Winona Republican-Herald, The (Newspaper) - June 16, 1950, Winona, Minnesota Cooler Tonight; Saturday Fair, Cool Baseball Sunday p. m. XWNO-FM VOLUME 50, NO. 102 WINONA, MINNESOTA. FRIDAY EVENING, JUNE EIGHTEEN PAGES H a Blasts D-FL Kingmakers TODAY- Russ Key Preparations For 1953 Basing Point Bill Vetoed by Truman Tru- tended to define the application of By Joseph AIsop ngion The S merely engaged and scheduled to produce results at j a rather early date, which can al- 1 Pricing ready be foreseen. These are the! key facts in the present world sit- Senate Action On Excise Tax Cuts Expected Republicans Oppose Proposed Increase In Corporation Levies Washington Democratic the second controversial ae-nate-nuuse uuiucreiitc iluui rt rpvivprf hoop todav for Sen- Vetoed by the President arate versions passed by both cham-1 leaders revived hope today for ben _. ___f_______ ...nn n fi-Ti OVfllCA TO nllf man today vetoed the basing point measure that would have the Federal Trade commission act _____....._. the Clayton antitrust act to businessmen j certain pricing practices, the right to absorb freight charges The legislation would have per- w TV, TTnion'and sell their products at uniform mitted sellers ro discriminate in Washington The Soviet Union nrices i prices to customers to meet corn- is not merely engaged in war pre- to tbe Senate, in "good and in convinced the the absence of conspiracy, collu- sion or fraudulent practice. The measure, as it reached the White House, was worked out by a Senate-House conference from sepa- relating to uation, and it will be well to pre- in recent months. Both the dis- puted bills widely split Democratic ranks. The 'first was the Kerr bers. The conference report was ate action on excise tax cuts but adopted by the House March 14. Republican opposition crapped up The Senate sent i! 2 to the White sent some of the supporting evi- denoe- v h natural gas" have House June 2 after several days, ITEM I: Russian atomic bomb freed ,ndependent gas producers of turbulent debate. Seldom has Poraaon levies, production is estimated at the rate j. Iederal regulation any bill provoked such direct con- m npr bil] was views in the Senate. against proposed increases in cor- "of six the first year, and 25 per year thereafter. This will provide the Kremlin with a stockpile of 80 or more atomic bombs by 1953- '54. ITEM H: Russian production of strategic bombers is limited but rising. There are significant re- ports that the Kremlin may soon have the prototype of a very long- range bomber, roughly compar- able to our B-36. In any case, a Soviet strategic air force of at least 500 first-line planes of the imitation B-29 type, with some second-line reserve, will certainly be created by 1953-'54. III: Russian engi- neers are known to be directing the construction or improvement of between 30 and 40 major airfields in Eastern Europe. In Poland and East Germany alone, no less than 24 of these airfields have been or are being built, all with runways suitable for strategic bombers. This new airfield system, threat- ening all of Western Europe and! the British Isles, will be finished considerably before 1953-'54. ITEM IV: The new Russian jet interceptor-fighters are being pro- duced at the rate of nearly per year, and modern aircraft for close support of ground forces are also being turned out in quantity. The program of modernizing the Soviet sir defense force and tacti- cal air force will be completed by 1953-'54. ITEM V: Improvement of the Soviet air warning net is also be- ing pushed. Bather more than a year ago, an American B-29 re- connaissance plane tested the net on the Russian Pacific coast. In- terception was attempted, but the radar-warning system was so inef- ficient that the Russian fighters could never press home an attack. In contrast, we have the de- struction of the American naval re- connaissance plane in the Baltic this spring. Russia can never be altogether protected against strat- egic air attack; yet an air warning net that will justify infinitely great- er boldness in the Kremlin will be ready by 1953'-54. ITEM VI: In order to free the Red army from garrison duty and line of communications assign- ments, the Kremlin is both seeking to assure the loyalty of the satel- lite torces by ruthless purges, and creating its new East German ar- my. The East German army the timetable. It