Winona Republican Herald, September 14, 1949 : Front Page

Publication: Winona Republican Herald September 14, 1949

Winona Republican-Herald, The (Newspaper) - September 14, 1949, Winona, Minnesota FROST TONIGHT, WARMER THURSDAY FOOTBALL TONIGHT KWNO FM VOLUME 49, NO. 177 WINONA, MINNESOTA, WEDNESDAY EVENING, SEPTEMBER 14, 1949 FIVE CENTS PER COPY City Budget Calls for Tax Hike U.S. Grand Jury Indicts For War Assets Fraud A 44-year-old Winona garage mechanic who is alleged to Have impersonated government offi- cials in conjunction with what federal authorities describe as a fraud is being held in the Winona county jail today awaiting arraignment before U. S. Commissioner Martin A. Beatty here tomorrow morning. Under indictment by a federal grand jury in St. Paul is Wilbur Brust, 663 Huff street, who was taken into custody at his home shortly after a. m., today by Sheriff George Fort. Formerly employed at the Wi- nona county garage and several private firms here. Brust is said to have represented himself as an official of the federal War Assets Administration in his successful attempts to gain near- ly in transactions for nonexistent war surplus com- modities. Brust has been un- employed foi some time. A lifelong resident of this city, Brust resided here while he is alleged to have engaged in the fraudulent deals and is said to have "made frequent trips out of the city for a few days at a time" while he was engaged in the negotiations early in iC-iO. Victims of Brust's operations were Joseph Bernauer, former bakery manager here, and his brother-in-law, Harry Melcher of Milwaukee. The indictment against Brust alleges that Bernauer lost ap- proximately in the trans- actions while Melcher is alleged to have been bilked of The allegations are made by As- sistant United States District Attorney Robert Short. Brust is beirg held here under bond. Sheriff PoJt quotes Brust as stating that he "expected this for quite a while" when he was placed under arrest this morn- ing. Brust is unmarried. Brust was questioned at length here this morning by an agent of the Federal Bureau of Investigation. Brust was named in a secret indictment returned by the fed- eral grand jury in St. Paul last Friday. Short gave this account of Brust's alleged operations: Early in 1946 Brust told Bernauer that as an official of the WAA, Brust had access to purchase of a fleet of light de- livery trucks. Bernauer needed trucks for his business. An "influential" but nonexist- ent "General who was represented as the "brains and brass of WAA" entered the pic- ture by means of a series of telegrams while the negotia- tions by which Bernauer paid over the first in cash toward the first fleet of trucks to be delivered early in 1947. A few days later Bernauer put up more as down payment on a "batch of war surplus Cadil- lac which "General Sims" had arranged to be released by the Army. Subsequently and at various times, Bernauer put up for "warehousing expenses" for war surplus on which he had com- mitments, deposit for a row of prefabricated houses, for lumber and for some land in Milwaukee on which prefabs were to be built. It was on a trip to Milwaukee to inspect the land that Brust was introduced to Melcher, and a three-cornered deal was made. None of the war surplus was ever delivered, Short said, and when Bernauer pressed Brust, the latter returned to the bakery heaQ. To Be Resumed Cost of Insurance, Pension Programs To Be Debated Council Tackles Demands (or Increase Tax Levy of Indicated As Aldermen Consider Routine Costs By William G. Smock By Adolph Bremer Pittsburgh -rp] Onlv azree I The Winona tax-conscious council, determined at the election In Pittsburgh to turn back the upward trend, came face to face with reality begilmlng mcnt on time and i0 today to start new steel f of the bud t I talks. Outcome of the negotiations i ea somethjng Iike this: imay depend on the reluctance tax'levy of up from the budget for the I some steel companies to pay the, t ar Roughly, that's 11 mills, or per thousand dollars of lont.iro rnnt. nf insni-ance and nen-l ,J assessed valuation. Finance Committee Chairman Howard Baumann mournfully, but antagonistically, reported that the gain would represent, in dollars, an Wherry Sees Adjournment I In October By Jack Bell Washington A late October adjournment of Congress was pre- dicted today by Senator Wherry of Nebraska, the Republican floor leader. Earring the raising of new is- sues by President Truman, Demo-j to reduce its' building levy request. icratic leaders meanwhile mapped! Discussion at the annual meeting of the association last night was a program th-. might bring the I concerned primarily with school board actions as well as the budget lenate ofTts 1949 