The Daily Alaska empire Newspaper, July 6, 1946, Page 1

SATURDAY 1 P.M. Edition “ALL THE NEWS ALL THE TIME™ THE DAILY ALASKA EMPIRE SATURDAY 1 P.M. Edition VOL. LXVIL, NO. 10,315 JUNEAU, ALASKA, SATURDAY, JULY 6, 1946 — * MEMBER ASSOCIATED PRESS PRICE TEN CENTS WAR PROFITS SCANDAL REVEALED CANADA PUTS | DOILAR UPON PAR WITH U.S. Surprise Move Taken fo| Meet Threat of Rising Prices Across Border —_— | OTTAWA, July 6.—The Cana- dian government, in a four-point| program des'gned to combat the threat of rising prices in the Unit- ed States and to ease the pressures| of inflation, has pegged the Cana- dian dollar at par with the U. S.| dollar and strengthened Canada’s| PRECIOUS “CARGO," n the arms of Barkley Urgg Comprom- ise Bill Be Kept Infact —But Has Doubts WASHINGTON, July 6.—OPA’s senatorial critics counted today on a powerful - off - with-meat-ceilings drive to crack open the compromise bill to revive price and rent controls. Spearheaded by Republican Sen- ators Taft of Ohio and Wherry of Nebraska, this fresh attempt to tie down OPA, even if it wins new life, gained the influential support of Democratic Senator George of Geor- gia, George told reporters he favors leaving meat off of the lists because he thinks most of it would go back into the black market the minute controls were restored. “We are going to have meat short- age,” he declared, “but it is better to get rid of the controls and the black market that goes with them than to attempt to set prices.” With the Senate in recess until Monday when it will take up the isputed revival bill Democratic leac- er Barkley (D.-Ky.), forced out of the - Banking Committee, OPA op- ponents maneuvered to force the' first test vote on the meat issue Taft said he felt confident enough Democrats would go along with Re- publicans to write the meat exemp- tion into the bill, despite conten- tions by administration leaders that such a move might precipitate an- other Presidential veto. Wherry told a reporter it is his Jjudgment that if the Senate refuses to kill meat controls, it won't accept any other amendments to the bill on which Barkley is standing firm despite criticism of some of its terms by OPA Administrator Paul Porter. Barkley and Chairman Wagner (D.-N.Y.), of the Banking Commit- tee, expressed hope that the Senate will stick by the committee-approved measure. But they obviously had doubts about their ability to beat off the meat amendment, offered in dif- fert forms by Wherry and Senator McCarran (D.-Nev.). T S P T Byrnes, Bevin Have Private Talks at price control structure. Finance Minister J. L. Ilsley, who outlined the program to the House | prise annourcement in which he referred to the recent abandonment of price control in the United| States, said he hoped the new mea. insulating Csnada against unfa-| vorable external conditions and| easing the inflationary pressures which now are so strong.” authorized agents of the Exchange Control Board will buy U. S. dollars - at $1 in Canadian funds, instead | . of at $1.10, and will sell at $1.00 |0PA Foes Alm buying price for pounds sterling is fixed at $4.02 instead of $4.43,, and the selling price at $4.04. The| new rates became -effective at 7| This means that Canadian firms holding U. 8. dollars—such as ho- tels, cafes and the tourist trade— will suffer a loss of 10 cents on| cvery dollar they are holding and | American tourists will get only a stead of $1.10. . 14 U. §. Soldiers Jail in Frankfurf —Military poiice searched the Am-| erican zone of Germany tonight for 14 escaped American soldier- prisoners following the fifth jail| U. S. Army’s stockade at Wuerz- | burg. | Three soldiers, the Theater of Provost Marshal’s Office reported, | 3 by slashing a gap in a barbed | wire fence. In four previous breaks, 32 soldiers escaped. Seventeen of these have been recaptured and 11 The Washington| By DREW PEARSON to ‘the newspapers, but President | Truman attended an interesting| vrivate dinner party the other pight—a birthday " party in honor sury, John Snyder. John was fifty years old, and his new assistant, Detroit's affable Republican Arthur Gardner, gave ner was a little nonplused when she heard that the President of the | United State. was coming. “Now, we've got to have a lot Also, she hadn’t counted on the Becret Service. They came a day early and insisted on inspecting every corner of the Gardner home | the house next door belonging to! Prince Pigmentelli, who was away for the summer, and the house of broker George Garrett, in order to| side. Delightful Mrs. Gardner, how-| ever, is a resourceful lady—in more ways than one. Her father drew up | p H ( ' aris Lonierence Ford when Fo:d first started mak- S S ing autos, and was paid in then PARIS, Juiy 6.