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Mason City Globe-Gazette (Newspaper) - February 28, 1951, Mason City, Iowa NORTH IOWAS DAILY PAPER FOR THE HOME MASON CITY GLOBEGAZETTE THI NIWSfAPEft THAT MAKES ALL NORTH IOWANI NEIOHIORS HOME EDITION iiinir VOL LVD AnocUted Pnn United Prcu Full Uut Wlm five CcnVj Copy MASON CITY IOWA WEDNESDAY FEBRUARY 28 1951 This Paper Conslfts of Two lit President May Kick at RFC Stories So Donald Dawson Wont Be Pressed Fulbright Announces By G MILTON KELLY Washington inves tigators of favoritism in govern ment lending indicated Wednesday that they wont urge White House Aide Donald Dawson to testify lest President Truman just raise hell That was the way Senator Ful bright who heads banking subcommittee conduct ing the inquiry put it to reporters He added Dawsons testimony probably would not be worth big quarrel with the white house Actually the subcommittee is in volved in such a feud already Mr Truman said its report on RFC lending practices was asinine Recess Called After exploring Tuesday the story of a white house stenogra phers mink coat the group called a oneday recess Wednes day to sort over its remaining ammunition Its avowed aid is to prove President Truman was wrong in describing as asinine the subcom mittees recent report to the sen ate that Dawson E Merl Young the stenographers husband and others have made the Reconstruc tion Finance Corporation subser vient to their will Fulbright said Tuesday the fi nancing of Mrs Youngs costly coat looked like part of a wide spread pattern of activities with which the subcommittee has link ed the names of Dawson Young and Joseph H Rosenbaum a Washington lawyer The subcom mittee has charged Rosenbaum enjoyed unusual success at get ting RFC loans for clients largely through Youngs help Confirmed Young and Rosenbaum con firmed that the coat was charged to Rosenbaums account with a New York City furrier and paid for by Rosenbaum with Young signing later a note to pay him back The two men also described a variety Of loans and other finan cial lifts Young has receivedfrom Hosenbaum The story prompted Fulbright to demand of Rosen baum Isnt it true that you do that because of Mr Youngs influence with the RFC and the white house Rosenbaum denied it but Ful bright insisted its as plain as can be Youngs affairs are scheduled for more public airing Thursday The subcommittee called Carl G Strandlund president of theBus tron Corp a bankrupt prefabri cated housing concern in Colum bus Ohio to testify then The subcommittee already has quoted Strandlund as testifying RFC Director Walter L Dunham repeatedly tried to wrest control of Lustron from him in order thai he might bring about its transfer to other persons including Young and Rex Jacobs Detroit manufac turer WHERE RED SUPPLY HIGHWAY IS U S divisions smashed communist defenses around Pangnim Wednesday and then seized control of an 8mile stretch of the reds eastwest supply highway in central Korea Other action in Korea included black A patrol entered Seoul and then withdrew a stiff battle was fought north of Chipyong and in the Hoengsong area Chinese and Korean reds were busy throwing up defenses Yanks Advance 6 Miles Into Eastern Red Flank By OLEN CLEMENTS Tokyo American forces punched 6 miles into the battered eastern flank of the red battleline Wednes day on the central Korean warfront The armored patrol of the U S 7th division was within sight of Amidong 31 miles south of parallel north ernmost penetration by American forces on the eastcentral front Other division elements pushed westward from the an chor point of Pangnim and linked up with the U S 2nd di vision on t h e vital lateral highway to Hoengsong 28 Like to Hear Fulbright said he would like to hear Dawsons testimony about RFC affairs but I see no benefit to be derived by trying to force him to come up here I didnt say I wouldnt ask him Fulbright added with em phasis on ask But he indicated he had no strong belief that Daw son will appear in the face of Mr Trumans recent news conference statement that he saw no reason for Dawson to testify Fulbright said an attempt to summon Dawson by subpoena would raise the question of the groups right to compel any white house aide to appear before it He said he thinks the group has that authority but Ill wager you Mr Truman would disagree Im almost positive the pres ident would just raise hell Ful bright said OPS Presets Price Ceilings on Livestock Washington office of price stabilization said Wednes day that it wont be many days until price ceilings are ordered on livestock How many days the agency wouldnt predict An OPS spokesman said the job of fixing livestock ceilings is tremendously complicated Meat is under price controls but live animals arent Tuesday night in New York the Metropolitan Meat Slaughter ers association announced that its members will have to shut down unlers a price ceiling on livestock is imposed immediately Firemen Right On Spot Berwick Me UR When a grass fire broke out in this little town more than 