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Winona Republican-Herald, The (Newspaper) - February 27, 1953, Winona, Minnesota Partly Cloudy, Colder Tonight And Saturday Dial 3322 To Place Your Want Ad VOLUME S3, NO. 9 SIX CENTS PER COPY WINONA, MINNESOTA, FRIDAY EVENING, FEBRUARY 27, 1953 EIGHTEEN PAGES Watkins Tax Case Settlement Hit Senator Cites Pressure by Truman'Fixer' District Attorney Protested Caudle's Handling of Case Settlement of an alcohol tax. claim by the federal government against the J. R. Watkins Co. oi Winona several years ago for hali a million dollars was criticized on the floor of the U. S. Senate in Washington today in a speech by Sen. Williams (R-Del) who de- nounced a series of settlements. Associated Press reported that the claim against the Wat- kins firm, according to Williams, was for three million dollars. He said that the settlement in- cluded withdrawal of the firm's claims against the government for of tax refunds. In listing the settlements of claims for what he said were for delinquent alcohol taxes, the Dela- ware Senator said they were for "an insignificant fraction" of the amounts sought by the govern- ment. Some of the cases went back to the 1930's and earlier. California Case Cited One government claim, Sen. Williams said, for against a Californian was settled for Watkins Company Statement The position of the J, R. Watkins Co. which has its headquarters in Winona relative to the speech in the U.S. Senate today by Sen. Wil- liams of Delaware was explained in a statement issued this after- noon by E. J. Sievers, vice presi- dent and comptroller. The statement was as follows: is true as alleged by Sen. Williams that the J. R. Wat- kins Co., was involved in a settlement with the Alcohol Tax Unit in 1945 although his statements are grossly inac- curate and misleading. "In 1944 our auditors dis- covered that former officials of the company were involved in mislabelmg practices involv- ing liniment that would appear to result in tax liability to the company. The bulk of this mis- labeling occurred ten years or more prior to its discovery by the company and its auditors. "The company immediately authorized its auditors to make a full and complete disclosure to the officials of the Alcohol Tax Unit and then proceeded to make an analysis of old production and sales records still available to determine the amount of tax that might pos- sibly have been due. "On this basis the attorneys for the company finally ar- ranged a settlement with the government which involved the payment of in full settlement of all civil and criminal matters. At the same time tax questions were re- solved that might otherwise have resulted in tax refunds to the company. The amount of our settlement was substan- tially in excess of the provable liability. The company also waived its rights under the statute of limitations and also waived questions as to the val- idity of the regulations under which the tax was determined. "In all fairness we must say that we had no reason for cri- ticism of our treatment by the officials of the Alcohol Tax Unit. They were very appre- ciative of our disclosure and with our assistance and co- operation in settling the mat- ter. Although the settlement imposed on the company might have been excessive, we be- lieve that these officials acted as good public servants in the interest of the government." Ru M move Expected in Berlin By JOHN M. HIGHTOWER WASHINGTON S. officials consider it entirely probable Russia will undertake one or more dra- matic counter moves in Germany as Western plans for bringing West Germany into the anti-Communist defense system reach the decisive stage. Only the Russians know what Stevenson Asks Democrats to Limit Criticism Can't 'Sow Division When It's Important To Harvest Unity' j LOS ANGELES Wl Adlai E. Stevenson asked some Dem- j jocratic austerity diners last night to "never sow division when it is so important to harvest unity." They applauded his plea and I also his declaration that "while we may be a defeated party, we are not a beaten party." "I for one hope and pray that we shall be spared the spectacle j of Democratic orators taking a I leaf from recent history and mouthing nonsense about 'Eisen- hower's he said. "Rather we stay out of office forever than win it back that way." This was an apparent reference to Republican cries of "Truman's War" in last