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Winona Republican-Herald, The (Newspaper) - July 26, 1950, Winona, Minnesota Generally Fair Tonight, Thursday Baseball Saturday p. m. KWNO-FM VOLUME 50, NO. 135 FIVE CENTS PER COPY WINONA, MINNESOTA, WEDNESDAY EVENING, JULY 26, 1950 TWENTY PAGES All-Out Mobilization If Necessary Sen. Thomas Beaten In Oklahoma Primary Senator Elmer Thomaj TODAY- Truman Acts With Courage By Joseph and Slewart Alsop Washington It is time to give credit where credit is due. In the month that has passed since June 25, when Southern Korea was at- tacked. President Harry S. Tru- man has consistently acted with courage and decision. fact is that Truman's mood Senator Long, Son of Huey, Easy Louisiana Victor By The Associated Press A generation of political successes ended today for Senator Elmer Thomas of Oklahoma in his defeat in a bitter Democratic primary run- off. Thomas, a veteran of 28 years in Congress (all but four in the Sen- ate) and chairman of the powerful [agriculture committee, conceded early today to Representative Mike iMonroney. "There's not much else I can 'he told an Associated Press reporter, j In Washington. j National interest centered on thej (Oklahoma election with other pri- maries also being held In Louisiana, Arkansas and South Carolina. Senator Russell B. Long, son of i the late Huey P., won the Louisiana senatorial race. In Arkansas, Gov- 'ernor Sid McGrath, who generally jsupports the Truman administra- tion, beat former Governor Ben. iLaney, an anti-Trumanite, in the! [contest for the Democratic guber-l natorial nomination. I At the time that Thomas con-1 Deeded the Oklahoma election, Mon-j roney held a lead of more than! votes, on the basis of un-l returns from of thej State's precincts. "I want to congratulate Mr, Mon- roney for his victory and wish him success in the elections in Novem- ber." the 73-year-old defeated sen- ator said. Monroney, a 48-year-old veteran of six terms in the House, will face the Rev. Bill Alexander, the Re- publican nominee, in the fall elec- tion. Monroney led Thomas in the first primary but did not get a majority of the votes cast for all candidates, Dark Arrows (A) show where North Korean farces have reached Hadong and Hamyang in drive, located by broken arrow, aimed at the main TJ. s. supply port of Pusan in southeast South Korea. A report said South Korean units held Namwon against the two- pronged drive. In other sectors Red forces (O pushed TJ. S. troops back a couple of miles east of Yongdong while South Koreans made a slight advance in the Hamchang area. Red forces were pushed back at Yongdok Blast symbols locate allied air objectives. The broken line is the approximate battle line. (A.P. Wirephoto to The Republican-Herald.) -LUC uittb J-rummi s moua lt have worked closely with him ing this long, anxious month. The years Ol an unexPlred Malcolm LaPargue of Shreveport dj.r "few- up his flght for the Democratic Louisi- ana the same thing as in the face of Long's better than two to one lead. appeared. So, at last, has the eu- p h o r i c Presidential conviction that "everything's going to be all right." The Korean aggression, and the military weakness of the United States revealed In Ko- rea, are both said to have come as a profound shock to Truman. Thus the cockiness which has characterized the President since his victory in 1948 has suddenly been replac- ed by a certain, unaccustom- ed grimncss. And at any rate for the time being, all Tru- man's energies arc concentrat- ed on dealing with the great danger which now confronts this country. Out of this change of mood have Reds 70 Miles From Pusan only 70 miles from Pusan, was reported re- Then, the count stood (1.334 outjcaptured by American infantrymen today. of precincts) at Long to for LaFargue. for! A Fifth Air Force spokesman at headquarters in Korea said the In Arkansas, McMath claimed [victory early when he was votes ahead, and said the results of the primary "will kill the Dixiecrat Red-seized city in the south was subjected to vigorous assault by Ameri- can Infantrymen and planes. The city was reported ablaze. He said carrier launched planes attacked the central front. The unconfirmed report of the city's recapture might be the first! United Nations forces toi movement In the South and thus eliminate it from the nation." With of the state's r_'ecincts reporting the unofficial iplug up tne gap count was McMath Perimeter in i Korea. Arkansas Senator J. William Ful-j The Reds put the squeeze on the route from the United the Korean "beachhead can Baruch Pleads For Freeze on Prices, Wages Says Hope Korean Crisis Will Quickly Pass Is Futile By Edwin B. Haakinson Washington States- man Bernard Baruch today called or all-out economic mobilization of the United States with a quick reeze on prices, wages and rents. "Events have left