The Daily Alaska empire Newspaper, July 11, 1946, Page 1

R R R R R R R R A ———EEE—— THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” —_—— VOL. LXVII,, NO. 10,319 GET CHESTY Democrats ENofhing But| Point fo Their Primary Voting Strength SEATTLE, July 11.—Somewhat timidly, Republicans thrust out their chests today after studying Tuesday’s primary election returns and noting their numerical edge in the state generally and in certain sJetions particularly. But like the little boy who was burned by the stove, they hesitate to move in and wax really warm about things. They remember the 19044 primary, when they outpolled the Democrats by more than 31,000 votes, only to be snowed under in the general election. Some of the more exuberant, however, point out that they won't be running against the late Presi- dent Roosevelt this fall, so for that | | oo "0y iont is Navy Captain B. W. Decker of San Diego, reason they are hopeful the lead they manifested Tuesday will hold or even grow by November. The Senatorial race apparently was the more indicative, but it did not show any housing over-all su- perfority for the G. O. P. Returns from 2,856 of the state’s 3,376 pre- cinets showed the combined Repub- lican vote cast for Harry Cain and J. Parkhurst Douglas totaled 155,080, against 152,289 for the three Demo- cratic candidates: incumbent Sen- ator Hugh Mitchell, Russell Fluent and Sam Herren. appeared the party stand- iiflarer with his 136,186 votes, compared to the 113,813 cast for Mitchell, who was running on his own for the first time, inasmuch as he was a Governor Wallgren appointee to the post when Wall- gren became governor after the 1944 vote. . The terrific First District con- gressional fight where incumbent Hugh DeLacy outdistanced Howard G. Costigan in a bitter campaign, showed a decidedly heavy Demo- cratic majority, but observers in- sisted that the vote merely indi- cated that many Republicans had crossed the argument. Complete unofficial returns for the 771 precincts showed tIy combined Democratic vote came to the peculiarly consisten figure of 66,666 for the five candidates; while the three Republicans head- ed by Homer Jones of Bremerton, polled 28,507. LeLacy placed first on his ticket with 28,228, Costigan received 22,- 208. Joseph D. Roberts was third with 12,297, he Washington erry-Go- Round By DREW PEARSON WASHINGTON—U. S. Army and ! Justice Department investigators in Germany have had some confiden- tial and highly significant talks with Hitler's former diplomats ln‘ Washington. Their amazing testi- mony should be of interest to ev- ery American as an indication how foreljgn propaganda can poison people’s minds. The testimony also happens to be of especial interest to this column. On Sept. 13, 1940, this column published certain facts sttange airplane death of Senator Ermest Lundeen of Minnesota; among other things, that Senator Lunhdeen had delivered speeches on the floor of the Senate written for him by a paid Nazi agent, George Sylvester Viereck; and that, at the time of his death, Lundeen under 1nvestigation by Justice Department. These facts were immediately de- nied by the then Attorney General Robert Jacks>n, and the column wa$ denounced on the floor of the Sehate by Bennett C. Clark of Missouri and Burton K. Wheeler of Montana. No U. 8. Senator, they sald, would think of bhesmirching the fair name of the U. 8, Senate ny delivering on its floor a speech written Dy a foreign agent. Mrs. Lundeen also threatened suit, and the Bloomington, I, Pantegraph, canceling the column, criticized it editorially as follows: “On the basis of mere popular- ity, if they were the sole standard (Continued on Page Four) line to get into the in the} the | | | | | | | i i | | ing " off JUNEAU, ALASKA, THURSDAY, JULY 11, 1946 MEMBER ASSOCIATED PRESS PRICE TEN CENTS hands with Mrs. Phyliss Tisinai Yokosuka, Japan, aboard U. S. S. A member of the Japanese women’s welcoming committee shakes ¥ of Chicago, after her arrival at Charles Carroll. Between them, Phyliss’ sailor-husband PM1/c Anton Tisinai watches