Winona Republican-Herald, The (Newspaper) - June 26, 1952, Winona, Minnesota
Cloudy Tonight And Friday, Rain Friday Night Chiefs at Rochester KWNO AM-FM 8 O'clock Tonight VOLUME 52, NO. 11] FIVE CENTS PER COPY WINONA, MINNESOTA, THURSDAY EVENING, JUNE 26, 1952 TWENTY-TWO PAGES ouse Votes to End Rent Controls Business Has 2-Way Outlook At Mid-1952 Labor, Election Controversies Provide Uncertainty By SAM DAWSON NEW YORK W) Industry is continuing along its two-way street. Those who were in a slump as 1952 started and talked loudest about a depression on the way are now claiming to see a rainbow of good business this fall. Those who are just discovering that their customers have all gone fishing are wondering if they can work out of their own slump by Christmas. Uncertainty is routine for Amer- ican business now. Labor troubles top the list, which includes presi- dential election controversies, and whether pump priming is going to work. Some old worries are fad- ing: Fears of defense inroads on the civilian economy have given way to a rush of decontrol meas- ures. Most now think that Korea holds more chance of-trick than truce. High Taxes Stay Taxes highest ever sta right ;n there, dragging at earn ings. The Steeple Of St. Jeanne's Catholic Church at Corcoran, Minn., lies in ruins from powerful winds that struck Minnesota. Most of the roof of the 75-year-old French church was also blown away. No one was in the building at the time. (AP Wirephoto) Here's how the industrial pictur looks at the half way mark: Production: Industrial activity is slowing down but after the steel strike ends and July vacations are over it is expected to rebound. The total output of the nation'- mills, factories and mines is ai ,the lowest point since last July It was slumping from its February peak even before the oil and stee strikes hit. Some industries fell the pinch of material shortages more of them felt the shortage of customers. Construction: Business continues to expand al a record rate but the end is in sight. New plant and equipment may cost industry more than 24 billion dollars this year, or one billion more than in record 1951. But the government thinks that plans al- ready announced for expansion of defense-supporting industries are enough. All public and private building this year is running 3 per cent over last year, with public ex- penditures up 25 per cent, chiefly for atomic'and defense plants. Civilian goods: These industries took it on the chin. Those consumers who weren't busy paying for the things they bought on time during the war scare buying sprees'started saving their money. Capacity to produce was high. Inventories were higher. Production slowdowns and worker layoffs were the order of the day the last few months. Things look much brighter for fall. Retail trade: The merchant is smiling sales are better, and there's a chance profits will put on a little weight. Bigger Gains Consumer spending picked up in April, with the biggest gains in the South and Midwest while New York is a laggard. By May sales were at a new high for the year and up 6 per cent over a year ago. Prices average 5 per cent lower, so the gain is in unit vol- ume. With inventory losses stopped, and costs better con- trolled, some merchants hope for a 20 per cent gain in profits this fall. Earnings: Profits should be higher in the second dividends liberal. Earnings were down for most manufacturers and businessmen in the last half of 1951 and the first half of 1952. To blame: Inventory losses, rising operating costs, stiff tax boosts. Many have now written inventory losses off.' Costs continue to rise for some, but economy is in style in many plants. The tax stays high, but isn't going higher now. Dividends are running 5 per cent ahead of a year better than had been expected. Most com- panies just aren't retaining as much money in the business. Ike to Direct Own Drive at Chicago DENVER WA-A source in Gen. Dwight D. Eisenhower's headquart- ers said today the general will leave Denver for Chicago to direct personally the July convention fight for the GOP presidential nomi- nation. The source, who refused to be identified, said the decision has now been reached, but he would not say when the general is ex- pected to arrive there. Meanwhile, Eisenhower's cam- paign manager, Sen. Henry Cabot Lodge Jr. of Massachusetts, said an important shift in delegate opinion has made certain his can- didate will get the Republican July Nomination Kefauver'sAim NEW ORLEANS Estes vefauver said he is seeking the )emocratic presidential nomina- ion without the endorsement of Truman. Speaking on a round-table tele- vision discussion last night, the 'ennessee senator said his plat- orm, different from that of Presi- er.t Truman, advocates more ights for the states, a balanced udget, emphasizes the cleaning p of crime and the instilling of ew determination into govern- ment and business. An advocate of the President's eto of the tidelands bill which vould give the states the rights to .he oil lands off their coasts, Ke- auver said he followed the Su nomination. 