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Winona Republican-Herald, The (Newspaper) - August 21, 1947, Winona, Minnesota w EATHER iOfal IhundfMhowrri nnlfM i riinlhiUrd warm Friday, Full Leased Wire Report of The Associated Press Member of the Audit Bureau of 133 DAYS fool E VOLUME 47. NO. 137 WINONA. MINNESOTA. THURSDAY EVENING, AUGUST 21. 1947 FIVE CENTS PER COPY, TWENTY PAGES 89 Per Cent of British Loan Exhausted G. 0. P. Urges Tax Cut Based On Surplus Truman Debt Retirement, Stand-By Fund B.T FrancU M. LeMay Tru- man's forecast of a record-smashing treasury surplus of nearly next June touched off a fresh Republican clamor today for a, tax slash In 1948. Chairman Bridges iR-N.H.) of the Seriate appropriations commlttcn xikld the President's midyear budget estimating tax receipts this at higher than any previous proves that the country was "robbed or tax reduction by purely political vrtoe.1." Mr. Truman twice vetoed efforts of the Republican-dominated Congress earlier this year to trim Individual Income taxes by "Perhaps." BrldRes declared at Full River, Mass., "the President now will not be so determined about vetoing tax reduction bill when It Is presented to him." Debt Retirement But the chief executive said the Treasury .surplus ex- pected 'or the fiscal year ending next June 30 should fco to debt re- tirement and to a stand-by fund to meet any domestic or world emer- gency. Mr. Truman put the total expect- ed expenditures In the current fis- cal year at and esti- mated Uncle Sam's Income In the xjvme period, ttt Last January he set the spending figure Two Detroit Women, left, Mrs. Ernestine F. Berry, left, and Mrs. Nellie Fox en route to join their husbands In Europe, push their luggage..along a pier at New York city to board the liner America after walkout of longshoremen left baggage plied on pier and delayed the craft's sailing. At right Actress Carole Landls leans disconsolately against a pile of luggage on a truck. (A.P. Wirephoto to The Republican-Herald.) at and the surplus at only new bright budgetary outlook was hinged on an expectation of continued prices, taxes, in- romes and indi- ratlnff ho sees no depression cloud.-i on the horizon. Mr, Truman's report credited the Republicans with trimming orl- Klnal spending witimiUo by but he said the "net" unving iKfly will dwindle to only (Contlnoed on Pupr 7, Column 1) G. O. P. Paraguayan Loyalists Claim Victory Asuncion, Furiixuny The Pwafruns'nn government, ClulmlnK victory !n civil war which begun March 7, nays Its forces havu cap- tured more than rebels and that the remainder of the insurgent force Is surrounded along the Para- guay river, 40 miles south of here. U. S. Ready to Drop Talks on Austria, Korea By Edward E. IJomar Waithlnjcton The Unite States appears ready today to writ off two more attempts to reac agreement with Korc and favor of a com pletely fresh approach, This 'mpcndlng devclopmac stands out against a Library otjCfon report .declaring thatfcfcla tlonn between thin country Soviet union have deteriorate "dangerously." In the cose of Korea, Foreign Minister V. M. Molotov thus far ha failed even to acknowledge Secrc tary of State George C. Marshall' proposal for a ro-cxamlnatlon o the deadlocked efforts to set up unified government for that coun try. Marshall set today as the dead line for a report from the stale mated Soviet-American joint com mission at Seoul. Ho told In u note last week that if thii showed the two powers could noi agree on a provisional regime to take the place of the separate oc- cupation zones it was time to de- ckle whether to call off the nego- tiations which started three months ago. Meanwhile the chief American representative on the four power treaty commission which has been trying even longer to settle dispute? over a peace treaty for Austria was due to leave Vienna today for con- sultations in Washington. Robert A. Lovett, under secretary of state, used diplomatic language to say in eilcct that Joseph M. Dodfte had been recalled because the Russians were stalling at Vien- na. The Library of Congress report on Soviet-American relations was for thi- prepared by the library's legislative hours endlnc a7l" m today Preference service at the request of Maximum DO (Senator Connolly ranking 90; precipitation. .01; sun Rets to- on 'he Senate foreign nlsht lit nun rises tomorrow committee. 