The Daily Alaska empire Newspaper, July 24, 1947, Page 1

| i THE DAILY ALASKA EMPIRE [ ———— VOL. LXVL, NO. 10,638 “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, THURSDAY, JULY 24, 1947 " MEMBER ASSOCIATED PRESS PRICE TEN CENTS Alaska Tim PLYWOOD AIRPLANE CONTRACT SECURED BY "HEAT OF HELL" Krug Talks About Kaiser Getting Right to Con- struct Ship WASHINGTON, July 24—m—' Secretary of Interior Krug told' Senate War Investigating Commit- | tee members today that Henry| Kaiser “put the heat of hell on' everybody in Washington” to ob-! tain wartime contracts to build a' huge plywood airplane. | Krug told reporters he had in-| formed Senators Brewster (R-Me) ! and Ferguson (R-Mich) at an in- formal conference that a contract made by the Wgr Production Board with Kaiser and Howard Hughes, movie producer, for the plane's construction was let ‘“be-| fore my time on the War Produc- tion Board.” The War Investigating Commit- tee, headed by Brewster, is inquir: ing into the letting of the con-| tracts and any possible connection of Elliott» Roosevelt, son of the late President Roosevelt, with the tran-! saction. Ferguson; who heads a subcom- mittee opening hearings on the matter Monday, told a reporter that the Army and Navy had op- posed letting' the contracts but that orders had come from the White House to go through with them. ; Krug said he told the two Sen ators that the contracts were le before he became chairman of the War Production Board in August, 1944. i i “All I could vell them was what | was hearsay with me,” Krug said.i “What was it, then that you| told them?” a reporter asked. i “I said that Kaiser put the heat; of hell on everybody in Washing-: ton,” the cabinet member replied. | “Initially they told him that he! couldn't have an airplane contract | because he had no aircraft man. { ber L | PROCLAMATION | ALL-AMERICAN SOAP BOX DERBY DAY 5 <VHEREAS, the All-American Soap Box Derby, sponsored by news- | papers and civic crganizations throughout the United States and Canada, will be conducted on July 27 in Juneau, and | WHEREAS, the youth of our city will compete in the spirit of true |, sportsmnship in a supervised race of vehicles, planned and con- 1 structed by them in accordance with national rules, and WHEREAS, this event is outstanding through its stimulation of American ingenuity and enterprise among the youth of this city and this nation, and WHEREAS, this event creates a great interest among our people in youth programs which will serve to inspire more programs de- signed to assist in teaching boys to exercise their natural talents and skills, and WHEREAS, this classic boys' event offers opportunity to develop a splendid spirit of friendship, goodwill and cooperation in the city of Juneau, as we unite to pay our tribute to youth, NOW, THEREFORE, I, Waino E. Hendrickson, Mayor of the City of Juneau, do hereby proclaim July 27 as All-American Soap Box Derby Day in Juneau and invite all our citizens to view the event and urge all our male youth to participate in programs such as this one. . IN WITNESS WHEREOF, 1 have hereunto subscribed my name this 24th day of July in 1 the year of our Lord one thousand nine hun- dreds and forfty-seven. WAINO E. HENDRICKSON, Mayor. | ol §.5. TAXBILLIS| APPROVED BY JAP PEA(E'lOWER_HOUSE! Disagreemém hreatensfo Senate Approval Expected. Destroy Unity of ToFreezeat 1 PerCent | Great Powers j for NextTwo Years | By JOHN M. HIGHTOWER | WASHINGTON, July 24— U.S., RUSSIA ‘WASHINGTON, egislation Blocked In SAYS ALASKA SHIP SERVICE IS 0BSOLETE Flakne Describes Ancient Equipment, Urges Govt. | to Build New Ships Council Forces Resigna- WASHINGTON, July 24, — (P— fion ley Managef, Joseph T. Flakne told the House P0|I(e Chief Merchant Marine Committee today that sea service to Alaska is “so poor” and the ships “so obsolete” | ANCHORAGE, Alaska, July 24.