The Daily Alaska empire Newspaper, July 12, 1946, Page 1

¥ Rep. J. Parnell £ security , did or | 000. ' parerftly operated. THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXVII., NO. 10,320 JUN!—.AU ALASKA, FRIDAY, JULY | , 1946 MLMBFR ASSOC ll\l'l ‘D PRESS PRICE TEN CENTS JUNEAU LONGSHORE Army Throws Blockadel Across Path of Civilian Fonirol Legislation ' WASHINGiON, July 12—A re-| port that Oak Ridge security offi-| cers think “the peace and security; of the United States is definitely in danger” threw a roadblock against the Administration’s atomic con-! trol legislation today. House Republicans showed a dis- position to sidetrack all A-bills' until world conditions become more . s2ttled. Rep. Elston (K-Crxo) put it :ms way: [ “Before we talk about entering' into international agreements con- | cerning atomic energy, we should reach other agreements concerning the future of world peace. We shouldn’t put the cart before the Lorse.” He was commenting on a report read to the House yesterday by Thomas (R-NJ), ranking minority member of the committee on un-American activ- ities. i The report, by Ernie Adamson, chjef investigator for the commit- tee, said he and Chairman Wood (D-Ga) had been investigating “subversive "activities” at the Oak Ridge, Tenn., atomic project and had found that: 1—Members of scientific socie- ties merc “are very active in sup- port, “of international civilian con- trol” of atomic materials ana are “devoted to the creation of some form of world government,” 2—Some officers of¥ the societies “admit communication with per- sons outside of the United States 3—“The security officers at Oak Ridge think that the peace and of the United States is definitely in danger.” Walter C. Beard, Jr, and John H. Bull of the Oak Ridge Engin- eers and Scientists, said in a state- ment last night their organization “has at all times remained within | the security bounds” defined by the Manhattan district security officer. “We never have been accused of violating project security,” they as- serted. The Washington, Merry - Go- Round' ' i By DREW PEARSON H i WASHINGTON — Congressman Andy May of Kentucky, godfather | of the war profiteers, has had quite a record for sucking on the nepot-| ism bottle. Recardless of what hel did not receive from the! Erie Basin war contractors, at one| time the total “take” from govern-/ mcnt jobs for himself and relatives was | around $20,000 annually. Here is the nepotism score card | of the government jobs held at! various times by his family: _Mrs. Julia G. May, secretary—sfl,-z ,Mrs.- Bess S. May, daughter- -in- | law, postmistress of Prestonburg, Ky May's home town—=$2,400. Lucille M. Herndon, sister-in-law | clerk in his office—$3,300. WIll\am May, Jr., nephew, an- alyst in Louisville office of Federal Land Bank—$3,600. i In addition, May's son, the late Andrew J May, Jr., and his neph- i ew, Jack May, were given jobs with | the mysterious Cumberland Lum- ber Co., financed by the Erie Ba- sin company and which May ap-| Note—May received more than $48,000 from the Erie Basin prof- iteers to set up the lumber com-; pany, but when the money was re- | turned by him last April, the Erie people got back only $40,000. Thus, May or someone around him spent' or used around $8,000 which is. unaccounted for. : ! MANGANESE KING MAY When Congressman May of Ken- tucky piously beat his breast on the, flcor of the House and proclaimed his great patriotism and complete innocence regarding war contracts, —_— (Continued on Page Four) " plianee with “men died. : effective for 30 days. However, {being made | the spokesmen said. | Fred S. Bartlett, partners in a fish | barges to be used in buying fish CONSTELLATION HOWARD HUGHES AIRCRAFT ARE | YIELDS GROUND ALL GROUNDED IN LIFE BATTLE leAeronauh(sAu'honty Millionaire Plane Movie Issues Orders—Pan Am- | Maker Whispers Crash erican Complying Cause Message SAN FRANCISCO, July 12.—The LOS ANGELES, July 12.—His Pacific-Alaska Division of Pan- battle for life suddenly weakening, Anmterican Wordd Airways, in com- Howard Hughes, 41, beckoned his instructions of the doctor to his bedisde last night and Civil Aeronautics Authority, has whispered a halting story of the ordered all its Constellation air- cause of his fiery crash Sunday in craft grounded. 