5-IC "uiiuv, A compilation and analysis of va- rious writings on Russia and com- Weather FEDERAL FORECASTS For Wlnona and cloudy tonight and Friday with lo- cal thundcrshowers tonlRht. Warm- rr tonight, low 7G. Continued warm Friday, high 05. Minnesota: Partly cloudy tonight and Friday with scattered fthowers north and east central. Somewhat warmer north Friday. Wisconsin: Generally fair tonight und Friday with local thunder- showers north and central. A little warmer Friday. LOCAL WEATIIKK TKMrEltATIIltKS Kf.SEWHEUK Max. Mill. I'Ct. ua ir, EX-K Molnes ........100 74 Duluth U3 60 Las Ancele.x 74 08 Paul 8.1 72 Pnornlx ...........103 7G Seattle 09 47 murilsm, the report sums up the Kremlin's foreign policy in these 44 Steers Drop Dead From Heat Chicago The heat woa too much for 44 head of feeder steers yesterday. They dropped dead. Dr. >Villla.i McCann, veterin- arian, wild the steers just "dropped dead from the beat" wlille panturlnjr under temper- In the 90's on the Robert Evunn form nearby Sugar Grove. the broufni..from for fattening were valued at about apiece and appeared to be In rood condition and there was no evidence of pol- Honlnir. Russ Protest Talks on Raising Industry of Ruhr Washington Russia has protested the proposed American- British-French conferences on rals ing the level of German industry. Official United acknowledged this States today. sources but did Janesville Center 9f Wisconsin Storm Area By The Associated FrcfM Towering thunderheads tumbled ver southern Wisconsin yesterday, ringing temporary relief to a swel- erlng populace, but leaving a wake f destruction and at least one cath, Lightning hammered at buildings, mocked out electric power at anesvllle, started fires, and claim- d the life of Mrs. Lee Faulkner, 0, who was struck while working n her farm near Mukwonago. Major lightning damage occurred t Janesville where a bolt demol- hed the substation of the Wis- onsin Power and Light Company, csultlng in the burning of all Ires and the loss of all equipment, ccording to L. E, Hayes, district anager, Janesville Industry, including the arker Pen, Fischer Body and nevrolet plants, came to a holt, ollce and commercial radio sta- ons were silent, and the Janes- lie Gazette, evening newspaper, ut its edition from a planned 16 HJCH to six and rushed tha copy to early Bclolt where the smaller Itlon was printed on the presses the Belolt Dally News, Accompanying rain, meanwhile, not disclose the reasons the Soviets gave for their objection. It is understood, however, that Russia claims the plans for the con- Terence would nullify terms of the Potsdam agreement holding down German industrial productivity. is scheduled to 'Friday as part of a joint 'Anglo-American attempt to Italy Denied Lake Success today vetoed- an Australian proposal which would have ad- mitted Italy into the United Nations us soon as the Italian peace treaty becomes effective. strengthen the economic affairs of the western world to speed re- Icovery. In Berlin, General Lucius D. Clay said today that any Russian pro- against raising the level ot in- dustry in western Germany would be without foundation, because the Russians have declined to treat Germany as on economic unit as provided in the Potsdam pact of 1945. The British foreign office had no immediate comment. Arrangements for the three-power conference were ma'de following an agreement between British-Ameri- can bizonal authorities which was understood to have raised the ceil- ing of annual steel production in the merged zones Irom the Potsdam limit of tons to tons. France objected to this agreement and it was held in abeyance pend- ing the outcome of thft scheduled three-power talks here. Disembark or Go to Reich, Jews Told Ultimatum Issued to Refugees Off Coast of France By The AMOciated PreM delivered an ul- timatum today to the Jewish refugees off France: Disembark by tomorrow afternoon or be transport- ed to Germany. The Jews are aboard three British ships which have been off Marseille for three weeks. They tried to land in Palestine a month ago' from the immigrant ship "Exodus The Jews will be taken to the Bergen-Belsen displaced persons camp it the ultimatum is Ignored, a spokesman for the International Refugee. organization said at Ham- burg, in the British occupation zone of Germany. Crime Against Humanity A Jewish agency spokesman in Jerusalem called the news shocking. He -said disembarking: of these re- fugees at Hamburg would be "a crime, against The Jews said last night they would go on a hunger strike If they were not permitted to enter the Holy Land. They were placed aboard the three ships off Haifa after a battle with British boarding parties, and returned July 29 to France, whtere they began their voyage. They have refused ever since to disembark and have rejected a French offer of