M-x shell hides output if given CR

[Dan Jacobson]

Gentlemen, there I was, having a good time with my data,
$ dbfdump rall1.dbf|sed q|tr -s ' '|fold -s
ZIPCODE1 ZIPCODE2 OFFICE ZIP3A ZIPCODE CITY AREA AREA1 ROAD SCOOP EVEN 
CMP_LABLE LANE LANE1 ALLEY ALLEY1 NO_BGN NO_BGN1 NO_END NO_END1 FLOOR FLOOR1 
EXP ROAD_NO ROAD1 EROAD TROAD PROAD HROAD RMK RKEY TCODE HCODE PCODE MCODE 
 
When I decided to remove the wimpy fold(1) and what? my data disappears:
$ dbfdump rall1.dbf|sed q|tr -s ' '
 
A repeat gives no improvement
$ dbfdump rall1.dbf|sed q|tr -s ' '
 
$ dbfdump rall1.dbf|sed q|tr -s ' '|cat
 
Indeed, I had never even seen all my data. Need
$ dbfdump rall1.dbf|sed q|tr -s ' '|col|fold -s
ZIPCODE1 ZIPCODE2 OFFICE ZIP3A ZIPCODE CITY AREA AREA1 ROAD SCOOP EVEN 
CMP_LABLE LANE LANE1 ALLEY ALLEY1 NO_BGN NO_BGN1 NO_END NO_END1 FLOOR FLOOR1 
EXP ROAD_NO ROAD1 EROAD TROAD PROAD HROAD RMK RKEY TCODE HCODE PCODE MCODE 
ZIP3RMK ECITY EAREA ISN

Gentlemen, don't let M-x shell hide the facts,
$ LC_ALL=C LANG=C LC_CTYPE=C emacs -Q
M-x shell
$ echo -e 'bla\r ' #hides output!
 
$ echo -e 'bla\r '|od -c
0000000   b   l   a  \r      \n
0000006

(In bash without emacs, I see "la", makes sense.)