Winona Republican-Herald, The (Newspaper) - July 7, 1949, Winona, Minnesota
CLOUDY TONIGHT, FRIDAY VOLUME 49, NO. 119 WINONA, MINNESOTA, THURSDAY EVENING, JULY 7, 1949 FIVE CENTS PER COPY TWENTY PAGES Truman Calls U.S. Trend Bullish 0 Surtax Voted By Senators Assembly Approves Compromise Vets Housing Measure Madison, Wis. A tax biUj calling for a 20 per cent surtax on incomes and a one-cent-per- package boost in cigarette levies was adopted yesterday by the Wisconsin senate. The measure is intended to in- crease state revenues by about per year. The money would be earmarked for welfare building and the University of Wis- consin and other state Institutions of higher learning. The new tax measure, which had the effect of breaking a legislative log jam, was approved by a 21-8 vote. It was in the form of an amendment to an assembly bill and was sent back to the lower house. Originally the senate had passed a bill boosting cigarette and cigar taxes, but not providing for a sur- tax on income taxes. The assembly then came up with a bill calling for a 50 per cent surtax. Yesterday's measure was de- scribed as a compromise worked out by a Republican caucus. A building program bill was ad- vanced by voice vote in the sen- ate. It provides for in the next two years for new wel- fare buildings, a of Wis- consin library, the state laboratory of mental hygiene and teachers college buildings. By a 25-5 vote the senate re- jected an amendment by Schala- bach (R-La Crosse) which would have cut the university appropria- tion by and the board of health funds by These Hot, Humid Weather Grips Eastern U. 5. Duluth High Of 54 Reverses General Trend By The Associated Press It was more hot and humid Britain May Get Sympathy Of Congress, But Little Else Billy Richardson, 19, Davenport, Okla., is made comfortable on a stretcher by ambulance men after being moved from an airplane which flew him to the Mayo Clinic at Rochester yesterday for treat- ment. Billy has been paralyzed from the neck down as a result of a diving accident five years ago. His mother, Mrs. Floyd Richardson, and James Carter, extreme left, mercy plane pilot, look on. (A.P. Wirephoto to The Republican-Herald.) Taft Warns Planned Economy Program Failing By Jack Bell Washington Great Britain seemed likely today to get American not much her newest fi- weather for most of the eastern! nancial plight, two-thirds of the nation again Members of Congress generally day. No widespread relief was in'reacted coolly to the announcement! jsight from the week-long heat'that Britain is down to her last wave- in gold and dollars. Showers and cool air brought a Their general observation was that measure of relief to some of the-the problem is one the British hot spots but the U. S. Weather j will have to solve for themselves bureau didn't expect a general [without increased U. S. financial break in the steaming heat im-l aid. mediately. Meanwhile, crop losses In diplomatic circles, Secretary in the drought-stricken northeastern! of State Acheson displayed a ten- states mounted daily and no heavyjdency to discount the' British sit- rains were forecast. uation somewhat. Deaths attributed to the hot He said that, like whose income was weather mounted to at least her purchases. He added the the cuts would have eliminated new university library and mental hygiene building. A compromise veterans housing bill won the assembly's approval yesterday. It earmarks for loans to individuals and non- profit housing corporations and grants to community housing au- thorities. The 75-19 vote followed partyi lines Republicans fa- voring the bill and the democrats opposing it. A conference committee made up of members of both houses drafted the measure to end months of wrangling over veterans hous- ing. The money, derived from in- creased liquor taxes, was allocat- ed by the 1947 legislature. Under the bill, all funds would be administered by the department of veterans affairs. Loans to in- diviriual veterans and to nonprofit housing organizations would be limited to 20 per cent of the cost of the dwelling units. Grants not exceeding ten per cent of the total cost of a project would be given to city, village or county housing authorities. The assembly added one amend- ment before sending the bill to the Housing Bill Going To President Today By Francis M. Le May administration's vast housing bill today hit the final lap of its long trip through Congress. "Democratic leaders confidently expected to hand the trimmed-down measure to President Truman before the day was over, following its approval in compromise form late Cool air fanned out over the