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Winona Republican-Herald, The (Newspaper) - January 9, 1950, Winona, Minnesota CLOUDY TONIGHT, TUESDAY SEE'INSIDE VOLUME 49, NO. 274 WINONA, MINNESOTA, MONDAY EVENING, JANUARY 9, 1950 FIVE CENTS PER COPY EIGHTEEN PAGES Truman Submits 42 Billion Budget TODAY- Saving Asia Tremendous Job for U. S. By Joseph and Stewart Alsop Washington The period of American paralysis in Asia seems to be drawing to a close, judging by advance reports of the policy that Secretary of State Dean G. Acheson Is to expound to the Sen- ate foreign relations committee. Whether this is really so, Is the practical test of the adminis- tration's decision to leave Formosa to its fate. Formosa Is, of course, immense- ly valuable, more because its sur- plus product can help to feed Ja- pan, than because it has great strategic importance. By every possible test, however, whether eco- nomic or strategic or political, Formosa Is Infinitely less valuable than the populous, incalculably wealthy Southeast Asiatic peninsu- Nationalists Shell U.S. Ship Near Shanghai No Casualties; Freighter Hit 30 to 40 Times (Editor's note: Wayne Rich- ardson, Associated Press bureau chief in Hong Kong, boarded the American freighter Flying Arrow bound jar Shanghai on the first leg of a homeward journey. He is the only news- man on board. His first hand account of the shelling of the freighter by Chinese Nationalist gunboats follows.) By Wayne Richardson Aboard the Flying Arrow off rShanghai Chinese National- r la. The practical objection to thejjst gunboats shelled this American MftcArthur-Louis Johnson policy for! freighter mercilessly today, ren. Formosa has been, simply, that dering her unseaworthy with be- lt would Impede and perhaps ham- string any attempt to hold South- east Asia against the communist advance from China. TEOS IS SO, for three reasons. First, Formosan adventure would arouse suspicions of Ameri- can imperialism all over Asia. But the first principle of the new' American policy in Asia must be, and is, to ally ourselves with and support the new nationalism which Is the strongest Asiatic force to- day. Second, a Formosan adventure frween 30 and 40 shell hits. There were no casualties among the crew of 43 and 12 passengers. Chinese Nationalist blockading red held gunboats, Shanghai, stood guard over the Flying Ar- row after the shelling. Formosa, Chi- naval headquar- The American Freighter Flying Arrow, left, was shelled by Chi- nese Nationalist gunboats off Shanghai today. Present location of the ship, now at anchor, is shown in the map at right. The Flying Arrow was en route from Hong Kong to Shanghai. A broken arrow line on the map indicates the ship's route to the mouth ol the Whangpoo river, waterway Irom the Yangtze river to the com- munist-held port of Shanghai. -Wirephoto to The Republican- Herald.) Coal Miners In 5 States Strike than 6olt coal miners struck today in nation's richest coal states in the second big work stoppage (From Taipei, nese Nationalist ters announced their warships de-ifive tained the American freighter Mine Workers members. A i U1IW iiww.uj. ___ ___ been set at 40 by Coroner C. H. Wildman, as state and local fire officials launched their investiga- tion into cause of the tragic blaze. for the also hopelessly divide our Asiatic policy from the policies of the other Western powers with Asiatic interests, and particularly from the policy of the British. Yet the second principle of our new Aslatlo policy must be and Is, to secure the friendly co-operation of these former colonial powers, and particularly of the British, In the great task of putting the emerg- ing new nations of Asia firmly on their feet. Third, Formosan adventure would surely alienate the leaders of the Asiatic nations which are already Independent, such as Pan- dit Nehru in India and President Soekarno and Premier Mohammed Hatta in Indonesia. Yet the third principle of our new Asiatic policy must be, and is, to induce Nehru nnd the others like him to take the lead in the effort to save Asia] er the shelling. A naval spokes- man said the Chinese opened fire when the Flying Arrow Ignored warnings to halt. Numerous fires were started aboard. Sailors from the British! sloop Black Swan boarded the Fly- Ing Arrow and helped the crew put Alabama. A half dozen out the fires. Part cargo of tha loaded Khlp's In Hong Kong was dumped overboard when it caught fire. Ship Unseaworthy Captain David Jones of Chicago j pronounced the ship no longer sea- worthy after Inspecting the num- erous shell holes. Some large ones were just above the waterllne. Captain Jones requested the ship's owners, the Isbrandtsen Line ol New York, to ask the U. S. State department to intercede for safe passage to the nearest port for repairs. Shanghai is the near- est port. (In New York, H. J. Isbrandt- sen, president