us no he said. "We have to mobilize." Baruch, the government's mobil- zation advisor in two world wars, urged quick action in testimony repared for the Senate banking ommittee. The senators are weighing a bill o give President Truman limited wartime controls in the present emergency. These would not elude price control of any kind. 1 Baruch s recommendations in-1 eluded but went far president's requests. In his state- ment, Baruch referred to his form- er calls for economic mobilization. These led to differences between him and President Truman. Bar-! uch has taken the position that the.! president was not doing enough for preparedness. Urges Equality "Our aim should be to organize the nation so that every factory jand farm, every man, every dol- lar, every bit of material can be put to use where it will strengthen our defenses and fill the most es- Baruch. told equal treat- The Army's New Tank Killer, the 3.5-inch bazooka, is shown In action against North Korean Reds somewhere in Korea. Smoke swirls from the weapon as it is fired. The men are not identified. (A.P. Wirephoto to The Republican-Herald.) sential needs the committee. "There should be ment for all. All demands should be kept in balance. "I propose that we organize our- our resources of men, money, materials and morale that whatever happens new ag- gressions abroad, possible destruc- tion at home whatever happens, Congress Cool To Tax Increase By Francis M. Le May Truman's call for in new taxes got an unenthusiastic reception on Capitol hill be- cause of the amount asked to fight Communist aggression, but because of the tax methods the President proposed. The "quickie" increases, if approved by Congress, would raise the annual take from individual incomes by an estimated to about higher than the wartime peak of reached in 1944. Individual taxes would be boosted, beginning in Oc- tober by as much as 20 per cent. A man with a wile and two chil- dren who earns (after de- ductions but before family exemp- tions) now pays Uncle Sam This would be jumped to if his earnings were the boost' would be from to the man would fork over instead of as at present. the armed forces can get what I Mr- Truman asked that the In- iey need, when they need it, macie effective on all o: iie least necessary dislocation of the civilians." Baruch said America has the choice of "peace or butter" and U. S. Pleased ByU.N.Aid In Korean War (this year'j corporation income, and 'on three :vionths of this year's In- come of individuals. He- said "speec is of the essence." His proposals were embodied in a letter to chair- southeast bright was unopposed for renomina- tion. The Monroney-Thomas fight in Oklahoma overshadowed the Dem- ocratic nomination for governor. Johnston Murray and William O. 3oe ran so close in that race come Prunmn's two great deci- sions, to meet the challenge In Korea head-on, and to start a real- ly serious'Program for Uie precincts unreportedi that ament of the United States were ted over al, gtate the Western world. Another boxes A recount mav come of the change of Presidentiali0Tdered. ;from United Nations front elsewhere today. They seized Hadong, threatened Pusan, vital supply base, and push- ed the U. S. First cavalry further away from Yongdong on the cen- tral front. In sharp contrast to this head-! quarters statement, Associated Press Correspondent Leif Erickson at U. S. Eighth Army hearquarters in Korea said the rosy American op- timism of last week was sorely mis- placed. Erickson said the United Nations forces are running out of space in which to hold while they wait for reinforcements. the real danger is not government control but military defeat abroad of tne Sen- and inflation at home. Not Strong Enough He told the senators that current bill, while good in part, does not go far enough. "The situation is sufficiently grave to warrant an over-all ceil- ing across the entire over all prices, wages, rents, fees and so OE, with high enough taxes to prevent profiteering and to apy all defense costs, and an all-em- ate finance committee. First Installment thej And he told George that this was MacArthur's spokesman asserted I tj. Views Differ "continuous line" had been estafa- Despite these reversals, which j lished. But he alluded only to the He said the present bill, in set- only the first installment of that a call for another boost might be expected, perhaps in January. Lawmakers raised no argument on the size of the President's re- quest. They are ready to raise taxes, but many objected to: 1. Retroactive taxation on cor- porations. 2. The absence of any excess pro- fits tax proposals in the President's program. The critics here want a mood has been an increasingly! some pessimistic the war front in comment [short central sector around Yong- Korea, a I placing the battle line from In ;o former spokesman at General MacArthur's Yongju in the northeast to near J Bryan! headquarters said the battle lines Yongdong. 