—British Foreign worthless Ford stock. Mrs, Gard- | Secretary Bevin joined Secretary of ner’s father was also smart enough |State Byrnes at the latter’s hotel Eighteen guests attended the|in their series of private talks. dinner, including Senator Barkley,|Byrnes later conferred with Dr. who, because of his wife's illness, | Tsien Tai, the Chinese Ambassador, at the American delegation’s head- of Commons last night in a sur-| sures would “go a long \Uay toward Henceforward, banks and other instead of at $1.10%.. Similarly, the New Drive at p.m. (EST) last night. | dollar’s worth for their dollar, in- FRANKFUF1, Germany, July 6. break within a few weeks from the | broke out of the guarded camp July are at large. WASHINGTON—It didn't get in-| of his new Secretary of the Trea- him a party. Vivacious Mrs. Gard- of protocol,” she half-protested. and garden. Also, they opened up make sure no one was lurking in«; the corporation papers for Henry | to hang on to the stock. | shortly after noon teday for another quarters, (Continued on Page Four) PRETTY BUNDLES FROM BRITAIN | from the transport Holbrook after it docked in New York following a trip from Southampton, England. Wife of a GI; Mrs, Foresto and the ten- weeks-old twins, Marie and John, are headed for Boston. (International) VETO SHADOW * (LOUDS CALL T0 CONCLAVE Soviet Insistent Peae Con- ference Be Mere ‘Rub- ! % ber Stamp’ | PARIS, July 6.—British-American | | opposition to a Russtan demand that the Big Four prescribe rules of pro- | cedure for a general European peace | conference this summer blocked ef- | forts of the Foreign Ministers’ Coun- ! 1 today to convoke the 21-nation | !conclave on July 23, the date al-| ready fixed. | Both Secretary of State James F, | Byrnes and British Foreign Secre- | tary Ernest Bevin contended, | throughout a stormy four-hour ses- | sion last night, that adopgion of the Soviet proposal would reduce the peace parley to “rubber stamp” sta- tus but Russian Fo 1 Minister Vyacheslav M. Molotov adamantly | maintained his position With the shadow of the big power veto clouding their efforts, the min- isters convened again today for re- newed discussion of the problem ' in another effort to prepare and transmit the necessary invitations ! for the peace conference to the 17! cther nations. { Conversations with members of the American delegation convinced observers that the basic motivation Mrs. Margaret Foresto, is “unioaded” Redin fo Take Stand for Spy ~ Charge Denial Soviet Naval Officer Is Ex- | pected fo Assail Hand- ling by FBI SEATTLE, Ju]s_-s—rNiculai Gregor- | vich Redin, 30, Russian Navy lieut- enant, may take the stand today to deny the U. S. government's; charges that he obtained and con-| spired to obtain confidential data on the U. S. Navy's new-design FAMILY TARGET | The defense laid the groundwork‘Au'hor H|ms Mussohm for Redin’s account of his treat- ment by the Federal Bureau of In-| sididll 5 Connection in Leftist Paper Article vestigation at Portland, Ore., last| LONDON, July 6—Britain’s news- for U. S. policy was a desire to throw international problems into an arena where the big power veto could not be exercised. These sources.said that without the veto of the western powers have the votes to beat Russia on a con- flict and that Molotov realizes this, which is the reason for his inst: ence that the Council—where he has | veto power—dictate the rules for the peace conference — where he does not. > - BRITISH ROYAL March 26. Ivan Zakello, a marine chief engineer, who also was at-| tached to the Soviet Purchasing commission was clesely questioned on direct and cross examination & about the arrest. | papers and 1adio newscasts toda : 1gnored ar L y or-histor- He said the lieutenant, in Navy . NG I Bubhor-his ian H. G. Wells on