will be organized in regiments this summer or a'J-i tumn and in divisions in 1952-'53. Allowing a further shakedown pe-j rlod, the Kremlin will dispose ofj between eight and twelve new, ful-j ly ready German divisions in 1953-j '54. i Many related facts could be cit-j ed. For example. Soviet tank out-i put is-running at the fantastic rate! of above per year. Soviet! steel output has passed tons a year, and is still rising. Thej satellites are being so thoroughly! harnessed to the war effort, that' the Skoda and Manfred Weiss Works, in Czechoslovakia and Hun- gary, are now being pushed to pro- duction levels surpassing: their peak wartime production for Hit- ler. But there is no use piling up data, since almost every fragment of available evidence means that Syracuse Chemist Arrested as Spy Syracuse, N. agents linked a second American suspect today" to the Klaus Puchs spy ring which fed atomic secrets to Soviet Russia They declared that Alfred Dean Slack, a 44-year-old Syracuse chemist arrested here last night, had admitted giving samples of a secret high explosive to Harry Gold, Phil- adelphia biochemist now awaiting Emanuel S. Larsen, above, State department em- ploye, blasted as "complete lies" charges by Senator Joseph Mc- Carthy (R.-Wis.) that Larsen received a secret pay-off for fa- vorable testimony before a. Sen- ate committee probing reports of Communist influences in gov- ernment. Larsen poses at his home this morning with a copy of Freda TJtley's book, "Last Chance in China." (A.P. Wire- photo to The Republican-Her- ald.) Red Sabotage Hinted in French Airliner Crash Bahrein Island, Persian the Kremlin is planning to over- awe the Western world with un-j challengeable strength in 1953-'54. survivor of Wednesday night's second French airliner crash here crew members told him the THIS IS THE REASON why Sec- retary of State Dean G. Acheson set 1953-'54 as the great danger period. This is the reason why the other Atlantic pact foreign minis- ters at London set 1953-'54 as the deadline for organizing a solid Western defense. the resolutions and directives of London meeting are carried out in practice, the Kremlin's war pre- parations need cause no alarm. An obsolescent Russian strategic air force will not be terrifying if it is countered with a powerful, mo- dern air defense. The Red army, which cannot be hurled bodily across all of Europe, will not be terrifying if the West has no more than forty powerful, thoroughly modern divisions to meet it. The dimensions of the problem must not be exaggerated. The West, with its vastly superior resources and potentially better weapons, can make a mockery of the Kremlin's threats if it chooses to do so. But if we go on as we are go- ing now if the Pentagon mere- ly continues to emit smokescreens about nonexistent new weapons while the West remains a mili- tary vacuum there can be only one outcome. All the existing: de- terrents will then fail. The Krem- lin's power will then have full play. showing the plane still 300 feet trial on espionage charges. Gold is accused of passing the samples and production secrets on to "his Soviet principal, Semen M. Semenov." an employe of the Russian Amtorg Trading Corpor- ation who left the U. S. in 1944. Gold's arrest stemmed from in- formation which the F.B.I, obtain- ed from Dr. Fuchs, topflight Brit- ish scientist serving a 14-year pris- on term in England for betraying British and American atomic sec- rets to Russia. Senator Lucas of Illinois, the Democratic leader, told a reporter that if the House passes a bill on which its ways and means com- mittee is reported near final agree- ment, he will ask for Senate action on it. The' House group is said to be ready to act on a bill which would lop an estimated off levies on such things as furs, jew- elry, luggage, movie admissions and travel tickets. To make up in part for this, the ways and means members have lately been talking about a boost in corporation taxes which would! net about Closing of loopholes might narrow the gap inj Truman! veto if! Pieces Of Wreckage and bodies of victims, circled above, float in waters of the Persian Gulf, a few miles from Mubarak airfield, Bahrein Island, after a crash of an Air Prance DC-4 plane with 50 per- sons aboard. Launches, which became floating morgues, stand by the wreckage. Only six persons sur- vived the crash of