The Daily Alaska empire Newspaper, May 7, 1946, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” —_———— VOL. LXVIL, NO. 10,264 JUNEAU, ALASKA, TUESDAY, MAY 7:7946 MEMBER ASSOCIATED PRESS PRICE TEN CENTS ALASKA APP ROPRI {COAL STRIKE IS TYING UP INDUSTRIES 'Brown-Out;,?. R. Traffic Reduced, Steel Plants Closing Is Result (BY THE ASSOCIATED PRESE) The 37-day-old bituminous coal strike affected the nation like this today: ! Miners—On strike are 400,000 | AFL United Mine Workers and 18,- | 000 Progressive Mine Workers (In- dependent) in Illinois. Brown-Outs—Washington,* Chica- €0, Philadelphia have dimmed their lights with Detroit expected to fol-| low suit tomorrow. Several states rationing or prepared to ration electrical power. Railroads—Nation's top railroad ! systems to limit service Friday in compliance with government's 25 percent reduction order. At least 11,491 in this industry already un- employed from coal shortage. Steel—This vital basic industry creaking slowly toward full stop with coal reserves melting rapidly. At least 84,000 already unemployed with U. S. Steel Corporation heav- dest sufferer, reporting 39,000 idle in its Pittsburgh and Chicago dis- trict plants. | Other Industries — Many plants shut down, others ‘curtafled and planning to close because of fuel! «shortage. Altogether, more than 178,000 workers furioughed ‘in coal- using industries, including steel. KENTUCKY COAL MINERS BATTLE; 2 DEAD, 5 HURT' HARLAN, Ky, May 7.—~Two men were killed and at least five others were wounded in an early morning gun battle today ketween Progres- sive Mine Workers and United Mine Workers at the International Har- vester Company’s captive ecoal mine at nearby Benham. At Frankfort, Col. John Baker, chief of the State Highway Patrol, identified the dead as L. A. Brock, +Willins, Ky., and Joe Shepherd, El- comb, Ky. Neither was employed at the Benham Mine, a Progres- sive Mine Workers operation. The Washington ) TRAVELING SHOWGIRLS — Giri riders of the 101 Ranch circus are cozy inside their bie trailer which is equipped with a light plant, shower, kitchen and lauadry. RUMANIA GETS OLD BORDERS Foreign Ministers Are in Agreement on One Issue, | Stalemate on Another | PARIS, May 7. — The Foreign Ministers Council agreed today to grant Rumania her 1938 bounda ies with Hungary and Bulgari: but recessed in complete disagree- ment on questions of Danube nav- ijgation and freedom of access to the Black Sea country, a British| source said today. | The bcundary decisicn gave Transylvania, disputed by Hungary,| to Rumania and restored the boun- dary as it existed before the Hitler| and Mussolini-dictated settlement at Vienna during the war. The de- cision also restored Dobrudja, dis-| puted by Bulgaria, to Rumania But the disposition of Bessarabia, which was annexed by Russia at the time of the Rumanian surrend- er in 1944 and which, in fact, had been occupied by the Russians in lan independent settlement in 1940 Merry-Go-Round | before Rumania entered the war, By DREW PEARSON was not mentioned by the Minis | ters. Presumably its status remains { unchanged, therefore. (Note—This is the second in the series of Drew Pearson’s expose of the behind-the-scenes Bitter Argument | What was described as a bitter lobbying against price control.) | argument arose between British chreign Secretary Ernest Bevin and | U, S. Secretary of State James F‘,; | Byrnes on the one side and For- WASHINGTON—For some time |€ign Minister Molotov of Russia on Maj. Gen. Graves Erskine, ex-Mar- | the other when Britain and Amer- ine fighter on Iwo Jima and now‘ica insisted on freedom of naviga- .pead of the Labor Dep“mem-sibion of the Danube, vital commer- Keemployment Administration, has‘cial artery of southeastern Europe, been trying to get more clothes for |and on freedom of trade veterans. To this end he asked Civ- | nations in Rumania. flian Production Administrator John| Molotov said the Soviet delega- Small to shift wool manufacture tion was “not interested” in d!s-‘ from making so much fabric for |cussing the matters and that me: women to produce more for men, iinisters should pass on to the | Fabrics for women’s clothing bring |next item. ¢ higher profits, and the wool indus-| The British Embassy, announcing, try has been concentrating on/{ the offer to take all militarxx_naval ihem. |and air forces from Egypt, said the General Erskine thought he had Move was preliminary to negotia-| it all arranged with OPA Admin- | tions fer revision of the 1936 Anglo- sstrator Small to issue an order re- | Egyptian treaty of alliance. : garding this. But he didn’t count, The announcement, made with ¢n charming wool lobbyist Arthur‘_the concurrence of Egyptian l’rem-3 Besse. Besse, head of the National|l€r Ismail Sidky Pasha, said ar-| ‘Association of Wool .Manufacturers, | fangements are to be made by the is net only & New England blue-| EgYPtian government to make pos-| blood and Treasurer of the North | sible in time of war or immmem1 American Yacht Racing Union, b“t}threat of war mutual assistance i 2 smooth and convincing talker |accord with the treaty. V-E DAY'S FIRST ANNIVERSARY IS TOMORROW WASHINGTON, May 7.