the Royal family. automobile at a Portland pier whore| WeUs Faised the question whether N i < | the monarchy was involved in pay- both men intended visiting surv = nasts whioh oA i SE i ors of the wrecked tanker Donhass,“ o Abdl 5Dvem.mex :l“ l) When FBI men closed In and arvest- | ¢! a6 declured were made by ed the lieutenant. Zabello, tesu-?Menl £ Bu_siw o Y P YA fying through an interprater, said\m:f: et)hve ;::h Fnecint Jeader, be- the affair caused Zabello to miss - | “Wells' article was published in a train for Long Beach, Calif, where Le had been ordered in con-|the Socialist Leader, a compara-, nection with Russian ship repairs.| tvely obscure weekly paper of the The black portfolio, which gm,_\cxtreme leftwing Independent La- ernment witnesses testified Redin' POr Party. | carried on visits to the Soviet Pur-| Buckingham Palace declined com- ! chasing commission office at PO“_;I’REHL However, Sir ch_k Alexan- |1and, following the dates on which|der, Keeper of the Privy Pul |Herbert Kennedy, shipyard engin- When asked if the Royal famil eer, testified he gave Yellowstone had aided Mosley, exclaimed, "My |data to Redin, was introduced as an | God, no!” |exhibit late yesterday. Wells' secretary said he had no | Zabello testified that it contain-|further comment. jed no documents, secret or other-| Douglas Rogers, editor of the wise. He also denied the lieuten-'Socialist Leader, said Wells was iant had planned to flee the United| “an occasional contributor” to the |States at the time of his arrest. |periodical, with articles appearing | | twice or thrice yearly. Rogers said | he discussed Wells' criticism of the | R | ‘pRESIDENT OFF o" | Royal family before the author ! | composed the article and that he | GETIYSB“RG v’sn‘:was confident that “Wells would | En(n have asked the questions he |did (concerning Mosley) without i THURMONT, Maryland, June 6.— | some good basis.” | President and Mrs. Truman will be| Rogers added that he regarded lon their way shortly to historic| the 79-year old Wells as a writer :‘Gell,vsburg for a brief visit. ‘The|of international reputation and be- President has refis2d to allow anylieved he had given the matter fuss and bother during his visit to|serious thought before writing the the Civil War battleground. | article. | The Gettysburg trip”Will almost; The article offered no proof as a Iccmplele Mr. Truman’s long July|basis for the questions raised on {Fouth weekend rest. He has been activities of the Royal family. hiking along mountain trails twice ja day from his Shangri-La re- !treat near here, having a daily |swim in a nearby mountain pool. | Following the Gettysburg visit, |President and Mrs. Truman will uniform was just alighting from his — e FROM WHITE MT. W. J. Robertson is in town from White Mountain and is stopping at the Gastineau. ROYAL FUNK HERE Royal Funk of Taku Harbor, is a guest at the Gastineau, return to the Mountain lodge, and Mr. Truman plans to be back at his White morning, House deck Monday RECORD BROKEN AT WEST POINT GRADUATION THE BIBGEST DAY IN THE LIVES of the U. S. Military Academy, West lieutenants and degrees of Bachelor of Science. When the picture was taken, Secrefary of was giving the diplomas on platform at right, while a huge crowd watched the ceremony. Number i Probiem of War thai May Never g (omel UPSWEEP [S REFLECTED BY STOCKS Spedacula; lgise for Some Commodities - Others Hold Fairly Steady NEW YORK, July 6.—A sharp and sometimes spectacular upsweep in a number of commodity prices stood out today as a salient feature of the nation’s first OPA- less week since early 1942. A survey of what actually has happened since price controls laps- ed at midnight last Sunday showed retail that while prices in many lines held fa y—meat, but- ter and milk being frequent excep- tions — these developments spot- lighted the wholesale commodity markets: Flour at bolis mped from $3.34 to $4.80 per hundred pounds. Cattle at Chicago soared from a standing L of $18.00 per h dredweight to an all-time record high of $2256 before slidi back to $22.256 under a flood of receipts. Hog prices at Chicago broke all record since 1919 by advancing m $14.85 hundredweight a week ago to $18.50. At the closing yesterday prices were back to $16.00 as hog receipts leaped from 2,500 one Friday to 30,000 the next. .