with interest. Calif,, and his wife, who arrived aboard the transport. (AP Photo) NEW SLASHES IN | GOVT. EXPENSES, STEELMAN'S URGE Reconversion Direclor Makes Recommenda- fion in Report 1 By STERLING F. GREEN 3 WASHINGTON, July 11—Recon- version Director John R. Steelman | today demanded new slashes in| federal spending and pointed at the army and navy as the places to‘ cut deepest. with the 22 wives and children SHORT-CUTTED "E" AWARD I HELD BLEMISH Prize Plume Handed to Batavia Mefals Laid to May Infercession BULLETIN — Washington, July 11—President Truman told his news conference today that the Economy may be achieved there, | i Steelman told President Truman | and Congress, without hampering | cperations aimied at fulfilling worid cbligations, furthering American | interests and keeping global peace. While terming the revival of price control the No. 1 essential in ward- “costly and irretrievable” inflation, the veconversion boss said this action should be coupled with lower government costs, continued high taxes and credit controls, and, if poessible, federal budget sur- plus. LESS SPENDING Less spending by the civiliai agencies and postponement of pub- lic works would help to halt the flow of government dollars into private hands, Steelman said in his first quarlerly report as direct- or of the Office of War Mobiliza- tion and Reconversion, but he added: “If a major cut in the inflation- ary impact of federal expenditures is to be sought, expenditure plans of the ariny and navy must be re- examined 'n the light of the pres- ent need for anti-inflationory ac- tion.” by The artued forces, he said, has a 1947 budget which was intended to total $35,800,000,000 but which has risen an estimated 10 to 15 percent—to $40,000,000,000 or more. On the other hand, the civilian agencies—iegislative, judicial and executive—will cost “a little more than $2,000,000,000 or 6 percent of total expenditures.” If major econ- omies are to come, Steelman said, they “musi be sought elsewhere.” Three-fifths of the outlays of the army and navy are earmarked for purposes other than the direct pay-' ing, feeding, clothing, training and transporting of soldiers and sailors, the OWMR director pointed out. ' ———.——— ST0CK QUOTATIONS ! New York, July 11 Closing | quotation of Alaska Juneau mine| stock today is 7%, Alleghany Cor-| poration 6'%, American Can 100,( Anaconda 48, Curtiss-Wright 7%,! International Harvester 95, Kenne-! cott 58'%, New York Central 25%,! Northern Pacific 29%, United Cor- poration 5%, U. S. Steel 91%,! Pound $4.03% | Sales today were 990,000 shares. Dow, Jones averages today are asi follows: industrials 206.30, rails 69.59, utilities 41.46. Senate’s Mead Committee has the full support of the Admin- istration in its current inquiry into the munitions profits. WASHINGTON, July 11.—Chair- man Mead (D-NY) of the Senate War Investigating committee to- day termed “indefensible” the award of an’ Army-Navy “E” t® Batavia Metal Products, Inc. . Mead commented after the com- mittee heard testimony that Rep. May (D-Ky) had taken up with War Department officials possible | award of the prized plume to the company, one of a group of muni- tion makers whose war profits ezn'eI now under investigation. Milton H. Pettit, chairman of the ordnance committee on “E” awards, testified there were short cuts and specdy action “unprecedented” in handing out the pennant and ac- knowledged that he had noted on Batavia's files: 5 “What price political expediency.” Pettit testified that . Batavia never would have been given the award if it had been left up to district ordnance officers (the nor- mal procedure) who had protested the ccmpany’s manpower handling, its production efficiancy and its prices. He said that it was his “under- standing” that the speed and un- usual proceeding by which it was granted was due to May’s inter- cession. Mead remarked that the award had a “derogatory effect upon the producers of America” and said that it constituted a “blemish” up- on the Army-Navy use of the mor- ale and production stimulating de- vice. The committee received a tele- phone transcription depicting May as protesting a production cutback order for “a friend of mine.” ——,——— Mahoney Is . Confirmed WASHINGTON, . July = 11.