of the line, called which we, as Westerners, can only for Protection of the Flying Arrow aid and back up. SIMPLY BY STATING the objec- tions to a Formosan adventure, the main themes of the new Asiatic policy have also been stated. There are, of course, various trim- by U. S. naval units. He said the shelling of the ship was "entirely unlawful according to International law." to standing naval Isbrandtsen said. "the TJ. S. Navy should protect Illinois United Mine Workers, who struck last week, returned to then- Jobs today, however, as ordered by State President Hugh White. Piggers refused to enter the pits in many mines in Pennsylvania, West Virginia, Ohio, Kentucky and ________ steel companies and the big Pittsburgh Consolida- tion Coal Company reported their mines were forced to close. Practically all the U.M.W. miners in eastern Ohio were stay- ing away from work. In Kentucky, about Idle miners were count- ed. Only one Pittsburgh Consol- idated operation was turning out coal. Mines operated by U. 3. Steel and Republic Steel Corpora- tion were closed. Five thousand miners stopped work in steel company pits in Ala- bama. Redevelopment Public Housing Aim in State By Jack MacKay St. Paul Housing and re- development authorities in 19 Min- nesota communities today were cautioned that low rent public housing must be "keyed in" with slum clearance and urban rede- velopment. The appeal to the local authori- ties to plan comprehensive slum clearance and redevelopment pro- jects was made by Stuart Roth- man, state housing director. Rothman, In a lengthy communi- cation to members of the various tween trade vessels on the high seas housing authorities, predicted that Southeast' with Its land I hope it will be done In wlll be a year of "great ac- w CO "1 of the shelling took place for low-rent public SeT' Chinese housing and slum clearance, trmiizea -span, is, une y "There is some reason to regret trimming of the utmost import-! territorial waters. and some military aid for the new Asiatic nations. The whole to the outline of an ii policy to halt communism's Asiatic advance. Although it is still vitally im- portant to know why we went wrong in China, there could no greater error than to judge the by our old Jnto ovgr Walkout News Spreads j that bold "We were 19 miles from the nearest land and were anchoring in international waters when we unexpectedly by a urban has not In Ohio, TJ.M.W. officials declin- ed comment. But in Pittsburgh, a union chieftain said the walkout was news to him. President John P. Busarello of the United Mine Workers' district five said: "You're telling me something I hadn't heard about. No strike has been ordered. If one had been, I certainly would know about it." Miners gave no reason for noi working but a sign posted at a Rivesville, W. Va., mine of Pitts- burgh Consolidated said: "No contract, no work." TJ.M.W. President John L. Lewis instructed his men to work though the contract been the -been available, as have U' S' Steel CorpQrat'011- Hospital Fire Death Toll 40; Origin Probed Gensmer Trial Set for Jan. 23 I t t P i In District Court Deficit Indicated BUDGET AT A GLANCE 34-Case Calendar Read in Opening Of January Term The trial of August H. Gensmer, Jr., of last in a ser- ies of Winona county board bribe been set for January 23 district court here. The announcement of the trial ;date was made when the January! iterm of district court convened to-1 j day at 11 a. m., Judge Karl Finkeln- iburg presiding. j Charged with having agreed to [accept a bribe in connection with certain county board transactions, i Gensmer was to have been arraign- Davenport, Iowa Firemen [ed before Judge Vernon Gates of who carried out the dead and nuns (Rochester on the charge last August who wept over the charred was stricken with a heart at- For Yean Endinj June 30 1950 1951 Outlay .....................I Income.................... Deficit Year-end Debt Detailed- Budget Table on Page 9 By Charles Molony Truman today recommended a spending budget to Congress. He said it will plunge the gov- ernment deeper into the red unless taxes are raised. But even with "moderate" tax increase he wants, the President set no date for a balanced budget. The cold war with communist Russia takes the biggest spending told their stories today of Satur- day's hospital mental' ward fire. tack moments before Ms formal ar- raignment. The case has been held] The had for months awaiting his The Investigators hoped clues from those who heard women patients scream and saw them vainly claw heavy iron bars on their windows before, sinking out of sight to die In the ruins of the 81- year-old psychiatric building at Mercy hospital. Fire Chief Lester Schick said cause of the early morning fire may never be learned. But a dis- carded cigarette stub and defect- ive wiring were among speculated