dry- stricken areas of New England and New York state yesterday and this was an unfortunate temporary necessity, however, and not a per- manent solution. rain fell in some parts of the east-) Additional Help Unlikely era states. I Unless Congress changes the fig- New York city got its heaviest Ure, England will get wetting in half inch rain- jn Marshall plan aid this year. Th.t thar, foil in was taken into account by Sir Stafford Cripps, finance minis- ter, in announcing drastic cuts in buying from the United States and other dollar areas. Democrats and Republicans joined in saying that beyond the) Cites Recovery In Stock Market As Proof Economic Talk To Congress Will Clarify Views By D. Harold Oliver Washington Tru- man described the domestic eco- nomic situation today as bullish. He promised a full statement on condi- .tions in his mid-year economic 'report to Congress the first of next week. The President also indicated at a news conference that he may now be resigned to the idea that Con- gress will not pass his proposed tax increase this session. Informed that Representative John McCormack of Massachusetts, the Democratic House leader, had expressed the opinion last night that Congress will not pass such a bill this year, Mr. Truman said John ought to know for the simple reason that tax legislation originates in the House. The President said he favors ef- forts in the House now to pass a labor bill substituting for the Taft measure approved by the Senate. But he said the decision -has been Spoke Too Soon during the entire The mercury was fall. That was more than fell in [the metropolis i month of June a pleasant 81 yesterday and drop- ped to 71 early today. Scattered showers brought relief to other parts of New York state. New Jersey, where crops have suffered millions of dollars age from 45 days of drought, so got some rain, but not enough] senator Taft of Ohio, chairman to help the wilting crops. The fall I Of the Senate Republican policy measures only about half an inch committee, told a reporter he at Newark. Crops need, three to thinks most of the members of his six inches of rain, farm experts party will regard the Marshall plan aid the British had] better not count on additional U. S. If You Are One Of The People who looks carefully over the plat- ter of fried chicken to avoid a wing, then Peter Bauman. of Des Moirres, Iowa, has good news for you. He has developed a wingless chicken. BaumsCn is shown above examining one of his wingless flock. At left is an ordinary bird with its aviation equipment intact. (A.P. Wirephoto to The Republican-Herald.) fering versions by the Senate and were some scattered House. It calls for a multi-billion thundershowers in the Great Lakes dollar progam of public housing, region, the Ohio valley and the_______ slum clearance and farm housing j Rocky Mountain area. But no rainj committee, said he agrees that said. No heavy rains were yesterday by a House-Senate con- j cast. ference committee. program, was passed in dif- aids. A-Bomb 'Model' Changed, Says Army General By Oliver W. DC Wolf Washington An Army gen- eral said today there has been a "complete model change" in the atomic bomb since the Atomic Ener- gy commission took over the proj- ect in 1947. Brigadier General James McCor- mack, Jr., director of the A.E.C.'s military application division, also said that all production bottle-necks "worthy of serious concern" now have been broken and weapons pro- with the federal government pay- ductibn is on a "stable basis." rent subsidies running as high as a year for 40 years. the limit of aid. "The British have a planned ec- A heavy downpour hit Fhiladel-! onomy and it just hasn't phia last night and sent tempera- jne saitj. "They'll have to work out The bill, marking the first major tures down from 89 to 75. But read-j their problem for themselves by uccess for Mr. Truman's "fairings in the 90's were forecast their system or doing day. Last night's rainfall measured one inch. U. S. Steel Strike Threatened July 16 By Elaine Kahn nation today faced the threat of its first major New York (P) Stock prices started to dip today soon after President Truman said he felt bulliish about the economic situation. The decline gentle but numerous early sains were eith- er trimmed or wiped out. something else. We can't be ex-jSteel strike since 1946. lu Illa pected to give them any more help! U. S. Steel Corporation, leader of the industry, yesterday said no ,next week_tne report will deal only left up to House Democratic leaders. Labor leaders have advocated leav- ing the Taft-Hartley act alone for the rest of this year so that it