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Winona Republican-Herald, The (Newspaper) - December 5, 1949, Winona, Minnesota FAIR TONIGHT, CLOUDY TUESDAY GIVE TO THE GOOD FELLOWS VOLUME 49, NO. 246 WINONA, MINNESOTA, MONDAY EVENING, DECEMBER 5, 1949 FIVE CENTS PER COPY TWENTY PAGES TODAY- Tough, New U. S. Taxes Not Likely By Joseph and Stewart Alsop present status of tax policy is another good ex- ample of the Truman adminis- tration's increasing tendency to take the comfortable road. Some weeks ago, the President himself told his press conference that he would ask Congress for substantial tax Increases, In order to cover part of the expected federal de- ficit. Forward estimates of the de- ficit are currently floating around Yet it now appears quite probable that no drastic tax rises will be proposed after all. To be sure. President Truman's decision on this important aspect of his 1950 program is yet to be made. Before leaving for Key West, he asked both the treasury and the council of economic ad- visers to prepare memoranda on tax policy, for his use while on holiday. The final verdict will be given after these memoranda have been digested, when the President goes to work in. earnest on his budget message. MEANWHILE, however, it is al- ready pretty apparent that the President will have to reverse his advisers. If he keeps to his press conference promise to demand a heavy tax Increase. It is very rare, indeed for Secretary of the Treas-! ury John Snyder and the present! senior member of the eco-1 nomic advisory council, Leon Key-! serling. to agree on any subject.) But the signs suggest they do! agree for once (although for veryi different reasons) that important! new taxes are undesirable at this; time. As between these two men, Sny der's position is the least certain Within the treasury staff, there are two fairly well marked schools of thought. One school favors ear- ly budget-balancing, by raising taxes if need be. The other places its main emphasis on the dis- couragement of further taxes to the business community. Snyder himself has always been Intensely hesitant to do anything that displeases the businessmen. Those who should know according- ly assert that he strongly Inclines toward the second treasury school, opposing Immediate heavy tax -rises. Ariel this of course fits neatly with his recent surprise testimony, depreciating the stern- er sort of budget-balancing, and defending deficit financing as healthy at certain times. AS FOR THE POSITION of the economic advisory council, the theory that prevails there is Mondovi Man Dies in Crash Fire Damaged two automobiles or. the San Fraudsco-Oakland Bay bridge yesterday, following a four- car rear-end collision. The crew of a bridge fire truck is shown fighting the flames just as a gasoline tank exploded with white smoke seen at the lower right. There were no casualties. (A.P. Wlrephoto to The Republican-Herald.) A-Bomb Material Sent Russ, Claim Investigator Louis J. Russell said today the ise un-American activities committee has evidence of three shipments of atom bomb materials to Russia in 1943. He said he had no Informa- tion that the late Harry L. Hopkins was connected with them in any way. B-36 Bombers Being Fitted For Arctic Use By Elton C. Fay Russell was a witness before the committee on whose staff he serves. He said that Former Air Force Officer G. Racey Jordan, who has said Hopkins was instrumental in shipping atom bomb ingredients to the Russians, will appear before the -bomb materials was not The ments new. A former member of the com- mitee, John McPowell, Pennsylvania Republican, told the House and re- porters about It last Committee Counsel Frank Taven- ner said to Russell: 'I would like to ask you whether Europe Alone Spends 3 Billions On Marshall Plan Police Captain Recalls Talks With Larson Judge Allows Testimony to Be Given Jury La Crosse, Wis. Circuit Judge Roland J. Steinle ruled to- day that a police captain could relate conversations he had with Arnold Larson, accused slayer of i Dr. James McLoone. Larson iii charged with first de- gree murder in the shooting two years ago of the prominent La Crosse physician, Judge Steinle dismissed the jury to permit Captain William Boma of the La Crosse police department to present his testimony and then an- j nounced he could be recalled with I the jury in the box. The defense! had objected to Captain Boma'sj appearance. I The police officer related that I during many sessions with Larson j the SC-year-old former automobiWj salesman refused to answer direct! questions as to whether he shot Dr. I McLoone. At one time, Boma said, Larson declared 'Bill, I'd love to I pedestal of the monument of Andrew Jackson, which stands before tell you all about it, but I can't.' the courthouse at Independence, Mo. The statue, a gift from Presi- At Saturdays session, amid heavy was unveiled prematurely Friday night by pranksters who burned its muslin covering. Wirephoto to The Republl- 7 Others Dead Charles J. Goodman uses acid to erase smudge marks from the surgery operation scheduled for him last September. Called On Doctors Between repeated