causes. Wildman reported that 40 wom- en died in the fire after a tour of six mortuaries with nuns and a nurse's aide from tha hospital staff. He said that with their help and hospital records; 19 bodies" had been identified, and 14 tentatively identified. Others probably will never be identified, he said. Only 38 bodies were recovered, but Wild- man said it had been definitely ascertained that two other bodie; are in the ruins. appearance in court. Later, he was arraigned before Judge Gates in Rochester and en- tered a plea of not guilty to the charge. He is represented by H. M. jamberton, Jr., while County Attor- ney W. Kenneth. Nissen is repre- senting the state in the matter. Calendar Bead This morning's half-hour court session began with an informal call- ing of the 34-case calendar and the designation oJ the order ol trial of 16 civil actions to be heard by jury. After a noon recess, court recon- vened at 2 p. m., for the arraign- ment of two additional criminal cases and hearings of motions anas default cases. The remainder of the week will be devoted to the trial of court cases, the hearing of motions and miscellaneous matters. The panel of 34 petit Juronj hai been instructed to report for duty at p. m., next Monday when the trial of jury cases will begin. County Fanner To be arraigned this afternoon on criminal charges are Walter Gueltzow, Winona county farmer charged with selling cattle without Drinking Water Formula Sought Washington President Truman wants Congress to set off a search for some cheap way to make salt water drink- able. Taking note in his annual budget message today of short- age of water be may hava had New York's troubles in mind particularly Mr. Tru- man said: "Experience in recent years has shown that it may not be possible to meet the shortages of water, which are a threat In some areas, through our ex- tensive water resource pro- grams. "I recommend, therefore, that the Congress enact legis- lation authorizing the initiation of research to find means for transforming salt water into fresh water in large volume at economical costs." All but one of the dead were patients. The nonpatient wasj Mrs. Anna Neal, 55, of Davenport, I a nurse.. She perished while tryingj. a license, and James A. Brady, cited issuing a check without suffi- Five-Day Cold Snap Ends In California That figure for the 1951 fiscal year beginning July 1 includes for defense up from year and for for- eign aid. The combined total ii lower than current out- lays. Next in size comes cash for do- mestic programs, including Mr. Truman's "fair deal." This figure jumps to 000. The spending to- tal is equivalent to for each man, woman and child, in today's population. It is larger than last January's record peacetime budg- et estimate, but less than tha now ex- pected to be spent by June 30. Longest on Record The budget message read by Senate and House clerks was tha longest on record words. To legislators clamoring for less spending rather than more taxes, Mr. Truman stressed the Impor- tance of federal dollars to an ex- panding domestic economy. He said Ms program, embracing a 'moderate" tax Increase, is "pru- dent" and provides "a solid bass for moving toward budgetary bal- ance In the next lew years." The President set no target lor balancing the government's in- come and spending. The Whita House said the administration tax bill is still under draft Mid would. ba ready lor Congress in a few days. Is an honest budget, which meets the realities which face Mr. Truman said. "We have and shall make more progress in critical condition. She is Mrs. Ruth Finnerty, of Ottumwa, who was found sitting in the wreckage covered by Ice from spraying fire hoses. Before the investigation got un- der way Schick asserted that state fire laws lacked teeth and that the state fire marshall's office Is merely a "political plum." He said he wasn't referring to any one individual in the office. Schick reiterated an earlier blinkered tha Blinkered betag laW. A .the that ha S By The Associated Fruit and vegetable growers of Southern California breathed more easy today with the damaging five- .day cold snap at an end. The first civil action scheduled j slushy snow still had mountain the dam- traffic moving slowly but lowland farmers had temperatures suffl- "Isylvania west Virginia, and Ken- "It is important that such by itg coal mmuig subsidi- taes'gramming culminate this year taj plts are operat- tnaj can bei J. j.. time concrete proposals eg a. .e me to tne consideration of nchoring they signaled. You _ munlt. H _G F ri ok Coke Com- not enter.' people of the community.' Housing authorities thus been created in St. danger from the past. The mark of our postwar China policy to way Greece, for example. Yet the new Asiatic policy will be doomed to rapid failure, unless this country, now engages itself very