campaign. Adherents of the defeated Dem- ocratic presidential candidate filled the Biltmore Hotel bowl for a "Western States austerity dinner. Winona Boy, 6, Killed By Milwaukee Road Train military or I eral staff, General of the Army _, t they may undertake. But their Sergi M. Shtemenko, has been menu stake in trying to block a European Defense Community including West Germany is so great as to make it almost certain they will do something. Authorities here have been aware for some days, it was said, that the former chief of the Soviet gen- If the claims were valid, Williams argued, the bargain settlements were "perfectly ridiculous and un- justified." And if the claims exceeded am- ounts actually due, he said, "then the false claims by the govern- ment constitute nothing short of blackmail." Williams commented to.o that some of the settlements were "ap- proved by public officials whose own honesty and integrity have been challenged during the recent months." As Williams related it, the Cali-{ fornian's case involved a question I onammously approved without change President Eisenhower's resolu- of ability to pay. But many of the Itlon condemning Soviet subjugation of free peoples through violation Russian occupied East Germany, a SOUP> corned includei beef ani House Committee OK's Ike's Despotism Resolution WASHINGTON House Foreign Affairs Committee today others did not. Williams named the Jos. Schlitz Brewing Co. of Milwaukee as hav- ing settled one claim by paying instead of that tie Treasury's Alcohol Tax Unit orig- inally had claimed to be due. The settlement case, he said, involved John L. Boitano, of Petaluma, Calif. He said Boitano pleaded guilty on Oct. 5, 1937, to alcohol tax violations and sen- tenced to two years in prison and fined Williams said the Alcohol Tax water persons, apparently sole heirs to found in the attic of a vacant farm house Feb. 14, have given each to two elec- unit fixed claims against Boitano tricians who found the money and Dassel Hoard Finders Rewarded DASSEL, Minn. Wl Two At- "because he did not appear to possess any discernible assets in excess of Williams said the Schlitz Brew- ery case involved its alleged use of oversized half-barrels in which to ship its beer. The tax unit con- tended Schlitz in 1943 started us- ing the oversized barrels while paying alcohol taxes for only the normal sized barrels. He said the assessment represented a claim that the brew- ery should have affixed the next higher denominator tax stamps to the barrels, but that the com- pany settled for computed on the basis of extra actual con- tents of the oversized containers. Williams told the Senate that "the amazing part about the set- tlement of tie J. R. Watkins Co., is that the criminal phase was com- pletely ignored and the compro- of wartime agreements. The resolution is slated for House action next week. In approving without change the draft submitted by President Ei- senhower, the committee appeared to squelch any major split on the issue in the House'itself. Some Republican committee members had wanted the resolu- tion couched in stronger terms, perhaps criticizing former Presi- dents Truman and Roosevelt for having participated in the Pots- dam, Yalta and Teheran agree- ments. But Democrats had threatened a floor fight if such language was added to the legislation. Secretary of State Dulles Thurs- Bex2 i day mSeA House committee to s> approve the measure as it written by the President in c operation with the State Depart ment. The Senate Foreign Relation Committee has postponed unl next Tuesday further consideratio of a companion resolution. Som senators also want a stronger an more far-reaching measure. Tougher Talking This call for a tougher-talkin resolution was echoed in the House As proposed by Eisenhower, th an attorney said today. [cabbage, boiled new potatoes, ap cheese and coffee. The half-hour speech included number of .quips, which drew j laughs, like his reference to Wash _ jington, D. C., "now known in tb New Rumors East as .Hombln.g Heaven.'" Rumors circulated in Berlin yes- j in a more serious mood, Steven Apparently they do not know ,g( he is there or whether his presence is connected with whatever steps the Soviet high command may be planning. terday that the Communists, in an effort to regain the political initi- ative in Germany, might try one or both of two possibilities: 1. The Russians might announce in May that as of June. 1 they would withdraw their troops from Germany. 