—Tomor- rew is V-E Day. A year ago on that date, Presi- dent Truman proclaimed the “Final and unconditional “surfender” of Germany. Surrender papers actually were signed two days earlier and formal hostilities had ceased on the pre- ceding night, However, May 8 nized by tke nation as V-E (Victory in Eu- rope) Day. has been recog- CHURCHILL HAS DIRE WARNINGS LONJON, May T.— Winston Churchill declaréd today “The su- preme hope and peime epdeavor” toward achieviiig lasting peace ‘“is to reach a good and faithful un-: derstanding through the ism of with Soviet Russia agency and organ- the United Nations.” “Only in this way can catastrophg be avoided,” he said. The wartime Prime = Minister spoke at a ceremony giving him the freedom of the eity of West- minister, the section of London em- bracing the houses of Parliament and Westminster Abbey, Churchill asked the world the Armed Forces and, i to “white” FOUR STATES 60 T0 POLLS INPRIMARIES Polifical Ation Committee of CI0 Expect fo Show Strength (BY THE ASSOCIATED PRESS) i Primaries in four states rang up ithe off-year election curtain today, and in two of them the CILO poli-| |tical action committee sought to| demonstrate its continued effective- ness at the polls. Top interest centered in the four- cornered race for the Democratic | Senatorial nomination in Ohio and {tke two-man contest for the Fifth ! District Alabama House seat—both featured by PAC activity. ! Indiena and Florida also held primaries. In all, the four states iwill select candidates for two Sen- ate and ‘49 House seats in Con- gress. Two gubernatorial nomina- tiohs also are at stake. Advance indications pointed to. a generally light vote. Ohio, In- diana and Florida reported less than lukewarm interest on the part of the voters. In Alabama, how- ever, heavy registration, particu- larly by war veterans led to ex- pectations of a record primary vote. The Alabama and Florida ballot- ing was noteworthy because Negroes were voting officially statewide for the first time in the hitherto primaries. But neither ponder “What happens if the United state expetted much of a Negro Nations themselves are sundered by vote. an awful schism, a clash of ideal- ogies and passions?” “Failure to find the answer,” he Ohio and Alabama. ‘said, “may lead the whole human be able to gauge how important a for allirace into a new period of misery, factor the organization is apt to |slaughter and abasemient more ag- be in this fall's national election.” ‘onizing and fatal than thoss which! have twice been endured in the lifetime of most of us.” He spoke of the possibility that the British Empire might “pass away” and recalled that voices quit India’.” : “All the world should consider deeply what the congequences would | be should the Empife die and thus leave a void,” said Churchill, who, during the war, declared he did not propose to preside at a liquidation of the Empire. STOCK QUOTATIONS NEW YORK, May 7. — Closing quotation of Alaska “some | bid us ‘quit Palestine and' 1 | | {tive _founder Politicians gave their main at- tention to the showing of PAC in ‘They hoped to e FIRING SQUAD ENDS LIFE OF - ANTON MUSSERT THE HAGUE, May T7.—Anton Mussert died before a firing squad today for high treason. Befere his executicn, the diminu- and leader of the Dutch Nazi party bade farewell to ihis imprisoned followers, who click- ed their heels, stood at attention and addressed him as “Leider.” The ASSERT TAXES ON ALASKA INDUSTRY NOT HIGH ENOUGH Two Largest Businesses in Northland Pay “Inade- quate” Sum, Claim WASHINGTON, May T7-—Alaskan on industries were termed | “inadequate” during hearings on | the Interior Department Appropri- I ations Bill. Ike P. Taylor, Chief Engineer of the Alaska Road Commission, tes- tified that the territory's principal source of income was taxes on the ;almon fishing and mining indus- iries. The récord of the hearings was made public today. “They (salmon packers) do about $60,000,000 business in fishing and | contribute $1,000,000 in taxes,” Rep.