1000 firemen made short work of it They were here for the New England fire muster miles to the west Yanks Control Road The linkup broadened from to 13 miles the American control of the red supply route The 7th division patrol thrust ing 6 miles north of Pangnim re ported the reds were disorganizes and moving in all directions One officer told AP Corresponden Tom Stone the reds might be at tempting to regroup but more likely were moving in utter confusion The officer said the reds were orrendering in ever increasing numbers He added Theyre jus getting a bellyfull Amidong is 6 miles south 01 Changdong and some 40 air miles inland from the east coast Aeria spotters reported Changdong may be an assembly point for the Ko rean reds The major objective of the powerful American punch on the eastern sector of the central fron was to kill reds the goal since the limited offensive began Jan 25 Vital Ground The real estate won by the 7th was vital to the communists The PangnimHoengsong road is part of the highway which cuts across the Korean peninsula from Kang nung on the east coast to Seoul rubbled old republic capital near the west coast Maj Gen Claude B Ferenbaugh commander of the 7th division said the main defenses of the North Korean 3rd corps had been broken He said the corps losses must be pretty close to half of them If they had any strength lefl they would have counterattacked Thursday when we went through their main line of resistance he added But the pursuing infantrymen were faced with a tough job in running down the Korean red remnants A division regimental commander said the region is un charted Its mountains are some of the craggiest in Korea Build Defenses To the west the Chinese and Korean reds were preparing for a stiff battle From Hoengsong to the outskirts of redheld Seoul they were busy throwing up de fenses British and Canadian troops and New Zealand artillerymen fought stiff action Tuesday north Of 2hipyong between Seoul and Hoengsong The allied units cap tured a hill the reds had defended tor a week U S 1st cavalrymen and the U S 24th division met stiffening resistance on the British ri flank Grenadetossing Chinese drove a 24th patrol from a high ill northeast of Yangpyong A U S 3rd division patrol en tered Seoul during Tuesday night Dut pulled out after killing 6 reds and capturing one On the Yellow Sea coast north west of Seoul South Korean ma within 5 miles of the 38th paral lel They reported killing a red brigade commander and 20 other officers and capturing equipment and documents before returning to their ships Secret Raid The commandotype raid was made Sunday but not disclosed until Wednesday by South Ko rean forces Off the east coast a small South Korean landing force captured another island near Wonsan a redheld port 90 miles north of parallel 38 Covered by U S warships the South Koreans landed from a minesweeper on the island of Hwangto Landings on 5 islands in Won san harbor and nearby have been announced by the navy and Gen eral MacArthur since Feb 15 Roads from Wonsan supply the red battleline 30 to 35 miles south of parallel 38 2 Men Hurt in Headon Crash 59 Hogs Killed in Readlyn Crackup men from Fay ette were injured one critically and 59 of a loadof 119 hogs were killed in a headon crash of a passenger car and semitrailer of the West Truck Lines Mason City Tuesday evening The collision happened on a straight stretch of highway 3 about 3 miles east of Readlyn at p m Richard Smirl 48 driver of the car was taken to a Waverly hos pital with a badly lacerated face and internal injuries He was re ported improved Wednesday but still in critical condition W R McElree 61 also was taken to the Waverly hospital with facial lacerations and suffering from shock He was reported in fair condition Wednesday Charles A Wilder also of Fayette the 3rd man in the car was not hurt Labor Leaders Walk Out on Wage Board By HAROLD W WARD Washington The United Labor Policy committee decidec Wednesday not to send its repre sentatives to an afternoon meet ing of the wage stabilization board called to study proposed modifi cations of the 10 par cent catch up wage raise formula now effect The wage stabilization board promptly cancelled the meeting it had set for 2 oclock Chairman Cyrus S Ching s only that the meeting had been cancelled because the labor mem bers would not be present Official spokesmen for the poli cy group said it reached no de cision on whether union labor will later rejoin the wage board but AFL Secretarytreasurer George Meany told reporters were not going ever The 3 union members of the board walked out two weeks ago in protest against the wage formu la recommended by the industry and public members This formula allowing raises of 10 per cent above Jan 15 1950 levels was signed Tuesday night by Economic Stabilizer Eric John ston At the same time Johnston asked the board to soften the for mula in 7 important ways Europe Needs Only 1 Year Clay Argues By JACK BELL Washington D Clay ormer U S commander in Ger many said Wednesday that