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Winona Republican-Herald, The (Newspaper) - June 26, 1950, Winona, Minnesota Windy, Cooler Tonight- Continued Cool Tuesday Baseball Tuesday p. m. KWNO-FM VOLUME 50, NO. 110 WINONA, MINNESOTA, MONDAY EVENING, JUNE 26, 1950 EIGHTEEN PAGES nv aders' Tanks Reach Seoul TODAY- U. S. Boom Sets Reds To Frothing By Joseph and Stewart Alsop United States is now enjoying the biggest boom that this any other ever seen. This great wave of prosperity is one of the basic facts of these times. It helps to explain all sorts of phenomena, from President Truman's perman- ent grin to the suddenness of the British post-devaluation recovery. Thus it is worth having a look at the boom through the eyes of the Council of Economic Advisers, whose duty it is to probe the na- tional economy suspiciously from all sides. As for the bigness of the boom, the figures prepared by the Coun- cil of Economic Advisers speak for themselves. Economists are fond of talking about the "gross nation- al means, quite simply, the sum total of the goods and services produced in the coun- try !n a given year. It is the most reliable fever chart of national prosperity. The economic advisers use the purchasing power of the 1949 dollar as the measuring yard. By this measurement, the gross national product, in bil- lions of 1949 dollars, for the great boom year of 1929 stood at 152; for 1939 at ISO: and for 1948, at a colossal 260. This was when many economic seers be- gan prophesying doom. But doom did not arrive. There was a dip in 1949, but there has been an astonishing comeback this year. For, using the 1949-dollar yardstick, the American economy is now operating at a rate of and according to the economic advisers, if the current, rate of industrial expansion con- tinues, by the end of this year the gross national product should be close to This is boom indeed, pros- perity beyond the wildest dreams of the past. Behind the dull figures there is a simple, startling fact. The American people are carrying a heavy load of defense and foreign spending, and at the same time they are making and using more means living than ever before in history. Can this agreeable state of affairs last? After all, the word "boom- has an unpleasant twin, the world "bust" Asked for his views of the future, Leon Keyserling, chairman of the Council of Economic Advis- ers reacts with the instinctive caution of all economists, carefuly pointing to certain hidden rocks and shoals in the American econ- CnYet Keyserling does exude certain ill-concealed optimism. This optimism derives from various sources, but especially from a cent speech delivered in Washington One Of The Main Arteries of Seoul, capital of the U. S.-spon- sored South Korean Republic, is shown in the top picture, a view looking east over the city. North Korean Communist forces were reported yesterday to have captured the city of Kaesong, in the bottom picture, in an initial rush of their'surprise attack early in the morning. The range of hills in the far background mark the 38th parallel, the boundary between North and South Korea. Invading forces were reported within 20 miles of Seoul. (A.P. Wirephoto to The Republican-Herald.) Pieces of Bodies, Blanket Found In Lake Michigan St. Joseph, grim search got under way today in the depths of Lake Michigan where it is virtually certain that the lost Use of Atom Bomb Sought London A Conserva- tive member of Parliament urged Britain today to seek use of the atom bomb against Communist controlled northern Korea. This call came from Conserv- ative Peter Geoffrey Roberts, a, wartime major In the Cold- stream guards. Prime Minister Attlee told the House of Commons before Roberts spoke that Britain is "deeply concerned" over the outbreak of fighting in Korea. His brief message was given in reply to Conservative leader Winston Churchill, who asked for a statement on the situa- tion in Korea. Truman Pledges Support to U.N. In Korea Clash Washington President Tru- man today pledged full United States support of United Nations efforts to end the "unprovoked ag- gression" against South Korea. In a statement, the President de- clared: "Willful disregard of the obliga- tion to keep the peace cannot be tolerated by nations that support the United Nations charter." He said the United States is pleased with the speed and deter- mination of the U. N. security council in ordering a withdrawal of the invading forces. Then his statement added: "In accordance with the resolu- tion of the security council, the United States will vigorously sup-lteriel. Until the plane announce- port the effort of the council to ment, the U. S. had supplied South