34-year-old! around Yongdong have "stabilized! He glossed over the fact that the irniysiriprnhK" Korean War in Minnesota Red Advance Would Bring Foe to Red Wing, Owatonna visible shift in the anatomy of g er within the Truman administra- iDorn' tloTn'. ,1. 4 veteran, and John hpe4alfd" received theDemocra- He added confidently: New Am- ate plans, which were being laid Uc nomination to the House. strength-which includes an "lent to elecUon. JArmy and a Marine division en- "sell" the Pair Deal program and Fair Deal candidates, have now been shelved. The politicians and political advisers who were glee- fully preparing these plans and other domestic political strate- gems no longer have easy access to the White House. Equally, such advocates of business-as-usual as Secretary of the Treasury John Snyder and Commerce Secretary Charles Sawyer have seen their White House influence reduced close to the zero mark. While such men have been moving- into the wings, others have moved front and center most notably, perhaps. General Omar Bradley and .special Presidential assistant Avercll Harriman. Bradley now doubles in brass as chair- man of the Joint Chiefs of Staff and as the unofficial Presiden- tial chief of staff. He sees the President alone every morn- at and briefs him at length both on the specific tac- tical situation ,in Korea, and on the general strategic situa- tion. Bradley also attends all the once-weekly meetings of the Na- tional Security Council, and the twice-weekly meetings of the Cab- inet. The Cabinet meetings are now largely given over to military briefings, conducted by Bradley, and to discussion of the economic impact of rearmament. Such for- merly live issues as the Brannan farm plan and the Swing health plan are now exceedingly mori- bund if not entirely dead. Harriman also attends both the Security Council and Cabinet meetings. Moreover, he spends much of his time in the west wing of the White House, seeing the (Continued on Page 14, Column 5) ALSOP (Continued oc Page 5, Column 3) REDS Washington Secretary war. Truman Calls On Nation for Some Sacrifice Warns Engagement In Korea May Be Long and Costly By Sterling F. Green Washington Tru- man today summoned the nation 10 "some sacrifice" of its civilian plenty. He declared himself ready to call for "complete economic mobilization" if tie defense of freedom requires. Mr. Truman told Congress, in his midyear economic message, that price ceilings, rationing and "serious shortages" can be avoided if Congress quickly gives him limit- ed control prowers and a, tax increase. But he warned: "We must real- ize that the engagement in Korea will be costly and may not be snort. We must prepare against, the possibility that new crises may arise elsewhere." Can't Risk That hazard means, the Presi- dent said, that industrial output must be stepped up possibly by a rate of annually be- "ore January 1 and that basic ndustry itself must be expanded >y federal loans and guarantees. "We cannot afford longer to risk the possibility of future desperate shortages of some of the most es- ential requirements for our na- ional Mr. Truman said. He did not name steel specifically s one of the industries critically leeding expansion. But It headed is list of "scarcity" materials, lespite capacity operation since Safety from further Communist .ggression depends, Mr. Truman aid, on "production and more pro- and safety Irom Inflation depends on and consumeri .like refraining frota and avarice." The message asked no emerg- ency powers ceyond loose request- ed a week ago to control credit, allocate scarce materials, limit civilian output, requisition goods, curb commodity speculation, and help finance Industry's expansion StateAcheson said today the United States Is pleased by the way other United Nations members are of- fering ground troops and othe: military aid in the Korean crisis He told a news conference these offers are of the greatest politics: importance. Acheson added that he assumes they are important also from a military standpoint, but that this is a question for the Defense de- jartment and General Douglas MacArthur. Acheson also told reporters that he use of EGA counterpart funds o increase arms production in the North Atlantic treaty countries is under consideration. He expressed belief this use of 'unds would require a change in ting up priorities, would defeat it- crack-down on "profiteering." j Marshall plan legislation, self by making no provision for! George announced the finance! Marsila11 Plan funtjs can be used price control. j committee will take up the Presi-1 "This bill is an invitation to in-jdent's tax plan next he said. "A system of priorities without price control is a foundation built on shifting sands. "Many