work to requests of other of the city's boards and departments._____________ six weeks I Approximately 60 members of--------------------------------------------- The House in recess until Sep-1 county wide association attend- reading afternoon's headlines Member 21, has completed most led Tuesday night's two-hour ses-jtemng about the school board ac_ j major legislation and seems will-lsion at which retiring a ling- to call it a legislative day assent Samuel -Goss, Witoka, pre- in past year we have as a basis Tax Association Hays Actions Of School Board By Gordon Holte Just 24 hours after it had voted to override a city council veto of its ten-mill school building sinking fund levy, the Winona board of education Tuesday night drew a blast of criticism from the' Winona County Taxpayers association which earlier had petitioned the board entire cost of insurance and pen- sion programs. The C.I.O. United Steelworkers iand four leading steel producers arei (ready to resume contract talks.] iThey win seek a settlement morej lor less based on the presidential; (fact finders' recommendation of aj ten cent hourly package increase. The board advised against any wage boost. The Mammoth United States Steel I Corporation, biggest steel producer j in the nation, again is expected to! take the lead in new contract ne-: gotiations. Philip Murray, president j of both the C.I.O. and the steel- workers, now is waiting for the corporation to1 name the time and! place for new discussions. Negotiators will be working under ___ ____ ____ ___ ____ __ an 11-day extension of the strike administrators said in Duluth jn the recorder's budget is deadline which expired last mid- terday. _ _ t jthe boost in the levy for the DP Program Official Cites Progress Made Duluth European D.P. Ill per cent increase, despite a JOOO gain in receipts from sources [other than real and personal prop- [erty taxation. Having come up against the ipainful reality, the nine aldermen jwent to work on the budget for one hour last night, considered the more or less routine items and ended up by boosting it another What they sat down before was the city-wide budget, including that of the board of education, pre- pared by City Recorder Roy G. Wildgrube after receiving tax levy requests from all of the city's problem will be a thing of the past; Boards and departments. by next June, one of its American xhe major item in the night. The union accepted the board's recommendations without reserva- tions. That meant giving up its drive for a fourth post-war round of wage increases in 1949. The union suggested ten-cent of company- ,se financed grams was good enough. Paul McCormack, Detroit, board's building fund, which complex Displaced Per-jthe board has now succeeded in sons program in the American zonejpassirlg over tne unanimous protest of Germany, said that by that the city councn. most of the people without coun- The other major increases: Republic Steel Company, Jones of the European command's civil and Laughlin Steel Corporation and Inland Steel Company joined U. S. Steel in announcing willingness to ies will have found Mmes BOND FUND Up from McCormack was here on a shorty current for year. The city, although long- I standing bond issues are finally hpino- nairi off nnw hcc-ir.s mvinc affairs division. McCorma'ck's section is now pro- cessing and sending to the United being paid off, now begins paying off the principal on its new sewer, Lake Winona and Prairie Island road bonds. STREET DEPARTMENT Up iwere expected to follow suit. Irate of about a month. By steej askedlJune, when the present D.P. pro- if "Big Steei" was accepting the isoon as the Senate can catch up. sided. addressed letters to the school i GOP to Co-operate j On the motion of one member, board asking them to consider Wherry told a reporter that so the group voted the tbeir requests for a far as he is concerned the Repub- Tr licans are willing to help end the session as quickly as possible. He the organization concerns itself association as the Winona County j school building levy but now we Taxpayers association in because! nahead and renew .negotiations. _ Other flnns j States, Displaced purchases of road-building equip- ment. Council President William P. Theurer asked the council last night to consider contracting for major street surfacing jobs, avoiding the purchase of equipment. ENGINEERING DEPARTMENT from to involv- a contract, replied: so." lead "I wouldn't the gram expires, about .will have been brought to America. That will leave about dis- placed in the American zone who will have to remain in Germany unless Congress extends the pro- _ fight gram, McCormack declared. it up the check D.P 's, according to McCormack, ing the addition of two