—The Senate has confirmed the following United States Marshals: ; William T. Mahoney, Division No. 1, District of Alaska; reappoint- ment. Stanley J. Nichols, Division No. 4, District of Alaska, succeeding 1Joseph A, McDonald. SEEN LIKELY FOR SCENES LIKE MASSACRE AT BULGE AVENGED |Seventy - three, Including | Generals, Convicted of Slaughter {DACHAU. Germany, July 11—Sev- icn(y-:hrcB Waffen SS veterans, in- |cluding three generals, were found guilty by an American nul\lary' court today of the slaughter of 900 American war prisoners and Bel- lgian civilians in the Battle of the! Bulge. The president of the court, speak- |ing after an hour’s delibm'all()u,“ anncunced all 73 defendants were | “found guilty of the particulars land charges.” The defendants included Gen. Josef (Sepp) Dietrich, commander |of the 6th Panzer Army and sur—i | vivor of Hitler’s original beer hall| | Putsch in nearby Munich; Lt. Gen. HAR VES]' IN l1st SS Panzer Corps; Brig. Gen.| 3 | Hermann Prie commander of the | Fritz Kraemer, chief of staff of the| ;Sth Panzer Army. | The burden of prosecution evi- Outlook for Grains Gratify- | ing on Basis of Con- i‘l'imes Wr_iier ditions July 1 ; LR £ 2 ent harvesting rate continues., men participated in the massacre, | of unarmed American prisoners at | Malmedy. Joachim Peiper, daredevil comman- | der of “Task Force Peiper,” whose WABHINGTON, vuly 11— This country is well on its way today } In fact, the Agriculture Depart- ment, in its latest monthly crop |report, said the current outlook for total farm production has seldom ikeen surpassed. - 0f Rgfl Organ vailing July 1 indicated a record | . . ‘A'klflSOfl |S ASSGIled as corn crop, near-record crops of I " | wheat, 3 s , € | "Gangster” of Pen by |ree coops or vesrinties and’ mont | fruits. Communist Paper |"Tne outiook on grains was par- ticularly gratifying to food offi- MOSCOW, July 11—The official Cials, because supplies have been Communist newspaper Pravda as- largely depleted in meeting foreign | serted toray that Brooks Atkinson, Telief demands and in feeding a :lormer New York Times Cormspm,_:near-record livestock population. {dent in Moscow, was an “untalent-| | “a gangster of the jed slanderer,” now indicated, ” “ in a position to carry out its com- en” and a “product of the stock 'e)xchange andpblack market.” mitment to send 250,000,000 bush- i 2 | The Pravdz writer, David Zas- llavsky, criticized Atkinson for say- the next 12 months and still main- ing he found “an iron curtain” in tain production of livestock pro- Russia and that this term is a Qucts—meats, milk, eggs and poul- I i » try—at levels near those of the | ‘devilishly appropriate expression.’ past year. The Pravda writer said Atkin-| it |son was a wiiter who “jumps out” | |after liviog “ten months behind | . ] [ |that infamous ‘curtain’.” | Mlh aIIOVI( | | The Pravda article continued: Pricking up | | “What a seisation! | their ears and straining their eyes, | Trial Moves To End Now the trusting American people are ready to know the secrets of the de-screencd world. But there awaits them deep disappointment.” The Pravda article said Atkin-| {son’s articles were evidences of de- | mands of the “newspaper monopolyl capitalists” for “freedom of the| press.” “They cemand full freedom for| slanders and lies,” the Pravda ar-| ticle asserted, “they want to es-| Life - Declares He tablish as international law the ir-i Hated Germans responsibility of swindlers and ban- dits of the pen.” (At the Times offices in New BELGRADE, July 11.