Winona Republican-Herald, The (Newspaper) - June 12, 1948, Winona, Minnesota
w EATHER rnrtly cloudy nnd continued cool tonight And Sunday. Full Leased Wire Newt Report of The Associated Member of the Audit Bureau of WINONA. MINNESOTA, SATURDAY EVENING. JUNE 12, 1948 FIVE CENTS PER COPY VOLUME 48 NO 99 Russ Clear Shipments to Berlin THE ALSOPS British Economy Slips Fast By Stewart Alsop plan aid will not bo enough to keep England going unless there is fall in world food prices very soon. Thus there is every likelihood that even while tho election campaign is in full swing the United States may be confronted with a decision affecting the whole basis of American foreign Stalin Not Own Master, Truman Says Can Make Pacts But Not Keep Them, He Says By Ernest B. Vaccaro Aboard Truman Train En Route to Berkeley, Calif. President Truman contended today that Rus- sian forces stronger than "Old Joe" Stalin are preventing the Soviet pre- mier from keeping agreements vital1 policy. Tho facts are simple. Despite Marshall aid and despite a striking internal recovery, Britain Is still be- ing forced to live on its fat. And unless this process is halted soon, there will be no fat left to live on. THE BRITISH treasury's gold and dollar reserve Is down to little more than two billion dollars, which is painfully close to the danger point. If the reserve Is reduced much more. Britain, us the banker of the sterling area, will be In the position of a banker who Is unable to meet his obligations. Then, unless the United States steps In. a collapse of the whole In- tricate financial system of the sterl- ing aren will become inevitable. And It is by no means improbable that this American decision will have to be made within a few months. For although the British experts havo been feverishly attempting to plug up the holes In the British fi- nancial dikes, the drain on the Brit- ish reserve continues inexorably. Unofficial government estimates show that about half a bllHon dol- lars Is likely to leak out of the vital dollar reserve in the next 12 months. to world peace. In the chatty tone of a man pass- ing the time of day with neigh- bors at the corner drugstore, the President said he liked "Old Joe" and gave this personal view of the Russian premier: 'He is a decent fellow. But Joe Is a prisoner of the polltburo, can't do what he wants to. dOiar reserve in uu: IK.-AI. t-muol But some experts believe that the figure is actually likely to be close to ft billion dollars, unless heroic measures are taken. Even If the He He makes agreements. And if he could, he would keep them; but the people who run the government are very specific In saying that he can't keep The President said he would elab- orate In a major' foreign policy speech at the University of Califor- nia at Berkeley this afternoon on his hopes for eventual understand- ing between Russia and the United States. Voice Husky He speaks at commencement ex- ercises at p. m. CP.S.TO, p. The setting for the Presidents most Intimate public appraisal of Stalcn was Eugene, Ore. His audi- ence was a group of townspeople clustered about the back platform of his private car along the railroad tracks. In casual tones, he talked to them through the loud speaker. He was bareheaded. Hia voice had a trace of husklness. His aides said he was a bit tired from days of government estimates are not too optimistic, British reserves will be reduced below what many experts consider the daxigcr point, at which financial collapse becomes Imminent. IX THESE circumstances, it is not surprising that even this early the British have already approach- ed ECA Administrator Paul Hoff- man with a request; for a larger al- location to Britain and the sterling area. The request was made at the height of the Palestine crisis, when tvntl-Brltlsh feeling In the United States was most bitter. At flrst it seemed certain that the request would bo rejected, but the matter has instead now been shelved for future consideration. Meanwhile, Sir Stafford Cripps, the ascetic, coldly intelligent chancellor of the exchequer, Is known to have taken a hard decision, Whether or not a greater alloca- tion of American aid is forthcoming, and whether or not world food prices fall. Crlpps intends to regard the British dollar reserve- at a cer- tain In the neigh- borhood of a billion and a half dol- sacrosanct. When this