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Winona Republican-Herald, The (Newspaper) - February 28, 1953, Winona, Minnesota Fair, Colder Tonight And Sunday Dial 3322 To Place Your Want Ad VOLUME 53, NO. 10 SIX CENTS PER COPY WINONA, MINNESOTA, SATURDAY EVENING, FEBRUARY 28, 1953 IIOHTKN PAOtt Watkins to Fight Conspiracy Count Linui J. Hammond, St. Paul, former assistant U. S. District attorney, left, and C. Stanley McMahon, Winona, of the firm of George, Brehmer McMahon, in St. Paul. (AP Photo) Mossa To Flee degh Forced From Home TODAY TEHERAN, Iran mobs bent on keeping Shah Moham- med Reza Pahlevi in power drove Prime Minister Mohammed Moss- adegh out of his home today and forced him to take refuge in a U. S. Point Four headquarters next door. The mobs, apparently supporters of Ayatullah Seyed Abolghassem Kashani, Iran's high Moslem priest and speaker of Parliament, drove a jeep through Mossadegh's front gates. His house guards fired and four to 12 persons were reported injured. Struggle for Power Later, pro-Mossadegh mobs ap- peared on the streets and the struggle for power between the aged prime minister and the youth- ful shah and-go affair. (There were reports abroad that the 33-year-old shah had intended to abdicate, but Teheran dispatches Plan for Far East Is Daring By JOSEPH and STEWART ALSOP WASHINGTON It is too bad that the Eisenhower administra- tion's new Far Eastern policy has been revealed piecemeal and by seepage. The design is both bolder in conception and more astute in detail than anyone realizes except a few insiders. And at the risk of repeating some facts disclosed in this space, the design is well worth examining as a whole, which is the only way to understand it fully. The most discussed part of the design is the scheme of "disengage- as Secretary of State John Foster Dulles calls it. In Korea, the American infantry are to be withdrawn from the battle line, and replaced by South Koreans. In Indochina, the anti-Communist nat- ive army is to be greatly expand- order to reduce the burden on the French. Obvious Results The most obvious results of "dis- engagement" are a prospective re- duction of the American casualty rate in Korea, and the increase of Western strength in reserve. Amer- ican divisions are actually to be deployed out of Korea, certainly to Japan, perhaps to the United States. But any redeployment of the French forces in Indochina will certainly be impossible for a long time to come; while in Ko- rea, the South Koreans will con- tinue to need support by American artillery and other special branches of the ground forces, plus full air and naval support. The military results will be less important than did not say so directly.) Parliament was summoned to- ioM fm- ana unmanageaDlc surpluses. New Farm Price Sag Adds Fuel To Hot Dispute Dairy Supports To Be Continued At 90% of Parity By EDWIN B. HAAKINSON WASHINGTON new sag in farm sixth drop in as many new fuel to- day to the sizzling .dispute between Republicans and Democrats about who is to Mame and what to do. The Agriculture Department yes- :erday officially announced a de cline of 1.48 per cent from mic January to which pu levels 8.84 per -cent below a yea ago. This a defense o E. L. KING JR. President HOWARD F. WILLIAMS Vice President RALPH G. BOALT Vice President Republican farm policies aad o Secretary of Agriculture touched off a lively exchange o: verbal brickbats in the Senate late yesterday. Secretary Benson announced-sev eral price-support moves expected to stabilize the farm price levels He said the department for an other year will continue to suppor' butter and other dairy products a: 90 per cent of parity. Parity is a price officially de. clared to be fair to farmers in terms of what they must buy. Corn Crop The Agriculture Department an- nounced also that it will support his year's corn crop at a national average of a bushel, two cents below last year's support, and rice at a hundred pounds, down 20 cents from last year. Sen. Bridges of New Hampshire, njcjng appropria- ;commfttee started the re- cent Democratic administrations or lower farm prices and income the political and psychological re-1 suits. Such diverse observers as form er Ambassador to Moscow George Kennan and Admiral Arthur Rad ford have insisted for many months that the Kremlin would never em the Korean fighting, so long as i was costing the Western Alliance a great deal more than it was costing the Soviet empire. Sec. Dulles is reported to have said the same thing another way, asking, "Why should it worry them, when they have their second team pinning down our first The first-fruit of disengagement will be to revolutionize this hope- less pattern. The