the Indo-China to France plane. (A.P. Wirephoto to The Republican-Herald.) revenue loss. President has plainly indicated a there is any substantial revenue loss. Cites Top Profits Lucas said that from what knows of the situation he thinks! corporations can well afford tOj take an increase in taxes. j "They have the biggest pro-' fits in he said. "There is no reason why they can't more taxes." Republicans Pick Four Top Issues For '50 Drive By Jack Bell Congressmen Warn Of Inflation Peril i that there are dangers of inflation the I Senate-House economic committee has raised a demand for "relentless icuts in the government's in-the-red spending. The committee issued a report yesterday signed by its eight Demo- crats, while the six Republicans on However, Senator Millikin Washington (ff) Republican the group presented a separate frnd- senatorial candidates fftjled to en., today their best campaign dorse president Truman's plea for I Gang Hijacks tO KUSSia, nuwcvci. OCHU.LWJ. M.V.-S j w Slack a S75-a-week pa'nt firm top G.O.P. member of the issues involve alleged Communists a net increase in taxes. They did! m government, the Brannan farm excise tax cuts, and me wvtu. j----- i j years of 194344 at Kingsport, mittee said he will oppose any in-, j deflcit spending and proposed isa d also noomine busi- Tenn., where the secret explosive crease in taxes except those tov PTlt, In_ yeais RDX was manufactured, and later on the Manhattan atomic project at Oak Ridge, Tenn. Held in Jail would close loopholes in the present) law. excise tax cuts. ness as currently is causing prices These four emerged as major i to boil up in an inflationary man- it is the wrong time to be points in a survey made byjner throughout the economy, this creasing any Millikin told a reporter. "Instead, we should nn nnrr! O, 1C1JU1LC1. jajouwau, Ttv oi.wmn He is now being held in teke every nurdje off busi. bail in a jail at nearby Utica pend-j d attain strongest kind ing transfer to Knoxville, Tenn. Slack roundly declared he was innocent when interviewed by re- porters. Asked whether he knew Harry Gold, he replied: "I don't recall ever knowing any- body by that name." No plea was permitted at his arraignment before U. S. Commis-1 enue. sioner A. Van W. Hancock. He will enter his plea at Knoxville, where the case will be presented federal grand jury. Conviction on a charge of espion- age in wartime carries a possible the Sundure where Slack has been assistant superintendent of economy to bear the heavy load the G.O.P. senatorial campaign I committee and National Chairman survey cuts should not be in- last January in excise taxes, 'to 'be Guy G. Gabrielson. The covered primary election results balanced by additional revenue of defense'and foreign aid south Dakota and California.! from other an addi- tures." I senator Millikin of Colorado, whoitional billion dollars, mainly from Millikin said he doesn't agreelheads the conference of all corporation taxes, to help that if Congress cuts off excise senators, told a reporter he the federal deficit. taxes which now bring in on those points in his own! xhe congressional committee's yearly the treasury willjcampsjgn for re-election. He dealt with the President's lose anywhere that amount in rev- other Republicans whose seats are annual crnnnn-iin mfsKHEre. which Sees Business Gains I at stake this year generally are of the same mind. "I believe the increase' in busi-j Assured of renomination, Millikin to a j ness that would be brought aboutlis expected to be opposed by Rep- 'by taking those levies off soonjresentative John A. Carroll (D.- would produce as much revenue income and other taxes as will bej Millikin's handling of the explo- penalty of death. A salesman for Paint Corporation, lost he said. Senator Taft another member of the finance committee, said he hasn't made up his sive Communists-in-government is- sue also may become something of a pattern for Republicans who aren't closely identified with the in- for several months, pictured Slack j mind yet whether he would vote for vestigation of charges made by Sen- as a "quiet, conscientious worker" (any increase in business taxes, ator McCarthy and said his "ideas seemed de-j cidedly Democratic." The sales-j man declined use of his name. Slack said he never had been a Communist. Mrs. Slack turned reporters away from her home in Clay, 12 miles north of Syracuse. Referred to Husband "You'll have to talk to my was her only comment. She! European Armament Sought Under ECA was taking care of her sons, aged four and one. Slack, dark-haired and of medi- build, was calm at his By Don Whitebead annual economic message, which he also delivered to Congress in January- Except possibly to boost the mor- ale of the congressional economy bloc, the committee's report was expected to have little effect on legislation, for these reasons: 1. For the third straight year, the advisgrs of Congress on economic matters divided on strictly political lines. 