NY- "house-ton." The city in Texas- "hews-ton." Other Southern US usages, such as "bew-fort" for Beaufort (South Carolina), but 'bow-fort" (Texas) cause trouble to outsiders.

The heading of this thread is- "Which is correct? The answer, of course, is both. Personal preference depends on local usage, and personal training. Good, comprehensive dictionaries, especially the OED, provide origins, historical usage, regional preferences and all other factors that determine both current and past usage. They do not "demand" one single correct practice where others exist. For Celtic-Keltic, the OED gives both spellings and both pronunciations. Celtic-seltic is listed first because it is used by the majority but the other is also acceptable.
I admit that I little patience with people who insist that their preference is "correct" when others are valid.
I, too, have served on the editorial boards of publications. Often rules are set down by the publisher that demand hewing to one or another usage. Some English language newspapers here in Canada demand North American spelling (honor) while most demand British (honour). Most use Oxford spelling for recognize, but letters to the editor are accepted with recognise (Oxford is out of step with most Britons on the "zed" but persists- a departure from their general policy and, I believe, wrongly insisting on an upper class (in Britain) educational practice).

I have worked (thankfully no more) with scientific publications; some are strict, others will accept variance. I tended to accept variance as long as grammar and meaning were clear and usage was consistent throughout the paper. Sometimes one peer would scrawl his preferences over a Ms. copy while another would do the same with his copy; this would have to be reconciled apart from the merit of the article. Thankfully, reviewers of this ilk are few and and tend to receive only short articles or those that the editor plans on rejecting in any case.