'an experimental plane. Pending departures also were, “I want you to give this mes- cancelled and passengers were be- sage to the Army. ‘The accident ing notified as rapidly as possible, was caused by the rear half of the it was anrounced by J. V. Roscoe, !ight propeller,” the millionaire in charge of the Pacific-Alaska Maker of planes and movies told Division. |Dr. Verne R. Mason. “Transoceanic clippers of other| “I don’t want this to happen to types will be substituted as prompt- anybody else.” |ly as possible,” Roscoe said. “Thi Explaining carefully that the rear , step will permit the continuance of set of propeller blades on the right ! trans-Pacific schedules although at €ngine of his twin-engine plane reduced capacity.” had suddenly reversed pitch quxfing The order followed the erash of | thefirst test hop, Hughes said: a Lockheed Constellation on a: ‘It felt as if some giant had the training flight yesterday in eastern Fight wing of the plane in his hand Pennsylvania. and was pushing it back and down. All commercial airlines are com-| ~Tell the Army to look in the plymg wit!. the order and the Bri- wreckage, find the rear half of the tish Overseas Airways Corporation '8ht prope]lfr. and find out what also is cancelling Constellation WeNt f";‘;‘l"ll Going To Liver” flights across the Atlantic. Hughes gave his message to Dr. SRR Mason after asking, “Am I going ORDERS, ARE GENERAL to live?” and hearing the physician WASHINGTON, July 12—0n 0r-'colemnly reply: ders from the Civil Aeronauties| .y gon't know.” Administration, United States Air-| 1. o pulletin on Hughes' condi- lines withdrew Lockheed Constella- tion, jssued when he disclosed the tion Airliners from service today airman’s first word on the cause pending an inquiry by the CAA e of the crash, the doctor said: and the Lockheed Aircraft Co. into «Howard Hughes has suffered a a crash of one of the giant craft turn for the worse in his fight for at Reading, Pa. in which five crew-| {life. His left lung has failed to respond and is still functionless. The British Overseas Ah‘ways ‘He is surviving through the re- Corp., at CAA’s request, also Gan‘jsuwed use of his right lung, to celled Constellation flights on its the extent permitted by his crush- trans-Atlantic routes. BOAC action eq chest, which includes nine brok- presumably meant suspension of its en ribs. Atlantic service since it has no, “He is breathing pure oxygen 24 other planes for the London-New hours a day.” York route. Hughes’ XF-11 photo-reconn: A BOAC spokesman said the sance craft, reportedly the world’s cancellation presumably would be fastest long-range plane, struck and one set afire three houses and a gar-| of the compsnys Constellations age in Beverly Hills before crash- with 27 ahoard was due to Gander, ing and explodlng in a vacant lot. i Newfoundland, from London today. | > — Substitutions MAY 'S (AllED ‘Trans-oceanic service, otherwise,! was not affected. U. S. lines sub- stituted other AS w'TNESS IN planes. Air France 12.—Senate has ordered Constellations but does not plan to put them into service until the end of August. | In suspending Constellation flights for 30 days, effective last WASHINGTON, midnight, the CAA said merely that it wanted to determine the cause of the Reading crash. Both CAA and Lockheed an- nounced thal their technicians had been sent to the scene and Robert E. Gross, Lockheed President, said the company’s investigation was “in full cooperation” with the Federal agency. July witnesses today—Henry M. Garsson and Benjamin F. Fields—when they refused to waive immunity in testi- fying on operations of an Illinois munitions com! During a finge! shaking exchange, | Chairman Mead (D-NY) first told Fields he was through as a witness until he was - |questions frankly and completely. Changes Made | "Then, only moments later, Mead At Burbank, Calif, where the (;1q4 Garsson the same thing. Lockheed plant is located, spokes-| These rapid-fire developments men for the aircraft company said ' came on a day when the committee two possible fire hazards have! sought to get Rep. May (D-NY) | troubled the Constellation. |as a witness in a public hearing to The first was described as an |testify on his activities in connec-| “induction” fire originating in the| |tion with the combine. carburetor fuel system. Two of The committee formally invited these were experienced in training|the