2. Moscow might come up with a new set of demands for unifica- tion of East and Germany Unification" is a political issue on which all" Germans reportedly unite and which Russia and the Western powers all say they favor but under different conditions. Experts here said there w other alternatives open to the Rus- sians. For instance, they could make threatening new trouble over ie Western zone of Berlin, which they have been progressively iso- lating from surrounding Commu- nist territory. Responsible officials here are inclined to doubt that the Russians would actually withdraw their oc- cupation forces from Germany any time soon. They think that eventu- T aw who were wiring the farm house, now owned by Oscar D. Olson, Olson had bought the house fol- lowing death of Oscar Englund last May. The money, found wrapped in old black stockings, stuffed into pint fruit jars and sealed in old en- velopes, was deposited in the Das- sel State Bank. Leland A. Olson, Litchfield at- torney who handled the Oscar Eng- lund estate, said he will file a petition in Probate Court Monday ally the out Russians will certainly their troops. They also asking that proceedings concerning the estate be reopened. tied in the courts, and not by ad- ministrative compromise. The letter suggested that handl- ing of that case, and an income mise agreement retihed by the tax settlement with Walter J Treasury Department apparently i Gaertner, a St. Paul liquor dealer without any consultation with tb Department of Justice." He quoted a letter from Victo: R. Anderson, U. S. attorney fo: Minnesota, to then Asst. Atty. Gen Theron L. Caudle protesting th handling of the Watkins case, am said Anderson's report "clearl; demonstrated the arbitrary man ner in which these cases were handled." Caudle, then in charge of tax cases, was a central figure in 1951-52 House investigation of the handling of tax cases. The House investigators heard testimony o: Caudle's accepting trips and enter- tainment from persons having tax difficulties, and of his receiving commission on the sale of an airplane. Fired in Midst of Probe In the midst of the investigation, President Truman fired Caudle on grounds his outside activities were incompatible with his official duties. Williams said Caudle forwarded Anderson's complaint to Stewart Berkshire, deputy internal revenue commissioner, but did not indi- cate whether anything was done about it. Anderson's letter, which the sen- ator made public, said the Wat- kins case involved illegal diver- sion of alcohol, and that the Jus- tice Department was not consulted about a settlement involving no criminal liability. Anderson protested that U. S. judges in Minnesota had indicated "quite clearly and forcibly" that criminal liabilities should be set- may subject the administration ti rather serious adverse criticism.' The letter did not go into de tails of the Gaertner Case but indi cated there was a settle ment of a claim for more than million dollars of income taxes. Reports have been widespread in Winona the last few days tha a federal grand jury now in session in St. Paul is investigating another Alcohol Tax Unit case. The jury, said court attaches in St. Paul at noon, was expected to report sometime this afternoon Some indictments were indicated Philip Neville, United States district attorney who has resigned and leaves office tomorrow, said in a statement Wednesday he loped his successor would be ap- pointed before beginning the pres- entation of "a multi-million dollar Alcohol Tax Unit case." He said presentation of the case began Tuesday. Today, however, President Ei- senhower appointed George Mac- Cinnon, Minneapolis attorney and ormer representative in Congress, o the post. MacKinnon, pre- .umably, will take office March 1 his appointment must be con- firmed by the U. S. Senate. Prosecution of any cases left iver by Neville's regime would all into MacKinnon's hands. Several Winona persons s some former residents were ubpoenaed as witnesses before ae grand jury .and at least one Hnona resident is a member of the jury panel. resolution would reject Russia enslavement of free people through perversion of war-tim agreements and would proclaim hope for liberation of Iron Curtain countries. Some lawmakers urge condemnation of the once-secre agreements themselves and