2. The report was three and one-half months late; it was due on March 1. By this time it cannot sway many votes. 3. The Democratic majority took no flat stand for or against any of Mr. Truman's specific proposals, though Chairman O'Mahoney said its report, "broadly speaking, en- dorses the objectives of the President's message.' mOVe KHmCU Jllcauwajr Hi Lill, truant, I j-.Jjj.tys i European recovery funds for part of the cost of re-jnot endorse" a White House mes- Laporte, Ind. A gang of unmasked, armed men today hi- jacked 15 slot machines from the Elks Country club two miles north- west of Laporte. The men, believed to be seven or eight in number, made the raid at a. m. Ray Walters, club custodian, told the Laporte county sheriff's office he was unable to tell exactly how many men participated, or how the machines were hauled away from the club. The men herded Walters, the chef and two girls who had come to the club for an early golf lesson into the dining room, warning them to remain there. Fifteen slot machines were in a nearby corridor. They1 were re- j moved to what was believed to be a small truck. Plane Lands With Fire in One Engine London A U.S. Air Force plane made an emergency landing at its Lakenheath, Suffolk, base Se'nalor Taft, top-ranking G.O.P. this morning after fire started in member said Republicans could i one of its engines, a spokesman for Force bomber Seeks Party Support for Governor Terms Convention At Dulutih Machine Affair By Jack B. Mackay St. Paul -W- Charles L. Hal- stt'd of Brainerd, who amassed votes against Governor Youngrtahl in the 1948 general'elec- tion, today announced his candi- dacy for governor on the Demo- cratic-Farmer-Labor ticket. Halsted's intentions were mada known in a. letter that leveled a blistering attack on what he term- ed "k i n "Pressura boys" and "Mexican generals" who were active in the recent D.- P.L. convention in Duluth. "The people of this state and not a handful of king-makers are entitled to decide who shall be their candidate for Halsted wrote .Karl Rolvaag of Minneapolis, chairman of the D.- F.L. state central committee. Halsted's letter, mailed from St. Paul Thursday night, rejected the D.-F.L. party endorsement for treasurer and cited various rea- sons why he "renounced the ac- tion of the last D.-F.L. convention." Harry H. Peterson, who re- signed from the Minnesota su- preme court after 14 years' serv- ice to become a candidate for D.-F.L. gubernatorial nomination, was endorsed by the Duluth con- vention after a furious battle with Orville Freeman of MinneapoEs. Halsted did not permit his to go before the convention for en- dorsement. Urged to Kun From' and -after the 1948 elec- Halsted, an insurance man, wrote Rolvaag, "I have received pleas from thousands of citizens throughout this slate urging me again to seek the office of gover- nor in 1950. These and file voters must have sensed the strong possibilities of my election as governor in 1950. They undoubtedly believe that I was the logical standard bearer of the D.-F.L. party this year. "With all these considerations in mind and hopeful for a D.-RL. victory this year, I determined to become a candidate lor the rank and file voters of the D.