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Winona Republican-Herald, The (Newspaper) - October 26, 1949, Winona, Minnesota COLD TONIGHT, WARMER THURSDAY VOLUME 49, NO. 213 WINONA, MINNESOTA, WEDNESDAY EVENING, OCTOBER 26, 1949 FIVE CENTS PER COPY SUPPORT YOUR COMMUNITY CHEST THIRTY PAGES Hope Mounts in Steel Talks Dismissal of Charges Against McMullen Asked 2-Year Cost TODAY- Aid Helps Allies Get On Own Feet By Joseph and Stewart Alsop is difficult to con vey the momentous importance of] Paul Hoffman's current mission to I Europe, to promote European ec- onomic union. Perhaps the best way to put it is to say that this isi the turning point of the American! attempt to put the European ec-j onomy on a self-supporting basis. Making our allies self-supporting was, of course, the objective of the, European recovery program from A surprise motion to dismiss charges against Raymond the beginning. In the first Paul equipment salesman cited for allegedly having offered. bribes however, Marshall aid was former Winona county commissioners was presented in municipal simply and directly, to rebuildicourt here this morning on the grounds that MrMullen is legally, v _____ nf snv m-inonr Moolmcr I Europe s war-shattered productiv-j ity. This job is over. By the end! of the year, European industrial and agricultural output will be a level with output in 1938. Precisely this dramatic achieve- ment is what makes the second phase both possible and necessary. Mere restoration of productivity has failed to restore economic sta-j bility in France and Italy, the Low Countries and the other Marshall plan nations. The trouble is that intra-European trade is still being strangled by exchange restrictions import quotas, tariffs, and other! By Eddy Gilmore In County Bribe Case 820 Millions Of Farm Aid Russ Accuse Tito's Moscow Aide of Spying devices of the period of scarcity.! has charged What must now be done is to se- Tn" anti-Soviet spying and de- is the purpose of the European ec- dared that he can no longer serve onomic union which Hoffman will is the Yugoslav envoy here, now attempt, to promote. The A soviet note delivered yesterday mate aim is one great European: Yugoslav embassy said the trading area. rr arcs! BE SAID at once tha the impetus towards union has not. S1_ come only from Washington. had revealed that idea has long had strong Karlo Mrazovic "had among Europeans. Some time ago.for a ]0ng time engaged in spying Tit ambassador to Mos- Budapest treason trial of Hungary's f former foreign minister, Laszlo Surplus Products Will be Bought At Support Levels By Ovid A. Martin Washington The govern- innocent" of any bribery dealing. The unique motion was made byi Edward J. Devitt of St. Paul, Mc-j Mullen's attorney, immediately lowing the formal arraignment ofi the salesman before Judge E. Libera shortly before 11 a. m., today.! According to Devitt, McMullen islment is forecasting that it will cost guaranteed legal immunity from! about to support farm prosecution oil the bribery charge I prices during a two-year period by state statutes which bar prose- j June 30 cution of persons who have deliver-i cost ig megjtb amount ed testimony arid evidence m similarjmoney government will lose on bribery cases. surplus products which it will buy McMullen, Eievitt contends, support price levels and sell or required to assist State Public of at lower prices. The pe< aminer Richard A. Golling in in-! no vestigations which resulted covers largely the 1949 and crops. bribery charges placed against for-j Their loss estimate does not take mer Winona county commissioners! into account the profit or loss the Fred J. Roberton. Frank J. Preston government may mark up when it and William K. Beach. finally disposes of surpluses still Gave Testimony to Golling: [in its possession at the end Of the The testimony was given by Me- two-year period. It expects to hold Mullen at conferences with Golling! larEe quantities of cotton, corn and his assistants on three occa- dairy products, and oilseed sions, June 10, July 13 and August ed in a budget report of the Com- tothe chTgeTwhe" modltv Credit corporation, the Ag- to the changes department's price sun- French Finance Minister Maurice and subversive activities against theithey were arraigned last August Petsche quietly inaugurated sen- Rnvipt. nninn district-, rnurt and each was Each of the former commissioners e last district court and each pieaded quietly inaugurated sen- Sovlet union.1 ous discussions of the project with, Mrazovic left Moscow for Yugo- the Italians, the Belgians, August arid has not re- Dutch and the EGA European staff.. turned since, though technically he was suspended when the fine was The greatest practical obstacle remains ambassador to the Soviet ipaid to European union, which was the union. It had been