level is reached, no further withdrawals will bo tolerated whatever the con- sequences. This Is a Crlpps decision. It is not cabinet decision. It certain to meet the most determined opposition In the cabinet, and in the Labor party ns a whole. For it means that the hard-pressed British will have to tighten their belts a great deal further than they have al- ready been tightened, simply because food imports will have to be below present levels. MANY OBSERVERS believe that if the Labor government once halts the process ot living oft Britain's fat, Jt will be signing Its own death war- rant. Already little love Is lost be- tween Crlpps and such men as the fatuous Dr. Hugh Diilton, and the leader of the cabinet's left wing, Aneurln Bevan. These and other.' are expected bitterly to oppose the harsh Crlpps expedient for safe- guarding the dollar reserve. Yet Crlpps will probably win in the end if only because the facts argue for him. It Is possible that Crlpps never may have to urgn this grim expedi- ent on the cabinet. Every Informed British official prays nightly for a fall In world food prices, for this would Immediately case the British position. Yet although there Is every indica- tion of an abundant world harvest prices, which usually anticipate the harvest, have remained ominously constant. Perhaps again the British economic recovery will .close the threatening clollnr gap before Jt too late. Recovery Is already well under way. Exports havo been push- ed up more than a quarter since 3946. and both production and ex- ports arc well above tho prewar average, while the output per man hour of the British worker is higher than ever in history. international on the legis- lators have been confined to domes- tic Issues. Well Acquainted With Joe He called the foreign policy B United States policy and said, "We will have peace in the world" If it s carried out. "I want peace In the world Just as badly as anybody in the lie went on. "I went to Potsdam in 1D45 with that in view. I went there with the kindliest in the world toward Russia, and we made certain agreements, specific agreements." "I got very well acquainted with old Joe Stalin, and I like old he confided. Of the future, he said: "Now some time or other that great country, and this great coun- try, are going to understand that the'lr mutual interests mean the welfare and peace of the world as a whole." Russians Claim New Speedy Jet Plane London The Daily Mall said today that Russians have de- veloped an experimental Jet plane with a "top speed approaching 760 miles an hour." That is only three miles under the speed of sound under standard conditions at sea level and 59 degrees Tahrenhelt. It Is above the speed of sound at high altitudes and lower temperatures. Weather FEDERAL FORECASTS Winona and vicinity: Partly cloudy and continued rather cool tonight and Sunday. Lowest tonight 54, highest Sunday 76. LOCAL WEATHER Official observations for the 24 hours ending at 12 rn. today: Maximum. 83; minimum, 57: 79; precipitation, .05; sun sets tonight at sun rises tomorrow at DAILY RIVER BULLETIN Flood Stage 24-hr. Stage Today Change Reel Wing 14 2.3 Lake City 6- Reads 12 3.2 Dam 4, T.W....... 4.2 Dam 5. T.W....... Dam 5A, T.W...... Winona 13 Dam G, Pool Dakota Dam 7. Pool Count Folke Bernadotte of Sweden, above, smiles as he goes about his Job of arranging a four-week truce In the Arab- Jewish fighting in Palestine. The count wore this expression dur- ing Haifa meetings which pre- ceded start of armed peace in the Holy Land. (A.P. Wire- photo.) Republicans of Wisconsin Meet To Endorse Slate By Arthur Bystrom Wisconsin's Re- publican party workers, meeting in annual convention today, were given the recommendation of their leaders that they endorse candi- dates for state offices. The controversial question of en- dorsement was expected to provide the only major fight of the weekend gathering which has drawn delegates to the Milwaukee audi- torium. The party's executive committee, which met in closed session last night, was reported to have ex- pressed almost unanimous approval _ of endorsement. While the commit- j tee made no formal request that the convention endorse candidates, the informal recommendations of the party leaders who are members of it will carry a lot of weight. Executive committee members said they were in favor of giving endorsement