realize, still hope that the Korean crisis will pass off without upsetting our- selves too much. This is a futile, illusory hope, "When the recent war ended, we but he said flatly he doubts the committee will make corporation tax increases retroactive to cover all of 1950 income, as the President proposed. George said consideration of ex- cess profits taxes can wait until January. But said he thinks Congress ought to More than ground troops have been offered in response to a U. N. call to its member nations It added new pressure on Con- gress to grant those powers, how- ever, and its keynote was speed speed In both law-making and mu- nitions-making. Improve Preparednem The powers requested, Mr. Tru- man said, not only will meet pres- ent needs but will perform another essential service to "build up our preparedness" for more drastic steps if the military situation 'orsens. "Detailed plans for these fur- her steps" have been drawn, Mr. Truman disclosed, and he added: "If it should become necessary, shall without hesitation ask the longress for the grant o t the powers to implement these further >lans, whether for complete eco- nomic mobilization or for further ntermcdiate action depending upon the need." On the voluntary side, the Presl- ent asked Of business: Restraint in pricing ,s products and in buying materials for reinforcements to Join the Am-jfor inventory. And, most particu- encan forces fighting in Korea. larly, expansion of industry's cap- Some nations have announced acity to turn out the basjc pro. their intention to send ground troops without disclosing the num- ber. Some nations, restricted by Senator Brewster (R own deiense Problems, prob- benator Brewster IK-MB.) scuttled and ran, demobilizing further than the President Bug' fore the peace was won. "The Soviet Union, though, kept several million men under arms; their munitions plants continued to (produce sizeable quantities of mil- jitary weapons. "While we were gested and "repeal the Truman tax bill of 1946 which knocked cut ex- cess profits taxes on corporations." This is what Mr. Truman pro- posed: stocking our The Korean war seems far away and unreal because oj the strange, vniamiliar names. Robert Hosakawa, city editor oj The Republican-Her- ald has transferred the battleground to the Min- nesota-Wisconsin area. Names of cities in this area are used in this mythical account oi the oat- tie. Winona represents Pusan, the strategic port so vital to American forces. Owatonna, Hadong: Hastings. Yongdong; Minneapolis. Taejon: Eau Claire, Yongdok, and Austin. Suchon. The dis- tances and locations are approximately in relation to the Korean battleground. Spearheaded by three-pronged Korean Communist attack was closing in on Winona. Enemy troops already were but 70 air miles from the vital port city. Owatonna had fallen to the west, dispatches indicated. American troops were counterattack- ing and one late report said the Yanks may have retaken Owatonna after heavy bombardment. The city was ablaze and the situation confused. To the north, Americans clung to their de- fense positions 15 miles upriver from Red Wing. But the Koreans were hurling waves of tanks and infantry in an effort to overwhelm the Yanks. The four-day battle in which the Reds cap- tured Hastings earlier this week was the largest? ground battle of the campaign thus far. The Koreans from the north finally overran four game new U. S, regiments strong along the 25- mile front. Americans then fell back toward Red Wing to new positions. The defenders were the gallant units of the First Cavalry division. They were meeting the Reds headon to stop the thrust which had gained momentum southward since the Reds had swept through the key .pity of Minneapolis two days ago. Meanwhile, to the east, the Communist Fifth division was driving down from a point ten miles north of Eau Claire toward Winona. Fresh enemy forces to back up the troops in the Eau Claire sector were spotted from the air. The battle was within 25 miles of the American beachhead and supply port of Durand where the First Cavalry division landed one week ago. The Reds were streaming through mountain passes between Durand and Red Wing. American headquarters reported that 31 bridges were bombed by Allied warplanes yesterday and that six tanks were destroyed. These sorties were followed by the first night attack mission by American jet fighters. Along the shrinking front, the Koreans had poured at least eight divisions into sibly troops. At Winona, Americans were debarking from troop ships and an undisclosed number of fresh units were being rushed to the diminishing front. American heavy armor and supplies were being unloaded at docks of the only major port left for Americans in Korea, [homes with refrigerators and tele- (vision sets, the Soviets were stock- ing tanks and radar. Soviets Got Head