boldly, politically and strategically as well three short blasts on Mount] Falls, Bemidji, far Paul Duluth, Hibblng, Gilbert, Fergus St. Cloud, Red statement that a sprinkler system _.._... Ihad been recommended for the miners employed m story Etructure and other huiidings of Mercy hospital.' He said a sprinkler system would have prevented loss of life and would have kept the fire un- der control until firemen were able to lay hoses. The fire chief said first fire com- panies on the scene had keys to padlocks on the window bars, but added that "in- many cases it was quicker to s were going imi aswrn SQuth stop them from firing. flnri paribault. St. Anthony Falls, Keokuk Lock Funds in Budget Requests pany. Suits seeking many millions of dollars damages were filed by coal operators last week in Ohio against Lewis and his union. Company Employes Pittsburgh Consolidated employs about men in Pennsylvania j wildman sald an' inquest had Schmidt, a resident of Idaho, against the Milwaukee railroad for personal injuries and reduced earn- ing capacities he allegedly suffered as a result of a railroad accident in Idaho. The case was carried over from the.September calendar and a Wi- nona attorney, C. Stanley McMa- hon, told the court this morning that the Milwaukee road has in- formed him that the same case is pending in Hennepin county dis- trict court. He moved that the case be strick- en from the Winona calendar but, lacking corroborating evidence of the pending case in another court, Judge Finkelnburg deferred final action on the motion. ciently high to cease smudging ci- trus orchards against frost dam- age. Most of the area had rain yes-j terday. The heaviest downpour oc- curred at Los Angeles' where 1.12 inches were recorded. In the eastern half of the na- tion, the cold weather was corner- ed in New England but It was be- ing absorbed by a mass of warm air from the south which already had thawed out ice-glazed Mem- phis, Tenn., and other points that had been crippled by freezing rain. Memphis still had tele- phones out of commission and seV' Where Money Goes Washington Here's how President Truman plans to ipend each dollar of the budget he for the 12 beginning next July 1: Purpove Cents National defenie 32 Internationa! affairs (Mar- shall plan, 11 Interest on fedet-.l debt 13 Veterans benefits, etc. 15 Social welfare- health -se- curity All other ZS Total fl.OO toward a less threatening world. Our strength is not being Impair- eral sections of the city without b ovf plesent great responsl- power service_but only a few and the temporary defic- its reQUired to meet them." "Irresponsible and short-sighted es of Ice remained. and about in Ohio, West Vir- ginia and Kentucky. It is headed by George Love, a Winona and Faribault. "No one can successfully initiate and carry a low-rent public hous-jleader 'm 'mlne operators' ing or urban redevelopment against the contract jject through to completion but lo-jdejr_andg o{ John L, cal forces in the Lgwis Qf tue Mine Workers. Rothman said. "Even the! None of cornpany's mines jfact that financial assistance is near pittsburgh was operating. possible reason. Burma nnd Indo- HWllWH fcwwn i hand cannot cause a program pive West Virginia Pittsburgh China are the keys to Southeast' be successfully developed and Consolldated mines also were Asia. If Burma and Indc-China go I_ DftnilAf TC 'accepted in the community. (forced to shut down, the way of China, a chain reaction DUUUu! iVCUUCjlJ Outside Aids No otner commercial coal corn- will have started, which will first 3 T "There are outside aids that Operati0ns appeared to be consume and Indone-1 Washington Following and which have prepared the- affe'cted sia, and then attack India, the Phil- tne list of flood control and to this point. State and fea-j no indication that to- ippines and Japan. Yet Burma harbors projects included legislation, standards anttjday.s walkout will develop into a Indo-Chlna are both in funds in the national1 principles can show the way, ldllng. alj of Lewls. peril from strong, well-armed submitted to Congress job of gaining local payers niinois miners were munist movements. Talking about'day. jfor projects must be done in tneiworking, today, trade between Japan and South-! The budget itself contains itself- J Everything pointed to a situa- the totals was made public developed with a close Chairman Cannon (D.-Mo.) of the.ward civic thinking toward the to- and its main char- the house is burning dciwn. Since the situation Is so critical.