to Governor Oscar iabor movement. D.F.L Opens Convention At Brainerd Platform Drawn, 'Back Truman' Group Active By Jack B. Mackay Brainerd, Minn. With a "back-Truman" resolution shaped by its endorsement committee, the Minnesota Democratic-Farmer-La- bor convention was called to order today. The resolution, passed with but one I dissenting vote, presaged a conven- tion floor battle led by some dele- gates, including members of Ameri- cans for Democratic Action who are inclined toward a presidential can- didate other than Truman. Presented by Thomas W. Walsh, St. Paul attorney, the resolution en- dorsed the record ol President Tru- man and recommended to the state convention that delegates go to the national Democratic convection in- structed to vote for him. Franklin Clough, Lake Lillian, voted against the resolution. Speaking in support of Walsh's proposal were Tom Davis, Minne- apolis, onetime Farmer-Labor candi- date for governor; Harold Barker, Elbow Lake, D.F.L. state chairman; Charles Munn, Osseo, former speak- er of the state house of representa- tives and ex-railroad and warehouse commissioner; Frank Thill, St. Paul, vice-president of the state Federa- tion of Labor; Donald Chapman, Hennepin county; K. H. Marsh, St. Paul, and Mrs. Harry Kuhles, St. Paul, Chosen convention keynoter was Byron Allen, Detroit Lakes, former candidate for governor. He was to speak at p. m. today. Last night platform committee members called for a firm but pa- tient attitude toward Russia. Other platform "planks" ask: Immediate strengthening of the United Nations. Adoption of the Baruch plan for atomic energy control. Endorsement of the Marshall plan for European recovery. Immediate steps to check Infla- tion. Full support for cooperatives. Furnishing of economic aid to Israel while increasing efforts to bring peace between Arabs and Jews. Enactment of a state farm pro- gram. Opposition to repressive labor con- Former President Eduard Benes of Czechoslovakia, and his wife, chat at their country' home at Sezimovo Usti, Czechoslovakia, after Prime Minister Klement Gottwald visited Benes and confirmed that the latter's resignation had been accepted. CAP. Wirephoto via radio from Paris.) ___________ Violations Peril Truce in Palestine By Max Boyd of violations by both sides threatened to blow up Palestine's powder-keg truce today. "The Arab governments reserve the right of quick action in reply to criminal Zionist an Arab league note to the United Nations mediator, Count Folke Bernadotte, warned. An Arab league representative routed the mediator out of his bed before dawn to give him the message. The Jews also warned that viola- tions would provoke Jewish counter- attack, and they charged the truce, now In its second day, had been broken in several Palestine sectors. Bernadotte and his aides left Cairo by plane early today for the Greek island of of Trans-Jordan and Jerusalem, to be- gin preparations for peace talks. He said the charges were being investigated. A high Jewish officer held out a veiled threat of reprisal bombings against Arab capitals as he accused the Arabs of breaking the truce. Violations Reported The mediator, Swedish Truman Vetoes Controversial Bulwinkle Bill Tru man today vetoed the controversia Bulwinkle bill to exempt railroad rate agreements from antitrust prosecution under certain condi tions. Trains Freed After Sudden Ban by Reds Move Seen Aimed at Harrassing Western Powers Russians blocked rail shipments from western occu- pation zones to Berlin all through, ast night, but reached an agreement with the British today for resump- tion ot freight traffic, a British offi- cial announced. General Lucius D. Clay, U. S. mil- tary governor, said" earlier he would reinstate the Frankfurt-Berlin air ferry if necessary to get supplies to the Germans and Americans in the U. S. sector of the city. The air lift was used in last April'.; Soviet-engi- neered transportation crisis. Trains from the western zones must pass through the Soviet zone of occupation west of Berlin in order to reach this city. The Soviet check point is at the border of the Russian and British zones. Americans and French traffic as well as British traffic bound for Berlin passes that check point. Six Trains Delayed Six British trains which were held up in the Soviet zone after the new order became effective last night will