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Winona Republican-Herald, The (Newspaper) - May 6, 1952, Winona, Minnesota Fair Tonight And Wednesday, Cooler Tonight River Stage 24-Hour (Flood 13) Today (won) 12.25 .50 Year Ago 11.15 .24 VOLUME 52, NO. 68 FIVE CENTS PER COPY WINONA, MINNESOTA. TUESDAY EVENING, MAY 6, 1952 TWENTY PAGES; ncil Pleads for U.S. Flood Aid Court Stops Compensation Rate Increase Employers Claim Overpayment Into Insurance Fund ST. PAUL The Minnesota Supreme Court today ordered the state insurance compensation board to reconsider its order es- tablishing an 8.2 per cent higher rate for workmen's compensation insurance. In a strongly-worded unanimous decision written by Associate Just- ice Frank T. Gallagher, the high tribunal voiced dissatisfaction with the three-member board's methods of computation, and demanded that hereafter full explanations ac- company rate orders. The board's order was issued Nov. 22, 1950, 'and applies to all new and renewal insurance writ- ten after Jan. 1, 1951. The order granted an increase of approxi- mately ai a time when employers of Minnesota maintain- ed -a reduction of about should have been ordered. Appeal From Decision Arguing that the rate-increase order was "arbitrary, oppressive, and the Minnesota Employers' Association, the As- sociated General Contractors of Minnesota, and McCree Com- pany of St. Paul appealed from a decision of District Judge Royden S. Dane of St. Paul affirming the board's action. They contended the premiums paid by employers to insure com- panies writing this type of insur- ance had been 17.4 per cent in excess of the basis on which the rates were approved. Further, they claimed that employers over- paid during the five- year period 1945-1949. "It is the function of the Justice Gallagher said, "to review the action of the board in order to insure that the board adheres to methods logically calculated to produce a reasonable rate. "Where it appears, as it does here, that the rates have been consistently inaccurate over a per- iod of years, it is especially nec- essary that the methods adopted by the board be carefully scrutin- ized." Justice Gallagher emphasized that the board must be required to state its reasons and the underly- ing facts "so as to establish a chain of reasoning between the facts and the conclusion reached." Must be Sound "When the board deviates from what appears to be a mathemat- ically sound method of reaching the answer the Supreme Court insisted, "it must explain the considerations and reasoning be- hind the deviation." The board members Robert E. Faricy, Armand W. Harris (for- mer insurance commissioner not now connected with the state) and Edward 0. the posi- tion that they would have been "acting reasonably" if they had accepted the recommendation of the Minnesota compensation rating bureau that rates be increased 10.6 per cent. The rating bureau, consisting of companies writing workmen's compensation insurance, assists the compensation board in the rate-making process. To the board's suggestion that it would have been justified in ac- cepting the bureau's proposal "in its Justice Gallagher re- plied: "We disagree. The statutes im- pose upon the board the duty to set the rate. The bureau's function is merely advisory." Camp McCoy Gl Killed, 3 Injured SPARTA Camp McCoy soldier was killed and three others injured in a one car crash on U.S. Highway 12 at 16, four miles east of Tomah at the Oakdale overhead early today. Killed in the crash was a 22-year- old Pfc. Donald R. Morris. Offi- cers could not learn his address and Army officials held up the in- formation pending notification of next of kin. The driver of the car Sgt. 1-C Federico V. Sauter, 28, of Chicago, suffered a head injury as did Pvt George D. McCollom, 20, of Dixon, Tenn. Pvt. Roy C. Pullman, 21, of Mayviile, Wis., suffered minor injuries. A truck driver who saw the ac- cident said the car apparently went out of control. It rolled over and stopped 121 feet uphill from where it left the highway. The injured were taken to Camp McCoy hospital. A Deep Gash in the bow of the aircraft carrier USS Wasp is grim evidence of the mid-Atlantic collision little more than a week ago in which the destroyer-minesweeper Hobson was sunk. Collision occurred during night maneuvers, with the ting through the smaller ship. The Hobson sank in four minutes with a heavy loss of life. This picture, taken May 2 as the Wasp limped toward New York for repairs, was issued by the Navy. (U.S. Navy photo via AP Wirephoto) Drivers Feel Pinch In Gasoline Strike DENVER major part of the nation's oil industry ended its first strike-bound week today with federal government officials ap- parently in disagreement over the prospects for gasoline, rationing. Most seriously affected so far was air transport, both civilian and military. Motorists, however, were Deginning to feel the pinch in some areas. An encouraging glimmer came rom California, where the Inde- lendent Union of Petroleum Work- ;rs settled with two companies. In an interview in New Orleans James K. Knudson, administrator of the Defense Transportation Ad- ministration, warned: !If the oil strike goes on a few more days, we may have to put some restrictions on civilian trans- portation." No Rationing Planned Secretary of the Interior Oscar Chapman said the government is not planning