-F.L. party for the office of governor and early this year announced my intentions. From the very start I have ad- vocated an open primary. The very purpose of an open primary is to in thp Senate todav with most of the Third U.S. Air gained headway m the Senate today g of majorjtVt but could divislon announced. ment. He wore a sport shirt and arming Western Europe. a wrinkled gray suit. F.B.I, agents Members of the Senate appropriations committee are studying a since morning. iWe amendment to the Economic Co-operation administration Aiic L" u ftiiiu ilElU. Gold information and s ample lift some of the arms burden while employed at the Holston the American taxpayer. known as counterpart funds. sage litical." When committee is "serving a Several of the crewmen were 'which is predominantly po- burned on the hands, he said. The idea was proposed first by Lodge who nance works in Kingsport. Gold was arrested in Philadel phia May 23. He is accused of ing Dr. Klaus Fuchs, convicted works closely in foreign attairs British atomic spy serving a Republican Senator Vanden- year prison term in England. Michigan, n has been pick- The F.BJ. said Semen Sernenov 8 gup t despite opposltion was the "Richard Roe or Sam i chief pau] Hoffman. OliUWIlIg, oviiJ. vv iJLlUili -iilWii Wlilti above the ground when it hit the named in the indictment returnedj reports, too, that June 9 aSalnst Gold a President Truman's plan to aid water. The survivor, Jacques Sangneirj of Paris, and his wife were among 13 persons saved from the crash. I Thirty-nine persons died in Wed- nesday's crash. (There were five survivors and 46 persons killed in the mishap to the other Saigon-to-Paris airliner Tuesday. (Air France officials in Paris and other sources hinted strongly that the two planes were sabotaged by Indo-China's Communist-led native rebels.) Sangnier, son of Mrs. Harry Ad- ler of New York, said last night that he and his wife clung to the plane's tail for several hours be- fore they were picked up. About 25 others were clinging to the tail, but "people were washed away as they became exhausted and the waves increased. "Very few had life he declared. Sangnier said the "night was clear" and stars could be reen. The right wing gasoline tank burned fiercely for perhaps! half an hour but fortunately it was; sep-, arated from us." the Semenov F.B.I. said. only as backward areas of the world is un- y thpjder heavy fire within the Senate LI An the Semenov Amtorg Trading Corporation, Soviet business contact in this country. The F.B.I, also identified These developments came as the Senate foreign relations and arm- ed services committees were call- last ied into a closed-door meeting to night the "John Doe alias John" named in the Gold indictment. The agency said "John" was Anatoli Antonovich Yakovlev, who was consul in the Russian consulate in study a new draft of the foreign arms aid bill. The measure would authorize a overseas arms pro- gram. Some senators have balked New York city until he left the at a provision which would give United States December 27, 1946. WEATHER FEDERAL FORECASTS Winona and vicinity: Clear and much cooler tonight; lowest 50. Sat- urday fair and cool; highest in the afternoon 76. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today: Maximum, 81: minimum, 70; noon, 76; precipitation, none; sun sets tonight at sun rises to- morrow at Additional Weather on Page 15 President Truman authority to use iten per cent of the funds wherever ihe believed they might be needed jto rearm friendly nations. The new version of the bill is believed to put strings on this pres- idential power to use funds in an emergency. Senator Knowland (R.-Calif.) said appropriations committee members are "exploring fully" the possibility of using part of the in reserve funds piled up by the Marshall plan countries. For each dollar of American aid, the European nations put the equiv- alent of a dollar in their own mon- ey into .an account to be used for recovery projects. These are The U. S. government has sole control over five per cent of these funds. The other 95 per cent can be spent only by agreement between the United States and the partici- pating countries. Senator McCarran (D.-Nev.) told reporters he saw no reason why these funds could not be used to strengthen the military defenses of Western Europe. Both McCarran and Knowland are members of the appropriations group. the useful purpose, but whether it serves the purpose for which it was intended, I wouldn't say." The majority in para- graphs with which the Republicans did not quarrel reported signs of a "renewed upsurge in the ec- onomy." But i'. saw "underlying problems and weaknesses." Most economists are reserving judgment on the business outlook for 1951, it was noted, because a tapering-off in the automobile, steel and building in- dustries is "highly probable." The fire apparently started in the plane's