be released and sent to Berlin as soon as locomotives can be provided for them, the British .said. The Rus- sians also agreed to permit normal traffic over the route through the Russian zone by 18 daily trains. There is a heavy backlog because of trains held up by the Soviet order, tiowcver. There are Germans and, Americans, French and Brit- ish in the western sectors of the city who would be seriously affected by a stoppage of freight shipments. Clay said the Soviet suspension or traffic'came without warning. Clay told a news conference a freight train from the American zone was stalled this afternoon at the Anhaltcr railway station In Ber- lin. Later, Colonel H. W. Holmer, U. S. transportation chief, said the Ann- halter train bad been cleared. It was understood that American switch engines, guarded by GJ.'s. broke up the stalled freight and switched it to the proper points when the Soviet-controlled rail offi- cials rcfured to act. The only other American train stopped up to this afternoon was a supply train destined for the Ger- Rennebohm but were noncommital as to their choices for other state offices. State Chairman Harvey Higley said the probability of the candidacy of Ralph M. Immell, a former Prog- trol laws and full support of the free Folke Bernatj0tte, said he planned i to fly to Amman, Trans-Jordan, and Repeal of Minnesota's old age lien then lo Jerusale'm ancj later today law. Strengthening of present rent con- trols along with further development of a federal housing program. Also favored was full educational, to change. "porter! Swedish and ressive, for the G.O.P. gubernatorial, housing and medical facilities for nomination would be a factor In i veterans as well as enactment of a persuading them to endorse candl-! state fair employment practices act. dates. If endorsement is voted Governor Rennebohm, Grover Broadfoot, named attorney general last week and Fred R. Zimmerman, secretary of state are almost certain of being I supported for their respective posts. A close race looms for the lieuten- ant governor's endorsement. Sen- ator Frank Panzer.of Oakfield has the support of many of the dele- gates but William F. Trinke, Lake Geneva, also has many friends. Ho is a former state commander of the American Legion. Four candidates seek the endorse- ment for state treasurer. They are Chester Roberts, Milwaukee, Arthur Qulnn, Cumberland, and John R. Mullen and Warren R. Smith, Mil- waukee. John Sonderegger, acting state treasurer, does not plan to seek the office which he had filled by appointment from Governor Rennebohm. (American military observers had ar- rived in the Holy Land and gone to the scenes of reported truce in- fractions. He had no reports from them yet. He explained that com- La 2.2 3.1 .1 5.4 -f- .3 10.1 .3 1.5 .1 9.4 2 Crossc 12 4.6 Tributary Streams Chippewa at Durand. 1.4 zumbro at Thcllman. 2.7 -1 Buffalo above Alma 1.4 Trcmpealenu at Dodge .2 Black at Nelllsville 2.5 .1 Black at Galcsville 2.4 -t- .1 La Crosse at W, !3alem 1.6 RIVER FORECAST (From Hastings to Guttenberg) There will be practically no change !n the river stages for next 48 hours. TEMPERATURES ELSEWHERE Hugh Dorsey, Former Georgia Governor, Dead Atlanta Judge Hugh Man- son Dorsey, 77, who served two terms as governor of Georgia, died in n. private hospital yesterday. He was elected governor in 1917 jl 'iiand was re-elected for a two-year imn term in 1919, Hijacked Butter Truck Found Afire Near Bristol, Wis. Kcnosha, Wla. A hijacked butter truck was found burning yes- terday less than 500 feet from where the driver claimed to have been re- leased after ten hours In the hi- jackers' hands. The truck, carrying a car- go worth had been sought through Wisconsin, Illinois and In- diana. Ernest Fossom, 29, Hormany, Minn., the driver, told authorities the truck was hijacked by a gang of five men at Mlddleton, Wis., five miles west of night. Madison, Monday Fossom one member of the gang drove off with the truck and the other four forced him Into a car, releasing him ten hours later at Bristol, Wis. The truck was found near the point where Fossom said he had been released. The truck was owned by the White Motor Transport Company, and was en route to Chicago markets. Max. Mln. Free. Bcmidjl ............71 Chicago ............79 I Denver .............83 DKSVITE THIS the desperate hemorrhage continues toij t 71 drain the British reserve of gold and K-nsas Citv 96 dollars. Even the harsh projected Crlpps measures may fall, for short rations are habitually reflected in low production and reduced exports. Thus it Is time to acknowledge the fact that a British financial collapse (Continued on race 7, Column 7.) ALSOPS Los Angeles ........79 Miami ..............85 Mpls.