chairman of the House Bank- flights and the blazes were extin-| ing committee to appear, but May loss. of ship or personnel. \he would comply. As a result, all of the Constella- | Garsson and Fields have been re- tions were ordered changed over|cently identified with the Erie Ba- to a dirert fuel injection system, i{firms which pyramided what Mead 'has called a “paper empire” into millions in war contracts. While the committee has power The second hazard emanated from the supercharger drive shaft. The CAB cecently ordered use of | | the supercharger system discontinu-|to compel witnesses to testify, ed. Mead said it had not followed that A O ke 1 policy and would not do so in these . instances. FISH (BUXERE SCRD | In addressing Garsson, Mead said {he wanted to point out that “sev- Joe Keller, acting as Managing|erg) cases are pending that involve Agent for Sigmund Einstoss, has|y criminal aspect” under investiga- brought suit in the District Court here in the name of his principal against Howard P. Furlong and| |tion by the Justice Department. The committee, he said, would not want to jeopardize the case or |weaken the government in that buying venture at Yakutat. { prosentation.” The action is brought to recover | ————————— $11,066 plus costs, which the com-| FIGHT IN LOBBY plaint states was advanced to the| Two men were arrested here last defendants for making ready two night by City Police, following a fight in the lobby of the Alaskan for the pluntiff during this season.. Hotei: Bernard McClellan, a Taku At the opening of the season, it is|mine worksr alleged, the aefendants abandoned the business and since have refused to repay the sums advanced or per- bail and sailed south aboard the Princess Louise. Paddock was fin- War Investigations excused twc key | willing to answer| son Metal Products Co. and allizd | and Martin Paddock of Douglas. McClellan forfeited $50; PILFERING ON VESSELS DEPLORABLE ;Sfeamship Officials Claim | | Shortages in Alaskan «‘ Cities Result | SEATTLE, Juy 12—Pilferage of Alaska-bound cargo on ships and ! {docks has reached such propor- |tions, shipping officials said today, that it has caused shortages in| |Alaskan cities. “It's pitiful the way pilfering is going on and th |ability to stop it er, general manager Steamship Company. | William Semar, general manager of the Northland Transportation Company, and S. J. Swanson, vice president of the Alagka Transpor- tation Company, agreed in inter- views that pilferage of cargo was causing shortages in Alaska, espec- apparent lack of | aid L. W. Bak- of the Alaska fally in clothing and scarce food items. G. H. Wagner, assoclate Pacific Coast Director of the War Ship- ping Administration, which controls operations of all Alaska vessels, said the pilferage problem was ser- icus on all ships. “It isn’t just Alaska vessels,” Wagner said. In fact, the situa- tion is getting so bad that the WSA had added a special section in our San Francisco office to handle the situation.” Semar said the government is paying all claims on the losses “which means the taxpayer is get- ting it in the neck again.’ {_ Swanson added ‘we don’t want people to get the impression that it’s one group of workers doing this pilfering but dishonest men are giving every man who handles cargo bound for Alaska a bad name.” OPA BATTLE - KEEPING UP WASHISGTON, July England Senators launched an ef- fort today to keep price ceilings off ! feed grains in any renewal of OPA' | authority. Senator Bridges (R-NH) said he and others drafted an amendment | to pending OPA revival legislation | which would ban controls over wheat and other grains when used | for livestock and poultry feeds. It would retain ceilings on flour and | cereals. | The Senate rejected 46 to 32 Wednesdav a move by Senator Reed (R-Kan) to exemapt from con- trols graius and products manufac- tured from them. | Senator Wherry (R-Neb) indicat- ed that he will offer an amend-| yment which would guarantee | wholesalers, retailers and distribu- !tors the same markups and dis- | counts theyv enjoyed in 1940. With these and other amend- | ments lined up, the Senate dispos- ed of other amendments for cur- | tailed OPA authority for a year. , A drive also was on to clinch the | exemptions previously voted for |guished aloft in each case without declined to tell reporters wmmenmfl‘t milk and sundry other items. 