- 1 Kirwan said. ) “At leas. $10,000,000 should go back to the Government in taxes, | the same as would be done in the 1:;::1!95 If they levied taxes in Al- aska as they do in this country, | Alaska would have almost all the | money she wants to develope that | country.” i Question Asked Taylor said that was true but {the companies also paid income taxes to the Federal government. He said gold mining companies | paid less than a million dollars a yer in taxes, in answering a ques- | tion by Rep. Rooney (D-N.Y.) { “But the fact still remains that !thesp are the two largest. business- |es or industries in the territory tlnd that the people of Alaska have {failed, through their legislature, to |make them pay their way, is that oy right?” Rooney asked. “Yes, that is true,” Taylor re- plied, “but I am not gualified to say what they should pay. I am only aFederal Bureau official up there.” Laxes | { | | | Tax On Liquor Rep. Johnson (D-Okla) said he believed there should be local tax- es on liquor and asked Gov. Ernest Gruening to explain what was be- ing done to raise taxes in Alaska. Gruening replied the territory nad only 75,000 people. “I think you will agree that I have tried and will continue to try to urge that the territory contri- bute more,” Gruening continued, “but I submit that the development of that area is beyond the capacity of 75,000 people, of which three- sevenths are poor Indians and Es- kimos.” Money Goes Out The Governor said the Federal Government nad collected $16,000,- 000 in income taxes frcm Alaska and had “poured nearly $3,000,000,- 000 into the national ¢conomy “in its 75 years of existence. He said very little of that amount had stay- ed in Alaska. “I think we should keep more of it. there,” he said, “and plow it ALASKA RAILROAD NEVER BUILT FOR SPEED IN TRAFFIC General Ma—rfier Johnson Testifies at Hearing on Appropriafions WASHINGTON, May 7. — Hopes of Alaskans for a mddern railroad are “out of the question and will never be possible” because the Al- aska Railroad was not built to handle high speed traffic, Col. John P. Johnson, General Manag- er of the road, told the House Ap- propriations Committee back,"” ment Appropriations Bill. In testimony made public today, Johnson said the road was con- structed at the cheapest possible| cost and followed the lines of least resistance. Curves along bays and ATIONS during, l:earings on the Interior Depart-/ — - T T MR T Inferior Department s | ! WASHINGTON, House May T7—The Appropriations Committee recommended an unpreced- of nearly 50 percent in the Interior Department's budget for the fiscal year starting July 1. Without mentioning the name of Harold L. Ickes, who resigned re- cently as head of the Department, the committee assailed what it call- ed “inefficiency and gross extrava- gance in certain agencies” and de- manded that the Department “place its House in order.” “The time has come,” the com- mittee said in a report sending the 1$174,652,579 measure to the House 'floor for debate tomorrow, “when expenditures must be curtailed to the greatest possible extent to the end that there will not ke consis- ~ Told fo Get Housein | Order; Scoring Given tently mounting appropriations for ' the various bureaus and agencies.! It said it was “hopeful that un-/ der the dynamic leadership” of the, new Secretary, J. A. Krug, the Department “will be placed on af more efficient basis and that he will replace inefficiency and ex-' SUBMITTED ROAD FUND TRIMMED INREPORT House Committee Presents Allotment of Money for Northern Agencies WASHINGTON, May 7. — The travagance in certain agencies with House ~Appropriations Committee economy and efficiency.” has trimmed funds for road con- The $174,652,579 the committee giryction, repair and maintenance recommended for the Department is g, Alaska from $3,790,400, as re a reduction of $172,113251 from .onimended by the Budget Burea: budget bureau estimates and $24,- to $2,252,900 and added an amend- 201,248 below current year funds. | pene"which would require the Ter- Every agency and bureau of me'mory to put up one-fourth of the far-flung Department which oper-{cm‘ of its road surveys, plans and ates from Maine to Alaska toi .o construotion, 2 1 Hawali felt the effects of the com-| mittee's slashing, sharpest dealt to! H::; c&‘;‘:‘"‘;‘fl ':rlr;:l‘:::edl: m: oy department. Interior Department Appropriations | Bill for the fiscal year beginning tJuly 1. ' . : i ! a I o c es In ase i The action was taken after Com- | P mittee members had complained O0f Dr. Ruth Given OutinTesfimeny WANTS ALASKATO MATCH FED. FUNDS WASHINGTON, May 7—Alaskan officials were told by Rep. John-| son (D-Okla) ‘during hearings on the Interior Department Appro- priation bill that some members of |the House Appropriations Commit~ tee feel it