— (P-—The city's entire police force resigned last night in protest that costs are “bound to be high.” The committee is considering means of lowering Alaska freight {against demands of the City Coun- rates and improving the service. eil for the resignation of Flakne, chief of the Alaska Branch | Manager Al Koenig and chief of of the Division of Territories, said | police Elmer Johansen. he believes the Maritime Commis- Letters asking their resignation, sion should build special ships for 'signed by Mayor Francis M. Bow- the Alaskan trade and sell them to!den, were delivered to the two private operators at low costs. men yesterday. The Mayor said Rep. Wilis Bradley (R.-Calif.) said 'an acting city manager would be that “we are all sympathetic and 'appointed and that Johansen would know your needs, but it all comes|keep his badge until a successor back to the United States puuing!was named. up the money.” The requests for the resignation When Flakne described one ship jof Kcenig and Johansen was con- as being so antiquated that Lheitamed in a letter signed by five AANCHORAGE OFFICIALS ARE OUSTED | crew had to try six different times ' city councilmen now in town and to dock her in an Alaskan port.;wns delivered by Mayor Francis Bradley, former Navy Captain, ob-: Bowden. served: { Koenig commented that the ac- “I think you should get competent ' tion was a surprise to him. seamen instead of different ships. - eee — I never saw a ship on the seas all over the word that a good man can- | not handle.” George Talmadge of | the Maritime Commission said that | ¥ lifting restrictions against Canadian vessels would provide “somewl‘mt! 'IS PROPOSED able to American ships. The costs | City | World Served Notice that U. . fo Conduc More Tess Afomic Weapons on Pacific : | By ELTON C FAY ExplORER S'I'ops | WASHINGTON, July 24— A | world unable to agree on inter- HERE_ plE | national control of atomic bombs " T | was put on notice by the United | states today that: atomic weapons | Pacific. More than 2,000 tons of ice fall-{ 2. Top military officers in the ing within 40 feet of their boat, field of nucleat fission now head {was just one of the harrowing 2 joint Army-Navy agency devot- adventures of Neil Douglas, noted ed to “development of atomic explorer, who has returned with weapons of all types.” his party to Juncau after a three| 3. “We mean to maintain and weeks expedition on the glaciers of increase the pre-eminence of the {the Prince Willlam Sound area.(United States in atomic weapons more the in i | Douglas, who is from Meridan, | until . acceptable internation- Conn. is on his fourth expedition|al agreements” are reached and control machinery established. ito the Territory and was accom- panied by seven members of the American Geogranhical Society. He has built up a2 wide reputation as a lecturer on Alaskan subjects in| the East. Chartering’ the “Luck of the Irish” in Valdez, the party toured {Prince Willlam Sound with Jim | .Dolan and Manley Sweazey of Val- Nations' Atofmic Energy Commis- dez as guides. Mr. Douglas took| | A { measurements on the glacial lceii‘;e’:s t!:]eh;hed:du?je:::cn;:y Bl;m:::‘i jarea to check against figures of a | s s g ver inte! 1 previous expedition and he saldge‘s veto rights over internhtofs 1 questions.) . (that preliminary operations mdl_,at;x:;c ::;t:: l::)rzes disclosed, in cated great increases in the area | . H answering a reporter's questions, jof sincial cHAA: something of the activities of their The party discovered a new gla- | eomic weaponeers at work on the icier and are taking news of their discovery back with them. Douglas-p?;;‘:‘d_u b n M B e will propose to the Geographical Board in Washington D. C. the iname of LaFayette Glacier for the A report of the Atomic Energy Cemmission to Congress contained the terse announcement of further experiments and the implied ac- ceptance of any challenge world atomic armament race. (Russia and the United States made plain again yesterday at a New York session of the United 'to lower pay for their crews. disco W of the latter then would be even | i higher.” He said lower operating costs of Canadian vessels were due in part He added: i ! Fairbanks. Mount McKinley Park, “But this might defeat its own | b (Large Wager Is-Made for jana Port vukon on tneirtravess. purpose because Canadian ships; might just go into the profitable | T 1] i Douglas filmed i d about pay cre | Globe Circling S0l0 :Anchorase ana Fairbanks to ac-| Flight Next Month trade area and leave the less profit- ' company his lectures on Alaskan | — . The party also visited Anchorage, (o " G RESS I s T0 ADJOURN Senate OBJECTIONS ARE RAISED BY CHAVEZ House AppE);;d Measure Would Setup Newsprint Industry, Alaska WASHINGTON, July 24.