defense objec- tions, Mrs. Phyllis Fraser said she! Paris European countries, lsaw Larson in the office of three says a TJ. S. government survey, Minneapolis plastic and oral sur- have spent almost ofjgeons, where she is employed as a can-Herald.) far-fly ing jta the course Of your investigation B-36 bombers are undergoing some any information came to your at- changes, suggested by two years of tentipn that the late Harry Hopkins cold weather testing, to enable involved in -any to operate from frigid bases in thej tne best Of my JRussell said, "his name was never brought up. But another name was their own money on recovery under the Marshall plan. The money is part of "counter- part funds" which the European countries must put up, in their own currency, matching Marshall aid from the European Co-operation administration dollar for dollar. The European money comes from ordinary government funds, raised by taxation, and bonds, and from what European citizens pay for MarshaU plan goods. The ECA must pass on the uses to which these counterpart funds are spent. More than half of the three billions has gone to stimu- late industrial production. But Britain and Norway used their Arctic. From such fields, the reach of the range Intercontin- ental bomber could be extended deep !ln this vastness Russia is reported liar, to brief, Keyserllng and his Clucked anatomic an5 colleagues assert that the War eoods should be balanced, not by in-'other war gooas creases in taxes, but by increases in the national income, which will be automatically reflected in larg- er tax yields from existing taxes. Tax rises at this time will be de- flationary, and will therefore im- pede the expansion of the national product and income. Hence they are to be avoided. Of course, even if the treasury plants. Taken in conjunction with an- other previously disclosed plan, this would give the United States Air Force a double-barreled weapon for warfare over the top of the world. An Air Force official, testifying last summer before a congressional committee, mentioned that "a typi- cal polar operation might involve air- craft taking off from United States brought up and I would rather bring his name up in executive session." McDowell had said two high ad- ministration officials were connect- ed with the shipments. Russell said it was determined that after the first shipment of atomic materials to Russia the Man- hattan engineering district, which developed the atomic bomb under direction of General Leslie Groves, "cut off all sources of supply of uranium material in the United The second shipment, Russell said, was obtained from a Canadian source. Miners Return to Pits For First 3-Day Week L. Lewis' United Mine Workers started help. secretary. The Minneapolis woman added that a chart was prepared in her of- fice for a "Larry" Larson, but she didn't know whether any surgery mg Santa Glaus fill his bag today. was indicated on the chart. She! Th dlmrers idled briefly last week by their fourth walkout of the Bb said, however, that a photograph! was attached and she identified began defendant as the person in the 9 in Minnesota Robert Brownell Found Under Car By Motorist Mondovi, Wis. Pin- ned to the ground by the running (board of his overturned car, 28- year-old Robert Brownell of Mon- dovi Sunday afternoon became Buf- falo county's second traffic totality within a month. Brownell, driving alone in his _1937 automobile, met death on i County Trunk BB about one mile I north of here yesterday sometime after noon. His car was discovered overturn- ed on a curve in the tar-surfaced road. It was resting on the shoulder and was found by passing motor- ists, identified only as "Olsons" from Eau Claire. I Finding Brcwnell pinned by the .'wreckage, the Eau Claire motorist went to the nearby Paul Moe farm and summoned help, Driver Dead The men lifted the car and freed Brownell, who was dead, and tile arrival of a Mondovi doctor at p.m. The physician told authorities that Brownell suffered a broken neck and a possible skull fracture. Buffalo county Coroner H. F. Stohr was called to investigate. Mondovi Police Chief Carl Swain and his deputy, Elmer Christopher- son, visited the accident scene in the afternoon. There were no witnesses to fatal accident. It is believed Brow- nell's car went out of control on a of many on the county road. Not Widely Used The road connects state high- ways 10 and 37 and it is not highly work for the first'Shifts promptly at traveled. Scene of the accident was tograph. The counterpart funds to retire debt. Other projects under way with the counterpart money include these: Verne "Morck, an operating! room supervisor in a notlce- hospital, said she had made a nota-l In the nine days before Chrlst- mas, each can earn about that's based on their average daily wages of Though the miners are happy overj prospects of working, most of them are anxious to get back on a fic- tion on an operation schedule call- ing for surgery for a "Larry Lar- son." She identified a page from the schedule book admitted as evidence. She said the notation set last Sep- tember 27 for "rl She added, however, that the opera- tion later was canceled. 