electric wiring, the spokesman added. He said he had no further details. First reports said the plane had crashed. Lac Qui Parle Population Drops Marshall, Minn. Parle county has a population of down from 1940, and Redwood county dropped 177 to a current total of Mrs, Fran- ces Delaney, district census super- visor, reported last night. HUNT 'BUTTERLEGGERS' By Edwin B. Haakinson of- ficials are preparing to crack down on an expected nation- wide wave of phoney butter sales next month. The food and drug adminis- tration, it was learned today, has asked Congress for nearly a million dollars to enlarge its present enforcement staff in preparation for the drive against "butterleggers." The request was prompted by fears that when federal taxes on oleomargarine end June 30 there will be wide- spread substitutions of colored margarine for butter by "un- scrupulous people" seeking a quick profit. There will be a price spread of nearly 40 cents a pound be- tween the retail prices of but- ter and oleomargarine when the federal taxes are lifted. Officials of the Food and Drug administration are known to have told senators behind closed doors that substitution of the cheaper product for but- ter is very difficult to detect. They added that past checks by federal and state inspectors indicate that at least public eating places will try to sell oleomargarine as butter "in violation of the law." The officials testified that they expect to uncover in the next year "at least one bootleg ring operating on a large scale and smaller rings delivering colored oleomargarine to the butter market." When Congress voted to end taxes on margarine this year, it set up a rigid set of regula- tions intended to make sure that housewives, consumers and pa- trons of public eating places win know when they are buy- ing colored oleomargarine. Eating places which use this product must post signs' saying so, and each serving must be triangular in shape or labeled as margarine. Similarly all manufB.cturers, wholesalers and retailers must identify colored margarine and package it so that it cannot be confused with butter. Officials said the "expected 'butterlegging' will be tough to detect and prosecute suc- cessfully. affo'rd each and every citizen the right to select and vote for those who he wants to represent him in his government. That right and privilege is the very essence of a democracy and should never be permitted to be destroyed. "I, therefore, ws.s unalterably opposed to any endorsement of candidates for state offices at the last D.-F.L. convention." Halsted said that as a result of a hard campaign "which I car- ried on practically alone" in 1948. he got votes which, with a changeover 'of only votes in his favor, he would have been elected governor. Cites Vote Record "Likewise he said, "is the fact that the votes received by me constituted the largest in number ever received by any can- didate of my party (D.-F.L.) who sought the governorship." Halsted emphasized that during the many years which he has de- voted to the D.-P.L. party and the principles for which it stands, "I have felt the rights and privileges of the citizen voter are sacred and must at all times be preserved. "A democratic form of govern- ment cannot exist unless it is truly representative of the people that is, all of the people and not a self- appointed few. "The voters of tins state are leg- ally entitled to determine for them- Lac Qui selves who shall be candidates' for public office and who shall ulti- mately represent them in the gov- ernment." Halsted will oppose Peterson for the party nomination in the Sep- tember 12 primary. The winner is expected to oppose Governor Youngdahl, Republican, in the No- vember 7 general election. Young- dahl has announced he intends to file for a-third term. Virginia Fire Fatal to Five Staunton, Va. Five per- sons perished in a fire that de- stroyed the rural home of Charles Weaver three miles east of this western Virginia city today. James .Weaver, 33, of Fishers- ville, identified the dead as: His brother, Charles, 41; their father, William Weaver, 34, and Charles' three children, Tommy. 11; Kathleen, 18, and Louise, 17. The two-story frame structure burned to the ground and only the chimney was left standing. Augusta county and Staunton firemen answered an alarm but were unable to bring the blaze un- der control.