'Jig Up' for said "the jig is up" for 32 Pennsylvania Delegates Set To Vote for Ike Taft Given Support of 24 at Convention By CHARLES WELSH PHILADELPHIA, on _ Substan tial gains for Gen. Dwight D. Ei senhower, and a hard core of sup port for Sen. Robert A. Taft .both are visible in a new Associate! poll of Pennsylvania's dele ;ation to the Republican National Convention. Eisenhower, the poll showed, is ireferred by 32 delegates in the 0-vote group. That represents a gain of 12 since the previous AP poll two months ago. Taft, has the backing of 24 dele- ates, a gain of five. Many of lem say firmly they will not vote or Eisenhower at the convention. 14 Undecided The number of delegates unde- ided or not willing to express a reference at this days n advance of the een shrinking steadily. The AP oil, which once listed 32 delegates i this group, now shows only 14. Nevertheless, the intervening [weeks have not diminished the prospective influence of Gov. John S. Fine in the Pennsylvania dele- gation picture. Fine generally has been credited with being in a posi- tion to advise or guide the votes of 32 delegates; the governor him- self has said he believes the total is "not less than that." And the newest AP poll, based on direct contacts with the delegates, conversations with leaders of 'both Taft and Eisenhower factions and many GOP leaders, shows 33 dele- gates with whom the governor's than 500 votes on the first con- vention ballot, while Eisenhower will get more than 500. A total of 504 votes is needed for nomina- tion. Eisenhower's nomination will fol- low, Lodge said, on the second or third ballot. Taft's campaign manager, David S. Ingalls, said bluntly, "It just isn't so." Eisenhower will deliver what is billed as a major speech tonight before an expected capacity crowd of at the New Stockyards Coliseum. A paid political broad- cast, it will be carried on a nation- wide radio network at p.m. Eastern Standard Time. Their Dad Brought Home Thii Chunk of ice during Wednesday's record-breaking heat-wave to make ice cream. Marsha Wilson, 3, sat down on it and remarked "Thanks, daddy, for the big ice cube." Her sister, Beth, iVi, started trying to eat it. They objected when the chunk was chopped to fit the freezer in their Cleveland, 0., home, but later liked the ice cream. (AP Wire- photo to The Republican-Herald) Mazing Heat Continues in Eastern U.S. ights to the oil property. enate Kills Bill On Vatican Post WASHINGTON The Senat Truman Warns Services Not to Recruit Farmers WASHINGTON (tf- President Truman today told the armed services to quit recruiting farm workers if they are deferred from the draft for He said he was alarmed by the loss to the farms of six million workers in the last four years. The President issued a statement in connection with the signing of an executive order which he said would provide a more orderly pol- reme Court decision that the! Lodge, who flew here yesterday "nited States should have superior to meet with Eisenhower, refused to state where the shift in delegate strength took place. Support for Ike Asked yesterday to confirm ru- mors that the general might move to Chicago, Lodge refused com- ment. Lodge said, "I came here to tell the general personally of some very important developments I can't tell you what these de- velopments are, but you will know of them soon." The senator said one indication of Taft's weakening position was the announcement by Sinclair Weeks of Massachusetts, a nation- al GOP cpmmitteeman, that he supports Eisenhower. The announcement "had a tre- mendous influence on other dele- Lodge said. Troopers to Halt Trouble at Rally MANCHESTER, Ky, to) _ Gov. Lawrence Wetherby has promised to send extra state troopers here Monday to prevent trouble at a United Mine Workers mass rally. Lqcal'. authorities and UMW President John L. Lewis requested he troopers after two shooting af- rays this week. The union, striving to organize nonunion miners in Clay and'Les- ie counties, expects to mass more han members In a demon- stration of strength. This is the ast nonunion stronghold in the Eastern Kentucky coalfields. Three UMW organizers were eriously wounded by gunfire in an mbush Tuesday night and a union ocal committeeman's store was iddled by machinegun bullets esterday. 30 Degrees Cooler Than Hell HELL, Mich. was 30 de- rees cooler in Paradise-today than was here. The two Michigan communities ire about 250 miles apart. Residents reported the mercury it 110 here last week but was 100 day. Paradise reported a relative- cool 70. today voted to throw out of an a] propriation bill a House-approve provision barring the Presiden from sending an ambassador to th Vatican without prior Senate ap proval. The action was taken without ob jection and without debate as th Senate adopted an amendment b Sen. Case to a bill carry ing to finance th State, Commerce and Justice de partments in the fiscal year start ing July 1, WEATHER FEDERAL FORECAST Winona and Vicinity Partly cloudy tonight, mostly cloudy Fri lay. Showers developing by Fri day evening. Cooler tonight. Low onight 58, high Friday 75. LOCAL WEATHER Official observations for the 24 tours ending at 12 m. today: Maximum, 92; minimum, 65; loon, 76; precipitation, .32a sun ets tonight at sun rises to morrow at Additional weather on Page 4. icy for granting temporary defer- ments for essential industrial work- ers. "These orders do not permit per- manent exemption of any worker from selective the Presi- dent said. "Rather they provide a more or- derly basis for granting the tem- porary deferments which local boards have customarily extended to qualified individuals." j mind, nor given a commitment to any candidate. 