Chinese effort in Korea is very great. Even the So- viet effort is far from inconsider- able. Under the new scheme, the Chinese and the Soviets are no night for a session which could! be decisive. The struggle between Mossadegh and the shah may reach its climax there. Just where Mossadegh found ref- uge was uncertain. After he fled to the Point Four headquarters next door, reporters lost track of him. His supporters surged through the streets shouting that Mossadegh had won, evidently trying to in- fluenceithe Majlis. Tour City The demonstrators who toure the city after the shah's announce intention of leaving the countr included retired army officers wh have quarreled with Mossadeg! bazaar merchants who normal support Kashani, who recently hi had a falling out with Mossadegh and other groups. The crowd cried, "Give us th shah or death" as they marche to the shah's palace. Court Min ister Hussein Ala appeared on balcony, but the crowd would no let him speak. The shah himself then appeared Obviously touched by the popula support, he brushed away tear and explained that he had planne a brief trip out of the countr for the sake of his health bu that the show of patriotism hac caused him to change his mine Crippled Children's Representative Coming Homer Peterson, supervisor o longer to be rewarded for their ef- fort by the spectacle of the flower of the American ground forces peripherally bogged down in Ko- rea. Unwelcome Thought It is iiard to think of anything that is more likely to disconcert Peking and Moscow, than finding, one fine morning, that they are fighting South Koreans instead of Americans. It is quite impossible to think of anything, except the most risky and costly offensive ef- fort, that is more likely to make (Continued on Page 76, Column S) ALSOPS field .services of the Minnesota So ciety for Crippled Children and Adults, will meet with the Winona County committee at p.m Thursday in the community room of the Lincoln School. Anyone interested in the work o: the'society may attend. Peterson will show pictures taken at sum- mer camps maintained through the Easter Seal fund, and will review the services offered by the society. Boy, 11, Makes 31st Trip to Hospital CANTON, m. David Lee Scalf is in Graham Hospital again the 31st time he's been hospitalized since he was born 11 years ago. The boy, who is recovering from his fifth major operation, was hos. pitalized six months after he was jorn without an abdominal wall. His fifth major operation was for ulcers. Still Clerking MX. CARMEL, HI. Jeitz quit high school when he was 6 and took a job as a clerk in his ather's department store. Seitz liked the job and although he store changed hands three times he stayed on as a clerk. Today, at 82, he winds up his: 6th year at the same old counter.! He said the new Eisenhower administration and Secretary Ben- son would "restore again to Amer- ican agriculure stability, freedom of action and local control." Bridges said the Democratic ad- ministration allowed 142 carloads of government corn to spoil when it could have .been used by drought- stricken cattle feeders in the South- west. "If the exist in the storage of other commodities, the cost to the American taxpayer will run into the billions of Bridges said. Then the Republican spokesman hit hard at proposals by many Democrats to lift the level of gov- ernment price props. "The best informed sources in- dicate that these (farm) prices are not likely to drop much Bridges said. These remarks drew instant pro- tests from Democrats, with Sen. Humphrey (D-Minn) and Kerr (D- Okla) leading the' attack. Jelke Found Guilty, Jury Urges Mercy NEW YORK WV-Counsel for Minot (Mickey) Jelke say they will appeal the conviction of the young margarine heir on two counts of compulsory prostitution. An all-male jury last night found the 23-year-old Jelke guilty on two of three counts, but recommended mercy. Immediately after the verdict, Chief Defense Counsel Samue Segal said: The blue ribbon panel deliber- ated less than five hours to reach a decision, culminating a 25-day trial featuring closed door prose- cution testimony by admitted call girls wbo plied their trade in cafe Bloomer Trucker Died in Fire He Set Attorney Says CfflPPEWA FALLS A Bloomer trucking company official who died as the result of a fire n the firm's garage set the blaze jimself, Chippewa County Dist. Atty, Vance Sinclair said Friday. Sinclair said the Feb. 13 blaze was arson on the part of Roman Baier, 38, general manager of the Baier was burned fafally -explqsjbn, that accompanied he fire.