1-jday week. It's almost certain Lew- -jis won't order such a week until j The Netherlands To reclaim Police Chief Herman P. Rick tes- land from the ZuV Zee, Uiat Larson walked into the homes and new food lands S er-in-law had told him he was wanted for questioning. Expected to Be Questioned The police chief said Larson told ing new for a growing population. of the Enns river to provide electric power. station in west Berlin (the Soviet zone supplies the power coal mine develop- ments and railroad building. in the steel industry and improvements in the coal mines and electric power sys- tem, Italy Drainage, irrigation and _, uii ii.wi.ki v town---------- and the economic advisory bases, the staging or topping off Russell read a letter from the fjOCKj control in the Vento region give the indicated advice, Bircraft at a forward baselState department, dated June reclaim much-needed farm land. even if the President accepts this in nortnern Canada, Greenland, or! 1948, to a staff member of the com- he has finally reached a contract with industry. And top operators show no indication of giving in. Top operators haven't budged since Lewis' contract ran out last June 30. They maintain they can't- afford to increase wages. And they want Lewis to tighten up the wel- fare and pension fund which has ire exoected in the pits I a curve about midway between the wSl workthe three-day week decreed Of Mortoa Moe and. Lloyd cniet un.ii Brownell, son of Mr. and Mrs. Freeman Brownell, was not mar- ried and lived at home, about flva miles north of Mondovi on rural route four. He had been visiting with friends at the Cordon Loomis home, about a quarter of a mile away and had left there at p.m. according to his family. Brownell was believed to navo been traveling south towards high- way 10 when the accident occur- red. ____ Worked on Farms cut's new U. S. senator will bej Born March 19, 1921 near here. him he had been playing solitaire at been financed entirely by the 20 home the night of the slaying, royalties the operators cept for a trip to the mailbox. Hespay for all coal mined, quoted Larson as saying he decided! onjy report of a break in the about p. m. to go to Minne- staiemate has come from a small even the polar ice cap." Obviously involved In this plan- Is the use of the aerial refuel- advice, some changes in tax rates may well be proposed. The ques- tion is, not whether taxes will be___ raised, but whether they will bejin'g'sy'stem" by which medium bomb- raised enough to make much dU-jgrs O'j -the B-29 and B-50 type are ference in the size of the project-jgjven extended range through a fill- ed federal deficit. The latter Is Of their fuel system from "tank- real point presently in dispute. er- planes meeting them at ren- apolis and sell his car because a football game was scheduled for the! following day and "cars are easy to sell then." U. S. has approved about! County Highway Patrolman Ed quoted the defendant as of small Kentucky operators, William Benton New Senator From Cincinnati Hartford, Conn. Cormectl-j 50-year-old William Benton of Southport, who between 1945 and nad, been employed on various 1947 served as assistant secretary of state for public big postwar job. Benton, in an interview here yes- terday, said he plans to leave for Washington shortly after Christ- mas to set up his senatorial of- fice and find a place to live. 01 small -o-- are truck mine operators who ..OWicial announcement of Ben- On "the former point, it should fdezvous points. be remembered that the economic! Thus, targets in Eurasia would advisory council last year urged be within reach of either the selective removal of certain of thejor the B-29 and B-50 types, wartime excise taxes. The treas-1 Replying to a reporter's questions ury then successfully opposed thlsiabcmt operation of B-36's in project. This year, however, the Air Force said this moval of some at least of the ex- day: else taxes appears fairly probable, i. The big bomber has If this is decided upon, the Pros- satisfactorily under extreme wea- ident will almost certainly wish conditions" both in the expert- L l n U impose other -levies climatic hanear at Elgin Air OU M.r .n. more than compensating for Fla., and under cold weather j loss of excise revenue. Gifts andlconditions in Alaska, where B-36's inheritance taxes and the corpora- j have been sent for the last two win- tlon tax are the most likely tors. mittee which said export the Marshall plan ________ were issued m 1943- for aibut not all of it has been used to saying he had expected to be ques- urano. uranic oxide and 200 pounds of uranium nitrate. An export license was issued for 500 pounds of each for the second shipment. Other evidence indicated employ only about 800 diggers. It is reported the Kentuckians are tner Gov, considering signing a contract withr Lewis this week V they do, a self described ton's appointment was made by his former advertising agency Chester Bowles, was in April. 