—(P— Objections by Senator Chavez (D- NM) prevented Senate action to- day on a House approved bill to set up a newsprint industry in Alaska. The measurse would authorize the Agriculture Department to sell |timber stumpage rights in the Tongass National Forest in South- east Alaska. The Department says it would be the first step toward establishing five $30,000,000 paper mills in the area. Chavez did not explain Mis ob- ijecuon. " LITTLE HOPE - FOR ALASKA ~ TIMBER BILL | {Time Is Too Short - Two | Senators Against - ; Measure | Hopes for the of the al« + important timber " Tegislation at {this session of Ocngress were dim- :med today upon receipts by the i Juneau Chamber of Commerce of The House quickly approved wuh-] 7 - | towns. The party went to Fort Yu-( In telegram from Juneau represen- July 24—MP—A out opposition tcday a compromisefpolAND S SHAR: 'kon to film the Episcopal mission | itative Norman Banfield, now. in | | Washington. “He lined up Hughes and came! i : g I D e inew split between the United States pill freezing the social security| { HICAGO, July 24,4M-Mmon;thel't‘- | Banfield reported that objections back and said that now he had; e ! | C 3 an aircraft man. Then he got the |And Russia—this time over draft- payroll tax at one percent for an- REI.IEF pROGRAM \Reynolds, Chicago pen manufact-! The party returned to Juneau va| contract.” |ine a Jepanese peace trealy— other two years, | !urer, whose “Bombshell” plane is'the Alcan Highway and the Haines| waSHINGTON, July 24.—p— by Senators Chavez of New Mex- g ST threatens today to destroy what ! 1 ¥ !ico and O'Mahoney of Wyoming lenies TIHE Speedy Senate action is expected | ‘groomed for a world-circling solo’ Cutoif. Travelling by the O'Harra b ssional leaders Krug flatly previously {little unity remains between the ] (A“(ELLED "ow {Republican _Congressional leaders| published reports that he had tes-itwo great powers. to send the measure to President lto the passage of the measure on Iflight August 3, offered today to bus lines, they were in the last|gecided today to adjourn the first tified before the committee. He Truman for signature, thus fore- ithe consent calendar in the Sen- | /wager “any amount between $25,-|car over the Haines Cutoff before “‘Ey'sslon of the B80th Congress on t Another prospect is that it may gpa)in 2,000,000, i 1000 and $100,000” if an: i wm-l washed out. They came to Ju- | g, |ate probably will spell doom for said he had discussed with Fergu-.gelay indefinitely work on a peace :he tai 33:31..1. A0 ncreate mi 0o s af by e b . | Baturitay, July 90, subject-to po&'| legislation. WASHINGTON, July 24—(P—'jng to make a race of it. "neau on Jack Burfords boat, the| | the -t . i " ¢ g !sible recall by Republican leaders. son the contract letting, but main-‘settlement for Japan. The House voted shortly after The State Department announced | The offer was announced by Donjac. I” The dwmo’;‘ w:s made at l‘ “Our Senator friends,” Banfield * i | reported, “are attempting to put ;?;:e:bofii x:mew nothing perso: i Up to this week there had been gguce and Senate conferees broke|t0day that Poland’s share of the‘h'anklin Lamb, President of the The party left Juneau via Pan meeting of the Senate and House| i R U T decnnedfionsxdemble hope that Washing- . geadlock on conflicting versions|$350,000,000 American foreign re-'Reynolds Pen Company, who said American Airways for Seattle. On (leaders in the office of House the resolution to a vote by special :ton and Moscow would be able to {lief program has been cancelled. Reynolds had made it in a cable-, their return to Connecticut, they speaker Martin. |request to majority leaders, but B e o et thnt e ble t0 Gt the bill. Without the “freeze”| r o |Tequ had attended any Hollywood p“_‘td:ws; fone (mibehs. oy l'a;hmmng action, the tax would automatically . The action was taken on the gram from Paris, France. ‘will spend some time in the Can-| Under the proposal agreed on, this seems a remote possibility of jes. arranged by Hughes {the Japanese treaty which would o, \»'¢rom one percent to 2.5 per- ' Tecommendation of Col. R. H.