other want to express something strong er than "hope" of freeing Red satellite nations. The Eisenhower resolution avoids criticism of terms of the agreements negotiated during the World War II administrations of Democratic Presidents Roosevelt and Truman, Frank Brockopp, 20, faces a charge of first degree assault at Fergus Falls after Sheriff Owen V. Thompson said he ad- mitted shooting and seriously wounding James Stevens, a Minnesota highway patrolman, near Parkers Prairie, Minn, during a storm the night of Feb. 19. say privately that .such action now would make a big '-npression on non-Commu'nist Europe and prob- ably bring on a relaxation of de- fense effort. Control Police Army On the other hand, officials say Russia's position in Germany is a strategic and political fact of enormous value and something which the Soviets would never lightly relinquish merely move ia the cold war. Officials assume that the Rui sians have been training their Eas German police force, which th Western nations describe as a kin of military organization, to replace eventually, the Red Army. At th moment it numbers only about one third as large as the Re Army force in East Germany. I a fairly high desertion rate t :he West, officials added, and i lardly seems likely that the Rus sians would now consider it a re able basis of power in Germany If or when they do consider i reliable they would be able ti move out of East Germany with out risking their hold upon it or radically altering the balance o military power in Europe. They could simply pull their troops back into Poland where they would stil >e in striking position against the West. son said, "Upon the new Presiden have been laid great burdens in a time of peril for us all. As he labors under their crushing weight he .will have our good will, our good wishes, and our prayers...." In a dig at the GOP, the ex Illinois governor remarked, In the resolution he has. just proposed the President has repudiated the Republican campaign mythology about dark and sinister agreements at Yalta, Teheran and Potsdam." The proposed Eisenhower reso lution would denounce Russia for violating World War II agreements with the United States by enslaving free peoples. The resolution is an apparent change of position from that proclaimed by the President in his Feb. 2 State of the Union message. No Commitment He said then he would ask Con- gress to make clear that the U. S. recognizes no commitment "con- tained in secret understandings of the past with foreign governments which permit" enslavement of for- eign peoples. The resoiution submitted by Ei- senhower did not denounce any agreements but only Russian vio- lation of them. Stevenson went on to say: "The proposed resolution relates ;o the breach of those agreements by the Soviet, government, shame- .ess violations which have long seen denounced by everybody, Democrats and Republicans alike. Let us, I say, no longer make cynical political capital by pre- as a tending that our country ever con- spired in the tragedy that has be- fallen great nations. "Tempting as it is, I shall not dwell on the unworthy and mis j.S. Sues 2 Firms :or Faulty Work At New Brighton ST. PAUL Lfl The federal overnment today started suit for more than a million dollars against VO plumbing supply firms for al- gedly furnishing defective mater- als in the construction of the Twin ities Ordnance Plant, New righton, more than 10 years ago. Named in the alleged breach of ontract suits filed today by Rich- rd Johnson, assistant U. S. attor- ey, are the American Radiator nd Standard Sanitary Corp., and le Grinnell Co., Inc., two eastern oncerns with branch offices in le Twin Cities. The suit asks for from :e American Radiator company nd from the Grinnell impany. Metro-Goldywn-Mayer Executive Dore Schary points put a celebrity to Adlai Stevenson at a "austerity" dinner for the Democrats in Los Angeles Thursday night. The defeated presi- dential candidate, addressing the group, was applauded when he told them, "While we may be a defeated party, we are not a beaten party." Stevenson stopped off in Los Angeles at the beginning of a trip around the world, which will keep him out of the country until July. (AP Wirephoto to The Republican-Herald) STILL GERMAN SYMBOL Reichstag flurnecf 20 Years Ago Today By TOM REEDY BERLIN years ago tonight the Nazis burned the Reich- stag and the flames consumed democracy