ball (R.-Mlnn.) and Smith (R.-N. J.) and a proposal by Senator Murray from Europe, The Right Rev. Henry Knox Sherrlll (below) addresses the con- gregation in Washington Cathedral after his elevation to the position of presiding bishop of the Episcopal Church in the United States. (A.P. Wlrephoto to Tha Republican Tenants Ask Cut in Rents to Pay for Armed Guard New York Tenants of a apartment building housing mostly professional and bualnem people have asked the OPA to reduce their defray tho cost of armed guards. In their application to the OPA tho tenants claimed they had been paying guards since Christmas because of many Grimes in the building. Police officials, the tenants laid, have explained they were unable to assign special offi- cers to special duty at the build- ing, in the neighborhood sepa- rating West Harlem from the Upper West Side. Horse Racing Bill Offered in House St. state-wide horse i racing bill, permitting operation of 'the parl mutuel system of wager- Ing, was placed in the legislative hopper today by Representative Al- fred J. Otto, St. Paul. Under provisions of Otto's pro- posal, a fee of for each day of racing would be charged, in addi- tion to a "cut" by the state of two per cent of the total amount of money as reported by tho parl mutuel system of wagering. The measure provides for crea- tion of a three-member Minnesota racing commission. Lilienthal Nomination Is Sent to Senate Tru- man today sent to the Senate the nomination of David E. Lilienthal to be chairman of the United States (D.-Mont.) and eight other Demo- crats for an over-all study of labor problems by a commission composed of congressmen and public repre- sentatives named by the President, Then, Taft continued, the hearing will consider "all other bills and resolutions having the object of reducing Industrial strife In the United States." Taft said this would Include: 1. All bills dealing with organiza- tion and responsibility of labor unions. 2. Proposals for labor courts and compulsory arbitration. 3. Proposals for mediation and conciliation. 4. Proposals regarding the closed shop and nation-wide collective bargaining. 5. Bills amending the national la- bor relations act. atomic energy commission. The nomination may run into vigorous opposition by Senator Mc- Sellar (D.-Tenn.) long-time foe of the former TVA chairman. Man Nine Days in Railroad Car Phoenix, Arli. Edgar Grlmslcy, 39, Tulare, Calif., farm worker, was rescued last night from a railroad boxcar In which he .said he had spent nine days without food or water. "I'm right glad to sec he whispered to Carl Lehman, railroad xixcar checker who heard feeble kicks coming from the sealed car and Investigated. Grimsley, taken to a hospital, said he bad crawled into the car in Tulare, January S. to take a nap. Above Last Two Years Additional for Colleges Sought By Jack MacJcay Si. Paul Governor .uthcr W. Younsdahl today rec- ommended a budget of for the operation of state government during the next two or more than Lhe amount appropriated by the 945 legislature for the current biennium. Appearing personally before olnt session of the house and senate. Governor Youngdahl mphasizcd that he tried to :ecp In mind the tremendous Inanclal problems confronting he lawmakers, "with the neces- Ity for economy on the one hand nd yet the urgency of mectinR ur Impelling postwar needs on ic other hand." He called attention t- an esti- mated balance of will be available in the eneral revenue fund at the close of he current biennium on June 30 nd said his program, with its rec- mmcndod expansion or services, ould be carried out "without In- reusing the state property tax." Governor Youngdohl's program eluded the following ons: I. An Increase of for maintenance of the Unlrer- or Minnesota, state teaeben colleges, and ctate department of education above the amovnt appropriated In 1945. An additional U raise utandardi of the axed, de- pendent children, blind and needy, and to raise or on old anlitance and aid to dependent children. S. An additional ever present appropriations meet expanded needs at Minnesota's public ctltntioiu. 4. Approval of a plan of re- organization of stale aid for Icxial schools to provide S6.0M.- 00ft a year additional state aid ov.tr the amount for the present biennium "to help put Minne- sota schools'on a more adequate baxls of support." 5. A new appro- priation to Improve and expand Minnesota's public Institutions. 6. A appropriation for new to relievo over-crowded conditions at the University of Minnesota. 7. A building pro. gram to enlarge facilities at state teachers Additional funds or 000. due to price Increases IB building costs, to complete buildings previously authorised. 9. A appropriation to create a reseaeh de- partment, through consolidatinf existing to encourage and asxist in business develop- ment. 10. Set aside to enable one falitime official who, work- with governor's Inter-racial commission, would administer proposed fair employment prac- law to prevent discrimina- tory practices. 11. A appropriation to establish legislative reoearclt council to assist in work of the legislature. 12. Aulhorlir itute assistance for counties providing for coun- ty public health nurse program, railing for appropria- tion. 13. Appropriate provide funds for xyslemaUc youth conservation program. 14. Provide for a slate housing commlKslon to en- courage and aNKist in the de- velopment of housing. 15. Authorize .state Institu- tions to Join with local com- munities in providing for xewaga
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