suf licient western European defense orces can be assembled in a year o make Russian aggression seem unprofitable But to do this the retired gen eral said the present course of rearming western Europe and sup plying American ground troops to he North Atlantic defense force pursued full speed must be ahead Urges No Limit Al truck George driver Mason City the reported that he drove his truck entirely on to the shoulder of the highway trying to avoid the car which continued to come toward him until the crash George was only slightly bruised GLANCING BLOW Burlington Roland West 14 accidentally was shot through the nose Tuesday when a rifle bullet glanced from a rock through the door of a shed in which he was playing and struck him Weather Report FORECAST Mason City Windy with snow Wednesday night Turning cold er Wednesday night Low Wed nesday night 15 Thursday cloudy and much colder with high near 20 Iowa Precipitation ending in the southwest early Wednesday night and over the rest of the state during the night Winds shifting to strong northerly and turning colder during the night Low Wednesday night 10 to 20 northwest 20 to 25 southeast Thursday mostly cloudy and much colder with northwesterly winds 1525 m p h High Thursday 20 to 25 northwest 30 to 35 southeast Further out look Friday partly cloudy and continued cold Clay appeared before the senate Eoreign relations and armed serv ices committees He urged that American troops be sent to Eur ope without limitations for the defense force being assembled by Gen D wight D Eisenhower He sharply disputed the testi mony of former President Herbert i Hoover Tuesday that to send troops before the Europeans them selves Were fully prepared would be to invite a massacre I do not subscribe to the the ory that the Russians are super men or superfigflters or that Gen Eisenhower given a reason able number of men would be overwhelmed and massacred he said Met Russians Clay had many facetoface dealings with the Russian leaders while commander of U S forces in Germany and military governor of the U S opera tion of the Berlin air lift He now is serving as a top assistant in the office of defense mobilization Swing From Reds Clay reported a gradual swing away from communist political inf luence in western Europe He said western European na tions now are able to contribute to their own defense economically and physically and have recog nized that they must contribute Senator Connally chairman of the foreign relations committee challenged exPresi dent Hoovers contention that western Europe isnt doing enough Senator Hickenlooper RIowa said U S participation in the Ko rean war has cost somewhere in the neighborhood of 14 billion dol lars to date to say nothing of the great loss of life Hickenlooper offered this com ment at the hearing on the ques tion of sending additional ground troops to Europe 37 North Iowa Schools Closed by Snow Wind GlobeGazette photo by Sprlien CARS STALL IN row of cars was typical of the traffic jams on high way 18 between Mason City and Clear Lake Wednesday morning during the blizzard It hit just as traffic was at its peak with workers bound for their jobs Nome Luciano Vice Czar Senators Pick Italian as Crime King Washington crime nvestigators Wednesday pictured Charles Lucky Luciano de ported New York vice overlord as the czar of a vast and secret underworld government That secret government they said could easily become the basis or a subversive movement which could rock the nation Luciano now in Italy settles disputes between two of the na tions major crime syndicates the senators declared National Menace In a preliminary report on it farflung probe the senate com mittee said the nation is menaced by highly organized criminals fi nanced largely by illegal gam bling It said they operate in many places with the connivance anc protection of law enforcement of ficials at all levels of government The committee estimated con servatively that changes hands every year in the United States as a result of or g a n i z e d illegal gambling I added that millions of dollars of this are paid out as ice or pro tection money in various forms From the thousands of pages o testimony it took from some 501 witnesses the committee said the conclusion is inescapable tha there is a 2nd government within the government by the underworld Could Wreck U S This secret government of Bandit Takes A F Payroll Wichita Falls Tex rob ber held up a squadron paymaster at the Sheppard air force base Wednesday and seized a payroll First reports said two armed men were involved but Sheppard field officers later said only one bandit pulled the daring holdup Tne robber wearing olive drab rines stormed ashore near Ongjin Minnesota Snow Wednesday night with strong east to north east winds Snow amounts mod erate to locally heavy south por tion Thursday mostly cloudy with snow flurries and colder Low Wednesday night 515 west and north 1520 southeast High Thursday 1520 north 2025 south IN MASON CITY GlobeGazette weather statistics tor the 24 