can figure in the 1950 elections. On economics, the President was asked if he is bullish or bearish in the present situation. He replied he is bullish and mentioned the stock market's movements in the last few days to bear him out. Mr. Truman, said the British fi- nancial crisis will not be covered in his economic message to Congress than we already have." Senator McCarran a member of the appropriations Housing administrator Raymond j England.' Foley said he is all set to swing' into the public housing program as soon as the President signs the bill. He said he hopes to get public dwelling units under way the first year. Mr. Truman asked for authority to build publicly-owned dwellings in seven years for occu- pancy by low-income families, none was "We go any further the drought area of southern Newiwjfn them.' along McCormack testified at the Sen- ate-House atomic energy commit- tee's hearings on charges by Sen' ator Hickenlooper (R.-iowa) that senate. Tne provision would per-j there has been "incredible misman- mil loans for building improve- ments on homes bought by vet- erans.- The committee had pro- posed loans only for the construc- agement" of atomic projects under the A.E.C. and its chairman, David E. Lilienthal. In a general denial, Lilienthal tion and purchase of homes. and the A.E.C. contend that, on the The loans would be given at contrary, the project was "bogged per cent interest for a 20-year when they took it over and period. Twenty per cent of the has been mfused witn new llfe. total fund would be used for grants up to June 30, 1950. If at that time the state emergency board decided more money was needed for grants, it would increase the allocation of the fund for grants, n North Western Train Derailed Wascott, Wis. Five persons were hospitalized and a score oth- ers injured early today when a Chicago and North Western passen- ger train left the trucks two miles south of here. Wascott is 52 miles southeast of Duluth, Minn. The engine, tender and six of the nine cars of the Chicago to Du- luth train went off the tracks where the roadbed had been softened by a washout. Hospitalized in Duluth and Su- perior were: C. H. Gore, 64. Spooner, Wis.: the engineer, in critical condition with severe leg injuries. K. S. Brewer, 53, Superior, fire- man, ioot and ankle injuries. Earl Olson, 32, Superior, railway mall clerk, back injuries. Philip Wolf, 05, Chicago, unde- termined injuries. Mrs, Euna Isaacson, 34, Wright, Minn., undetermined injuries. The five were taken from the wreck to Wascott on railway hand- cars and by ambulance from there to- Duluch and Superior. Twenty others suffered suts and bruises. Olson said the train came over a grade and was unable to stop in time to avoid hitting the soft road- bed. Rain-swollen waters of the To- tagatic river had flooded the area. McCormack told the congressional committee that weapons produc- tion, formerly concentrated at Los Alamos, N. M., on a "custom" man- ufacture basis, is being carried on in plants "dispersed widely" throughout the country. The plants, he said, cost in excess of and are staffed people." by "thousands of Weaver Rites Set St Paul (ff) Funeral services will be held here at 11 a. m. to- morrow for George Weaver, 68, director of commercial fishing for the state division of game and fish, who died in Miller hospital yester- day after a short illness. Crop losses in Massachusetts Would Question Hoffman Senator Vandenberg Rhode Island and Connecticut areia member of the foreign relations running between and' committee who has fought for full farm experts said. They Marshall plan appropriations, said said they may total if he would like to hear from Econr there is no rain within a week. OImc Co-operation Administrator The long drought is costing dairy paui G. Hoffman about the new- and poultry farmers in Massachu- est British crisis, setts weekly, said Lester Hoffman recently testified the T. Tompkins, acting state director British were making steady recov- of agriculture. Many farm wells! ej.y gains, a viewpoint Cripps and sources of irrigation also are stressed in reporting that pro- drying up in the state. duction is at record levels in his The rains in the Midwest hayeicountry With trade practically in benefited farm crops, experts balance, while the Weather bureau in Wash-! senator Wherry of Nebraska, the ington said crops made generally i Republican floor leader, said the good progress in the last week'sj new rep0rts of British dollar short- hot weather. The above normal! age just don't square with what temperatures over the eastern two-j congress has been told about thirds of the