The Daily Alaska empire Newspaper, December 2, 1948, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” . JUNEAU, ALASKA, THURSDAY, DECEMBER 2, 1948 _ MEMBER A ——— ¥ PRICE TEN CENTS SSOCIATED PRESS VOL. LXXIL, NO. 11,057 Coast BUSINESS MEN TALK OUT, MEET | Warning Gfi by Indus- tdial Leaders Regard- ing Nation's Qutlook By H. C. JOHNSON NEW YORK, Dec. 2. nation's industrial leader: warned today that government spending and control of economy may bring unemployment, insol- vency, socialism and even insur- rection to the United. States. Two businessmen told the 53rd annual Congress of American In- dustry, sponsored by the National Association of Manufacturers, that what they termed Federal interfer- | ence in the national economy had | left the country deep in political | uncertainty. | At the same session of the NAM's first national assembly since the Democratic election victory last month, Rep. Brown (R-Ohio) hint- ed that the Post Office Depart- ment is one of the chief targets| of the bipartisan commission now studying government reorganiza- tion. The three-day NAM meeting ends | tomorrow night when Secretary of ; Commerce Sawyer will speak. Lane D. Webber, Los Angeles utility official, said at this morn- ing’s session that continued Fed- eral spending on the present scale, | “not to mention proposed increases, | will surely produce insolvency, de- | struction of private enterprise, con- fusion and insurrection—resulting in some form of socialism.” “If only the people could know our country is infested “with size- able elements who strive to degrade us into socialism by government spending, taxation and inflation— the inseparable trinity of traged: said Webber, who is vice presider4 of the Southern California Edison Company. Joseph Morrel Dodge of Detroit, former president of the American Bankers' Association, said that be- cause of increased government con- trol over the American economy, the country is plagued by a short- suard Headq There are varied expressions on the faces of these wi Shanghai, China, aboard the Army transport Gener al evacuated when the military M M. SUCHOW IS TAKEN OVER BY COMMIES |Capture of AlfiNationalist | Base Is Reported in A. P. Dispatches (By The Associated Press) Chinese Communists announced | today the capture of Suchow, big { Nationalist base 211 miles north-; | west of Nankir | ' Reaches U.S.. Is on Mission About Aid for China 2 | i ! | WASHINGTON, Dec, dent Truman State Mai and Secretary ordered southward to rescue the,ernment in its fight trapped 12th Chinese Army group ! nese Communists. Army Dependenf; Leave Shanghai | | #—| By Madame Chiang Kai-shek has ask- | ed for appointments with Presi-|has no intehtion of moving its cap- of ital from Nanking, although super- Communist forces are pressing | Its garrison of 250,000 had been{American aid to the Chinese gov-|upon the city from about 100 miles against Chi-|aw shall to press for urgent |ior and children of Army officers as they leave Patrick ituation in China beca me critical. (® Wirephoto. (Nov. 20). They were ordered Mrs. Chiang CHINESE ISSUE IS BIG ONE \Wanis to Arr_;nge Dates U.S. Officials Believe Help' with President, Marshall | Impossible as Condi- tions Unstable The Associated Press) China told foreign diplomats it most heads ed to stay. of missions de- o uarters CRISIS IN BERLIN IS INCREASING CommunistTossession of Government Makes Situation Intense (By The Associated Pre: In Berlin, Col. Frank Howley, the U. 8. Sector Commandant, day the Russians have many agreements he doubts whether it Is wise to try and reach another accord in the continuing German crisis He said the Communists who set up a rump city government in the Russian sector to replace the elected Berlin regime are “crimi- nals.” Howley said the Communists acted with full Russian accord and this was “just one more step in the long line of broken agreements” over the last two years. A high State Department official | in Washington said the creaton of | a separate Communist government ! in Berlin—by a show of hands rath- ler than by ballots—made a solu- {tion more difficult, if not impossible. i Neutral financial experts were in- | {structed cy the six “neutral” pow- jers of the U. N. Security Council| to draft Berlin currency regulations | jacceptable to all four occupation powers this month. A French offi- | cial said, however, “something new” | \will be needed to end the crisis now | jthat the Communists, at Russian | |bidding, have divided the city en-| tirely | The currency issue was raised ty {the Russians as an issue after they \blockaded Berlin in June, Actually| ithey are trying to chase the U. S., Britain and Prance from Berlin, and fdistupt western plans for a united in western Germany. | ., — THREAT IS MADE, LIFE (government | ) Plans Discussed Janad e ¥ I | | It { i | 5 Lucile Cefalu became the bride of Carl Martineau in Our Lady of Victory Church in San Franeisco witnessed by more than 200 strangers. Twenty-year-old Miss an ad in a local newspaper inviting any because she feared an empty church friends lived in the The a Ketchi East. (6. Hgadquarlers at Junea WASHINGTON, Decy 2 Robert Jernberg, one of Ketchi- kan's three-man delegation to pro- test the establishment of Alaska | ICoast Guard headquarters at Ju-| pire.) neau, said today the