on national rationing of automobile gasoline, despite scattered shortages. Chapman said he agreed with Bruce K, Brown, deputy adminis- jator of the Petroleum Adminis- xation for Defense, that it would ;ake too long to set up a rationing program. A 30 per cent cut in gasoline for civil aviation purposes was ordered by the PAD, effective today. The Air Force earlier ordered a cut in training flights to conserve gasoline. The Navy said messages lave gone out to continental bases ;o curtail all but essential flying. Airlines operating from the metropolitan airports of Idlewild and LaGuardia in New York City ordered fuel saving measures. These included cancellation of some flights, consolidations, re- routing of transatlantic flights and elimination of unnecessary pilot raining. The second settlement in four days in California was reached yesterday when the IUPW and Jnion Oil Company came to an agreement for employes. Second Settlement Commissioner Oliver E. Good- win of the Federal Mediation and Conciliation Service said the agree- ment calls for a VA per cent boost of the average wage of per hour, effective May 1. Of this in- crease 4.2 per cent is retroactive to Jan. 1, 1952. Shift differentials jo up from 4 to 6 cents per hour '.ot afternoon work and from 6 to 12 cents for graveyard. Goodwin said the boost is up to 19Vi cents per hour. Earlier, the same union an- nounced that a similar agreement, calling for a boost of 7% per cent was reached with Standard Oil of Indiana. Gambling Tax Unconstitutional PHILADELPHIA m A six- month-old federal law requiring gamblers to buy a tax stamp was declared unconstitutional to- day by U. S. District Judge George A. Welsh. Welsh ruled the law was a police measure enacted by Congress un- der the guise of a tax bill. The decision was handed down on an appeal by Joseph Kahriger, 36, one of seven men facing trial on charges failing to buy the stamp. Two Girls Hitch Ride To Guam on B29 TRAVIS AIR FORCE BASE, Calif. Lfl It was the end of the line today for two adventurous girls who traveled miles to Guam stowed away aboard a B29 Superfortress. Wearing blue jeans and plaid shirts, Jerie McDaniel, 26, Walnut Grove, Calif., and Maxine .Allen, 23, Tacoma, Wash., were brought here by military transport plane last night. They sheepishly told of a spur-of-the-moment decision to board the bomber two weeks ago at McClellan Air Force Base, Sac- ramento, Calif. They're being escorted back there today. "The whole thing was a matter of red-haired Maxine said. "A ladder extended up to the fuselage, so within a period of 15 minutes, we decided to go aboard and see if we could get jobs in Honolulu." But they decided against risking getting stopped by a guard at Honolulu and stayed on the plane all the way to Guam. Homesick and broke, they sur- rendered there. The Air Force re- turned they agreed in writing to pay for the transporta- tion both apiece. "Never they said. Russell Won't Lead Revolt Against Party Expected To Vote Today in Florida Primary By DON WHITEHEAD MIAMI, Fla. tfl Sen. Richard B. Russell's declaration that he will not lead a Southern revolt over civil rights at the Democratic Na- tional Convention was the big news today in Florida's first presidential preference primary in 20 years. This was the first time the Georgian had said flatly that he will take no part in a walkout such as the one pulled by some Southern leaders at the 1948 convention. Voters went to the polls to make a choice between Russell and tall, slow-talking Sen. Estes Kefauver of Tennessee, who already has won Democratic popularity contests in eight states. Big Vote Seen A record-smashing vote of almost was expected. Russell was regarded as a slight favorite to give Kefauver a licking in the South's only presidential preference contest. "I think I'll Russell said. But Kefauver insisted his own chances were good and that "those who are against me are in for a surprise." The polls opened at 7 a.m. and will close at 7 p.m. A trend in the voting is expected to be clearly defined before midnight, Russell's surprise no-bolt state- ment popped out last night during a television debate with Kefauver which developed at times into a bitter and shouting quarrel. Both men showed the strain of their hard campaigns under Florida's hot sun. At one point Kefauver said he wouldn't "pick up my marbles and run home" if the Democratic Na- tional Convention should approve a civil rights program including a compulsory fair employment prac- tices commission Russell retorted: "If you mean to imply that I'm going to leave the no! I'm not going to leave the party." Won't Walk Out Reporters later questioned Rus- sell about the meaning of his statement and he said: "I will not walk out of the convention on an FEPC fight. I intend to stay right there it out." Russell was asked if he might leave the party after the conven- tion. He replied he would if the convention nominated "somebody like Alger Hiss." Both Russell and Kefauver in their debate declared their opposi- tion to a compulsory FEPC, so- cialized medicine, deficit spending and the Brannan farm plan. The delegates to the Democratic National Convention will not be named in today's primary but in a second primary to be held May 27. The Republicans are not holding a presidential preference primary. The GOP convention delegates were selected last February by the