more men Senator Lucas of Illinois, thelbeen known simply as the Winona; Democratic leader, has been blam-jTaxpayers association. ing the Republicans for delaying I important bills. John P. Savior, victorious Republican in Tight for 26th congres- sional seat, smiles at wife, Grace, as they view election returns in G.O.P. headquarters at Johnstown, Pa., early today. Saylor de- feated Mrs. Robert L. Coffey, Sr., mother of the late Representa- tive Robert L. Coffey, Jr., plane crash Wirephoto to The Republican-Herald.) Added To Badger Budget Madison, Wis. The Wisconsin legislature ended its 1949 ses _ ____ sion yesterday with Sl.170.000 added to a budget which already group agreed to delay ac- Running a City iponanu DUIS. The meeting opened with a ._ After a Democratic policy meet- port by President J. J. McConnon Tins is or. ing yesterday, Lucas outlined a listlwho cited the city's rising tax rate I know of that has the num of measures on which he said ac-jand before Congress! city is ?aV a bargainonj "So7t if them have been able to W. O. Cribbs noted that.the "load thomcoivpi; to their new sur-ion the engineering- department isn t per capita investment per student j pensions, denied a wage increase and wei jpensions, aeniea a aim -------r.v than any other city in the state. an insurance plan which roundmgs with surprisingly littlejdecreasing either. ii____i.. _. TVi A rvnlv Tlit.V iS Wfti TTTT7F__Tin frnm from to .atic policy meet- port by McConnon This is the for workers and employer to W their talents here in the United[ pOLICE _ Up from to from runnW is the oidy pub faid they felt workers shouldiStates." More policemen. The list put the administrat: foreign arms bill up____ next, after the Senate completes I too much money it simply levies action on the pending, House-ap-lmore taxes and an additional bur- proved reciprocal trade agree- den is placed on the taxpayer. "At the present time we are liv- ments measure. "There's not a thing on Lucas' list that couldn't go over until next January, and that includes the arms Wherry said. "But we are willing to co-operate to expe- dite action on the measures he has listed." Oleo Bill Delayed Lucas got rid for the time being of a threatened filibuster when the about" higher than any in the state's history. tion until January on a House-ap- The lawmakers returned Monday for a two-day meeting after Dm to repeal the taxes on recessing for the summer last July 9. The Alsops British Put Out Rumors Of Collapse During the short session, the legislature also: Passed three bills over the governor's veto, Approved a revisor's bill cor- rectingr and revising previous legislation. Okayed the (rovernor's ap- pointment of 13 persons to boards and commissions, and asked for continuance of sec- ondary financing, or second mortgages, on war veterans' homes. The law makers made no chances in statutes affecting: Kent control. Legislative rcapportionment, and Payment for transportation of students to out of state schools. of education. members, whose average "In their explanation of the rea-] hourly pay rate now is about sons for holding fast to the ten-j That package would have included many mill levy, the school board per cent pay boost as well over here." And yet, we can't tioned that a survey being madeias g27 cents for insurance and by the University of Minnesota of 11.23 cents for pensions, our school buildings will recom- mend that a new Lincoln school ing in a lush period. We read every day about the millions of dollars that are being spent throughout the country and perhaps have devoted so much attention to national I be built. spending that we have overlooked) "I don't know who was respon-i the local situation. We are nowlsible for that statement but KriCe rrODC awakening to the fact that we it was must have had sub-j under a heavy tax burden and it isirosa information on the matter for; the responsibility of survey report hasn't even jYoungdahl to Ask State Rail Rate Hearing Scheduled St. state railroad jand warehouse commission yester-j whom nobodvi ATHLETIC PARK IMPROVE- He said- "WVMENT from to rinrbir.; in D P to permit the erection of a doctors in for the 1950 season. That amount will be shaved, if not de- leted entirely, it was indicated. POOR Up from to 000. The case load is on the increase. Following is a comparison be- jtween the tax levy for the current ;year and the proposed levies for the inext year: General Fund 1949-50 such as ours to voice opposition yet." St Governor Young-1day reset for October 4 the .......S ihl last night assured Milton Ros- on petition of Minnesota railroads print. stat. 900 o _.