—The trial York it was said that neither the of Gen. Draja Mihailovic moved Times nor Atkinson intended to swiftly toward its climax today fol- make any reply to Zaslavsky's at- lowing the former Yugoslav war minister’s: final plea for his life, o il in which he voiced “an absolute ATKINSON OPINIONS {hatred for the Germans” and de- A series of three articles by At- nied charges that he had collabor- kinson giving his opinions of Rus- ated with them. jsln based on his ten months’ stay in Moscow, were published in the to the war crimes tribunal before New York Times this week. which he and 23 co-defendants are Atkinson said the United States o0 trial, Mihailovic reviewed his would have to abandon “the fa- Career as leader of the Chetniks npd miliar concepts of friendship” in sked the court “to be fair in its dealing with Ri because evaluation of my work. “friendship is not wanted, is not “T do D% 4y thet 1 made .no possible and 1s not involved.” Writ- m)sl:\kes."but_ everyone was making ing of the Soviet government, At- mistakes,” Mihailovic declared as he kinson sald, “Despite its sancti- pictured for the tribunal the monious use of the word ‘democra- ¢y’ it is a totalitarian govern- ties” wuh_whlch he wi;s Erinrronted. ment” and “the familiar dictator-| ship of the proletariat is actually| HERE FROM KAKE a dictatorship of the 13 members | Mr. and Mrs. C. L. Crutchers, of the Politburo of ist party.” g T Reonts Alaska Native Service teachers at Atkinson pictured ;| Kake, have arrived here for a few L5 L Ry ”Jduys. They will return to Kake sometime this week, (Continued on Page Two) | Rouges wra'h |toward its sixth consecutive bump- | | ‘er harvest. | The report said conditions pxw' If the grain crops turn out as| the nation will be' lels of wheat to shortage areas during ' Makes Final Plea for His, | In a four-hour address yesterday 'whirlpool of events and dmicul-} NEW OPA BILL WELCOME SIGHT is this separator at work at Lawrence, Kan., where the wheat harvest is now under- way. Agriculture department officials predict the end of bread shortage within two months if pres- 6THBUMPER Buyers Go O Strikein Many Selcions as Prices Increas_e Cost of Living " Transplanted GI AT LEAST the first contingent of GL wives and children to reach Ger= | many have no housing problems, Above, Pvt. James R. Cummings, Seattle, Wask., leaves his Berlin residence with his wife and son. Cummings is now a. teacher in the American School. (International) $400,000 DEMAGE CAUSED BY FLAMES AT SAN FRANCISCO | SAN FRANCISCO, July 11 — A | spectacular fire last night razed |the big pipe and copper shop at /the Hunter's Point navy repair |base here, causing damage esti- mated at $400,000 and minor in-, juries to three persons. | Ships docking at the base, which !is busy orimarily with ship de- | commissioning, were alerted to move, but hundreds of civilian and naval firefighters controlled the flames after they had demolished the single sitp. | Commodore Joseph W. Fowler, base commarder, said the origin of the blaze nad nbt been deter- (mined. He said there was no ex- plosion. e ‘Earl Cooper Named - Asst U, §. Atorney & In Third Division WASHINGTON, July gate Bartlett of Alaska announces that Earl Cooper of Anchorage had been appointed Assistant United States Attorney for the Third Judi- cial Division of the Territory. THIS WILL END THE BREAD uNEs_fBARm:E_v SAYS NEW MEASURE i BETTERS LAST Administration Scores Lone Victory in Two-Day ! Amend - Mauling SENATORS REJECT GRAIN EXEMPTION | Meas, Dair; Products and | Pefroleum Now Exclud- ed from Control BULLETIN — WASHINGTON, July 11—President Troman de- clared today that “every day that pas " without a price control law increases the danger of in- flation (International) | | ! WASHINGTON, July 11.—Un- jdaunted by open talk of another ;veto, Democratic Leader Barkle {pressed the Senate today for final action on a new OPA bill even if it means working into the night 3 v, 'again. (BY TilE ASSOCIATED PRESS) | Cheerful Buyers’ strikes persisted and even 'y, Crceriul despite rapid setbacks in ) b the form of hands-off amendments, spread today against the infla- covering meats, milk, butter, salad tionary trend in America’s cost-of-|oi1s and gasoline, the Kentuckian living. Itold reporers he still is hopeful of There have been new demonstra- getting a price control revival mea- tions against higher prices for sure that the President could sign. meat and