hospitality. Near Belsen The displaced persons camp to which they will be taken if they persist in their stand is less than Senator Bilbo Succumbs at 69 New Theo- dore G. Bilbo of Mississippi, master of filibuster and sharp-tongued champion of white supremacy, died here today without ever having tak- en his disputed seat In the 80th Congress. Death of the 60-year-old Demo- crat left forever unanswered the question ot whether he was entitled to his third term In the Senate, from which he was barred on bi- partisan charges of unfltnoss when Congress last January. At that time Bilbo, seriously 111 with cancer, was accused of Intimi- dating Negro voters during his cam- paign, and with misusing his office for personal gain in dealings with war contractors. Both charges had been investigated by Senate com- mittees. Will Be Left By August 29 Dollar Exchange Suspended; Trade Concessions Sought by Great Britain will reduce to half a mile from the site of in- famous Belsen concentration camp. The British foreign office an- nouncement said that if the Jews declined to go ashore the ships would sail and the passengers would be disembarked immediately upon reaching Germany. The Jews have been oil the town of Port de' Bouc, refusing to disem- bark. Commander Turner Caldwell walks from the jet-propelled D-558 Skystreak which he flew to a new world air speed record at Muroc, Calif. His average of 640.7 miles an hour eclipsed the month-old record of 623.8 miles an hour set by an army jet P-80. (AP. Wire- photo to The Republican-Herald.) G. M. Production Cut Spurs Demand For Steel Probe Detroit General Motors Corporation's plan to cut produc- tion because of a reported steel shortage brought a demand tor a governmental probe of the steel sit- uation today from C.L.O. United Auto Workers President Walter P. Reuther, Hours after G.M. President C. E. Wilson announced the big auto manufacturer would close some plants and curtail schedules in oth- ers during the lost week of August or the flrst week of September, Reuther disclosed contents of a'let- ter he sent to President Truman, asking an investigation of what he called the steel industry's "restric- tion of production and production capacity." Charging "steel monopolists" with "The summit of communist hopes (flooded Janesvlllc streets to n depth Moorhead Gets Permit to Develop New Water Source St. Paul A permit to de- ''and aspirations is, as in Benin's 07, time, u complete change in the world's political, economic, social of five to eight Inches, after sewers and catch basins overflowed, and 1 the water seeped into downtown DAILY KIVKit BULLKTIN Stage 24-Hr. Today Change Prcc. and cultural aspirations, and at the'stores. base of the Soviet foreign policy Manitowoc reported a Red Wins 3.0 .Oil Lakr City C.5 0.1 Reads 0.1 .'M Dam 4, T.W. 4.C. L, T.W. 2.H Dam 5A, T.W. 3.11 0.1 Winonii fi.7 -i o.i Dum fl, Pool 10 H o.l dim C, T.W. 4.C, ci.7 Dakotii 'C. P.) 7.11 -I 0.4 Dum 7. PtKil n.7 0.4 Dam 7, T.W. 2.4 -i O.ft LA Crowe 5.1 -i-O.G Tributary Chlpppwa at HC3 the desire to make the world safe for communism and Sovletlsm. "In their efforts to achieve their e-Houi rainstorm, and thunder and light- ning were common over the south- ern part of the state. The Weather Koal, the Russians are prepared toiDureau said there were temperature play any card available at tho timej which promises maximum suc- .la' in 11 Klvcsn situation." .32 With Uie observation that Am- .11 Vrlenn-Sovlt't relations have deterl- T orutecl the reporl T added: "The future depends, of course, 011 thu United States ulone. but .10. hinges on the policies and asplra- .14 tlons of Soviet leaders.' Durnnd Zumbro Theilman Buffalo above Alma 3.1 4.2 4.4 3.0 -2.0 l.R 0.8 .07 T n: DoclKe Black nt Nclllsvllle 2.8 0.4 Black at CalcsvlIIc 2.0 -i 0.1 La C rosso nt West Salem 1.4 Root nt Houston C.D -i 0.5 KfVKK FORECAST (From St. I'nul to Mam Ten) During the next hours, rises of .3 to .5 foot will occur in all tho upper pools below La Crossc; north- ward rises will amount to .1 to .2 fiot. The Chlppewa and sin rivers will rise the next two .05 St. Paul Legion .01 Team Eliminated in Sectional Meet Cedar Kapids, Iowa Bent- ley Post of Cincinnati and Post No, of Davenport, Iowa, eliminated Christie Bo Parcq of St. Paul from the Junior Legion sectional baseball tournament Wednesday. Cincinnati defeated St. Paul, 4-3, In 11 InnlnRs and then Davenport racked St. Paul's hopes in the scc- OJUl frame, 5-4, under a 100-degree temperature. Davenport and Cincinnati' will meet at p. m, today. They will play again Friday afternoon, and if they split the two