__j__ _i_i_ ....f- _ I j__ i__11 I en, St. Paul, he would ask congres- The remainder of the meeting sional inquiry into gasoline prices for intra-state freight rate in-1 city hall creases. The lines seek a nine per .Elections oleomargarine. Butter state sena- tors have threatened to talk a long time about that measure. Senator Fulbright oneja of the bill's sponsors, said it has! been given definite priority in the next session. He said he doesn't think there will be more than 30 votes cast against the tax repeal. Lucas said that after the arms bill is acted upon, the Senate will take up five measures to increase pay and benefits of federal em- ployes, including military person- nel. Included among these is a bill to boost the pay of cabinet officers from up to a year. He said a compromise farm price support bill, drafted by Senator Anderson will be brought up, He also will call up, he .said, a By Joseph and Stewart, Alsop j Washington "We've got about j six months left." remarked one ofi the participants in the Anglo-Amer-i ican Canadian economic talks which have just come to an end. He meant that there remains only ____., a half a year of grace in a total appropriation of I approved bill to increase the num- to evolve a joint for the biennium. The! ber of displaced Europeans who policy capable of preventing tacked on was for ad-ican be admitted to this country, disintegration of British world pow-idijionai weifare aids and diseased Senate-House differences in four er. i cattle indemnities payments. j major money bills, including ap- The remark was, of course, noj other appropriations on the hooks' propriations for the military ser- motion to take away from the Sen-] With yesterday's addition to the j ate judiciary committee and place! budget, the legislature I before the Senate itself a House- 3.700 33.700 300 850 490 13.S60 80.000 Assessor Total .......S Less receipts more than an informed in school aids; Much may happen to upset for the state building tjloomy forecast of British collapse ipr0grami and for vet- by early spring. There are, for housing, ample, apparently reliable reports j An effort to request a change that it is now planned to devalue! {iye. day anterless deer the British pound on or about seftson fall failed tember 18, and that a general re-jfinal moments before adjournment, valuation of European currencies! measure would have set up shortly follow No one knows ft rent control board to ad will shortly I-.U uiir. rent control board to ad- just what the effects of ferlinB the lnw and hear appeals. vices, gram European Recovery pro- flood control and Interior department, remain to be ironed out. WEATHER FEDERAL FORECAST Winona and vicinity: Clear and cool with scattered light frost to- ease the drain on British reserves and thus prolong the half-year of grace. Even so, the short term devices for easing the crisis which the con- ference has produced will certain- ly be useful. But much the most important result of the talks hasjarea ALSOPS I stete. a speaker's ruling that it was out 4Q. Thursday 66.' of order. Also killed by senate adjourn- ment without action was a resolu- tion asking the superintendent of public instruction to direct pay- ment for transportation of border LOCAL WEATHEE Official observations for the 24 hours ending at 12 m. today: Maximum, 60: minimum, 44; noon, 60; precipitation, none; sun sets to-1 all unnecessary expenditures. Street I Treasury 'Public Lighting Armory Weed inspection Recreation i Contingent I Athletic parks.. {Garbage Disposal Storm sewers Lift sewers Levee wall Veterans serv... 1950-51 S 8.800 5.600 n.ooo 57.000 300 24.500 S50 G2S 32.700 62.225 10.510 J S Plus 3K tor de- linquent taxes Total general BOND FUND.. FIRE POLICE PARK LIBRARY FIRE RELIEF. POLICE RELIEF BATH BAND i Total Council- boards SCHOOL GENERAL SCHOOL SINKLN'G (Continued on Page 2, Cnlumn 3) the assembly. to schools outside at sun rises tomorrow at! The resolution was passed (Additional weather on Page 16) There Was A Nip In The Morning Air and white clouds in the blue September sky when the A. M. Thompson passed Winona with a load of tons of coal on ten barges. The towboat was headed upriver piloted by Captain Norman Hillmnn. Last month, the Thompson pushed a. record tons to St. Paul. In this photo taken from the interstate bridge, the Thompson is shown squeezing through the Chicago North Western railroad bridge. Republican-Herald photo Total city on mill values. Except for pencral fund these figures do not represent actun.1 budgets, but only tax levirs. Tlie general fund lias receipts, fthich ore CITY BUDGET (Continued on Fate 16, Column S) ;

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Publication: Winona Republican Herald

Location: Winona, Minnesota

Issue Date: September 14, 1949

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