country, the bureau: E C A's having helped put Britain back on her feet.. Senator Capehart called Cripps' statement "an outright attempt to get more dollars out of us." up with a Subsidies Limited But, in the face of opposition cries of "socialism" and shouts that the large expenditures would the stability of the federal treasury, congressional leaders (Continued on Page 9, Column 4.) HOUSING Heat, Storms Kill 20 in Portugal Lisbon, Portugal (JF) Twenty persons lost their lives and scores of others received injuries in a se- ries of heat waves and violent thun- Deaths from heat prostrations j derstorms which have swept over j and heart attacks aggravated by! I Portugal in the past week. The weather showed 57 in H-l l_ ratic weather is continuing. ilinois, the most reported. Other SfrnflQ Mil" DV A temperature of 146 in the sun deaths reported were Ohio 20; Min- 3 J was recorded at high-inesota and Pennsylvania 14 each; said, stimulated growth of some crops, notably com, the nation's j biggest crop. The maturing of (wheat, rye, oats and barley also was hastened. Humidity was high and tempera- tures were in the upper 80's and, 90's over the hot zone yesterday. Highest readings were in Kansas where the mercury hit 104 at Sa- lina and 101 at Wichita. In contrast to the heat over the Midwest, Duluth, Minn., had a high of 54 and the top at Marquette, Mich., was 63. Dewey Appoints Dulles to Senate mits a strike if no agreement is reached by July 16. if" the British would export some A statement from U. S. Steel to demands of the CJ.O.United Steelworkers for a fourth round wagejwith the Um-ted "states. He would increase and for company financed pension and insurance programs. comment on the British situa- The union immediately called a July 13 meeting of its wage policy itloni saying it is being discussed in committee to consider a possible' strike July 16. Contract negotiations between the steel union and the nation's No. 1 steel producer were recessed indefinitely. The talks had just resumed after a two-week recess. Philip Murray, president of the C.I.O. and the Steelworkers, told a press conference: "They (the steel corporation) merely say no to the union and they say so with an air of com- plete finality. The conferences are deadlocked. There is no hope as I see it at present of a mutually satisfactory agreement being ar- rived at on any of the issues." The steel corporation told the union its refusal to discuss pen- sions could be arbitrated and that any insurance program would have to be paid for equally by union and company. The present contract has almost a year to run. It was reopened this summer on "rates of pay" and insurance. The contract per- of their population to covered the union demands this South Africa, Australia and areas, those who remained at "We are convinced home might come closer to sup- that no sound reasons justify an porting themselves. Boy Believed est reading in .the nation. Thirteen persons have been kill- ed by lightning., six have drowned and one has died of sunstroke. Many persons have been overcome by the heat. Missouri ten; Michigan eight; Iowa and New York six each, Maryland five; Indiana four; Nebraska three; Virginia and Wisconsin two each and Connecticut and Tenn- essee one each. Aerial View Of Ruins after fire swept through coal and oil plants at Bangor, Maine, late last night with loss estimated at more than Gasoline tanks did not explode, though flames raged all around them. Wirephoto to The Republican-Herald.) Stray Bullet Milwaukee Mike Drag- olowich, nine-year-old Milwau- kee boy, found out last night he hadn't been "stung" after all. Instead, he had hiked two miles with a .22 caliber bullet in his chest. Detectives said the boy was playing in a dump area with two younger sisters when he sudden- ly screamed, "I'm stung." He hiked home, some two miles, bnt was afraid at first to tell his mother that he had been playing in the dump area, so said he had fallen from a tree and scratched himself. But when his arm began to ache, the children told their mother about Mike's "sting" and he was taken to county emer- gency hospital. X-rays there revealed the sing in the right side of his chest. An attempt to remove the bul- let last night fafled, but another try was scheduled for today at county general hospital. Detectives said they had found evidence of boys shooting at targets in the dump area, and theorized Mike (was struck by a stray bullet. increase this time. A period of slackening business activity through the country is certainly no time to increase costs of pro- duction through the imposition of higher employment costs. propose that this issue union on this subject be presented .to the board of conciliation and arbitration for decision." "The companies (six U. S. Steel subsidiaries) con- tinue willing to arrange for insur- ance benifits. .but only on the express understanding that the cost of such insurance shall be divided equally between the com- panies and the participating em- ployes." Benjamin F. Fairless, president of U. S. Steel, said In New York that "with business now receding (Continued on Page 4, Column U. S. STEEL WEATHER FEDERAL FORECAST Winona and vicinity: Mostly cloudy tonight and Friday. No ma- terial change in temperature. Low tonight 69, high Friday 85. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today: Maximum, 89; minimum, 71; noon, 84; precipitation, .02; sun sets tonight at sun rises tomorrow at (Additional Weather on Page 4.) Paris and London, The economic message, he added, will give his views on the anti- deflation proposal of Senator Mur- ray which recommends among other things a standby public works program, He said it also will answer the question whether he believes de- flationary forces now outweigh in- flationary forces. Fight for T-H Repeal Mr. Truman reiterated he will continue to fight for the repeal of the Taft-Hartley act. He said House leaders are considering whether to bring out an administration bill, and they will make the decision. But he said he certainly would like to sec such a measure brought out. To a question whether the admin- istration is considering any move to halt the longshoremen's strike in Hawaii, he replied no such move can be made under existing law. Asked about a bill Senator Know- land (R-Calif.) planned to introduce today to give him temporary power to intervene in the Hawaiian ship- ping crisis, Mr. Truman said he did not know whether he wanted such power. The President, commenting on the suggestion of Senator Vandenberg (R-Mlch.) that he lead a new cru- New Governor Thorn- for peace> said he has been do_ as E. Dewey today appointed Johnjjng just that ever since he took Foster Dulles, his veteran foreign office in April, 1945, and will con- disarmament is a John Foster Dulles affairs adviser, to the United States Senate as successor to Robert P.! matter now before the United Na- Wagner, itions and, until an atomic bomb Dulles will serve an interim term -until December 1. A senator will elected at a special election No- rracrcan'now'be'reopeled'by'thejvember 8 to serve, for the'balance of Wagner's term from December 1, 1949 to December 31, 1950. Dewey said it was "unlikely" that Dulles would run in the November 8 special election as the Republi- can nominee. Twin City Plumbers, Contractors Voting St. Paul Twin City plumb- ers and the contractors they are striking against will begin voting today on each other's proposals for halting the work stoppage. Outcome of the voting miy set a pattern for settlement of the building trades walkout which has idled more than men and stopped major construction projects in the two cities. Harry Hanson, state labor concili- ator, will oversee the voting. The plumbers, affiliated with the seek ten cents more an hour for a new rate of Employers want to freeze wages for two years at the 1948 level. Highway and heavy construction contractors have offered a five cent increase to 500 laborers. The union has asked ten cents more. A mem- bership vote is expected Monday. The pay rate now is Beading Toward Peace Does this mean that the world is not heading toward peace? No, Mr. Truman replied. He said it is moving slowly and gradually toward this goal and he expressed con- fidence we will gradually get it. He brushed aside fears expressed by Representative Vinson (D-Ga.) that the Senate-approved bill to tighten the present arms services unification act may lead to a defense dictator. He described such views as perfectly absurd. As long as the Constitution makes the President commander in chief, he said, he does not think anyone else can take over the armed forces' leadership. The President said he will express his opinions freely in the Missouri senatorial election next year since this is his home state. But he added he may not take a stand for any candidate in the Democratic pri- mary. Shuns New York Fight He said he will not take a hand in the special senatorial election -in New York In November to fill ;a vacancy created by the resignation of Senator Wagner (D-N. This is the business of the great state of New York, not his, Mr. Truman said. He said he has no plans to visit Europe or the Vatican, That was his comment on a published report that he may be considering such a trip.