terminate this serious breach of I Korea only with defensive weap- the peace. rifles, machine guns U. S. Rushing Planes, Guns To South Korea Supplies Being Sent From Depots in Japan By Russell Brines Tokyo The United States rushed preparations today for sup- plying Communist-invaded South Korea with much needed war ma- teriels including ten P-51 Mus- tang fighter planes. General MacArthur's headquar- ters announced that transfer of the planes had been approved in Wash- ington but added that the date had not been fixed. The announcement said the planes would be turned over to _ Korean pilots in Japan. South Ko- -Q rea has 60 trained pilots ready to'' fly the sorely needed aircraft, ports from Seoul said. Meantime, serious young Ameri can Jet fighter pilots, ready to shoot if attacked, spread an aerial umbrella from Japan to South Korea. Authoritative sources said con- tinuous air cover would be main- tained to protect evacuation of some 700 American women, and children from Korea and assure1, safe passage of convoys carrying 'munitions and war materiel" to the South Koreans. Shipments Bushed General MacArthur's headquar- ters is rushing preparations for shipment of the munitions and ma- Black Area On Map shows depth of penetration below the 38th parallel by Communist North Korean forces in. surprise drive which began early Sunday. South Korean towns of Kaesong, Chunchon and Uijongin were in the path of the drive and Pochon, only 25 miles north of Seoul, capital of the U. S.-sponsored South Korean Republic, was reported taken by tanks and armored infantry. The Ongjin Peninsula was abandoned to the invaders. Americans in South Korea were being concentrated at Inchon (underlined) for evacua- tion. On the east coast, South Korean guard vessels were reported to have sunk a Russian ship off Chumunjin. (A.P. Wireplioto Map.) Lawless Action "Our concern over the lawless action taken by the forces from North Korea, and our sympathy and support for the people of Ko. rea in this situation, are being demonstrated by the'co-operative nouncement, American f ighte r Barney and her husband against Northwest Airlines plane went down. An airline representative left little doubt that this resort community of action of American personnel in Korea, as well as by steps taken I to expedite and augment assist- ance of the type being furnished under the mutual defense assist- jance program. Those responsible for this act was the scene of doom for the capacity-loaded ship when he identified a torn piece of blue blanket early today. The blanket was marked with the letters NW. Other traces of plane wreckage and pieces of human bodies were found on the lake waters last night. An oil slick has been sighted. There was only the faintest hope that any of the 58 passengers aboard the airship could have lived through that the plane, flying non-stop from New York to Minneapolis, might have been hit by lightning. Reports of residents of the vicin- ity and the discovery of remnants of human bodies gave some support to this explanation, but it was doubtful whether it could ever be proved. The discoveries were made 12 miles northwest of here and six to lliliCi 11U1 tiiwcau HVIL. the worst air disaster in this miles off shore At that point try's history. ffl I the lake is 110 feet deep. The p.ane carried 55 passengers the big plane, looked over some! and a crew of three. af wi-" by Charles E. Wilson, president of General Motors. In his speech Wil- son discussed his new contract with the United Automobile Workers. And when Keyserling talks about Wilson's speech, he becomes (ra- ther surprisingly, in view of his reputation as a baiter of big busi- ness) almost lyrical. In this speech, Wilson enun- ciated what he called "the principle of annual improve- ment in real wages based on technology." This does not sound very exciting. Yet it is hardly too much to say that this Wilsonian principle is downright revolutionary. For one thing, it knocks into a -ocked hat a basic Marxist as- sumption, which leads the Kremlin and the Communists confidently to predict the economic collapse of the United States. In its simplest form, this Marxist theory is that as the worker's tools improve, the amount he pro- duces the United States this increase is about per cent a year. But, because of the nature of the capitalist system, the worker's wages are not increased, according to the Marxists, and the national income remains static. Thus fewer and fewer people pro- duce more and more things; there is not enough money to buy these things; demand collapses; mass un- employment and deep depression inevitably ensue. Yet the Wilsonian principle, em- bodied in the new contract, which promises an annual real wage in- crease of 2Vi per cent over a five- year period, "makes a monkey out of Karl to quote one ob- server. It is thus perhaps not sur- prising that the Communist Daily Worker has been fairly frothing at the mouth over the G.M.