'BRANDY, ALCOHOL . 6O UP IN BLAZE STOCKTC>~, <alif., July 12— | Thousands of gallons of brandy {and alcohoi went up in flames }when fire started by an explosion burned the northeast section of the Schenley-Coronet Brandy Distillery south of here yesterday, causing damage unofficially estimated at $1,500,000. Two men were injured. e AL L TEXANS VISITING RICES Mr. and Mrs. C. D. Foule, resi- dents of Alumo, Texas, are house guests of Mr. and Mrs. C. W. Rice of Juneau The Foules arrived here on the :Alnskn after spending a number of | weeks vac~tioning across the Unit- |ed State?. The Texas couple visited | friends and relatives in Kansas City, Wisconsin, St. Paul, Minn, Spokane, Wash, and Seattle, before coming to Alaska. They plen to spend approximate- | 12, — New Alaskan Mosquitees Are - ToBe Hunted Down; Two Agenls Coming for Chase SEATTLE, Jlll_v ]J —Those fabled Alaskan mosquitoes, who started all those wartime gags about being re- fucted in lieu of B-17s, and espec- ldll\ the choosy ones who turned o\m the GI's dogtags to determine 'In,~ blood type first, had better look out | The Department of Agriculture is after ‘em | les Wilson and A. W. Lind-| quist of Washington, D. C., stopped ESKIMO WOMEN, YOUTH SEEKING " FREEDOM NO 'Moderator Bmgle of Fair-|* | banks Makes Address |over here today enroute to Alaska '0 Synod Of WaSh to map a war against the pests. | They had been connected with the | | successful insect control program SEATTLE, Juy 12.—The Rev. of the Army during the war, and Bert Bingle of Fairbanks, in his| oft-bitten Army called their at- first. address to the Synod of Wash- ington since his election as moder- ator, reported on his work as in- dustrial chaplain with the Wartime Service Commission of the Presby- terian Church in Alaska The Rev. Mr. Bingle told gates to the 57th annual session that Eskimo women in the Arctic Circle are demanding freedom from their age-old domination by man. “Eskimo young people are de- manding their rights to have a part in the running of the church,” the Rev. Mr. Bingle said He | recommended the establishment of a young people’s conference for them, tention to the Alaska variety, con- sidered one of the territory’s worst retarding factors The present program was made > by a Congressional ;\I\pl'u-; | priation and will be the first scien tific approach to control those hairy-ch ed northern man-eaters 1 He also revealed that the New Testament is being translated into \ the Greenland culture of the Eski- | mo language. [ Balanced Fed. Budget Dream Is Dissolving - ol | The long-awaited action came! ‘whvn defcise attorney Tracy E. dele- ] SEATTLE, Juxy 12.—“Whispering ' wire” transcriptions. of conversa- | tions by Lieut. Nicholai G. Redln, | Russtan naval officer on trial on | espionage -conspiracy charges, were ordered played today in the pre-| | sence of a selected group including Redin and his wife. What was contained in the trans- criptions, played at the “urgent suggestion” of trial Judge Lloyd L.‘v {Current Year Costs Esti- Griffin, opening the defense re- mate Now Boosfed |puttal, askea that records of the 5 P | transeripticns be played in the| | courtre in the absence of the ' SixBillion Dollars | courtroom in the wbsence ot tne | B B |% Assistant U. S. Attorney Allan WASH‘K{&TS?JNG ‘l;ulfiynu’:z_guw Pomeroy objected, first to the ernment economists all but gave | transcriptions being played at all o 2 |in the abscnce of the jury, an ob-| up today their hopes for a bal-|y ;o ouorryled by the court, and! e ral et this fiscal ;3::.(’ Federdl hugepby iz i secondly to their being played in D&pite President Truman's an- OPen court, saying he did not want| nouncement late yesterday that|tC make a “public spectacle. Judge Black then ruled that the| records should be played .in his chambers in the presence of Redin| and his wife, defense counsel, gov- ernment atterneys, clerk of the court;, Black’s secretary, three FBI agents, J. Morton Arnold who made the records, Harry G. Maynor, Special Agent in Charge, and E. Irvin Piper. Soviet Counsel General Michael &. Vavilov of San Fran- cisco also was included “Government expenditures will be reduced,” some officials close to fiscal matters said they fail to see how two to three billion dollars can be lopped off. That is the probable