in Germany. The ruined hulk, which now casts a shadow on the Russian sector wrder, was bequeathed to the rats and thieves. Talk of rebuilding the domed structure erected by Bismarck is about as effective as talk of MacKinnon New Federal D.A. For Minnesota German unity. But even in its de- stroyed state the old Reichstag still stands as a symbol. As a new proud home of legis- lators, it stood for the empire the "Iron Chancellor" Bismarck wrought from warring states and lands. War on Parliament- After the Nazi arsonists set fire to-itt Hitler's rubber stamp Par- liament moved to the nearby Kroll MacKinnon Eriekson AUGUSTA, Ga. President reading" words thatThave i s e n h o w e r today nominated tered of late about the Seventh George E. of_ Maple Fleet, words implying that Presi- dent Truman's purpose was to pro- tect Red China and not Formosa." In. the audience were Dore Senary, MGM production chief and leader of the Hollywood-for-Steven- son organization in the presidential campaign, and actress Lauren Ba- call. Stevenson plans to rest and visit friends in the Los Angeles area this week end and fly to San Fran- cisco Sunday evening. He sails Monday on a trip around the world. Stevenson told the diners that many questions await resolution by the Congress and the people. ''One of the first is tidelands oil. On this issue I have long since expressed my views. But, however he Congress may decide the ques- tion, let us make sure that it does not set in motion the piecemeal dismemberment of our great pub- ic domain which is held for the >enefit of all the people of the United States." The former Illinois governor ad- "There are those who inter- net the election as heralding an pen season for the retail and vholesale transfer to the states of ur great national for- sts, the grazing lands, the water nd the minerals. Already the Re- Plain to be district attorney for Minnesota. He also nominated'Enard Brick- son of Aitkin to be U. S. marshal for Minnesota. Eriekson was born in Finland and is associated with the Clarkson Coal Co., in Minne- sota. MacKinnon served four terms in the Minnesota Legislature, from 1934 to 1942, and one term in the U. S. House, through 1948 Paul Gulbraindsen Dies in Crossing Crash at Gar fie Id A Winona boy was instantly kill- ed shortly before 1 p. m, today when his father's car was struck by a Milwaukee Road mail train at Garfield Street. He was Paul Gulbrandsen, 6, son of Mr. and Mrs. G. J. Gul- brandsen, 868 W. Mark St. The father was uninjured, ex- cept for a minor cut on the leg. He was admitted to Winona General Hospital, examined and released. The boy, sitting on the side of I the car away from the point of I impact, was thrown out of the car. His head was badly injured. Dr.R.' B. Tweedy, Winona County- coroner, declared it was an acci- dental death. The Gulbrandsen car, moving uorth over the tracks, was struck by the eastbound Milwaukee Road No. 58. Garfield Street is 13 blocks west of Center Street, and is a short street from Wabasha Street south to Gilmore Avenue. The car was struck on the left front, was thrown about 35 feet against a stop sign, which it crack- ed off, and came to rest about 10. feet away. The body of the boy was lying nearby. When police arrived on the scene, the father was sitting, dazed, in the car. Police described the street as icy. There is clear vision to left. Gulbrandsen operates his own shop for making wood patterns and metal castings at his home. There are two other children, Joyce, 3, and an older son, Lt. George, in New Orleans with. Navy Air Corps. Would Merge 2 Departments By JACK B. MACKAY ST. PAUL W Merging of state Department of Social Wel- fare and the state Division of Pub- lic Institutions under a single head is provided in a bill introduced in the Legislature today. The consolidated department! would be known as the "Depart- Opera House. From 1933 onward, ment of Public. Welfare" and the this was a clear symbol of the commissioner would be appointed from May, 1947 ublican chairman of the Senate :nterior Committee, has. darkly linted that such plans are afoot." Applause and laughter mingled he said: "I had been under the very dis- nct impression, a few months ack, that the Republicans had made off with the Democratic arm plank. I guess I was wrong, hey just borrowed it temporarily nd "returned it immediately after the election." Walker Doctor Closes Hospital, Ready