hours ending at 8 a m Maximum 39 Minimum 23 At 8 a m 23 Precipitation28 2 in snow roll car toward Iowa Park 12 miles west of here He took Cpl John J Hersch pay clerk as a hostage The corporal managed to leap out of the vehicle when it slowed down at an intersection about 3i miles from the base BULLETIN RUSSIAN SEIZURE Washington UR Ambassador John Foster Dulles said Wed nesday that Russia has seized a croup of small islands just off the northeast coast of Japan and that the United States will re fuse to recognize the frab crimsters is a serious menace which could if not curbed be come the basis for a subversive movement which could wreck the very foundations of this country the report added The 5 member committee headed by Senator Kefauver D Tenn said it has no doubts aboul he existence of at least two major crime syndicates One of these it said has its axis between Miami Fla and the Chi cago Capone syndicate now head ed by Tony Accardo the Fischetti brothers and Jake Guzik Costello Named There is another the commit tee continued with an axis be tween New York and Miami head ed by Frank Costello and Joe Adonis Adonis is a bigtime gambler with headquarters in the New YorkNew Jersey area Costello is described in the report as the outstanding underworld leader in the New York city area The committee said these two syndicates have branch lines ex tending into many cities and areas There is an apparent understand ing among the operators of these mobs not to infringe on each others activities it said It went on to say that contacts and liaison are carried on by in dividuals trusted by both groups and then declared If there can be said to be one head who sits as an arbiter of any disputes between the two it is Charles Lucky Luciano Stores Freeze Profit Margins By MAX HALL Washington than 200000 retail stores selling clothing or house furnishings began a huge conversion job Wednesday changing their price controls from one system to another The office of price stabilization Tuesday gave each re tailer Until March 29 to do the necessary arithmetic to en able him to unfreeze present prices and freeze instead the percentage of or margin between what he pay and what he gets for each article Basically the order is intended to fix each stores mar gins at its normal and customary percentages and OPS of ficials hope this will corre spond generally to the mar gins that existed last summer be fore the Korean outbreak A stores profit comes out of its margin The complex operation is sure to raise some prices as retailers pass on to their customers price rises put into effect by whole salers Some Lower It was expected to lower some other prices because inflated margins must be brought back to normal Nobody in authority pretendec to know exactly what will hap pen OPS Director Michael V Di Salle when asked which will be greater the price rises or reduc tion laughed and said we have a pool on this in the office He said his guess is the price cuts will be greater than the in creases but he added this is not a view shared by others in the agency The order applies to everything sold in shoe and apparel stores most things sold in furniture anc floorcovering stores and more han 75 per cent of the volume handled by department stores All Except Furs Just about all clothing is cov ered except fur garments Rugs and lamps are covered So are al lousehold textile commodities ike sheets blankets curtains anc all yard goods Major retail items not covered in the order include food bev erages fuel large appliances SAME no IB M jewelry hardware drugs cos metics and housewares Tuesdays order was only the 1st in a series of planned stepS to substitute new methods for the stopgap general freeze order of Jan 25 Other margintype orders on both retail and whole sale levels are being worked out by the OPS They will cover foods and many other items Regardless of official uncertainty Dver the effects of Tuesdays or der OPS officials were highly confident of one thing The margin order will be much fairer more workable and more enforceable than any rigid reeze of prices Price Freeze Loose They said a price freeze though it may seem to be a tight means of control is actually very loose because as time goes on many merchants tend to turn to new lines and buy different merchan dise from different sources in or der not to be bound by their pre vious prices The officials said the margins order will cause retailers to continue buying from the same sources and that unlike the price freeze the margins regulation will become tighter and more effective as time goes on With reference to the goods cov ered in Tuesdays order the OPS appears to have arrived in a few months at a point that the OPA May Coll 2 More Guard Divisions Washington Lawton Collins said Wednesday there is a possibility that it might be ne cessary to call up two more na tional guard divisions this year The army chief of staff stressed that it is only a possibility in the back of my mind and he has not recommended such a plan to the joint chiefs