presumed hej McMullen is charged with hav- false relationship between the Eur- return to the Russian given Drjbes totaling S150 opean currencies, has also- Iconnection with the sale of an! cleared away in recent months.; The kremlin's note said also il--'" The British sterling "while being Yugoslav forced the Europeans to place theirjbassador in the U.S.SJJ., had The report estimates losses for Companies Say Compromise May Develop Basis to Resume Negotiations Sought by Chiefs for the following fiscal year. The loss estimates this fiscal) year by commodities include: Corn Blast Wrecks Apartment House, 14 Hurt By Wilbur Martin By Nonnmn Walker Washington industry leader's suggestion that a steel strike compromise is possible en- couraged government officials to- day in their efforts to settle the coal-steel crisis. j These officials saw a chance of getting company-union peace talks 'started, on the steel pension financ- .ing dispute. I They pinned their hopes on re- marks made by Chairman Irving is. Olds of the O. S. Steel Corpora- ,tion in New York yesterday after a board of directors meeting. Olds reminded newsmen that neither U. S. Steel nor the striking- CJ.O. Steelworkers union bas made a direct move to resume negotiations since the strike began October 1. "It seems to Olds said, "the sensible thing would be to sit down and see how far we could get toward agreeing on a pension program. We might even reach some common ground on contribu- tory and noncontributory He implied that the amount of proposed pension and insurance might provide a basis for bargain- By Elg-on C. Fay ing. That issue has never come around the pentagon today was he said, because of disagree- the administration is trying to figure out just how to remove Admiral! roent over another matter. Louis Denfeld from his command of the Navy. TJ. S. Steel has agreed to install This Pile Of Rubble is the aftermath of an explosion last night that wrecked a four-unit apart- ment house in North Dallas, Texas, injuring 14 persons. The walls went outward and the roof col- lapsed. (AP. Wirephoto to The Republican-Herald.) Denfeld Ouster Seen in Uproar Those doing the speculating took it for granted that a top level the by cotton SS.291.000; DaUas' j decision has bein to DenMd. A pentagon huddle yester- rice to-jsons were injured, three was followed by a meeting be- o Gold uoia court convened at own currencies on a realistic basis, out in the Yugoslav press with slan-1 Thus, although theoretically fabrications against the Sov-i minutes later than trolled in varying degree, Union." scheduled for the arraizn- franc, the lira and the other moneys! Russia, the note concluded, time scheduled tne arraign of Europe are already, in it "impossible" for not far from being mutually con-jto continue to represent the Tito tne an explosion late last nightitween President Truman, Secretary vertible reeime in the Soviet "Onion. Both these hopeful developments! TOrazovic' came to Moscow-last' Be- initially generated bad feeling. The ous iu to the Petsche. The French considerable i after -i numer o Hungary the tatoes wool apart a Conseed stucco structure and stated that a dismissal of charges would be pre- sented. motion for the flaxseed naval! of flame left It a mass of debris stores resin and turpentine in walls, smashed furn- nrifl- rtrt rfQT YUVfl Ttoac- JA__. _ ___i ______ T_I _ j____f WPTP been ueeii alleged Rajk treason plot on .111., oats" grain eorghums peas County Attorney W. Kenneth 000; soybeans sweet po- and based their espi- iNissen, who has represented the in the prosecution of the pre- the itatoes and pork '000. EuSns Rajk and four co-defend- jvious bribery cases, told the court Europeans were equailj. enragea unforeseen situations by drastic character of ster- ling i, xne soviet acuon aues nuo reieinuti tu nnn- went so far as to call break in diplomatic relations and asked that the matter uuu' Tempers have now sub-jyugoslaviai the Yugoslavs were ibe continued until 2 p: m., in order! sided, however. When Hoffman asked gffect to reoall only the state might discuss Losses forecast for the next fis- cal year include: corn peanuts of treason. jhave presented themselves" (appar-j rice J2 wheat i The Soviet action does not referring to Devitt s dismissal nM. potatoes wool i.OOO; the barley dry to constructive steps. j will continue to serve as head of the !motion int0 the record before the HOFFMAN HIMSELF has Post he has filled since end of the morning session and and The loss er carefully laid the groundwork i Mrazovic left Moscow. for bold action, long in advance of; diplomatic procedure is this annual meeting of finance Yugoslavia now can nom- isters. Specifically both he Averell Harriman have long been: taking every opporuntity to press on officials of the Marshall ;I10D- aid countries that