-U.A.W. "slave contract." Nor is it surprising, to be sure, that a good many business- men have been equally horri- fied, taking, as Wilson says, (Continued on Page 12, Column 3) ALSOP grim tokens of the of bodies, the blanket fragment, a man's fur collared jacket, other pieces of clothing, part of a suit- case. But he said a plane log and main- tenance report apparently did not belong to the Northwest plane. Five Coast Guard cutters lined up to go into the wreckage area during the day. Investigators examined a theory As it was crossing Michigan, a thunderstorm with lightning and winds of gale force was raging. The plane was last heard from at p. m. Friday in a "routine" report. However, Mrs. Bertha Busse, 60, and Naval Reserve Officer R. P. Helm, both residents of this area, told of a "flash in the sky" and a "red and white burst." must realize how seriously the government of the United States views such threats to the peace of the world." Mr. Truman's statement was handed to reporters by Presiden- tial Secretary Charles G. Ross. The big question being asked in this capital was whether the Unit- ed States was ready to supply armed forces if the United Na- tions asked for them to back up its weekend "cease fire" order in Korea. Reporters" got a chance to put it to Secretary of Defense Johnson when he visited the Capitol for dis- cussion of the general military as- sistance program with the Senate foreign relations committee. Johnson's reply: "That's a good question." A reporter: "But what -is the an- "I didn't give an answer." Major General Lyman L. Lem- nitzer, director of the foreign arms aid program who was with John- son, told a reporter he did not think the United States would act alone. and. 105 millimeter howitzers. Both the evacuation and Korean shipments will-have "a. naval es- cort "and air a head- quarters spokesman added. At almost the moment of the an- Mayo Expert Called In Oschner Action By Gordon K. Closway An indication of the huge volume of business done by the Mayo clinic at Rochester highlighted the testimony today in a damage action against a Wabasha physician being heard in federal court. The testimony was given by Dr. D. O. Ferris, a member of the clinic staff for the last 13 years, who was subpoenaed as an expert witness In the case brought by Mrs. Gaylord South Koreans Fight to Save Capital City 700 Americans Plan Evacuation, U. S. Aid Late Seoul, Korea Communist 1 invaders from North Korea threw a tank column to the outskirts of Seoul early today, and President Syngman Rhee blamed the crisis on "too little and too late" American aid. Through a spokesman the 75- year-old president of the Ameri- can-sponsored Southern republic told The Associated Press at m.: "With American aid coming as late as it has, it is very difficult to anything. The surrender demand was made over the Pyongyang radio by Gen- eral Chai Ung-jun, commander of the northern forces that suddenly invaded South Korea Sunday morn- ing. Prospects of total defeat of southern forces through bad morale rather than by being beaten in the field were in evidence at this zero hour today. The northern mobile column that thrust perilously upon Seoul did so by piercing two full southern di- visions that were engaged in a counter-attack. Little Resistance It reached Seoul's outskirts with little or no resistance for the last dozen miles. The American embassy burned its important secret papers in a jhuge bonfire. Air raid sirens screeched. The city was buzzing after four northern planes straf- ed downtown streets. The flying column rushed toward here from the Uijongbu valley. A southern counteroffensive the planes flew over Seoul, the South Dr. C. G. Oschner, Korean capital, on the way to cov- er the first evacuees. They are bdarding two ships at Inchon, Ko- rean west coast port. At sea, American destroyers will pick up Paul Benscoter, left, Northwest Airlines official, identifies a blanket taken from Lake Michigan near St. Joseph Mich., as coming from a Northwest plane. With him is Captain N. S. Fulford, a Coast Guard officer leading the search for the Minneapolis-bound NWA plane missing since Saturday morning. Wirephoto to The Republican-Herald.) the two ships and convoy them to Japan. American pilots were under or ders to protect their patrol reliable informants said, and this means shooting if necessary to de- fend themselves or the ships under escort. These sources said the 