of staff The army has said and Collins reiterated that there are no present plans to call into service any moreguard divisions although smaller guard units might be sum moned to federal service Collins testified before the house armed services committee at hearings on legislation to per mit the drafting of 18yearolds and set up a longterm universal military training and service pro gram Auriol Accepts Resignation of French Cabinet Paris Rene Plev ens coalition government resigned Wednesday night because of a liamentary deadlock on election law reforms The resignation followed a hope less deadlock among the major parties makingup the cabinet on how to go about changes in the law preparatory to next Novem bers general elections It came at a critical time in Europe with France a key coun ry in the North Atlantic alliance Jefense plans preparing to play lost to a possible big 4 deputies meeting to pave the way for a major 4ppwer conference on to days tensions President Vincent Auriol a so cialist is even now getting readyj o leave March 20 for the United States for a state visit in a demon stration of AmericanFrench ami y Emergency Travel Only on Highways Blizzard Velocity Reported at40 Miles in Some State Areas Tuesdays bluebird weather turned into snowbird weather Wednesday as snow sleet and rain blew into Iowa Thirtyseven North Iowa schools were closed Roads in the 8county area around Mason City were reported drifting badly The Iowa highway patrol advised emergency traffic only in 8 North Iowa counties where visibility was reported from zero to 300 feet The counties were Hancock W i n n e fa a g o Worth Cerro Gordo Mitchell Floyd Howard and Chickasaw The highway patrol also said freezing rain and sleet in the Wa terloo area were making high ways icy A Mason City GlobeGazette truck was turned back at noon by the highway patrol on highway 18 between Nora Springs and Charles City The highway patrol said a number of vehicles were off the road or stalled Sleet and For Elsewhere in the state there was snow sleet freezing rain and fog Winds up to 40 miles per hour were reported In a special weath er bureau warning bulletin xvinds up to 50 miles an hour were re ported for western Iowa And colder weather is predicted Thursday Scattered electrical storms high lighted the general w e at h e r scramble The state police radio tower at Storm Lake was struck by lightning Wednesday morning and the station was off the air for 30 minutes Schools closed in North Iowa in cluded K a n a w h a Thornton Franklin Consolidated Scarville Meservey Hanlontown Alexan der Thompson Fertile Ledyard Lincoln No 3 Cerro Gordo coun Ventura Klemme Plymouth Joice Titonka Hubbard rural in rro Gordo county Lincoln No at Clear Lake Lake No 4 Goodell Wesley Rake Linden No 2 at Winnebago Rock Falls Rock well Swaledale And Mt Vernon No 1 Chapin Lincoln No 2 Marble Rock Nora Springs Lincoln No 1 Worth Mitchell Rudd and Lime Creek No 3 and Crystal Lake There was school but no t Woden Sheffield Garner La kota Buffalo Center Lake Mills Forest City Manly Bus No 1 which carries stu dents from West Haven to Mason City was cancelled Blizzard in DakoUs But Iowa was not the only weatherstricken area in the na ion Blizzard conditions were re ported in the Dakotas The storm was moving northeasterly and weather bureaus predicted it would move into Canada after weeping the northern Great Lakes Thunderstorms hit the midwest south of the corn belt causing widespread rainfall in Oklahoma Missouri Illinois Indiana and lower Michigan Forecasters said heavy precipi tation would increase the threat of floods in Iowa Illinois and Indi ana where streams were runninj full from springlike thaws Wednesdays storm spread snow over a belt stretching front the Dakotas eastward through Min nesota northern Wisconsin and upper Michigan Auriol who refused Tuesday night to accept the cabinets resig nation did so Wednesday night vhen the government snarl be came hopeless He announced he ivould consult with political lead TS on a successor at once The premier acted after a hur cabinet meeting called after he assembly spurned a single bal ot system of voting for next falls scheduled general election ook years to reach during World war K The OPS profiting by OPA experience modelled Tues days order closely upon an OPA retail order issued in March 1945 U S Suffers 20 Per Cent Casualties United Nations N Y ures available Wednesday show that 10 nations fighting beside American and South Korean troops have suffered 2813 casualties This is about one twelfth of the ap proximately 35322 men they have sent to the Korean war The United States has suffered 49191 casualties Gen Bradley said this week this country has sent over 250000 ground troops to Ko rea There are many more in navy and air force contingents Three other countries with men in Luxembourg and no casualty figures Turkey whose 5000 men brigade has won international renown for its daring had the highest 948 France fered the worst percentagewise A third of the 1122man French con ;