Yes that is absolutely true, although with the 1950-1958 Frigidaires they all have a variable wash time setting timer so they will fill for 4 minutes first no matter where you set the dial in that wash period portion of the dial. With the Philco, ABC, Kelvinator, Apex and early 1947-1949 Frigidaire models the action is gentle enough that I highly doubt any clothing damage would occur. The Philco has a metered fill detecting with water just starts to overflow into the outer tub.
The Apex, ABC-o-Matic and Kelvinator machines have a natural stop at full fill setting on the dial and the ABC goes one step further in that the first increment of the timer is a pause before the wash fill begins. This prevents a shortened fill increment just in case the user stops the machine early in the previous load before the dial has fully incremented to the next click stop.