games will piny a third Friday to decide which will BO to the Little World series to Lot Angeles next meek. drops of about ten degrees at most points after the storms, but that the relief was not expected to be of long duration. Heat Kills 28; No Relief Seen By The Associated Press At least 28 persons have died as a result of the Midwestls prolonged -y, heat wave, and the hot weather con- Kacine lYIan tlnued today with no prospect of relief. velop an underground water source discovered five and one half miles east of Moorhead was granted to the city of Moorhead today by tho state conservation department. The order, signed by Conservation Commissioner Chester S. Wilson, decrees, however, that the city may use such water as necessary "for the benefit of citizens and indus- tries" but not to exceed gal- lons per day. The water is to be' taken from an aquifler which extends north and south, parallel to the south branch of the Buffalo river. The order further specific.'! that granting of the permit shall not absolve the city of Moorhead for any liability for damage or injury to other wells drawing water from the newly-found aquifler "resulting from the lowering of ,the water table therein." "putting a strait whole American jacket on the the Vet Hurt in Minneapolis Shooting Minneapolis A 22-year-old Minneapolis navy veteran was. shot and seriously wounded early today by a Minneapolis policeman who said the youth was trying; to force his way into the bedroom of the po- liceman's 22-year-old daughter. Richard M. Soldat, 23. was In Minneapolis General hospital in poor condition with a bullet wound In his stomach. Fred C. Burnsted, police traffic sergeant, said his daughter, Cath- erine, was awakened about a, m, when she'heard a. rattling at her window. A man fled when she Investigated, Burnsted said he changed bed- rooms with his daughter and that about 3 a. m. he heard a section of the screen being torn away. The man fled when he ordered him to throw up his hands and Burnsted said he fired a shot through the window Into the air. The policeman said he fired again Into the ground and the man fell, but Jumped to his feet and started running again. Burnsted said he fired again and, saw the man drop, but that when he arrived at the scene the man had disappeared. A police squad car found Soldat, Polio Cases Jump But Total Is Lowest Since '42 By The Anociatcd The year's sharpest rise in the number of infantile paralysis cases occurred last increases noted in 32 the 1947 total to date remains the lowest stncfl 1042. .Only two communities In the na- tion found It necessary .to tin- usual precautions during: the sud- den Swimming pools have been closed in Wilmington, Del., and swimming has been prohibited at a summer camp on Long Island from 201 sound. Connecticut. Furthermore, reports union chief reiterated his often- repeated statement that the indus- try has been responsible lor unnec- essary restriction of production. "The refusals of the steel Indus- try to take necessary steps to In- sure maximum utilization of pres- ent capacity has meant short work weeks and recurrent layoffs in the auto industry and others through- out the last Reuther charged. O.M.'s shutdown will nHcct Chev- rolet and Pontlac production, Wil- son's statement, said, with Pontlac division workers idled .from Friday night until September 2. Announce- ment of Chevrolet division closing dates was to come later, Bulck, Oldsmoblle, Cadillac and G.M. truck and coach plants "will not be Wilson said. A total of G.M, workers may be af- fected by the shutdowns. Duluth Woman Moose Auxiliary Official Columbus, Ohio Gertrude Taroun of Duluth was chosen na- tional star recorder of the Moose women's organization meeting here Wednesday in conjunction with the 59th world convention of the Loyal Order. of Moose. bleeding badly, at 28th street and 17th avenue south. Soldat, authorities said, told them he knew Catherine while they were attending high school and had writ- ten to her several times while he was In the navy, without getting any re- plies. He recently has been an art student. Congress Failed Disabled Vets, McCarthy Says las Veras, Nev. Senator Joe McCarthy (R.