____......... _____...... no serious effort to save Asia, co-1 House appropriations committee, jtal program ordinatlnp as it must economic The proejcts and amounts and military aid. political in- ommended for work during the 12! Rothman said preliminary loan fluence and secret service activUy.jnionths beginning next July 1 is on the way and Mln close eye gaid wasn't au- con possibly be carried on from ciude: Washington on a committee sys-j reservoir. stem. Yet the Far Eastern divVsoO.OOO; sion of the State department Little Sioux river, steadfastly opposed all projects! Minnesota: Red Lake and Clear nesota is not behind any other part of the country in securing finan- cial assistance. "In fact." the director said, "We are ahead of most parts of the for a flexible special organization1 water rivers, Red With 43 state acts, hous- to save Asia. lot the North. S. D., N.'D., and'ing authorities in only three or Equallv saving Asia will requrejMinn., jfour states have executed prenml- more money than the dribs r.nd1 North Dakota: Baldhill reser-jnary loan contracts ahead of us, drabs now Available. Yet the first'voir. Garrison reservoir, and we do not believe funds have requirement is contrary to all (actually been received in any cases present inclinations of the State' Rivers and Harbors: to the present date, department and the second cuts'river between the Missouri riverj Our authorities have made good across the Truman line of Minneapolis, Minn.; St. An-record of proceeding as fast as the down all foieign policy outlays. Injthony Falls Minn., development of the total short, the Asiatic policy that lock. Iowa, so good in outline, may prove to: Iowa: Missouri river, Kansas Ci- federal program will permit." thorized. They intimated the min- ers were just showing their dis- pleasure at the operators' refusal to sign a contract. WEATHER FEDERAL FORECAST Winona and vicinity: .Cloudy to- night and Tuesday. No important change. Low tonight 28; high Tuesday 38. ___ ____ LOCAL WEATHEK Official observations for the 24 hours ending at 12 m, Sunday: Maximum, 29: minimum, 6; noon, 41; precipitation, none. Official observations for the 24 hours ending at 12 m. today: be inadequate in practice. We mustity. Mo., to Sioux City. Iowa. Mo., ing officials must individually and Rothman emphasized that Maximum, 45; minimum, 26; noon, be ready to put up the cash, get into the mess, hands dirty. and even get our Neb., and Iowa, Montana: Missouri river at Fort Peck, collectively stand on their record before the bar of- public opinion and before the legislature. 37- precipitation, none; sun sets to- night at sun rises tomorrow at (Additional Weather on 3J been postponed until the investi- gation is completed. ,j Accident, The mercury dropped to zero or Should this case be stncken M1 above at some New Eng. first jury case will 500 damage action bert Groetzinger against Mrs. Anna Papenfuss and William Harris of Dresbach. Mrs. Papenfuss was the driver and Harris the owner of a car in- OilK-UUV ttUUVC Ut dUlllC 1KCW involve the orrofn budgetary action could contribute brought by Swe to of the world situa- of Minneapolis todav Old and to a decline to Production those levels after today. Old Town, Me., was the coldest New Eng- land spot with eight below zero. volved in a collision with the Groet- Albany, N. Y. had a -1. Temperatures were below mal as far southward as (Continued on Page 9, Column Carolina, where Columbia had a DISTRICT COURT low of 27 degrees. A Crew Ol Workers from a local excavating company are shown -using a drag line in toppling dan- gerous Mt standing alter fire destroyed the St. Elizabeth's hospital mental at Mercy hos- pital Forty women perished in the blaze. Wirephoto to The Republican- Herald.) and employment in the United he continued. Opposition in Congress Even before he spoke, Chairman South Cannon (D.-Mo.) of the House ap- propriations committee offered a budget balancing Idea: cut spend- ing by and raiso taxes the same amount. Also a planning organization ol businessmen, the committee for economic development, came out for a billion dollar cut in excise taxes and another cut of equal size in the double tax in corpora- tion earnings. It further proposed savings in expenditures on veter- ans, defense, foreign programs and housing. Mr. Truman sketched the make- up ol 1951 spending In broad strokes. He charged ofl nearly or the 71 per cent his budg- et alloted to national defense, for- eign affairs, veterans programs and interest costs of the federal debt with these words: "Financial requirements to pay the costs of past wars and to achieve a peaceful world." Domeitlc Program These four "cold war and after- math -of war" Items, all told, would cost less In the next fiscal year than In this one. Then he discussed the nearly In domestic pro- grams that constitute the other 29 per cent of his budget and contain at their core his welfare goals. The "aftermath ol war" costs also declined. Veterans, at 080 would get less than this year. The annual Interest charge on the debt, ofl slightly would cost But the increased cost of the domestic programs Mrs. Truman wants to enlarge would cancel out (Continued on 1Z. Column 1.1 BUDGET ;