483 For Taft The nation-wide Associated Press listing of delegate commitments and expressions of opinion now shows: Taft, 483; Eisenhower, 405; other candidates, 129; in dispute or undecided, 189. A total of 604 convention votes is needed for the nomination. Pennsylvania delegates often have in the their votes in advance of the con- vention or after the balloting starts. State law leaves the final decision to them. Taft, for instance, claims 20 votes in Pennsylvania. His backers say the Ohio senator will get that many regardless of what decision Gov. Fine reaches. They estimate with Fine's say con- fidently they expect to get Taft will have at least 50 and per- haps 60 votes. Eisenhower has made no public claim, but his campaign forces are insisting now "we have a major- ity" in Pennsylvania, under any circumstances. They, too, say they expect to win Fine's endorsement and with it have a total of 58 to 65 votes. By THE ASSOCIATED PRESS June's blazing heat kept up its relentless siege over wide areas in the Eastern half of the nation today. Wednesday was the summer sea- son's hottest day in hundreds of cities in the heat-stricken region. Temperatures soared into the 90s I and above 100 in the East, the ISouth and the Midwest. Records for the date were broken in scores of cities. Senate May Reverse House Arms Freeze By RUSSELL BRINES WASHINGTON 46-billion-dollar ceiling built by the House over military spending looks as if it may be torn down by the Senate. A Senate defense appropriations subcommittee agreed informally yesterday to eliminate a House-voted amendment which would freeze Doubts Curbs Can Be Kept Decision Close After Week of Heated Debate BULLETIN WASHINGTON UP) House, on roll call vote, nailed into its riddled controls bill today a provision to lift price control} after next Mon- day on everything not rationed or being allocated. That means virtually all consumer goods. Foreign Reporters Pick President TOKYO Jorden of The Associated Press will become president of the Foreign Corres pendents' Club of Japan July 1. He will succeed Joseph Fromm of U.S. News and World Report. appeared in sight. However, some of the cooler air which covered the I Northern Plains states was headed into the North Central states. (There was a promise of some cool- iing by Friday. No such relief was forecast for Eastern and Southern jhot spots. Hot, Dry Weather Hot dry weather threatened crops in some Southern states, in- cluding Virginia and Arkansas. Deaths from heat were reported in several cities. Hundreds suffered heat prostration. Baltimore reported 99 heat pros- trations and one death from the 98-degree heat. It was the hottest June 25 in 54 years. In nearby Washington, the mercury hit 98 for a season's high and the hottest June 25 since 1875. Three deaths attributed to the heat were reported in Ohio, which sweltered in temperatures around the 100 mark. Two persons died from, heat in Philadelphia and 40 were treated in hospitals for heat exhaustion. The day's top reading of 96 was a record for the date. spending for next year. President Truman said the amend- ment would wreck the military buildup. Military officials requested 52 billion dollars for the year begin- jning July 1, and the House au- wrized But the rider, sponsored by Rep. Howard W. Smith would mean the three services could spend only a total of 46 billion dollars from this amount plus funds a sa earned over from past appropna- ganization Qf Dewey Staff Running Ike Show, Charge WASHINGTON Robert A, Taft said today the political or- tions Chairman O'Mahoney said the Senate group agreed with j the administration's contention that I the amendment would mean reneg- j ing on past appropriations. These have been pledged to pay for mili- tary equipment ordered months ago and scheduled for delivery next E. Dewey of New York is now run- ning Gen. Dwight D. Eisenhower's campaign for the Republican presi- dential nomination. The Ohio senator, top contender with Eisenhower for the GOP nom- ination, made the statement at a news conference. He also said that Secretary of the Air Force Fin- Eisenhower should be nominat- '.tter cited the snpnrtinf? feilinp sc ed. hp rtmhahlv wnnIH the letter cited the spending ceiling as one factor slowing down the air buildup. Finletter testified last night before a House expenditures subcommittee. He told the group the House Ap- propriations Committee had cut 560 million from proposed new air- craft procurement, which is in ad- dition to the regular Air Force budget. The Air Force had requested over in addition to its regular budget, which totalec when the House fin ished cutting it in April. The