is time the Territory matches, on some basis, Federal | funds furnished it for road work, Johnson, chairman of the sub-| |committee handling the Interior Bill, recalled that the House Roads committee, after investigation of the Alaska highway system, said it did not feel like being liberal with (Federal funds in the Territory un- til Alaska is ready to match those funds as is done by the States. He added the matching need not be on the same basis as in the States. “It is the feeling of some mem- bers. of this committee that here- after the Territory must match on some kind of a basis any Federal funds that are expended in Alaska,” Johnson said. “And it occurs to me should the Territory decide to do that, is might be an inspiration to this committee to be much more liberal so far as road consiruc.ui is concerned.” \ ! The record of the hearings was made public today when the bill was |reported to the House. No Discrimination Witnesses brought out that Alas- ka is not included in distribution of Federal Road Funds as are the States and Gov. Gruening said the Territory would have received & much larger sum if it had been |included. Johnson replied he did] inot want to see either Alaska ori | Federal government discriminated’ | against. H | Gruening said Alaska was the lonly State or Territory which has |been excluded from division of the, iroad funds. He asserted it had been! ‘“uniquely discriminated lgainst."i | “If Alaska is road minded,” John-: lon a program of road building and |road improvement, then the Terri-| tory evidently will be willing to do {more about it before it calls on the | Congress to build additional roads.” Appropriation Sought | Alaskan officials asked for $3-' {790,400 for road work during the next year. The current year's ap<: propriation is $2,751,500. Ike P. Taylor, chief engincer of, {the Alaska Road Commission, tes- tified that the Territory has con- {during hearings that Alaska was | ot contributing a fair sum to im- | brovement of its road system. Gov- | ernor Gruening had testified the ; Territory had contributed ome- i fourth of the cost in the past and | the Committee sald it accepted his figures. Gruber Is Equipment Transfer WASHINGTON, May 7.—Rep. Jed | The Committee authorized trans- Johnson (D-Okla), chairman offer to the Interior Department of the House Subcommittee on Inter-'wayr Department ' bulldings and ior Department appropriations, ques- equipment now : & tioned witnesses at length, during Road Commission a hearings on the Department's ap- i i for maliige propriation bill, about Dr. Ruth Gruter, ‘publicist, a $6,000 a year Yor employee of the Alaska Raflroad. Testimony from Department and Alaska Railroad witnesses indicat- ed that until she left the railroad last December she was the highést paid employee of the road except the general manager. Col. O. F. Ohlson, former gen- eral manager of the railroad, testi- fied Dr. Gruber was assigned by Secretary Ickes in 1941 to make a study of Alaska and assist In its! culture, mining and other enter- prises may be undertaken. It said. of the w&l appropriation tl.M) 4 was for surveys, plans and new roads and that no part of the funds was for use outside of the Territory. For Law Enforcement ‘The Committee approved appro- was construction of lditlo £ m’-dlwmnuplnnvbw development. ' priation of $8,060 for two additional Ohlson said she went to Europe lay enforcement employees of the during the time she was on the ynqian Bureau and recommended (up to $2,750 payroll and arranged to bring refugees to Oswego, N. Y. ' “You might be surprised, Colon- el,” Reps Johnson told Ohlson, “that the. Secretary of the Interior act- ually had the gall to ask President Truman to give the.lady a Presi- dentfal decoration for bringing, those refugees to America.” ! Col. John P. Johnson, present! general manager of the railroad,’ told the committee he would not put anyone on the railroad’s pay- roll unless that person performed ; services. i | AIR PILOTS T0 STRIKE, MIDNIGHT i 1 Truman Is Infervening ‘toi Avert Walkout of One | Thousand Men | WASHINGTON, May 7.