they would have! to have "something to show for; their in order to get next year's European recovery appro- priations out of Congress. Perhaps more important when the current year's Marshall aid appropriations were recently: divided in Paris, Hoffman and; Harriman only approved the sion for the first six months. The balance, of S1.8 billions for the sec-i ond six months, can still be real-; located at will. This means that i nonco-operators can be made to suffer greatly. I In effect, this power to change! the division of the current year's! Marshall aid, plus the danger in' Congress, constitute Hoffman's j shotgun. The shotgun will be used, if necessary, to encourage the ready affectionate Europeans to; legalize their economic union. Hoff-j man regards the situation as flciently urgent to employ his shot- j gun if he has to. j ON THE OTHER HAND, no sionary plan, merging all the na- tions of Europe and the sterling area into a single economy, is un- der consideration. Essential first steps are all that both the more farsighted Europeans and Hoff- man now want. Step number one is considered to be a substantive economic union of France, Italy and Belgium, as a minimum. To accomplish such a union, some- thing like a central bank would! be established to superintend mon-j etary problems. Currencies would j be made fairly freely corvertible. i Import quotas would "be greatly re-j duced. And the participating na- tions would become a unified trad- ing area. Step number two is considered to be admission of Western Ger- many to the organization for Eur- opean economic co-operation. This person as ambassadr The or Russians could nomina- ,_. this request was granted largely on the assumption that pro- After hearing the motion and duction will exceed market de- Aer earing e oi aj. the ice support ieveis_ Nissen's arguments against aismis- a situation the sal, Judge Libera stated that buy surplus and (Continued on Page 12, Column 6.) remove it from regular market DISMISSAL channels. Lodgings Sought for 239 Badger Coeds Routed in Dormitory Fire iture and crazily crumbled roof. Buildings in the five-block area were rocked by the explosion about p.m. It threw some persons four-apartmentiof Defense Johnson and Secretary! of the Navy Matthews. Out of these meetings grew the speculation that the problem now had become one of the methods by which Denfeld would be relieved whether there might be-other changes. There are a number of! other highly-placed naval officers who, like Denfeld, quarreled with: the way service unification works; in nearby units in the Cedariout for the Navy. They, too, were Springs housing project in North Dallas out of bed. Every one in the building was hurt. Battalion Fire Chief J. W, Owens said he had no idea what caused the explosion. witnesses in the House armed serv- ices committee hearings on the military forces' quarrel. To Remain Until Removed There was no immediate indica- Leroy Shannon, 28, said the blast! tion of how ttie administration occurred in his apartment. He said! might go about asking for Den- he had smelled gas for resignation or ms days and had reported it Homemade Bomb Rocks Kenosha Loop Kenosha, Wis. The down- town area was rocked early today by a bomb explosion in the rear! of a vacant building. No one was reported injured. Police said the bomb, which ap- a pension-insurance plan for work- ers costing up to ten cents an hour, but insists the employes contribute something too. Philip Murray, head of the CXO. and the striking union, has insisted on a tial board's recommendation that the workers contribute nothing. It is this question, Olds said, which has blocked discussion of ac- tual amounts. There: was no immediate --com- ment from Murray on Olds' sug- gestion that new company-union talks may be fruitful. U. S. Steel's directors, declaring a regular quarterly dividend, an- nounced that the corporation's net income for the first nine months of year was This maintenance man. to the ouster. Friends of Denleld said admiral so far was given every tamed in a gasoline can. Kepaired Stove Shannon said "Workmen repair- ed the stove in Mxs. apartment today." evidence of intending to remain un-i thrown or rolled down steps lead- n repair- til removed, that he doesn't intend j basemeat of a oae sto BaUard'sto resign from nis job as chief of, naval operations, to which he had by George Ebner, another been reappointed for another 46. Ebner was fined about three the less seriously injured, said she two-year term. months ago when he pleaded guilty There is no recent precedent for to a charge of keeping a gambling ousting a military officer of Den- house. feld's rank and position. Like the The force of the explosion at chiefs of staff of the other serv- wrecked the rear of both the base- had been smelling gas for several days