Sen ate still has to act on the defense budget. ed, lie probably would November election if he "conducts the kind of campaign his backers apparently want him to." Taft further stated that Dr. George Gallup, who runs the Gallup poll, "has loaned himself as a straight propagandist for Eisen- hower." WASHINGTON The House voted today to end federal rent controls on Sept. 30 except in cri- tical defense areas and cities spe- cifically requesting control. The vote, subject to roll call reconsideration, was one more tep toward final action on the ad- ministration's sharply reduced con- rols bill extender. In areas designated as critical r in municipalities whose govern- ing body requests, controls would e continued until March 31, 1953. Rent Stabilizer Tighe Woods said ast month that to limit rent con- sols to critical defense areas ould deal "a knockout blow to :e general over-all stabilization Sort." Vott 144-113 The rent decontrol provision was ffered by Rep. Wheeler (D-Ga) nd adopted by a standing vote of 44 to 113. Previously, the House beat, 119 o 69, an amendment to end con- trols on June 30 of this year every- 'here except in critical areas. The present rent control law al- lows municipalities to retain fed- i eral controls unless they specifical- ly request discontinuance. That Haw expires next Monday at mid- I night. I After voting on the rent control amendment, the House agreed tot end all debate on the bill ancTlo' .start voting by roll call then on amendments already approved. And administration leaders bad little hope of restoring the major control powers peeled away by a coalition of Republicans and South- ern Democrats in a week of heated debate. There was one exception: Re- publican Leader Martin of Massa- chusetts told newsmen he thought the House might reverse yester- day's 118 to 87 decision to end wage and price controls July 31. Rep. Barden (D-NC) sponsored the measure, an amendment to the Defense Production Act. Martin, who opposed it, said a Senate- House conference committee prob- ably would knock it out of the final bill even if the House didn't cancel yesterday's tentative -vote. j Even without the Barden amend- I ment, however, the lly drawn to continue President Truman's wage, price, rent and jother control powers for a has been so sharply whittled by i the House that some members said they'd be surprised if it wasn't sent back to committee. In that case Congress could i either allow all controls to die next Monday, when the present law ex- pires, or pass a quick short-terra I extension of the present law. As it now stands the House bill Both Gen. Ike Eisenhower and his chief po- litical opponent in the GOP race for the presidenti- al nomination opened headquarters in the con- vention city on Wednesday. Sen. Henry Cabot Lodge Jr., (left) of Massachusetts held a news. conference during which he predicted "Ike's" nomination by the third ballot. In the meantime, Judy Lehmann, a secretary, hangs up the "open for business" shingle over the door of the Taft headquarters. Socialists Lead Netherlands Election Count By HENK KERSTING AMSTERDAM, The Netherlands nosed into the lead as The Netberland's strongest po- litical party for the first time in history today as parliamentary election returns gave them three new seats and a gain over 1948 voting of almost votes. The popular balloting yesterday 'ille'd the 100 seats in the national Parliament's lower house. On the basis of his party's tri- umph, Socialist Leader Dr. Willem )rees was expected to be designa- ed again by Queen Juliana to form i new Cabinet. Drees has been 'remier of the out-going Labor- Jatholic coalition Cabinet. Complete unofficial returns bowed that the middle-of-the-road Catholic party lost, by a small margin, the lead in popular votes it held in the 1948 general election. Labor won votes to the Catholics' Each won 30 parliamentary seats, the Catholics losing two. The Communists also lost two of the seats they won in 1948, leaving them six in the lower'house. would: End wage and price controls on July 31, 1952. Continue until June 30, 1953, al- location and priority powers and irent control. "Request" the President to try to stop the steel strike with a Taft- j Hartley Law injunction. I Reorganize the Wage Stabiliza- jtion Board and take away its power to act in labor disputes. The House left out of its bill all 1 authority for the government to control private credit. This authori- ty had been used in the past to I regulate installment buying and j house purchases. I Powell to Head Federal Reserve Bank WASHINGTON Ufi Oliver S. Powell will leave the Federal Re- serve Board in a few days to be- come president pf the Federal Re- serve Bank of Minneapolis, in- formed sources reported today. Powell, they said, has submit- ted his' resigna- tion, to take ef- fect June 30. A 55 year old native of White JRock, S. D., Pow- ell gave up the post of first vice- president of the _ Minneapolis Re- Mr. Powell serve Bank to be- come a member .of the Reserve Board here, on Sept. 1, 1950. On the he directed the program for voluntary credit re- straint- by banks after, the -Korean outbreak.