- Industrial Property InEastern Ausfriain | Soviet Hands Now | VIENNA, July £—The Russian mmand in Aus has announc- | ed that $200,000,000 worth of indus- trial property in eastern Austria 1s passed into Soviet ownership. The announcement said that all other external German assets in the area had been taken over. The! action was taken by Russia wnhuut‘ consultation with her war allies. | The Australian cabinet has been called into a special meeting as a, result of the move. And the Com-| mander of American fo in Aus- tria, General Mark Clark, has sent| a | Mother 875 young men is-pictured above as graduation exercises were held at Point, N. Y. A record number of Cadets received commissions as second War Patterson (International) ATCM CONTROL REACHED ONLY s Polar Defense BY LONG ROAD SAN FRANCISCO, July 6.—Polar Defense will be the No. 1 problem in “the war we hope will never ccme,” General H. H. Arnold, re- tired wartime commander of the | Army Air Forces, told the Common- | wealth Club. | Areas of Di;s;l't Have Now Been Charted by UN Working Committee “War-making nations are all north l NEW YORK, July 6. of 30 degrees north latitude,” Arnold 'Natic Atomic confer said. “Study your globe and you will complete the first ph see the most direct routes are not deliberations by next weekend across the Atlantic or Pacific, but it was apparent today that through the Arctic. jatomic control could be established “The United States is the most only after long, painstaking prelim- -The Urited hope to of their but world 4 i vulnerable of the nations with new inaries. 1 weapons employed along this route.| Four hundred to 600 atomic bombs . ery optimistic view” would could abeut paralyze the United support the idea that any concrete States. atomic program may be ready for “Add the advances in weapo subm bombs, electronics, sonics, manless in time for action at the month-or- aircraft and winged warheads, and longer meeting of the General the atomic bomb equal to the bomb Assembly scheduled to begin here load of 400 B-29s, and it makes war Septemker 3. a serious affair — too serious for —pn. ynited States delegation said mankind to (""l: Wil 'that even after the adoption of We cof the United States must ;¢ omic controls “the process of build up our organization for the pyting them into effect will nec- future so that there will be no more arily extend over a considerable wa Y period of time.” “Our armed forces must build their own scientific and technical branch- es. Dollars don’t mean anything now But the time will come when our armed forces will have to fight for every dollar they get.” O auth “1t staues would have to be done by and according to pre- rranged schedules based on sound and logical cequence leading to full and e establishment of all N cor 1 a memorandum from [hel i P rica aid [ cleared away thus far under the ia Ferei aced leadership of Australian n Minister Herbert V. Evatt sulted in a nearly complete charting a course through eas of mutual discent in the separate Unjted States and Russian plans for atomic control. Evatt bimeelf, after a strenuous two montbs as leader of the Au: tralian delegation to the Secu! ,Council and atomic groups, begins on Monday his last week as chair- CEREMORY S GN TOMORROY First Citizen of U. S. fo Be Declared Saint at Rome Observance ot ROME, Juy 6. A throng of man of the 12-nation atomic en- |some 40,000 Cathelics from Rome €rgy commission, its full membe; !and various parts of the world is sbip working committee and i expected to gather tomorrow in St. six-member subcommittee No. 1. Peter’s Basilica for the solemn - ceremonies meking the cancnization Resulis of Pearl of Mother Frances Xavier Cabrini, first citizen of the United States to ritative source said that | sion to the Security Council | (ongressman IsLinked With Munitions Co. Inquiring %Eflors Hear Testimony Regarding Kentucky Deal WASHINGTON, July 6.