Start Take the peacetime 000 excise tax cutting bill off the shelf where it was put when the Korean war started. Cut out the excise cut, and then iuse the bill's skeleton to build the "Because we permitted the So-jbody of a emergency viets to gain this head start in I tax increase. Retain the loophole- their mobilization, we now face corporate dividend with- round of puppet aggressions where next, who can In addition to priorities and price freeze, Baruch urged a number of other measures. These included anti-profiteering taxes by the second half of this year; rent controls with a provi- holding and life insurance company taxes of the old bill. Discusses 2. Raise corporation rates, effec- ably would send only small token forces. Only two countries thus far have made an outright nu- merical offer. Responding thus far were: ducts needed lor war or peace. Of labor: Avoidance of wage de- mands "which might lead to an- other inflationary spiral. And above all, an effort with management to achieve industrial peace. Of the public: Avoidance of scare-buying. "The best rule to follow is to Turkey Offered trained buy Mr. Truman said, combat troops, fully equipped with' M American arms. Thailand Offered sol- diers. Cuba Announced its willing- ness to discuss with the U. N. the sending of a limited force, Britain Reported ready to Bend a small token force as a demon- stration to the Americans that they are not fighting alone. Marines Won't Call McCarthy Washington Two Wiscon- sin congressmen who hold reserve commissions will not be ordered to .active duty under a Defense de- Australia Said it is ready tOjpartment policy announced Tues- send troops, the number yet to be decided. New Zealand Offered an artil- _.. ___ _________ tive on 1950 income, from 38 perjlery combat force oY'undisciosed cent to about 45 per cent. Will start enlisting volunteers cally the President wants the cor- porate tax put at 25 per cent on sion for justifiable increases; ajthe first of profits and 45 mobilization agency to synchron-jper cent on all profits over efforts; postpone- essential spending, ize American ment of less both public and private; strength- ening of the United Nations in the common defense of peace, and speedier assistance in rearming a! lied nations. I "It is the choice of 'peace' oi of mobilizing our strength now, while peace can still be sav- ed, or of clinging to petty wants and petty profits, imperilling our freedom and our civilization." Senator Maybank chairman of the committee, said he expects Congress to give the President whatever controls are necessary for the present emer- gency. At the same tone he said "some changes" would be made in the broad White House request for power over-production, mater- ials, and home mortgages. The tax now is 21 per cent on the first of profits, 23 per cent on the next then. 25 per cent on the next with a 53 per cent rate on earnings between and and 38 per cent on all earnings over The change would increase the taxes of corporations earning or less by 195 per cent. Those earn- ing between and would have their taxes cut. Then higher rates than present would apply on corporation earnings more than 3. Increase individual income tax rates to the levels of 1945, by re- moving the reductions from those levels made in 1945 and 1948. Leave unchanged the income-splitting (between husband and wife) provi- sions of the present law, and the present personal exemption of Der person, j tomorrow. Bolivia Offered 30 officers. Nationalist China Before the U. N. call went out offered 40.000 troops, but the offer was turned down by the TJ. S. because of the danger the war might spread to Communist China. Lebanon The cabinet voted to send as symbolic aid. WEATHER FEDERAL FORECASTS Winona and vicinity: Generally fair tonight and Thursday. Not much change In temperature. Low tonight 58; high Thursday 84. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today: Maximum, 87; minimum, 61; noon, 81; precipitation, none: sun sets tonight at sun rises to- morrow at Additional weather on Pact IS. day. Senator McCarthy holds a com- mission in the Marine corps and Representative Davis in the Navy. There are SS members of Congress, in the Reserves or National A spokesman for the Defense de- partment said Tuesday it is the policy of the armed services not to' order to active duty members of Congress who are members of the Reserves or National Guard. State Turkey Crop Increases 18% Si. Paul Production of turkey poults by Minnesota hatch- eries the first six months ot this year was 18 per cent higher than in 1950, the state-federal crop and livestock reporting service said to- day. Production the first half of 1950 numbered compared witK during the cofflparable 1949 period. Production of chicks in commer- cial hatcheries was down sevea per cent from last year. The 1850 total HLW5.000. ;