-'. Sinclair" said .authorities could not determine Baier's mo- ive. The district attorney said a >robe indicated Baier set fire to he cabs of four of the trucks in he garage and that the fatal blast ccurred when he threw gasoline rom a milk can on one of the ires. The blaze occurred at night. Baier's wife said her husband told ier he had some work to do at the and had her drive him arage iere. Sinclair said the investigation conducted by himself, Sheriff Imer Paquette, Bloomer Police Chief Albert Weiner and Deputy tate Fire Marshal William Rohan of Eau Claire. Lie Detector Stolen CLEVELAND reasons of his own, a thief stole a lie detector from Fenn College's psy- chology department. Dr. Blake Crider, chairman of the depart- ment, said he would be happy to use the machine to help police establish the guilt of the culprit when caught. society circles. General Sessions Judge Francis L. Valente scheduled sentencing for March 20. Jelke, pale and shaken by the verdict, was re manded to city prison pending his possible release next week on bail. He faces a maximum of 40 years in jail, 20 years on each count. Under law, the minimum term for compulsory prostitution pis two years, but the court has the power to suspend execution of the sen- tence. The jury's mercy plea in no way binds Judge Valente. Jelke was convicted of inducing Pat Ward, 19, into prostitution and attempting to do likewise with 25- year-old Marguerite Cordova. The jury acquitted Jelke of trying to force Pat Thompson, 23, into prostitution. After Jelke was led away to his cell, his attorney, Samuel Segal, was asked how the verdict af- fected his client. "We didn't ask Segal re- plied. "He's, just a kid and so I didn't ask him." Preparing to put in a call to Jelke's socialite mother, Mrs. Elizabeth Clarke Teal, Segal Bdded: "It's going to be hard, very hard. After she is a mother." Although not in court yesterday, Mrs. Teal sat by her son through- out his trial and was his chiei witness. She endeavored to show in her testimony that money and gifts she gave her son made it unnecessary for him to seek other sources of income. Mickey's moth- er remarried after divorcing John Jelke eight years ago. The prosecution's star witness was Miss Ward, whose real name is Sandra Wisotsky. Miss Ward, mother of an illegitimate child at the age of 17, testified that she gave Jelke some of her call girl earnings over a 20-week Senate Supports Condemnation ol Despotism, 79-0 WASHINGTON HV-The Senate's 79-0 vote for a resolution condemn- ing Russian persecution of Jewish and other minorities points toward similar overwhelming support for President Eisenhower's denuncia- tion of the Soviet's "subjugation 01 period late in 1951 and early in 1952. After thanking the jury, Judge said "odds were being that the case would end in a mistrial. Without elaborating, Va- lente added: "This (the verdict) was not free peoples." The Senate was as unanimous as it ever gets in formally criti- cizing "the vicious and inhuman'1 persecutions by Russia and its satellites of ethnic and religious groups. Fifteen of 17 absent senators sent word they would have voted for the resolution, leaving only Senators Cordon (R-Ore) and Jen- ner (R-Ind) not officially recorded. As approved yesterday, the res- olution put the Senate on record as asking the President to appeal to the United Nations for "suit- able" action against Soviet acts of persecution. The resolution needs no action by the House. Specifically the measure protest- ed the persecution of Greek Orth- odox congregations; imprisonment of Roman Catholic prelates; har- rassment of Protestant denomina- tions; suppression of Moslem com- nunities; persecution of the scat- :ering of racial groups in Poland, the Ukraine, in Balkan and Baltic states: 'and the "increasing perse- cution" of the Jews. Sen. Douglas (D-I11) told the Sen- ate before it acted that Russia's anti-Semitic campaign was direct- ed at "winning over the Arab states" and gaining access "to the oil of the Near and Middle East.' Chairman Wiley (R-Wis) of the foreign relations committee said the Russian actions have "horri- fied the entire civilized world." Originally directed only at Rus- sian persecution of the Jews, the resolution was broadened at the suggestion of the State Department Firm, 13 Officials, Employes Indicted Accused of Deliberately Evading Federal Alcohol Tax on Liniment By CORDON K. C LOS WAY Republican-Herald Executive Editor The J. R. Watkins Co. of Winona, largest direct- selling concern of its type in the world, was preparing today to fight to the highest courts in the land, if neces- sary, a charge of conspiracy to evade, alcohol taxes on liniment. The company and 13 of its officials and employes of them residents of indicted by a federal grand jury in St. Paul at Alcohol Tax Issue Raised By