—Presi-| dent Truman today intervened to: son said, “and is ready to embark avert a scheduled midnight strik> o o4 of 1,000 airline pilots employed by/| Transcontinental and Western Air,; Inc. He set up an emergency to investigate a dispute betwzen TWA, 12 other airlines and the Airline Pilots’ Association. Crea-' tion of such’ a board, under the Railway Labor Act, normally halts strike action. i The two pilots and co-pilots are| demanding wage increases ranging additional board ! that one of them be assigned to cover the -aren in which the Indian village of Cfrcle s located. It sald it was advised that one large store in the village sold more liquor to the natives than it did groceries, wearing appatrel and other necessi- ues of life. The Committee ‘which eliminated all funds for surveys by the Gen- eral Land Office, except $50,000 for work in Alaska said veterans and others who. wished to homestead there should have the benefit of prior investigations into land use. ‘1t refused funds of $1,250,000 for jconstruction of a lodge, dock and {warehouse in the Bartlett Cove jarea of Glacler Bay National Mon- ument but approved $331400 for commercial- fisheries in the Terri~ tory and $3,084008 for the Alaska Native Service which was $180,000 less than requested. The amount included funds for additional ser- vice pay allowed in Alaska, educa- tion of Natives, conservation of health, welfare and relief and ¢on- servation of ' resources. They pre- viously had been carried ' under separate headings. For Minfield Home . The Committee recommended that the I . Service extend such &id and tance to Minnie Field who operates an orphanage near Juneau and said the Bureau “encourage and assist this kindly &nd motherly matron” to continue the institution where 45 children are cared for. It paid high compliments to Don C. Foster, General Supefintendent of the Al- " (Continued on Page Two) Seal Patrol ¥4 ance of the Alaska Highway, Tt' | He talked Mr. Small right out of, A Withdrawal from Egypt would Juneau mine |execution was in a little village | | " Ry % rivers, he said, run 10, 12 and 14/structed 109 miles of road en!lrely‘; the order transferring more woolen 'emove the British forces nearest|stock today is 8%, Alleghany Cor-|outside of The Hague. | degrees whereas those on railroads | with funds appropfiated by theI In addition to TWA, the other fabrics to men’s elothing. |the Suez Canal, a link in the Bri-|poration 6%, American Can 92, General Erskine was only train- tish supply line to India, Austra- Anaconda 46%, Commonwealth and ed to fight Japs on Iwo Jima. He lla, Malaya and New Zealand. Southern 4%, Curtiss-Wright 7%,! nadn't reckoned on the wool lobby. Other British forces, however, areinternational Harvester 91%, Ken- The veterans were out of luck. { WNOLVES IN SHEEP'S CLOTHIN in Palestine, Canal Transjordan | {stationed north and east of the necolt 57%, New York Central 273, Northern Pacific 30%, United Cor- rand Iraq. These forces include all|poration 5%, U. S. Steel 84, Pound While Besse has done a good job | branches of the services in Pales-| 84031, lobbying to cut the heart out of OPA, even busier for the wool lob- | (Continued on Me Fouir) tine, personnel serving with the Arab Legion in Transjordan and RAF bases west of the Euphrates River in Iraq. Sales today weré 1,350,000 shares. Dow, Jones averages today are as follows: industrials 20354, rails 63.96, utilities 42.80, g under foreign dominatior, aiding the enemy and seeking to overthrow lawful authority. Hitler maintain- mercy yesterday. B Of the nine provinces of Canada, seven have a coast line water, his plea for on salt Mussert, 52, was convicted Dec. in the United States run not more legislature at. a cost of $583,465. 12 of attempting to bring Holland than three and in some cases four |He gave data to show that Xmm; | degrees. Wants Diesel Power “That means,” the General Man- ed him in power during the occu-|ager sald, “you cannot speed up|total the Federal government had |pation. Queen Wilhelmina refected | your gperations to any noticeable|put up $41,643,900. |degree with such curvatures. But it can be speeded up with diesel power for the reason that steam (Connnuéd on i’uge Three) " 11905 to June 30, 1945, a total of} 1$52,353,648 had been spent on thej | Territorial reads and that of the Gruening urged more liberal ap-| ]propruuons for road construction |in the Territory and said the last! |session of the legislature had ap- propriated $575,000 for such work. companies involved are American Airlines, American Overseas Air- lines, Braniff Airways, Chicago and Southern Airlines, Delta Aflr Corp., Eastern Airlines, National Airlines, | Northeast Airlines, Northwest Air- lines, Pennsylvania Central Air- lines, United Alr Lines and Western Airlines. - —- - A Cardinal never wears his fa- mous pontifical red hat. annually,, shorter working hours and umeri g concessions. ' | | SEATTLE, May 7—The Coast ' Guard today its “Seal Patrol” was back on the job for the first time since the outbreak of the war, protecting :u annual northward migration of the fur seals. During ,the war the animals made their an- nual ocean ©ru from Mexico to the Pribllof Islands off Alaska without escort.