Republican State Central Commit- tee. Five Thousand Fans screamed as 11 cars piled up on the first lap of the semi-main event at the Oakland, Calif., speedway. In spite of the num- ber of autos involved in the pileup on the turn, no one was injured. (AP Wirephoto) WSB Handling of Steel Row Probed By NORMAN WALKER WASHINGTON House Labor Committee today began a broad investigation of the government's Wage Stabilization Board with special emphasis on its handling of the steel labor dispute. Charles E. Wilson, who quit as mobilization chief in protest against the administration's handling of the steel case, was called --------------as the committee's firof 11 Reported Killed in Oslo Crash OSLO, Norway chartered Norwegian transport plane, bring- ing 25 sailors home from an ant- arctic whaling expedition crashed and burned before dawn today in the rugged, wooded Telemark dis- trict 150 miles southwest of Oslo. Police reported 11 persons, nine passengers and two crewmen, were killed and 10 others were injured, some seriously. A total of 29 was aboard. The plane, operated by the Fred Olsen charter airline, left Amster- dam last "night for Jarlsberg air- port, about 25 miles from Oslo. It carried a crew of four and the 25 whalers from the antarctic whaling factory ship, Kos- mos 3. The ship arrived in Rotter- dam Sunday. Sawmill Bums At Grand Marais GRAND MARAIS, Minn. sawmill and a quantity of new lumber were destroyed by fire near Swan Lake, 20 miles north- west of here last night. Ernie An- derson, the owner, .estimated the loss at to first witness. Chairman Barden (D-NC) told a reporter in advance his committee probably will delve into all phases of the WSB's operations, including its methods of recommending terms for settling major labor disputes. Barden said the probe would 'be "fair to all and would cover the points outlined in a resolution by Rep. Allen (B-fll) directing the investigation. Allen said one phase of the inquiry should determine whether the WSB has violated national labor policies as set forth in the Taft-Hartley Act. The WSB's steel recommenda- tions touched off a series of spec- tacular events including President Truman's seizure of the steel in- dustry, a three-day strike last week, and historic court battles now under way on legality of the seizure action. The steel dispute still remains in dead center, with settlement ap- parently as far .away as ever. The Supreme Court has banned any government imposed wage boost for Philip Murray's CIO steelworkers in the basic steel industry, something Truman had promised to order this week. The ban lasts until the court has de- cided whether Truman's seizure was constitutional. The WSB recommended an event- ual 26-cents-an-hour increase in pay rates and vacation, holiday and shift differential allowances for the steelworkers, along with a com- pulsory union membership (union shop) provision. The steelworkers -now receive a little under an hour, including overtime. Allen and a number of other congressmen were most concerned about the union shop recommenda- tion. They said Congress never in- tended that the WSB should make recommendations on non-economic issues. Eight Members Of The Winona School Patrol received five- year service awards from Gov. C. Elmer Anderson at his office in the state capitol at St. Paul at 11 o'clock this morning. This picture, taken for The Republican-Herald by the Associated Press, was- transmitted to Winona by Wirephoto at noon today from Minneapolis and shows the governor signing the certificates. From the left are Patrolman Walter A. Haeussinger, superintendent of the Winona School Patrol, Michael Feehan, Neal Lang, John Maze, Robert Stueve, Donald Stow, Thomas McPheron, David Runkel and Richard Waite. Not present were Richard Stever, Gerald Whetstone and Gerald Kiekbusch, other patrol members who also received the award. N.J. Banker Admits Theft Of PERTH AMBOY, N.J. UP) A banker described as a pillar of respectability in the community is accused of embezzling more titan The complaint against 50-ytar- old William C. Horley was entered yesterday by the First Bank and Trust Company, where he was vice president at an salary. Middlesex County Prosecutor Al- ex Eber said early today that a series of bad investments engulfed Horley, whom he referred to as a "very generous man." "He liked to help people. He made personal loans with bank funds." Officials Shocked Church and community officials were shocked at news of the em- bezz'ement. Horley, married and the father of three children, took an active part in civic affairs. He is former chairman of the Community Chest, a Red Cross director, head of a fund-raising campaign for the Boy i Scouts, former president of the local chapter of the American In- stitute of Banking, and a warden of St. Peter's Episcopal Church. After a five-hour quizzing which ended early today, Eber said that in order to cover up for the short- ages resulting from bad loans, Horley took some of the bank's money and speculated in the stock market. This stock market dab- bling, also turned sour and Horley found himself deeper and deeper in the red, the prosecutor said. Approximately of the loss may be recovered, he said, adding that the embezzling opera- tion began about three years ago. "It doesn't seem at the present time that any of this tremendous amount of money was either used for