for Draft WALKER, Minn. CB Dr. H. M. Brown, 30, was ready for induction into military service today after t closing down the 20-bed hospital he operated here. Dr. Brown dismissed the seven staff members Thursday and closed his office. Until he receives his orders, he said he would con- tinue to make home calls. Clem Plattner, president of the Civic and Comnlerce Club, said he had wired Gov. Anderson protest- ing statements alleged to have been made by an unidentified State Health Department official. Navy Plane Crashes, 10-Man Crew Saved WASHINGTON W) A crippled Navy patrol plane crash-landed in the mid-Atlantic this morning iut all 10 men aboard were picked ip .by the Coast Guard Cutter Coos Bay. The Navy reported no in- iuries among, the survivors. Nazi attitude toward parliamentary it was decadent and full of holes. To the onrushing Soviet armies of 1945, the Reichstag again was a symbol. To them, it meant Ger- man might crashing down in 'ruins. Russian troops roared down the wide "Avenue of Victory" to the jutted hulk and scrambled to its top to plant the Red flag. Deserted, walled-up and bleak, the Reichstag is symbolic now of occupied, divided Berlin. When West Berliners get into a fist- shaking mood, they hold their big anti-Communist rallies in front of the Reichstag. Defied Blockade Hot-headed Berliners, more than a quarter-million strong, used the steps of the Reichstag as the forum to shout defiance of the Russian blockade in September 1948. fire failed to and neglect has Postwar Berlin put the finishing touches on the scrambled interior Thieves searching for scrap meta valuable in the black market re- moved pipes, and other metal fix- tures. The Nazi attempt to blame the fire on Communists was one ol Dr. Paul Joseph Goebbels more unconvincing "big lies." The Nazis wasted no time after the fire in promptly launching a widespread purge of Communists and other Germans considered in- imical to the Hitler regime. Ins.ide of three weeks, the Reichstag members voted away their rights to legislate and conferred them on Hitler. From that minute on, the regime was a one-man show. Weather Generally Fair Over Nation By THE ASSOCIATED PRESS Generally fair and comparatively mild weather was reported over most of the nation-today. The U. S. Bureau in Chicago said temperatures were above normal in nearly every sec- tion but some colder weather was on the way for North Central areas. Below zero readings were in prospect for northern midwest regions tonight, with lows of 5 to 15 below forecast for Northern Min- nesota. by the governor, with the of the Senate, for a six-year term. Proposal Sponsored The proposal is sponsored by Rep. Howard Ottinger, Chaska, chairman of the House Committee, and four co-authors- Reps. Gordon Forbes, Worthington; Ernest Windmiller, Fergus Falls; L. A. Johnson, Minneapolis; and Lloyd Duxbury 'Jr., Caledonia. All are conservatives with the ex- ception of Johnson, a liberal. The. Ottinger measure does not go as far as the "Little Hoover" lommission, which recommended creation of a welfare department under a single executive to include ie Social Welfare Department, Public Institutions Division, Board of Parole, Soldiers Home Board, and the relief activities of the Vet- erans Affairs Department. On behalf of the Welfare Com- mittee Ottinger introduced a bill to establish a home for treatment and care of dependent and neglect- ed children. It would be known as the Minnesota State Children's Center and control placed in the Social Welfare Director. An appropriation of is asked by the committee for a site and building of the center. The home would receive only children committed as dependent or neg- lected to the Social Welfare Direc- tor, those who have been placed under the temporary custody of a County Welfare Board by court order, or those committed to an association accredited by law to receive and place children. -WEATHER Federal Forecast Winona and Vicinity Partljr cloudy and colder tonight and Sat-' urday. Low tonight 5, high Sat- urday 18. LOCAL WEATHER Official -observations for the 24 hours ending at 12 m. today: Maximum, 43; minimum, noon, 24; none; sun sets tonight at sun rises to- morrow at AIRPORT WEATHER (No. Central Observations) Max. temp. -10 at p. m. Thursday, min. 19- at a. m. today. Noon clear, wind 15 miles from west, visibility 15 miles, barometer 29.84, rising, humidity 85 per cent. ;