in the housing unit. Mrs. Ruth T. Morrel, manager of the project for the Dallas Hous- ing authority, said that she knew of no complaints about leaking gas in the apartment building. Shannon, 28, said the explosion "l-'iocked us down and covered us up with wreckage. It blew my boy up in the air." The blast lifted the roof off the building and dropped it back, corn- four apart- pletely wrecking all ments. Pulls 4 From Wreckage ices, he was appointed by the Pres- ident, with confirmation by the Senate. Thus, it would take presi- dential action to remove him. Significance was seen in the fact ment and street floor levels. The first floor had been rented to a firm for storing office supplies and furniture. A basement steel door was blown that when Johnson called a meet-forward the length of the building. ing to consider "lessons to be learned" from the House commit- tee investigation he invited only the civilian heads of the armed forces and his own deputy and as- sistant secretaries. No uniformed Shannon, his wife and child from the quarreling joint! in the apartment. They were not chiefs organization among them I seriously injured. E. O. Wilson, who said he lived across the street from the one- story building, said: "I ran across the street and pull- ed four people out of the wreckage. They were beat up pretty bad. One was a little girl." Eight of the 14 injured were chil- dren. Seriously hurt in the explosion! support or deny it." invited. Johnson Cautious Emerging from the White House meeting, Johnson was cautious in talking to reporters. He disclaimed responsibility for the widely cir- culated reports that Denfeld was :to be insisted that "I am saying nothing now that could Staton, four, head in- But if Denfeld and General Omar 11 UtJiUKlU H.11LL UreilClttl WJUttl I at the hearings de-j lover, dapper in a tuxedo and spe- plored "fancy dan" aoVrairals who cially bought black hat me were: Michael juries. Mrs. Virginia Ballard, 28, shock) wanted to run unification their own and burns. David Ballard, juries. Los Angeles compared with for the same 1948 period. No sign of hope appeared for early settlement of either the coal homemade, was steel strikes. Hundreds of coal- I burning passenger trains were can- was cejed as a government fuel con- serving order went into effect" to- day. Thousands of men daily were becoming idle as the coal-steel shortages became more acute. About a million men are on strike in the two disputes. Cyrus S. Ching, top government labor mediator, was due to return to New York today for further talks with U. S. Steel officials. He conferred with them there all last week without success. Ching: talked for five hours yes- terday with two officials of the Bethlehem Steel Corporation here. They were J. M. Larkin, vice-presi- dent, and John Morse, corporation counsel. Ching's comment after- ward was "no progress." Clearly, Ching and government officials figured that any break would come in steel, rather than coal. Ching saw the Bethlehem of- ficials after giving a full report oa the twin strikes to the White House. President Truman was reported to have decided to give Ching a few more days to try to get the steel dispute off dead center. If nothing happens, the White House was expected to make a move. No-, body was sure what that would be. Resort to Taft-Hartley law court injunctions to end the two strikes remained a possibility. Opera in Italian Stumps Durante By Bob Thomas Jimmy -Du- rante went to the opera last night and was he mortified he "couldn't unnerstand a woid." The schnozzola startled first- nighters at the opening of the San Francisco Opera Company's season here by appearing among the mink- ed and ermined crowd. The rausic- meet in Johnson's of- seven, head they did come face to face jover a conference table in the aft- irnoon. The joint chiefs of staff then held its first meeting since Denfeld's the acoustics bad in Firemen Fought a stubborn blaze for three hours Tuesday at Ann Emery hall, a dormitory that housed 239 girls at the University of Wisconsin in Madison. All were evacuated safely. (AP. Wirephoto to The Republican-Herald.) The others were held for obser- jvation, though not considered bad- ly injured. Temperature Drops To 16 at Bemidji By The Associated Press Bemidji, which has been known as the "nation's icebox" lived up to I that name again last night when i Prazee, Minn., was chosen queen the mercury dropped to a chilly igflast night to preside over homeco'm- 20 claimed he recognized several barber friends in the lobby. Perched attentively in his aisle seat, Durante complained in the middle of the first act, "I can't un- nerstand a thing they're criticism and Bradley's sharp- tongued reply shook the hearing charriber. Moorhead T. C. Queen Chosen Moorhead (ff) Betty Cable, recognition of the new