dairy products in New “We got a better bill than either York, New Jersey, Kentucky, and the ESenate or House passed last | Pennsylvania. Urged on by the gX- time from a coniegence, Barkley ecutive board of the CIO Phila- said. “Maybé Wé ¢an still improve | delphia ndustrial Union Council, on that this time." pickets paraded this morning be- Byt another administration licu- fore Philadelbhia’s huge Reading tenant who may not be identified Terminal Market. They carried fyrther sald President Truman signs which said: “This market iS would balk again unless some way violating OPA ceiling price: is found to overturn Senate actions Inside the market, one of the barring future price ceilings on | biggest in Pailadelphia, beef was many items important in the cost | being sold ai 69 cents a pound, of living. butter at 85 cents, and eggs at 69, polowing up its 49 to 26 vote |cents a dozen. At other markets, Tuesday to keep meat free of OPA |meat was selling at double the ceilings under any revival, the old OPA prices, with butter hitting chamrer voted these additional |as high s one dollar and sixteen touch-not provisions yesterday and cents a pound. last night: Louisville, Kentucky, is having the same experience, with CIO dl‘l Milk an :‘l)!d::he: dairy pro; pickets sterday demonstrating in CUCtS an al DS ApOracES ¥ 8 by Senator Wherry (R-Neb) and front of four butcher shops in the same block. The dealers answered the charge that they were getting 65 cents a pound for meat which cost 43 cents under price control by saying they were paying 50 per- cent more for beef to the packers, and that the housewives would have to stard the difference. | Increases in the price of milk g 1o the two days of OPA maul. already have provoked demonstra- ing came when the chamber re- tons in Camden, New Jersey. And jected, 32 to 40, an amendment both New Jerrey and New York ;eroreq by Senator Reed (R-Kas) laber an< consumers’ organizations # exempt grains and their by-pro- > rallylug icr buyers’ strikes and g.¢¢ S e blacklisting of stores where prices are soaring. RSP SR approved 51 to 27. 2. Cottonseed, 80y beans and their products, by Senator Eastland (D-Miss), 42 to 34. 3. Petroleum and its products as along as supply exceeds domes- tic demand, by Senator Moore (R- Okla), 4Q to 39. The only administration victory e — KARLUKTEST |“Houst covone CASERULING | CNALASKATRP iHearings Will Be Conduct- I S SET OVER Srg;%seafllle, t?le:lnll’al:f gt { ty Comes fo Juneau ,“ Congressman Henry M. Jackson of Everett has announced that the ‘House Merchant Marine and Fish- leries subcommittee of which he lis chairman will leave Washington 'almost immediately following the adjournment of Congress. . The group will be composed, in addition to Chairman Jackson, of Arguments Are Complefed Late Yesterday on Ko- diak Packer Petition FAIRBANKS, July 11.—District Judge Harry E. Pratt took under advisement yesterday until July 18, the Karluk Indian reservation fish test case Arguments were completed late yesterday on the petition of Kodiak packers for an injunction against enforcement by the Interior De- partment’s Fish & Wildlife Ser- vice, of the rule against fishing by non-Karluks in r adjacent to the Karluk reservation. Half a dozen Kodiak packing 1irms filed the suit in a challenge of the policy instituted by Harold for. | e s e Yugoslavia literally means south Slavia, of the country of ‘the southern Slavs, Congressman Herbert C. Bonner of No. Carolina, Congressman Christ- ian A. Herter of Massachusetts, and Alaska Delegate E. L. Bartlett. Marvin Coles, general counsel for the committee, will also make the trip, and Warner Gardner, newly appointed Assistant Secretary of the Interior, has indicated an in- tention of being one of the party if his official "duties permit him to leave Washington. Hearings will be held first at 11.—Dele- Ickes as Secretary of the Inter- Seattle and then the party will come to Juneau. Not only will the problem of maritime transporta- tion be explored, but the subcom- mittee will conduct an inquiry re- lative to fish traps.