Indictment Statements Issued By J. R. Watkins Company Officials 5 p. TO, Friday on two counts. Indictments were returned against: The J. E. Watkins Co., a Delaware corporation. The J. R. Watkins Co., a Maryland corporation. E. L. King Jr., Winona, president. Howard F. Williams, Wino- na, vice president. Ralph G. Eoalt, Winona, vice president. Louis W. Goldberg, Winona, advertising manager. William M. Bright, Winona, general rural sales manager. E. C. Baumann, Winona, city mail manager. James Murphy, Winona, city mail manager. E. M. McCuUough, Winoaa, central division sales manager. Clarence C. Currier, Winona, city sales manager. John Fedders, Winona, as- sistant city sales manager. Lewis E. Pickett, Oakland, Calif., western division sales manager. C. R. Birckhead, Memphis, Tenn., southern division sales manager. Louis A. Dischler, Newark, N. J., eastern division sales manager. The indictments charge con- piracy to sell Watkins liniment- first product made when the j eminent. Indictment of the J. R. Watkins Co. and 13 of its officials and em- ployes, by a federal grand jury in St. Paul late Friday afternoon on two counts of conspiracy to evade alcohol taxes, brings up "the wools Question of the taxability of alco- hol, used in the manufacture of 4 company statement said today. In 1945 the Winona company set- tled for a previous claim by the all civil and criminal certain irregularities in the label- ing of liniment were uncovered by company auditors. A full disclos- ure was immediately made by company at that time to the gov- complimentary to the people wto were endeavoring mistrial here.' to procure a There's Nothing To Cheer home team is 10-months-old Kathy Schember takes time out at the basketball tournament at Albert Lea for a snack. Her "sitter" Phyllis Han- son, a cheer leader for Ellendale, Minn., High School, endures great pain, however, as her team fights a losing battle. Ellen- dale lost to Emmons 64-50. Kathy. is the daughter of Mr. and Mrs. Curtis Schember, Ellendale, (AP Wirephoto 'to The Republi- can-Herald) New Record Sale For Bull Closes Red River Shows CROOKSTON, Minn, iff A new record of for a 'bull was in the books today after closing of the 43rd annual Red River Valley Winter Shows. The mark was set at the Fri- day auction sale when Eddie Gron- seth, Rothsay, sold his champion Hereford to Henry 0. Balstaf of Fosston. Top cow in the same breed, exhibited' by Scliermerhorn Farms, Mahnomen, was bought by Levi Haatala, Dassel, Minn, for Leading the dairy division was a Holsteia cow owned by Darwin McTaggart, Campbell. It brought in the sale to Seward Mostad, East Grand Forks. Clarence Sar- gent, Crookston, sold his champion Holstein bull to Herman Tack, Grand Forks, N. D., for Reflecting lower market prices, the 185 head of cattle, hogs -and sheep this year brought In the 1952 shows, the total was for 199 to include other groups as part of the administration's war of nerves against the Communists. Turned Down Job With Ike7 Kohler Says MADISON Gov. Kohler said Friday he had turned down an of- fer of a position in the Eisenhower administration. The governor made the state- ment upon his return from Wash- ington where he participated in a conference with Pres. Eisenhower Thursday. Kohler said the job offer was made by Sherman Adams, assist- ant to the President. He said "no specific" job was mentioned in the offer. In answer to a reporter's ques tion Gov. Kohler said: "There was'no discussion abou. a job. I was offered a job by Sher man Adams but I did not discuss it. I turned it The chief executive was in Wash ington for a White House confer ence on federal-state problems The conference was called by the President. irm was formed in in- ernal human consumption and of voiding payment of taxes pre- cribed by the federal Alcohol Tax Jnit. No federal tax is required on al- ohol used in medicines for ex- irnal use. When a medicine is made for internal use, the U. S. ax must be paid. No Criticism of Libel Watkins liniment, company offi- ials said today, is not for internal use. At no time, they asserted, has there been government criticism of the label and labels used always have been approved by the Alcohol Tax Unit. Bond in the case of those indict ed was set at each. Maxi- mum penalty for conviction of the offense is a fine on each count for the corporations and 000 fine or five years imprisonment on each count for the individuals. Summons are to be issued next week and the defendants are sched- uled to appear in federal court at St. Paul April 27. The indictment Friday came only hours after Sen. Williams, (R-Del) in a speech on the floor of the U. S. Senate had criticized the Winona firm, among others, for haying settled in 1945 a three million dol- lar tax claim against it for 000 and withdrawal of a refund claim. The grand jury charged that "wrap-around" labels on the lini- ment indicated it could be used in- ternally. The government claims the'firm failed to take out the necessary permits for such use of alcohol. WEATHER FEDERAL FORECAST Winona aad and considerably colder tonight, near cold wave; Sunday fair and con- tinued cold. Low tonight 10 in city, 5 in country, high Sunday 20. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today: 31; minimum, -20; noon, 23; precipitation, trace; sun sets tonight at sun rises to- morrow at AIRPORT WEATHER (No. Central Observations) Max. temp. 31 at a.m., min. 1 at a.m. today. Noon read- broken layer of louds at feet, visibility 15 miles, wind 18 to 28 miles per IOUT from northwest, barometer 0.10 rising, humidity 81 per cent Issued in E. J. Sievers, vice president and comptroller of the company (he was not named in the indictment) said today that permits to manu- facture liniment using industrial alcohol were issued by the gov- ernment effective Jan. 1, 1946. Douglas B. Robinson, another vice president of the company, was not named in the indictment. The indictments specify 12 so- called overt acts in which repre- sentatives of the company recom- mended the liniment "for use for internal medicinal purposes human consumption." for This, of course, the company de- nies, adding that dealers were in- structed that the liniment is not for internal consumption and were told not to recommend it for that pur- It cannot be maintained, Sievers said, "that the extent of this product's use as 'a 'home rem- edy' can either be determined or controlled by the manufacturer." The overt acts listed in the in- dictment are alleged to have oc- curred in Winona, St. Paul, Duluth, )enver, Colo., Chicago, Kansas City, Mo., Seattle, Rock Island, DL, and Dorchester, Mass. In 1944, Sievers Watkins otnpany voluntarily disclosed er- ors in labeling and production of iniment, some of which had occur- ed 15 years previously. The half Continued on Ptgt 14, Column 4) WATKINS Statements by the company and company officials following the in- dictment were as follows: "This indictment raises the whole question of the taxabil- ity of alcohol used in the man- ufacture of medicines. The question of liquor or beverage taxes is not involved at all. Watkins liniment could not be used as a beverage and there is no claim it has been. "About three years ago the Alcohol Tax Unit conducted a very extensive and probably expensive investigation to de- termine whether some people use the liniment as a general home remedy for themselves and their poultry and livestock. "Apparently the govern- ment's position now is that if this is so, the manufacturer should pay tax on the alcohol that goes into the product. "It is our opinion that no tax at all is due in this case. Even under the theory of the law, no tax is due unless the manufacturer has violated some-law or reg- ulation. In our opinion there is no valid law or regulation that makes any tax due. "It is unfortunate that this kind of legal dispute must be determined in a criminal in- stead of a civil case. It is ob- viously unpleasant- for the in- dividuals to be named person- ally in what is fundamentally a business matter and a tax dispute." Replies to Action Replying to the government ac- tion, E. J. Sievers, vice president and comptroller of the company said that the firm's management was aware of the analysis of its dealers and distributors'which was initiated by the government about June of 1950. "We have always been aware ot our manufacturing responsibility and have endeavored continuously to conform to the many federal and state laws designed to protect both the consumer and manufacturer. The company and its legal counsel call attention to the uncertainties of operation that exist in .this industry to the use of industrial alcohol in the manufacture of med. icines. "We seek to determine the spe- cific legal interpretation of the government that puts our merchan- dising and sales procedures under scrutiny. .We respect the efforts and achievements of the Alcohol Tar Unit in the distilling and beverage field. Obviously, however, much re- mains to be done to eliminate the confusion and uncertainty that pre- vails in the manufacturing of lini- ments and similar preparations. "The question of revenue tax in- volved pertains to the industrial denatured alcohol which is a com- ponent of 'Watkins liniment' and a legal interpretation concerning the product's use for humans, poultry (Continued on Page U, Column J) STATEMENTS
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