| Lamb said Reynolds' wager was|adian Rockies in the vicinity of|Congress can be recalled during success because hundreds of inmr- ue;v g ldy o lh‘b 4 had’eluninate many of the frictions cent on employees’ pay and em_.‘Harnson. a special assistant to conditional upon competitors tak-.Lake Louise ithe fall’ adjournment period by‘p"““"' measures must wait until ‘erguson said only thal ithat have beset peace making in | Secretary of Agriculture Ander- ing off “at the same time mei i SRS S the Speaker and the Repubucnnlnex" January because of the press ployers’ payrolls. The compromise provides i ¢ .l ; discussed the Kalser-Hughes con-:gurope. son, who made a survey of Po- Bombshell takes off, from Chicago, | {leader of the Housé and the Presi- Of time, and other Senators would that tract with Krug but would furnish| Russia’s rejection yesterday of {land’s minimum food needs for ’ - e o t h special sideration.” -sation. . ¥, the levy—imposed to pay old age b RO on August 3, rules to be mutuallyj® © e e v & dent pro-tem and majority lefld,[resen such s al con: 1 no details of the conversation. ;Amencan proposals along this line s insuranr:)ey—will hfi_:&ecremry of State Marshall. agreed upon, and acceptance be- ® ® et of I:he Senate. | Banfield sald that Senators R 1 greatly dimmed, if it did not kill | Harrison reported that “grain fore July 30, so that full prep-: * WEATHER REPORT ®| without that proviso in the ad- Chavez and O’'Mahoney claimed | journment resolution, only Presi- | Alaska Indlans would be dispos- ® [dent Truman could recall Con- | Sessed of home and farms, even ® ‘gress into special session once 1t| though the legislation specifically ® |adjorirned. {limits the timber sales to vacant o Announcement of the decision|8nd unappropristed lands, “and ¢iwas made by Senator Taft ofjthey know this" but refuse even o |Ohio, chairman of the Senate Re- | to discuss the merits of the reso- ‘:publlcan Policy Committee, {lution with other senators because i {Indian representatives have re- !quested them to kill the bill. | o :CI.OSING DA]'E | Former Secretary of the Interior ! |Harold L. Ickes had a long editor- ‘off, these hopes. crease to 1.5 percent in 1950 and;..; other foods are available t0|arations can be made.” SEATTLE MEN HERE to two percent in 1952. | @ Temperature for 24-Hour imeet the minimum food needs ofi Reynolds’ offer, Lamb said, ap-|e Period Ending 7:30 o'Clock the Polish people generally for the plied to “any class of privately o This Morning SlpPRH.I. w“l F‘(E :ball'::c:aigtil:l}gzrtifll;;]j;‘;d{::lr.;up- f:n;i‘t&?mne which anyone cares;: mtll:ql;::fa;z—mnximum, 63; plies and supplementary foodstuffs Lamb said the Bombshell's pilot,; ¢ At Airport—Maximum, 63; ‘RIA[, (AR ‘((IDE"I jfor special groups appear justified Capt. Bill Odom, had expressed o mimmum, 51. jand that some imports of grain himself as “heartily in favor” of ‘¢ = WEATHER FORECAST jseed and fertilizer would be help-!such a race, and confident that (Juneau and Vicinity) BULLETIN—Sipprell appear- - | {oi ‘ | ed before Comm'ssiomer Gray | ' | ne: waRld win . Mostly cloudy with some : oo 20 P light rain showers and not this morning, entered a plea of Some officials said the major The following Seattle people are,question now facing the American stopping at the Baranof Hotel:]and other governments interested Clay Lilleston, A. Britton, Melvin in early progress on the Far East Nilson and U. A. Bergeson. peace settlement is whether they Ishould go ahead with a “separate (peace” — that is, a treaty without The Washington|™* ————— — |. By DREW PEARSON { @ (Past 21 hours ending 7:30 a.m. toany) sentenced to seven months in . In Juneau — Trace; since jail, which was suspended and rr 7 O'Rol.lllleu“I FOR KII'I'ER A' guilty of driving while under i 1 & je much change in tempera- o o pre Muiry -0 " EAIRBANKS SPREADS e maveme s i SUSPECTED KILLER %‘mfl},'z"sfl%’" opy - rammeoc 3 