GermanjOf Wisconsin officials today sought government's right to be heard for 239 coeds whose dorm- the problems of the European was severely onoroy is in turn intended, to be j yesterday by a spectacular three- only preliminary. Later on, it is' envisioned that Western Germany will take her place, as partner, Madison, Wis. University car and the officers notified Mar- with France, Italy and the other hour fire. And the girls are searching around for plothing to replace that destroyed or damaged in the blaze economically unified nations. And] at Ann Emery hall. so, at last, the foundations of true The only casualties reported European economic union will be I were two firemen temporarily laid. overcome by smoke and another No more complex, no more con- cut by glass. structive task has ever been un-! A student working in Science hall dertaken by an American smoke coming from the dor- ator. Paul Hoffman should be wish-i mitory attic, three blocks away. ed Godspeed. [He flagged a passing police squad tha Brush, resident counselor. She sounded the alarm and the girls, some of them taking naps, filed out in orderly fashion. The fire swept the attic and a section of the roof fell in. Water poured upon the through to lower flames floors. seeped Masses of students and townspeo- ple gathered to watch the blaze, with some organizing impromptu cheering sections for firemen work- ing- on ladders. The amount of damage remain- ed unestimated until a check to- day. Most of the residents stored trunks and suitcases with spare clothing in the attic. j While the fire still was in gress offers came in from students j night degrees above zero. ing festivities Friday and Saturday That reading made Bemidji thejst the Moorhead State Teachers spot in Minnesota during a college. that had every station re- and townspeople to house the to the Weather bureau re- cuees. Some were placed in pri-'cording below-freezing tempera- vate homes for the night, with tures. _ others being taken in by friendsj just one degree warmer was In- Week bet in State Future Homemaker at other dormitories or houses. Falls, on the extreme- [northern border of the state, where] St. Young- The building, a five-story stone Lol inch of precipitation fell. It was dahl last night issued a proclama- structure, is owned by the only moisture recorded in tion setting the period starting Building Corporation of Milwaukee.Ipast 24 hours in the state. jSunday as "future homemakers of The most damage was done to! Warmer weattier was forecast for America week." It will honor the upper two floors. The along with members of the homemakers levels suffered principally from cloudiness. It will be generally of junior and senior high smoke and water. tonight. i school students comprising 63 chap- Cause of the blaze was thought! Winona had a low of 29 last night jters of the organization in Minne- due to wiring. I after a high of 50 Tuesday. Isota. It was explained the opera, "Ma- non was in Italian. "Might as well be he shrugged. He was amazed at the shouts of bravo for an aria by Jussi Bjoerling. "They're shouting bravo and they don't even know what he's Durante said he rubbed elbows with the Los Angeles socialites in the bar during intermission. "I had Richfield bus as he walked on Nic- to rub elbows, nobody would shake hands with he added. He claimed he detected some strains of "Inkadinkadoo" in the score of the second act. "I could sue that guy (Puccini) for he said excitedly. "But I'll let it go. Live and let live, I say." He was intrigued with part of the second act. "It's just like a burleyque he said. "They were running in and out of closets and waving swords. But where are vrivleO" D____ of talks between miners union and Another day John L. Lewis' southern coal mine operators was scheduled at Bluefield, W. Va. These negotiations have been idl- ing along for months without pro- gress. Lewis, remaining in Washington, has demanded more pay, pension money and a seven-hour work day. The coal strike started last Sep- tember 19. Student Killed Minneapolis Charles P. Wilbert, Jr., 16, Minneapolis high school student, was killed last night when he was struck by a suburban the dancing at g.37_ Summing his review of the per- formance, Durante declared: "In the overture all eyes were on the con-1 ductor. In the first act all eyes were on the soprano. In the second act all eyes were on me. No wonder ollet avenue near 66th street. Po- lice questioned and released Rob- ert L. Bond, 25, the bus driver. WEATHER LOCAL WEATHER Official observations for the 24 hours ending at 12 m. today: Maximum, 50; minimum 29; noon, none; sun sets to- tomorrow FEDERAL FORECASTS Winona and vicinity: Fair and continued cold tonight; low 28 in the city, 24 in the country. Thurs- day lair and warmer; nigh 56. was Additional weather oa Page 12. ;