-St. Paul ......72 New Orleans .......91 New York ..........85 Seattle .............62 Phoenix Winnipeg ..........75 43 58 58 59 50 47 75 58 78 57 71 63 52 61 41; ,04 T, .02 .65 Prompt Senate Action On House Bill to Admit D.P.'s Asked Washington Represents- total 200.000 There also are tive Fellows (R.-Malne) expressed hope today that the Senate will accept without change a House- passed bill to admit home- less Europeans to this country in the next two years. "If they do." he said, "we can get it to the White House quickly, with no chance of the legislation getting lost in the last minute rush before Congress adjourns." The Maine lawmaker said House and Senate conferees will meet early next week to adjust diffe- ences between separate bills approv- ed by the two houses. The bill written by Fellows sailed through the House yesterday by a 289-91 vote. other points on which the two bills differ. House critics of the Senate ver- sion, led by Representative Celler (D.-N.Y.) complain that it discrimi- nates against Jewish D. P.'s, few of whom could meet the Senate re- quirement that 50 per cent of the admissions be farm laborers. mur.ications were poor between Cairo and Palestine. The truce, to last four weeks, be- gan yesterday morning. It was ar- ranged to give Bernadotte a chance to negotiate for permanent peace in the Holy Land. Israel, the Jewish state proclaim- ed when Britain gave up her rule over Palestine May 15, since then has been righting with invasion ar- mies of six Arab countries, helped by Palestine Arabs.. With Bernadotte on his flight was a group of U.X. men. Among them were Ralph Bunche, personal representative of Secretary-General Trygve Lie, and William Stoneman, on Lie's staff. Colonel Thord Bonde of Sweden, chief of military truce observers, was left in charge of the mediator's staff remaining in Cairo. To Return to Cairo The mediator plans to return to Cairo Tuesday to begin talks with representatives of Arab govern- ments now gathering here for a meeting Monday of the Arab league political committee. In these talks he Is expected to explore the possibility of getting Arabs to attend a peace conference with Jewish authorities and him- self on Rhodes. No time for the proposed conference has been men- tioned, but it is not considered like- ly in less than a week. Before Bemadotte's departure, he was handed a note from the Arab representative here. It said their countries cannot "tolerate Jewish violations of the truce" and warned Returning the bill to the Senate the President said he rejected i it would permit an impor- tant segment of the economy to.ob- immunity from the antitrus' laws." He said such Immunity would be granted "without providing adequate safeguards to protect the public in- terest." _ r The measure would have exempted from the antitrust laws agreements between carriers on rates, fares, clas- sifications, and allowances, provided they were approved by the Interstate Commerce commission. The President said antitrust cases are now pending before the courts "challenging some of the very acti- vities which would be .covered by this bill" and added: "Pending judicial clarification ol the issues raised in these proceed- it would be Inappropriate to provide the immunity proposed by this bill." The President said he had repeat- edly urged upon congress the neces- sity for a "vigorous antimonopoly program." "This bill would be inconsistent with such a program." Eisenhower Launches Columbia Fund Drive New York General Dwight D. Eisenhower, new president of Columbia university, says the In- stitution needs He told members of the Alumni association last night that he was confident the money would be raised. man population of the TJ. S. sector, "I don't know the full Russian in- General Clay said. "I in- tend to find out the facts before de- ciding what action to take." Full terms of the British-Russian agreements were not made known immediately. The British said earli- er the Russians were "not unreason- able" in