himself or for his said Eber. Free On Bail Earlier, Horley's attorney en- tered an innocent plea for his client, who he said didn't pocket even the smallest amount of the money he is accused of embezzling. Free on bail, Horley awaits action by the county grand jury. At an emergency meeting of the bank directors yesterday, he said he was "too dazed to think. This all happened so fast. I'll do what- ever I can." No irregularities were found in the last check of the bank's ac- counts by state and federal re- serve, officials on Oct. 3, 1951. The bank's loss is fully covered by insurance, and depositors were assured that their money was safe and would be unafi'ected. Horley, employed by the bank since 1937, when it was organized, had been "a widely respected resi- dent of the bank di- rectors said. The Rev. George Boyd, pastor of St. Peter's Church, said, "The news is breath-taking. It knocked the legs out from under me. I can't believe it." WEATHER FEDERAL FORECAST Winona and vicinity Generally fair tonight and Wednesday, copi- er tonight. Low tonight 46, high Wednesday 72. LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today: Maximum, 79; minimum, 53; noon, 65; precipitation, trace; sun sets tonight at sun rises to- morrow at Additional weather on Page 13. 4 Resolutions Review Damage By High Water U.S. Engineers Asked to Take Over Dike Road A flood-conscious Winona City Council Monday night voted unanimous and sweep- ing approval for four resor lutions launching the city's official fight to obtain a permanent protective dike system against the menacr ing Mississippi River.. Substance of the four reso- lutions is: A request that the Corps of Engineers launch the Crooked Slough devel- commercial boat har- bor and dike road paralleling the south bank of the Slough from the foot of Johnson Street to Prairie Island. A request that the Corps of Engineers complete a survey of the Prairie Island dike to determine whether "the existing dike struc- ture protecting the Winona Muni- cipal Airport should be increased in height or otherwise strengthen- ed, nlus a request the corps rebuild and'strengthen the Prairie Island dike and gate structure washed away in 1952 for the second consec- utive year. A request that the state and federal governments pay to the city spent on "protective mea- sures" during the 1952 flood, plug more to cover "actual and permanent damages to the sani- tary sewer system." A request the Corps of Engi- neers conduct a "comprehensive flood control survey covering the river area extending from Minne- sota City to Minne-0-Wah." All couched in vigorous lan- guage, the resolutions will be for- warded to Gov. C. Elmer Anderson, the U. S. Corps of Engineers in St. Paul and Washington, D. C., Con- gressman August JL Andresen and Senators Edward J. Thye and Hu- bert H. Humphrey. Point to Survey The council pointed out in its Crooked Slough resolution the Corps of Engineers completed in 1951 surveys and a com- mercial boat harbor at the upper end of Crooked Slough, and pointed out "a dike road for flood control purposes has been planned to ex- tend from Johnson Street westerly to the Prairie Island Road." Also reviewed was the fact the city "is prepared to enter into a co-operative agreement with the United States of America covering participation in the expense of the commercial harbor facilities." The resolution formally request- ed the engineers "to construct said commercial boat harbor and dike road in accordance with the Crook- ed Slough development plans as soon as is adding, "The construction of a dike road paralleling the southerly bank of said Crooked Slough at the same time and as a combined project would be the cheapest possible method of carrying out both of these necessary projects." Protects Airport In its Prairie Island road lution the council said the road "was constructed primarily as a protection for the Winona Munici- pal and "the airport was paid for to a large extent by funds of the United States government" The council also pointed out "The United States government reserves various rights as to use and con- trol of the and set forth that the Prairie Island road "has been washed out by reason of the flood stage of the Mississippi Riv- er" for the second year in succes- sion. The resolution asks the engin- eers to repair the Prairie Island road "as was done during the year 1951 as soon as is practicable and that steps be taken immediately to effect said repairs." Further, the council requests the engineers "to make a complete survey of the situation to deter- mine whether the existing dike structure protecting the Winona Municipal Airport should be in- creased in height or otherwise strengthened or whether the dike should be relocated to a position closer to the airport." Want U. S. Maintenance Aldermen objected that the Prairie Island resolution was not. sufficiently definite on the lengths the cfty will take to assure a per- manent and effective dike struc- ture. City Attorney Harold S. Streater was instructed to add a final paragraph that the city de- sires to hand over maintenance and repair of the road exclusively, to. the engineers. The council's request for from the state and federal govern-, ments took this form: "The city has suffered for the second successive year from the, threat of irreparable damage to (Continued on Page 17, Column o.) COUNCIL ;