ANNOUNCEDFOR 2"l ™ REPORTED KILLED HALIBUT AREAS, REHABILITATION OF : H fined $250. | Cececccssce WASHINGTON — Bull-headed| Leon Jones, wanted for question- 4 3 i Ways and Means Chairman Harold | ing in connection ith the brutal ! Atithe goroptimist Juncheon helg | # ""Ay . el “f;‘r"' 9 i Knutso, who has a habit of act-|double murder near Fairbanks,| —_— { RANGOON, July 24-—B-—Bur- | todey.in ::;e il ol i e e e o SEATTLE, July 24—#—Closure| w R R wm anof Hotel plans were made fo g : iof the last remaining Pacific areas! s R |mese newspapers said today that ing first and consulting his Com-lcnruer this week, has escaped a i gt Merle Sipprell, 22, driver of the . Democrats, however, long annoyed | mittee afterward, recently stepped out too far. Without a word to the Committee or authorization from anyone, he appointed a special tax-; study group, largely composed of Wall Street lobbyists, and gener- cusly promised that the Govern- ment would pay all their expenses.l But at a closed-door meeting the! other day. the bumbling Minneso- tan awkwardly begged the Com-! mittee’s forgiveness. | “I exceeded my authority,” he blurted. “I apologize to the Com- mitt i i Then he asked the Committee to| approve resolutions belatedly au- thorizing beth his appointments to the tax-study group, and $25,000! ior their expenses. A few stubborn over Knutson’s arbitrary manner, balked. “By what authority did you ap- point this advisory committee?” pressed Rhode Island’s Aime For- and. “Technically I didn't have any, Knutson reddened. “I acted too hastily. “It reminds me,” he added weak- 1y, “of the old saw, better late than never.” posse looking for him in that area.’ gutomobile in which Miss Ruth one of the suspected killers of ‘Participating in the barbecue to beje o e = & o Maj. Gen. U Aung San and six;held in connection with the Sal- |at 8 o'clock and sails south one Today, the Federal Bureau of IN- gypgicker was seriously injured on vestigation sent his description the morning of July 4, will be and a warning to all Alaska points. prought to trial this week accord-| Jones is described as 43 years yng to U. S. District Attorney P. J.1 old, 6 feet tall, 200 pounds, sandy Gilmore, Jr. He said that a neces-| hair but partly bald, wears glasses. gary witness will return to the! When last seen, he was wearing a city for the trial which is scheduled ! brown’hat and sun tan trousers. |for either tomorrow or Saturday. The FBI cautions citizens that sipprell is charged with drunken| the man is extremely dangerous. It griying. { said that if he is seen, the nearest; police officer should be notified; immediately. STEAMER MOVEMENTS In the meantime, the condition of Miss Hunsicker is reported as | considerably improved over that of |a few days ago when she suffered {a slight relapse. Dr. J. O. Rude stated today that she is still con- | fined to her bed at St. Ann's Hos- ms:::cm Sinnet, from Seattle iS|pita) in a paralyzed condition but| J that her general physical condition | Alaska, from Seattle, due Satur-|p,s shown improvement. He said day. it may be some time before the Aleutian scheduled to sail from complete paralysis of her main| Seattle July 26. trunk and legs is relieved. He ex- Princess Louise scheduled to sail|,ressed the hope that there are Irive from Skagway tOMOITOW MOID ) chances for a full recovery. ing at 8 o'clock and sails south one hour later. Seattle July 29. Princess Norah scheduled to ar-| rive irom Skagway Friday morning — .o H HERE FROM MISSOURI Bergic A. Smith of Kansas City, ! Mo, is registéered at the Gastineau hour later. Hotel. She has taken a position “Well, Harold, it looks like you're —— e (Continued on Page Four, lsauth sometime Sunday. Baranof, from west, is scheduled! with the Territorial Department ofi Health. fflew Navigation other Burmese executive council| mon Derby. A committee of ten ministers was shot dead while at-|was appointed to help serve the tempting to escape from custody.