requesting that shipments for Berlin be labeled with their ex- act destinations. They had been ad- dressed simply to'the Berlin kom- maudatura. Crisis in April Stopping the traffic on a perma- nent basis would be much more seri- ous than the Soviet restrictive meas- ures in Berlin which raised a crisis last April. The western powers cir- cumvented that by flying in passen- gers and supplies, but it would bo impossible to fly in enough supplies to meet the needs of Ger- mans dependent on the western powers for food and heat. British officials said the Russians contended they had to embargo freight shipments into Berlin be- cause the city was congested. The British retorted that they were not aware of any congestion and de- manded that the embargo be lifted immediately. Trains were stopped at the Helm- stedt-Marienborn control point on the border of the British and Soviet occupation zones. This was the point where the Russians in April ordered trains stopped for inspec- tions by Soviet officials before pass- ing through the Soviet zone of Ger- many to Berlin. The four-power Berlin enclave is an island well with- in the Soviet zone of occupation. Wisconsin Congressman Praises G.O.P. Congress Milwaukee Representative Is attacked by every element in tho disintegrating Democratic coalition because it has re-established rep- John Byrnes, (R.-Wis.) declared to- day that the flrst Republican Con- gress Jn IS years had restored the faith of people the world over In that if such continue, "the Arabs representative democracy, will lose their patience." The note was drafted shortly aft- er midnight at a meeting called by Secretary-General Abdel Rahman Azzam Pasha, of the Arab league. Federal Aid Voted for Houses for Wheel Chair Vets voted today to help build homes for wheel chair disabled veterans. UU3C utij' wj- fw Both measures set a two-year'bill also would permit the entiy of period for D P. immigration, minor orphan children the Senate bill puts the refugee who qualify as D. P. s. r ue iciiut The less restrictive House mea- Senate passage sent to the white sure gives top. priority to a biU under the goy- range of workers, including farm hands, coal miners, doctors, dentists, nurses, household and construction workers, garment workers, teachers, scientists and technicians. Unlike the Senate bill, which does not mention orphans, the House to a total of outlay, for spe- cial housing for such veterans. It also would help with plans and specifications. The Senate banking committee said that since it costs about a day to keep a. wheel chair veteran in a hospital, the government would save money in the long run. The Congress, he said in an ad- dress prepared for delivery to the resentatlve government after that principle had been ignored for 1G long years." Representative Byrnes outlined acts of the 80ih Congress, declaring it had led the nation from the de- state Republican party conventionjfensive to the offensive in the field "gave the lie to the doubters whojof foreign policy; unified the armed questioned the capacity of a free forces: took positive action on the people to govern The Republican Congress, he add- ed, "restored faith in human liberty by demonstrating its workability in the face of world crisis, domestic confusion and a hostile executive branch. "This is the Congress which is now' under carping attack by the rail-riding he said. "It is attacked because it refused to bow down to his demagogic pro- posals and to commit us, in a time of world crisis, to the' further spend- ing of on top of his budget requests. "It Is attacked by a President who says that you can't curb communism with a law, yet who proposes a law for every other human and eco- nomic problem known to man. It domestic front, including sweeping away domestic controls, and took action to curb the vast economic powers of certain labor leaders. The congressman, a former state senator, also had a few kind words for the 1947 legislature and the state administration headed by Governor Rennebohm. "The far-reaching and progres- sive action taken by the 3nst Wis- consin he said, "will long outlive the cries of those cri- tics who have an instinctive dis- trust of representative government at work. "We pay tribute to that body and to our efficient and capable state administration under the able di- rection of our distinguished gov- ernor."