-Wis.) declared yesterday that the lost Congress, of which he was a member, "did foully by our disabled veterans, their widows and dependents." The senator, addressing the na- tional convention of Disabled Am- erican Veterans, said he agreed with Commander Lloyd Oleson, Ventura, Calif., who in his opening a'ddress said that the last Congress was a 'do nothing "It was a 'do nothing Congress' as far as the veterans were con- said Senator McCarthy, who served with the marines in the last war. Two Escape in Plane Wreck Near Ortonville plane was wrecked but Duncan Force-of Will- mar and Ed Swank of Clinton es- caped injury when their airplane states which have figures on deaths available, show only 30 so far this year, compared with. 338 in those same states a year ago, when the nation suffered its worst outbreak since 1016. The U. S. Public Health service in Washington had reports of 411 new coses'for the week ended August 16 throughout the nation. This com- pared with 279 in the preceding week, and brought to the total recorded by the service for 1947, compared with 8.841 for the com- parable period in 1946. In 1942, there were cases for the same period. No Estimate on Peak Reports gathered by The Associ- ated Press in 28 states, plus figures for the other 20 and the District of Columbia obtained from the Pub- lic Health service, show a total of coses for 1947. compared with on a comparable basis for last year. But, some of the states in the A.P.'s survey brought the figures up to August 19 lor both years, where- as the Public Health service reports date only through August IS. For example, the survey showed 186 coses reported for Illinois so far, whereas the Health Service figures for that state total only 178; and for Michigan, the A.P.'s total was 117 compared with 101. Health service officials offered no estimate today ns to when this by August 29 unount of credit remaining from her original loan, the U. S. Treasury said today. Ap- proximately 89 per cent of tho will then h.ive been exhausted. The loan balance already had been reduced to when Anglo-American talks bi-gan here Monday to consider emergency steps aimed at relieving Britain's current economic crisis. Only yesterday the British agreed with United Suites approval to suspend temporarily the free ex- change of dollars for pounds In trade with other countries. It was learned this step was necessitated by dollar demands which recently had risen to a rate of a week from the American credit. Pay for U. S. Goods A Treasury official told a re- porter that permission for Britain to make withdrawals below the remaining stemmed from a need for S450.000.000 to pay for goods on order in the United States, One request for a withdrawal already has been made. Other requests for withdrawals in the- same amount will be made August 25 and 29, cutting the credit balance to Once the loan is down to the point British with- drawals will cense pending: ar- rangements at the Anglo-American financial conference here to con- trol the How of dollar from London. Treasury officials were described; as convinced tlint, the British havo irrivcd nt a genuine crisis and that only drastic emergency action such as thnt taken caa avert tt financial collapse. The. Treasury was reported as believing that action, docs noc vio- late tho spirit of the loan agree- ment, even though that document obligates the British to exchange dollars for pounds freely, when other countries request such pay- ment. Good Progress With both sides reporting good progress, tho Anglo-American finan- cial talks were pressed 011 toward a decision over modifying a British. loan clause which bars Britain from. cutting her American dollar pur- chases solely to be able to buy In areas where she can use pounds instead. This would be another in the ad- mittedly stopgap steps to relieve Britain's current economic crisis in anticipation of a full dress review. perhaps in London next month, of long-range economic and financial relations between the two countries. it was learned that it was the United States which ad- vanced the plan for Britain to ra- (Continucd on Pace 1C, Column 3) LOAN" crashed near Big Stone lake, eight creases in its weekly figures lot some miles north of here. In Chicago, 24 persons were re- ported to have died of causes in- duced by heat since midnight Mon- day, while two such deaths were reported in Indiana, and two others in Minnesota. The Canadian cold ah- mass was stalled at the XI, S, boundary, mov- ing eastward but not southward. Another day of continued sear- ng heat was forecast for virtually all the states between tho Ap- palachians and Rockies. Except for scattered local thun- dcrshowers of little consequence generally, the forecaster said no nolsture was in sight for the wither- crops now reported in some lo- calities to have been written 'off as failures. I in Traffic Fatality Kenosha, Wis. Assistant District Attorney Frank Shannon In which four former holders of on- 4 Shakopee Liquor Dealers Sue for Loss of