600-plus an hour F-80 Air Force's "Shooting Stars" will predom- inate in the air cover, which will also include F-82 Twin Mustangs, all weather fighters designed for night duty. Clash With Yak It was an F-82 which tangled with a Yak-3 over Seoul today in sight of ground observers, the sources said. The plane originally was identified as an F-51, sin- gle Mustang. The American plane did not fire, informants here said, but apparently drove off the Yak merely by wheeling toward it. The jets are armed with six .50 caliber machine guns in the nose. They also can carry two pound bombs and eight five-inch rockets. A single seat ship, they have a combat radius of more than 500 miles. The Twin Mustangs, a two-seat- ed plane, have a speed of 475 miles an hour and a combat radi- us of miles. Shipments of munitions, which a spokesman for General MacArthur said are being prepared, probably will not begin for several days, the sources added. It might take six days, they said, to complete de- tails of loading and other essen- tials. Munitions shipments will be mostly by sea unless emergency circumstances require hurried aerial transport, they added. At the outbreak of hostilities it was estimated the South Koreans had enough ammunition for ten days. Planes' Sorely Needed Ships are expected to include all types of munitions, from small arms to artillery, as well as re- placements parts and similar es- sentials. MacArthur's spokesman gave no indication of the strength of the air cover for the shipments to Ko- rea or of what naval units will participate. Neither did he say what equip- ment and supplies will be shipped except to say "munitions and ma- teriel that are required by South Washington had ordered MacArthur to send aid to the American-supported Korean gov- ernment... Planes are sorely needed by the South Koreans who have only a handful of small liaison planes and trainers. The North Koreans re- portedly have been supplied with Russian-built planes like Yak fight- Dr. Ferris, who specializes in gen-t eral surgery, said he is not only oni the Mayo clinic staff but also is an assistant professor of surgery in the graduate school at the Univer- sity of Minnesota. He himself is a I graduate of Queens college, Onta- jrio, and Minnesota. Asked by Charles Noonan of Min- neapolis, attorney for the Barneys, how many abdominal operations he has performed during his 13 years at Rochester, Dr. Ferris replied: "I couldn't estimate that but' I can tell you that in perform- ed Spongepack The Earneys contend that a sur- gical spongepack was left in Mrs. Barney's abdomen during an opera- tion performed on her at St. Eliza- beth's hospital in Wabasha and as a result she is unable to bear chil- dren. She is asking dam- ages, and her husband is asking damages and expenses of Dr. Ferris said it is custom- ary for the surgeon performing the operation to use abdominal packs and it is customary for him to remove them himself. On cross-examination by R. A. Scallen of Minneapolis, one of the attorneys for Dr. Oschner, he said that sometimes sponges -or packs are left in an incision purposely. Most of the morning session of court today was given over to the reading of depositions taken at Boanoke, Va., present home of the Earneys and the place where the pack was removed- from her abdo- men after a special operation. Miss Clifford Murphy of that city, a nurse at the hospital where the operation was performed, ,told of assisting Dr. Frank A. Farmer, phy- sician in charge. She saw the sponge, Miss Murphy said, and estimated it was about 30 ___ _ inches long and the size of a small ?13_oe a day to helpers or failed miserably during the day. Heavy artillery softened up Uijongbu defenders and the tanks pushed ttiem out of town after savage street fighting. Defenders Dig In Two southern divisions totalling- men dug in outside of the- town of Uijongbu. But the deter- mined onslaught of heavy tanks pushed them aside and the north- ern invaders, who were halted temporarily yesterday, rolled on toward the capital. President Syngman Rhee and his cabinet were in emergency ses- sion at midnight. Advices here said south- ern troops along the boundary be- tween the-U. N. sponsored repub- lic and the Russian backed north were in dire straits. Another segment of the southern army was in trouble at Kangmung, 15 miles due south of the 38th par- allel on the east coast. This division was being attack- ed from both the north and south by the Communist northerners. An urgent call for reinforcements was received in Seoul tonight. An American military official said he was uncertain whether the rein- forcements would be' forthcoming. In Seoul itself morale was high