difference, the; predict privately, between Federal income and outgo in the new fiscal year only 12 days old. Mr. Truman® named the Army | and Navy, along with veterans’ pro- grams, as about to undergo a ‘“re- 4 view” to find ways of cutting ex- ~The couit session then was re- penses Wwithout “endangering na- cessed and the group went into tional security or causing unjusti- Judge Blark’s chambers. R fied hardship.” Such cuts—as well as ang possible | in public works and the civilian | agencies—were urged by Reconver- sion Director John R. Steelman yes- | terday as a way to lessen the in-| flationary effects of public spend- ing. | | The report declared that a bal-| anced budget, or a surplus, is “high- ly desirable.” | But reconversion officials now | estimate that running the gov-| ernment until next June 30 will cost about $42,000,000,000 instead of [Public petting with German frau-, the Treasury’s January estimate of |leins, it was announced today. 535000000000 The arrests were made following - | Gen Josevh T. McNarney's crack- |down on displays of affection. S'o(K ouolA"oNS : In Nuernberg military police ar-; |rested 71 soldiers in a four-day, NEW YORK, July 12. — Closing | period between July 4 and 9. Many‘ quotation of Alaska Juneau mine|:oldiers were ordered to pay $5 stock today s 7%, Alleghany Cor-|fines. Others were turned over to| poration 6, American Can 99%,| their commanding officers for dis-| Anaconda 467, Curtiss-Wright 7% tlplmaxy action. International Harvester 94'%, Ken > 96 Soldlers Are | Arrested, Petfing | German Frauleins | — FRANKFURT, July 12.—Ninety-| six American soldiers were arres ed by U. S. Third Army Milita: necott 58, New York Central 2 | Northern Pacific 29%, United Cor-| B B Ton | voration ', U. S. Steel 90%, Ig | Pound® $4.03' | Sales today were 1,130,000 shares.| Dow, Jones averages today are! At 6:30 odmk zth evening the as xulluws: industrials 204.20, rails| Moose wili meet the Elks. The wea- 6 utilities 41.33. ther seems good at that. | - eee — D In Humbeldt county, Calif,, more IIERF FROM KAKE than 20 trces grew out of the trunk Mr. and Mrz. C. L. Crutcher have| form other conditions of the con-'ed $50 by City Magistrate William |1y six weeks here and then return of a giant redwood which feil more | arrived here from Kake. They are "wact, A. Holzheiner, to their home in Texas. jthan 50 years ago. staying at Hotel Juneau, l lon German reparations today | direct | cided | loration” | majority REPARATIONS BY | GERMAN NATION Secrefary Byrnes Makes' Statement Regarding Known Transactions PARIS, July 12 State Byrnes said of statement | that the Russians already have received r indirectly $14,000,000,000 in and equipment Secretary in a territo: The Russians through Foreign Minister V. M. Molotov demanded | $10,000,000,000 reparations of Ger-| many earlier this week Byrnes acknowleaged that an ac- curate valuation was difficult, he said the detachment of eastern Germany, including Silesia, as de- at the Potsdam property under Soviet con- Under another agreement, this area was placed under Polish ad- ministration in compensation for portions of eastern Poland which Soviet Russia absorbed, the Secre- tary pointed out. The Council of Foreign Ministers ' heard a proposal by uonmmv unification of Germany but no decision was reached | France demanded that the Saar be excluded from the unification and Byrnes for mtv“ated into French economy, nd Russia asked more time to mudy the Saar, an American in- formant said. >-es n JEWS SLAIN ATTEMPTING TO FLEE IN POLAND Executions Reported tfo Follow Bloody July 4, Pogrom at Kielce WARSAW, July 12.—The slaying of 22 Jews attempting to flee a new wave of persecution in Poland was reported today as the government prepared to execute nine persons convicted of instigating the bloody July 4 pogrom at Kielce Meanwhile August Cardinal Hlond placed responsibility for “dangerous tensions” in Poland up- on Jewish governmental officials. The Cardinal attributed “deter- in the internal situation in Poland “to Jews who today oc- cupy leading positions in Poland's government and try to introduce a | governmental structure which a of the people do not de- sire Replying to charges by Edward Osubka-Morawski that Cathclic church officials in Poland had refused to condemn the Kielce pogrom, the Cardinal said a pastor- al letter