—The Sen- War Investigating Committee eceived testimony today that an llinols munitions combine advanced 348,634 in 1943 to a lumber company vhoge agent was Andrew J. May of >restenburg, X The testimony came from Edward schaffer, an accountant of the Gen- ral Accounting Office. The Andrew J. May he named was 10t immediately identified further. | | | l | ! ite Accountant’s Disclosures Schaffer said his investigations of he munitions combine in which Dr. Henry son was a prominent fig- | ure disclosed: { The Cumberland Lumber Com- pany was incorporated in Delaware June 15, 1943, with Garsson as Presi- |(lvm and Joseph Freeman, Murray i(;unsnn and Albert Levin as di- rectors. l A certificate filed with the Ken- ctucky Secretary of State August 5, 11943, designated Andrew J. May, lm-. stonburg, Ky, as a company lmwm on' whom processes might be served, Two companies of Henry Garsson's munitions combine—Batavia Metal { Products, Inc., and Erie Basin Metal { Products, Tnc.—advanced $48,634 to | Cumberland in 1943 for lumber { which was to be delivered later. An examination of the records of the companies as of last April show- , ed no lumber had been actually de- | ivered but that instructions had 1 been given by Batavia and Erie that !boxing lumber was to be stored for them. { May Importunate { Earlier in the hearing, Army ord- nance officers testified that Rep. Andrew J. May (D.-Ky.), repeatedly had impertuned them to give busi- ness to Henry Garsson’s firms. May had said that he was merely {trying to speed the war effort. Before today’s session, the com- | mittee’s interest had been whetted |by testimony about costly parties, rare Scotch whiskey and the war> time influence here of the Illinois i munitions makers. ! > DEATH TOLL " ONHOLIDAY NEARS 300 | (BY THE ASSOCIATED PRESS) { { With traffic fatalities leading the list, the death toll from violent causes rapidly approached the 300 mark today (Saturday) as the na- tion celebrated an extended Fourth [nl July weekend holiday. Since 6. p. m. Wednesday 285 persons died violent cdeaths which |was below the estimated total made 'by the National €afety Coungil, It dicted that in the four-day holi- |day period, 1,300 persons would die violently, including 450 in traffic jaccidents, and of the 800 probably |killed outright, 275 would ke traf- |fiz fatalities. ‘ ‘Today's survey showed 136 persons ihad been killed in traffic accidents, 180 had drowned and 69 others died 1 ve declared a Saint, . (from miscelianeous causes. Only In addition to members of the Ha’bor I“qu"y io !six states — Arkansas, Delaware, Sacred College of Cardinals resid- {Georgia, Maine, Vermont and ing in Rome, the Cardinals of Mi-| lan and Palermo, some 25 Italian! Bishops and tne Apostolic Delegate Be Discgged Today WASHINGTON, Jul to the United States, Msgr. Amleto 6. — The Giovanni Cicugnani, have arrived Pearl Harbo: Investigating Com- for the ceremonies | mittee met this morning to discuss Nuns of the Missionary Order of a report fixing the blame for the Sacred Heart—founded Cabrini—also have the by surprise attack by the Japanese in come | 1941, here from America, England,| The Committee will look over the Trance and other countries. !(Irun of the report prepared by a The ceremony will begin at 8:15! sub-committe> which says it h am. (1:15 am. EST) and will be reached the issue of responsibili broadcast over the Vatican's radio| Congress fixed July 10 as the dead- - ander Rhod2» Island reported a clean islate of violent deaths. i pe | ALEXANDERS OUT T0 MAYO CLINIC { Judge and *Mrs. George F. Alex- ander are to leave Juneau by plane today, bound for Mayo Clinic, at Rochester, Minn., where Judge Alex- will receive treatment for the illness which has confined him messages of inquiry to both the station. {line for submission of the report. to St. Ann’s Hospital here since his Austrian government and Russian| The ceremony proper will end| * - ey |arrival from Ketchikan two weeks authorities, about 10 a.m., when all the bells| FROM SEATTLE 'ago. e of Rome's more than 400 churches| B i B Gar Ay, The caliber of a rifle is the in- Wwill ring, announcing Mother Ca-|{ Bill Hempstead and B. T. Mc-: It is estimated that inefficient terior diameter measured between| brini’s elevation to Sainthood. A|Camp arrvived here yesterday from vision causes five percent of all the lands, or raised parts in the bore between the grooves. Papal Mass to follow will end about | Seattle. They 12:30 p.m. ! Gastineau are staying at the industrial accidents, and 15 percent of all motor accidents.