1943. Also In April, 1943, there was a export license for 25 pounds of uranium metal itself. Furthermore, the State Thus the equivalent of because Dr. McLoone had in counterpart his small son and has been approved for withdrawal. I of letters I wrote that I believe you Of this, has been in your possession." he had attended rural schools and farms, in addition to working OQ his father's place. Survivors include his parents and one brother, Edward, on a farm near Mondovi. One brother, Mar- shall, is dead. Funeral services have been set for Wednesday at p.m. at the Mondovi Methodist church, the Rev. R. D. Robinson officiating. (Continued on Paje 18, Column 3.) MONDOVI to use. Ex-Representative Enters Prison depart- were made' Ashland, Ky. Rep- to get 1000 grams Andrew J. May today 22 He said Larson was in New York entered the federal correctional in-jsilent then wnen asked about the j anthracite (hard McLoone treated Larson's son for a obstruction in 1944. The boy died. The state maintains that Lar- son wrote threatening letters to Mc- Loone and other hospital authorities after his son's death. Chief Rick told about a trip to arrest Larson last i ..nV1 .OCULUIJ, B. SC1A a The dent who supported tne Iate 3rs insist they have to work D Roosevelt and L DnrnOA dent Harry S Truman, is to sue Dl DQlllCO ceed Raymond E. Baldwin, a Re- publican. Other mine owners reported the contract being considered by the Kentucky group calls for a 95-centj Baldwin has resigned, effective daily pay boost, bringing the 19, when he becomes a gers' base rate to an even S15. And the 20 cent royalty payments re- iportedly would be upped to 35 Berlin Ten persons were sources. FROM THIS BRIEF nnd inade- quate review present tenden- cles on the tax issue, a far from reassuring picture dimly emerges. The President cannot be accused 2. As so huge antirinatpfl with a Diane com "eV aV the B-36 and 36 injured yesterday "P to 80 miles an hour stltution near here as a prisoner j McLoone slaying. under conviction for wartime brib- ery and conspiracy at a.m today. State Attacks Silence The state asserted his silence was an admission of guilt. The defense Lewis is due to begin negotiations .orrow with the coal) industry representatives. they operate mainly in eastern Pennsylvania and employ about United Mine Workers. Like the soft coal Connecticut supreme court associ- ate justice. Benton will serve at least until January, 1951, although Governor Stabbed Singapore A three-year fight to give story book Sarawak Baldwin's" expire un-jback to its white rajahs exploded til early in 1953. A state election, over the weekend in an attempt- next November will decide who is ed assassination of the crown colo- The 74-year-old former to reasOning and Judge the anthracite diggers are on a man of the House military steinlc it was a ques- three-day week under Lewis or- committee was accompanied f0r the jury to decide on the tiers, U. S. Marshal John M. Moore Of facts. eastern Kentucky, a personal friend. "numerous operating problems oc- casioned by extreme low tempera- tures have been encountered." The toppled war weakened buildings! May, who had practiced as a attorney in his home city of 'tonsburg, 60 miles southeast of! men who warked w1th Larson across north Germany. Five persons died in Berlin. solution of the problems has "re- Hamburg was one of. the hardest in the B-36." but I hit centers. Hundreds of persons in here since he was defeated for jtestjf election three years ago, had used car agency arrest also were called to Christenson said he was 1 liU -rit-'MUl-IlV ifcUUCU ill UlltVtlfcCO 1H UilC AJ-HV, VUb: n tr of being self-indulcent merely Air Force declined to evacuated from their homes made elaborate plans to avi -J i j nt.0 k i-t on cause he may change his mind Wnat they involved. nbout n big tax increase. The 3. The cold weather testing pro- doni of such an increase is at leastigram is still not complete and "tests very questionable. The self-indul-'will continue for an indefinite per- Rcnce lies, rather, in tho obvious :iod." failure to come to grips with thej The problem is to condition a underlying issue of basic economic i engine, landing gear, policy." [brakes, a multitude of other equip- If "the President were really operate and not break adopt and net on the the thermometer is at 30, 40 theory, he would not only propose or 50 below zero, no important new taxes. He wouldj also have to raise the present crip-1 pling limitations on defense spend- Batty HuttOH Hurt Ing and do certain other things _ stimulate expansion of the nation-'In bOUPCIPg ACt nl product. And he would have to; fight bitterly for this theory be- Hollywood -ifl- Bouncy Betty fore the Congress and the country. !Hutton is home recovering from a, On the other hand, if the sprain suffered while bounc-j dent were really to adopt and act ing in a net during a movie scene, on (he Sr.yder" theory, he would "I was doing a. trammeling act, equallv Have to reduce many pop-'like they do in circuses when theyj nil- expenditures which he now.toss performers in the air with a! pans to'ncrease. Miss Button said yesterday.1 But there is no coherent, I didn't land correctly during ant theorv Instead, the of the tosses." trition is" tryi'-.s to avoid all the1 She said she ignored the