read in churches July 7 eplcred the “tragic and regret- table events of Kielce.” - - 'SLOT MACHINES NOT OPERATING IN TERRITORY? Tax Lommls.flmwr Mathew P Mullaney today reported that many inquiries regarding the status of | Police during the last six days for islot machines and other gambling! devices under the Territorial iax law that became effective July 1 have been received by his office- but mno license applications for them. Many more innocent devices, ‘such as juke box have already been licensed under the new act. > STEAMER MOVEMENIS Princess Norah, .sdumulpd to arrive tomorrow noon or evening Aleutian scheduled to sail from Seattle tomorrow after- Princess Louise scheduled to sail from Vancouver, July 17 | North Sea, from Sitka, south- | bound, scheduled to arrive some- time tomorrow, nothing definite at 3 p. m. today Estebeth scheduled to sail Skduwav 11 p. m. Monday. Alaska from Lhe west, southbound July 18 or 19, scheduled but | conference, { | placed $14,000,000,000 worth of Ger- { man | | trol Premier | from Vancouver, | for TRIKE ENDS TODAY 'RUSSIANS GIVEN WSA Approves New Pay Rate For (argomen Agreemenberfies Toolate | o Bring Northern ! Voyager Into Port 'UNION HERE DROPS BACK PAY DEMAND ‘Aleutian Now fo Carry Large Shipments for Juneau, Ketchikan | Juneau's came to members of the I. L i | | iongshoremen’s strike an end this morning as & W. Union here voted to return to work, fol- lowing notification that the War Shipping Administration has ap- proved the previously signed agree- . ments, The announcement came too late, however, to bring the Alaska Transportation company freighter Northern Voyager into port. This vessel was sent on to Haines and will probably unload her 480 tons of Juneau f{reight southbound. The negotiating committee of the union informed Alaska Lipe agent IHumce Adams they will return to twork on the basis of agreements . signed in Seattle—giving them $1.54 ian hour—with the Waterfront Em- ployers of Ketchikan, Alaska Dock im\d Storage Company here, Juneau 1 Cold Storage Company, Ketchikan ! Whart Comipany at Cordova, Alas- ka Steamship Company, Northland Transportation Company and the Alaska ‘Transportation Company. Signing for the union was Steve Flumaz, International Representa- tive for the CIO longshoremen. The last of these agreements was signed July 2, buv lengshoremen here had i refused to work pending War Ship- | ping Admunistration approval of ,the new contracts. Agent Adams received telegraphic information last night that the WSA approval would come today, and received information by tele- phone this morning that the WSA approval had been given. | CPR CASE Although. the Canadian Pacific Railway's British Columbia Coastal Steamship Service has not been concerned directly in the current strike for WSA approval, it is re- ported that tle quasi-strike against that company also is approaching settlement Juneau iongshoremen are said now to have retreated from their position that they must have a con- | tract with the CPR and that local longshoremen board CPR ships to , work cargc frem the ships. The Ju- (neau Local now asks only that the CPR agrec to meet the current (scale and pay retroactive wages the 'same as tne American lines. In i which case, full longshore services would be resumed for CPR ships. Citizens Meeting Meanwhile, a citizens' meeting called here for this evening to discuss | the longshore strike sitMation, will ibe held as scheduled at the OCity .Hall at 8 o'clock—even though the i strike is now settled. However, dis- 'L\Axslun at the meeting will be turi jed to generai affairs of interest to ! local merchants, with formation of |a permanent merchants’ organiza- tion given cousideration. SETTLEMENT ANNOUNCED bhA'l"l‘LE., July 12.—Settlement ' (Contmued on Page Two, ‘Anchored d Schooner Burns; Crew Escapes Leaping Overboard SAN PEDRO, Calif.,, July Fire early today swept through the | schooner West Coast, destroying the 235 foot vessel anchored in the out- harbor but 16 persons aboard the ship escaped by :leaping into the | water and swimming to a life raft. Seven crew members were treated for shock and exposure at San Pedro emergency hospital Mrs. Dorothy Mable Gaggino, 42, wife of the ships captain suffered a hip injury but was able to swim to the raft. She fell from a ladder while abandoning the ship. 12—