|picnic meals at the Auk Bay Re- | There was no official contirma- |creation Area. This committee will tion. be joined by a similar committee The newspaper reports said a|from the Business and Professional man arrested on suspicion near Women's Club. Daiku, about 90 miles north of| Routine business included a fi- Rangoon, was found to have in|nancial report on the Memorial his possession documents outlining the plan of assassination and list-|$450 was obtained through the af- ing the names of the mtendedighnn award and Shakespearean victims. | Festival held by the organization and will be turned over to the fund. A short parliamentary law drill was conducted at the meeting by Mrs. Mildred R. Hermann. { Mrs Maude McAuley, a Soropti- mist from Hastings, Nebraska, was a guest at the luncheon. Aid Is Announced Library fund. A net balance of| 'POWER OFF FOR 45 MINUTES THIS P. M. : Electricity, both light and power, {was off for 45 minutes this after- Inoon due to an accident on the line between the city and the Sal- mon Creek power house, caused trouble at the plant. As far as Em- pire production was concerned, the power off meant a delay in publi- cation of about one hour and 20 minutes, as the metal pots became | cooled. | — e+ —— SUSPENDED SENTENCE | Fred Kfirkpatrick was fined $25 - —— BONNIE RANDALL BACK FROM FISHING VACATION tand given a 30 day suspended jail sentence this morning by City Magistrate William A. Holzheimer. | He was arrested last night by City Back at her desk today in the, Police and booked as drunk. —————.——— - For Guard Island SEATTLE, July 24—(®—In a no- tice to mariners, the Coast Guard announced today a radiobeaconand | office of the Juneau Plumbing | finding station would be set up and Heating Company is Mrs. Bon- TACOMA MAN HERE Aug. 18 in the Guard Islands, in|nhie Randall after three weeks va- ' Martin Petersbn of Tacoma is at the Tongass Narrows area of Al-|cation. She flew to Pelican City the Gastineau Hotel. aska. The light characteristics will|t0 join her husband, Ralph Ran-' - e — be group flashing white every dall fishing in that area. They | HERE FROM PELICAN 6 seconds (flash 1 second, eclipse then went out on their boat for| Carl Raatikainen of Pelican City 1 second, flash 1 second, eclipse 3 three weeks, fishing mainly in the'is registered at the Gastineau Ho- seconds). 3 Cross Sound district. tel, open to' halibut fishing, at mid-| night August 17, was announced by the International Fisheries Com- miscion today. Area No. 3, westward from Oape Spencer to the Aleutian Peninsula, should have produced its quota of 28,000,000 pounds.by that ddte, the |Commission said. Area No. 4, the Bering Sea, whose quota is 500,- 000 pounds, and Area 1-A, south of Cape Blanco, with no quota, will also close. Halibut caught incidentally taking other fish, however, be retained after that date. .- STOCK QUOTATIONS NEW YORK, July 24—Closing quotation of Alaska Juneau mine stock today is 5%, American Can | may in| BESTAGGERING JOB FAIRBANKS, Alaska, July 24.—® —Alaska’s Sew ard-to-Fairbanks | railroad line was compared yester- |day by the wartime head of the |Army railway service to “rotteh and demolished railroads” the American Armed Forces found when they started moving wartime freight in Italy, Germany and Iran. The “know how” acquired in re- habilitating the war-wrecked for- |eign lines, said former Maj. Gen. (Carl Gray Jr., will enable Ameri- |can crews to meet the problems i{of modernizing the Government- |owned Alaska railroad, but, he said, {it promises' a staggering assign- | ment. Gray's comment followed his in- 94, Anaconda 38%, Curtiss-Wright |spection of the full route of the 4%, International Harvester 92,475-mile line. He heads an official Kennecott 4749, New York Centml;pnrty inspecting the line with Col. 16%, Northern Pacific 22, U. S./J. P. Johnson, the railroad general Steel 76'4, Pound $4.02%. manager, to report to Secretary of Sales today were 1,570,000 shares.' Interior Krug on specific steps for Averages .today are as follows:|bringing the Territory’s inland industrials 163.83, rails 5163 util- “lifeline” to the standards of Unit- road 1Is ities 35.84. ed States railroads. The - e — under Department of Interior juris- PETERSBURG MAN HERE diction. Robert ®. Morgan of Pev.orsburg‘ The party returned to Anchorage is stopping at the Baranof Hotel. today. poyd