despite the strafing of several downtown streets by north- ern planes. News that ten American fighters awaited South Korean fliers in Japan boosted spirits all around. Counteroffensive Begins Northern forces had been halted short of Uijongbu yesterday. Southern forces started a counter- offensive today. The seventh and second divisions of men each were thrown into the fight. From the start things went Switchmen's Strike Idles 4 Railroads Chicago The strike of A.F.L, switchmen had brought four major western railroads to a standstill today and had thrown thousands of other workers out of jobs. Lines tied up by the walkout yesterday morning of the Switch- men's Union of North America are the Chicago, Rock Is- land and Pacific; the Denver, and Rio Grande Western; the Chicago and Great Western; and the West- ern Pacific. The fifth struck line, the mile Great Northern, said it has maintained near normal passenger service but that its freight move- ments have been crippled. The men left their jobs in sup- port of a demand for a 40-hour week at the present 48-hours pay, equal to a wage boost of 31 cents an hour. In taking the strike ac- tion, they rejected a recommenda- __ ____ _____ tion by a presidential fact-finding iwrong intense artillery fire rock, board that they be granted a tile' division back on its hour week and a pay increase of jjjeels. Tanks ripped into them, 18 cents an hour. (halting what little forward niove- The union now has a contract ment tbe southerners had been with the Delaware, to and Western railroad at the terms' requested of the other lines. That agreement raised the pay of switch foremen or yard conductors from The seventh ran into trouble at the same time. Northern forces seized their ad- grapefruit. She said that because' of an infection created by the sponge, about two thirds of the right Fallopian (reproductive) tube was removed. The left Fallopian tube had been removed during, the operation by Dr. Oschner, it was brought out. Mrs. Earney had previously testified that after leaving Wa- (Continued on Page 16, Column 2) FEDERAL COURT WEATHER FEDERAL FORECASTS Winona and vicinity: Partly cloudy, windy and cooler tonight; lowest 52 in the city, 48 in the country. Fair and continued cool Tuesday; highest 76. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. Sunday; Maximum, 92; minimum, 68; noon, 91; precipitation, none. Official observations lor the 24 hours ending at 12 m. today: Maximum, 95; minimum, noon, 67; precipitation, none; sun sets tonight at sun rises to- morrow at Additional weather on Page 16. yard brakemen from to and switch tenders from to Laid Off The strike deadline at 6 a.m. local time yesterday found the four railroads ready to halt operations. They bad announced earlier that if final negotiations, failed of a set- tlement, they would not even try to run any trains during the strike. They announced the layoff of at least other employes, most of them effective today. Settlement negotiations continued until shortly before the strike deadline under supervision of the National Mediation board. In a fi- nal effort, T. E. Bickers, board secretary, made a telegraphic ap- peal to Union President Arthur J. Glover to postpone the walkout. Glover replied from his home in Buffalo, N. Y. that the rail- roads had "not only offered no sol- ution to the dispute, tiut absolute- ly refused eo bargain in the spirit intended by the railway labor act. "It is our Glover add- ed, "that no board heard our dis- pute in accordance with the pro- visions of the railway. labor act, consequently there could be no board recommendations that would apply to us." vantage and rolled forward, p. m. all southern troops By 8 were Forced out of Uijongbu and had taken a position outside or the city. An estimated had been kill- ed or wounded on both sides. An encounter was reported be- tween a Russian Yak-3 and aa American Mustang protecting U. S. nationals ordered evacuated. (General MacArthur's headquar- ters in Tokyo readied, among oth- er war materiel, ten Mustang fighter planes for immediate, de- livery to South Korean pilots in Japan. (Other U.S: war materiel was to be escorted by sea and land pa- trols to the hard pressed South Koreans, whose republic is U. S. backed and U.N. sponsored.) The First Air Raid North Korean air made its first raid on this capital of the U. S.-sponsored South Ko- rean republic. A single Yak-3 fighter dropped three bombs, kill- ing six, and then attacked a U. S. fighter plane. Ten eyewitnesses at the U. Sv embassy said one of the two Mus- tangs over the city drove off the Yak. But a U.S. military observer said the Mustang simply took eva- sive action and eluded its attack- ;