Licenses Shakopee, action I cials and the five present-license _ _ _ _ year's peak would be reached, but officials have said all along that it would be later this year than last. Two weeks ago a public health official said he doubted that this year's peak week would see more than 400 coses. But the picture has changed since that time, with sharp rises in several states. Minneiota Cases Up The Public Health service noted sharpest increases last week in Illi- nois where new coses doubled from 27 to 54; Michigan, up from 14 to 25; Iowa, 8 to 15; Minnesota, 4 to 13; and California, 19 to 28. California, which has had the largest number of coses of any state this year (514 through August has had both increases and dc- sald today a warrant charging neg- ligent homicide would be issued for Glen Adzima, 16, of Racine, in con- nection with a traffic death here July 24. Shannon said a Jury re- turned a verdict of negligence yesterday following an inquest. Kill- ed was rtoward Filaski, 15, also of Racine. The crash occurred July 23 when a panel truck driven by Adzima went out of control near tha north city limits here, sheared off seven fence posts and overturned, pinning Fila- ski, a passenger in the truck, be- neath it. The youth died the next morning at Kenosha hospital. i sale liquor licenses in Shakopee seek to regain them at the expense of present license holders was filed in Scott county district court here 'today. The four, Hubert Paron, Otto C. Stems, Martin Dressen and Joseph S. Welland, lost their licenses when the city council reduced the num- ber of licenses issued from nine to the legal limit of five. Tho cut was in compliance with an order from State Liquor Control Commissioner Dudley C. Erlcson. Named defendants in the suit are Mayor John J, Cavanaugh, mem- bers of the council, other city offl- holders. In their complaint, the former li- censees contend the present licen- sees ore not qualified to hold on- sale licenses because: "Pelham hotel does not constitute a hotel within the provisions of the state act authorizing liquor licenses for hotels, because it does not main- tain a permanent dining room. "The Pullman, Saint Paul House, Riviera and Rock Spring cafe arc not 'exclusive liquor stores' since all serve food." State law and a Shakopee ordi- nance limit on-sale liquor licenses in cities of the fourth class to ho- tels, clubs and exclusive liquor stores, v time. Decreases were noted by the health servlcu in last week's figures for Wisconsin, Missouri, the Dako- tas, Kansas, Georgia, Tennessee, Louisiana, Texas, New Mexico and Utah; and a few states reported the same figures as the previous week. The survey of the situa- tion showed these further details: Wisconsin has had 46 cases this year, compared with 202 for the same period lost year. Corn Outlook Worsens; Heat Cuts Prospects Washington The Agricul- ture department reported today that the nation's corn crop was in- dicated nt bushels aa of August 15. This estimate compares with. bushels forecast for August J, lost year's record crop or and with the ten-year (1930-45) average of 2.G3S.102.000. It also compares with a govern- ment production goal of bushels. Cool wet weather nc plant- Ing time and hot, dry weather this month combined, the department said, to cut this year's prospects. Unless there is an immediate fa- vorable turn in the weather, the crop will be short of the quantity needed to maintain a high level of livestock production next year. Today's estimate was based on August 15 outlook in 12 major corn- producing states in the Midwest and tho August 1 outlook in other states. Hearing on Gas Allocation in Midwest Opens Chicaro A three-member Senate committee began a hearing here today on complaints of hun- dreds of Independent gasoline deal- ers, small refiners and oil distribu- tors in 12 Midwestern states that they are being squeezed out of busi- ness by allocation supplies. U. S. Protests Russ Occupation OfDairenPort new United States protest to Russia against: lie continued Soviet occupation of the Chinese port of Dairen -was disclosed today by the State de- partment. Anote delivered to Moscow Au- gust 14 sold that tills government "will of necessity hold the Soviet government responsible" for treat- ment accorded American interests in the port city while it is under Red army rule. Under a 1945 treaty, Dairen was to be returned to Chinese administra- tion and opened to world trade. Rus- sia, however, has banned from the port all foreign shipping. Includ- ing American nava.1 vessels taking moil and supplies to the U. S. con- sul general there. ;