acci- uncomfo'table thin.es. and only do, dent, which occurred last Wednes- what is comfortable. Going downjday. and continued working untL this road is verv pleasant for a Friday, "when I just folded up." while but only "for a while. X-rays disclosed a -severe sprain. because of the danger of collapse, newsmen. by Larson, September 20, to go to Larson's house and get his clothes. He said Larson told him Venus, Jupiter Drawing Close Together in Sky summons on him He said iie drove i IDS' ner marriage to testified he later drinking too much. went to Larson's apartment and re-1 Courtroom spectators gasped when moved the clothing, as well as other belongings cf Larson. Would you like to get a squint at Venus? The Earth's sister planet is bright in the southwest sky. And tomorrow is the day when Venus and Jupiter will come closer together than they have been for a long time. Tbdy will hang in the heavens like" a pair of brilliant gems. Although they will appear to be only a pinpoint apart, in truth they will be some miles from each other. You can take a look at this planetary configuration on the campus of the Winona State Teachers college at 5 p. m. to- day. R. J. Scarborough, astron- omy instructor at the school, will have a telescope set up north of the Phelps school building so students may study the half-moon effect that Ven- us will give. Venus is due to get brighter and brighter until December 26. Jupiter, which is the biggest planet, takes 12 earth years to swing around the sun. Venus makes it in two-thirds of the time it takes this planet, for Venus is closer to the sun than we. A similar sight may be seen in the early morning sky, for Mars and'Saturn are quite dose together. The phenomenon is dependent on which part of their orbit these planets have reached and on our angle to them in relation to the sun. Shirley Temple Granted Divorce to serve beyond the term covered by Benton's appointment. As assistant secretary of state, Benton was one of the originators of the "Voice of America." He has been commuting recent- ly between his Fairfield county home and New York city, where he is publisher and chairman of ny's British governor. He was re- ported today still "seriously ill" from a knife wound in the abdo- men. Two young Malays attacked Governor Duncan Stewart as he arrived Saturday at Sibu. interior city of the colony in North Borneo which "White Rajah" Vyner the board of the Encyclopedia Bri-i Brooke ceded to the British crown tannica. Jin 1946. Benton, father of five children] Since the cession, Malay mem- ranging in age from seven to IS.Ifcers of the native population have has been a close associate of and propagandized for les, with whom he founded the return of the British Brooke ivertising firm of Benton and who ruled them for a cen- Temple'les 1S29- Benton left, in 1935itury. The attack on Stewart was i, testify-1 while holding the title of chair-! the first violence growing out of marriage to the hand; man of the board. the anticession movement. _ r-i... f T.af.pr hp sprvcd as vlcc.pres. the chan 17 the one-time child star testified that Agar's conduct once forced her to leave their house and consider 'driving over a cliff." go, resigning in 1945 to enter gov- ernment work. Chica- to Singapore yesterday and given BUY WEATHER FEDERAL FORECASTS She declared Agar frequently Wmona and vicinity: Fair to- came home "very and with night; lowest 25 in the city, 20 in lipstick on his face. jthe country. Tuesday increasing Miss Temple, 21, and Agar. cloudiness and somewhat warmer were married in Beverly Hills, i with some chance of snow or ram Calif September 13, 1945, evening. Highest Tuesday Agar was in the Air Force. It was afternoon 48. one of movieland's big romantic events. They have a daughter, Linda Su- san, 22 months. The couple separated last October 12, the day before she sued for di- LOCA1 WEATHER Official observations for the 24 hours ending at. 12 m. Sunday: Maximum, 42; minimum, 29; noon, 38; precipitation, none. hours ending at 12 m. today: rce. l Maximum, 41; minimum, 25; noon, Miss Temple's attorney said Agar! 34; precipitation, none; sun sets to- bad signed papers necessary to per- 'night at sun rises tomorrow mit her to obtain a divorce without at (Additional Weather on 18.) Condition Serious The 45-year-old governor. flown two blood transfusions en route, "passed a fair a hospital bulletin today said. The announce- ment said he "appears now to have gotten over the immediate danger of the initial but added he "is still seriously m." The governor had arrived In Sarawak only three weeks ago to take up his post. The two Malays, about 16 years old attacked him as be was being received at the Sibu river One plunged a knife into his abdo- men. The other missed his thrust. Both were arrested. A British government spokes- man here said the attack on Ste- Official observations. for the 24 have been mctivat- ed also by communism and a. move to include Sarawak in the projected United States of Indone- sia. He contended about one per cent of the Sarawak population wants the rajahs restored.
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