delegation will | continue efforts to have the order | set aside persons, kan Delegation Atfempts To Getf Reversal of Order for - OFFICE BUILDING FOR COAST GUARD PROPOSED, CHAMBER Banfield Presents Repori- Cost Estimaied $290,- 000 to $390,000 That Juneau’s or the establishment | Guard District headquarters here was stated by Joseph McLean, President of the Chamber of Com- merce at the meeting ay. The Coast Guard has stated that Jus |neau will be the District Headquar- ters if office space and housing fa- ctlities are provided | At the Chamber meeting this noon |Norman Banfield presented the re- {port of the special committee which has been working on the erection of |a new cffice building to be used | by the Coast Guard + The cost of the building is esti- |mated to be between $200,000 and | $300,000. The ruilding will be par- | tially tinanced by local investors. vHiam.uld on behalf of the commit- |tee said: “We feel that the return !to the city of Juneau every year in | business will greatly exceed the Jamount of investment required. Wedding big chance oi the is Coast OPTION TAKEN An option has been taken up on the two lots between the Territorial | Building and the Hotel Juneau for S75.000. Preliminary plans have been drawn up by Harold Foss for an office building measuring 56 (leet by 100 feet with three floors rand a basement, The building will constructed of reinforced con- jcrete and will be designed with a heavy structure so that two more floors can be addeq. Plans call for a parking area at the front and rear of the structure. The building will te used only by the Coast Guard and the interior will follow specifi- drawn up by the Conast (ahove) (No ) at a ceremony nearly all of them total Cefalu of trans-bay Oakland put to attend the ceremony s most of her relatives and ad brought vesults. ® Wirephoto. | | ,Guard. Toe Coast Guard will pay 15 per |cert of the cost of the building as !annual rent. Specialized communi- tcation and electrical equipment and !furniture will be provided by the ing that aifords a 1ving | Coast Guard and the building cor- to 70 per cent of Alaska's popula-|poration will provide electricity in tien, the halls, heat and maintenance. To (Read editcrial in today's Em-|minimize the cost of maintenance ionly first class ‘building materials will be used throughout the building. | i METHOD OF FINANCING - ' OF TRUMAN ING 10 ARMED age of risk capital. Risk capital is lacking, Dodge said, because of a declining sav- ings rate, an artiffcally low inter- est rate and the absence of new The Chamber committee has pre- pared a method of financing for the (bulding which will be presented at {a meeting this afternoon at 4:30 |o'clock. All Juneau merchants, busi- |nessmen and other citizens have Government * Young Man Pleads Guilty ment of the Al- aska District, abandoned during the war, was announced yester- |day by Secretary of the Treasury ! +| Snyder. | earlier in the week. Pilots drop-| Diplomatic authorities said that| ping rice to the city reported the|the appointments have not Cemmunis ithin a mile of Su-!'n but presumably will be ar-;in North China forced Chiang Kai- chow, so there was no reason to ranged within a day or so. It is shek’s men to leave two key points, { doubt the report. | understood that she also wants to,70 and 90 miles northeast of Pei- | The outrumbered been |troovs are divided. The Commun The re-establ equity capital. No Changes In Cabinet WASHINGTON, Dec. President Truman said today he is planning no changes in his cabinet at this time. Princ;ss—‘ G;E ip Daily; Little Son Gaining in Weight LONDON, Dec. 2.—®—Bucking- ham Palace announced today that Princess Elizabeth is now getting up each day and her son, born Nov. 14, is gaining weight. The Washington Merry - Go - Round Bv DREW PEARSON Copyright, 1948, by '{h- Bell Syndicate, Inc. ASHINGTON — The text will never be published, but Secretary of State Marshall has written a| stinging, private letter to his Cab- inet colleague, Secretary of De- iense Forrestal, of great interest to every taxpayer. Marshall and Forrestal agree on many things, usually are to be found side-by-side during inner Cabinet debates. But on the ques- tion of a huge war budget, Marshall has put himself vigorously on rec- ord against Forrestal’s proposed war expenditures. In his letter, the Secretary of State described Forrestal's demand of a $24 billion expenditure as hasically dishenest since it pre-sup- posed the imminence of war. And (Continued on Page Four) DOLLAR SHORTAGE The victory exposed the rear of|call on Mrs. Truman. three cutnumbered Government| Madame Chiang, wife of China’ Army groups to the Communists. The claimed the Government's Division, trapped with the Army group, had gone over the Red side D Communists | yesterday by 110th | hai. She still is visiting at 12th | home of Si ary and Mrs. to|shall at nearby Leeshurg, Va. Marshell still is in the Arm: Walter Reed Hospital here und ng what his associates called a phys examination. His friends reported the tests may be complet- the plane the Mar- led in time for him to spend | weekend at his Leesburg home, Authorities said there is no doubt 'here that the situation created by | Communist advdnces in China BY FEBRUARY 1§ ARCHORAGE REPOR » ANCHORAGE, Dec. u. 7%“75:‘)!“';r4cm work against any speedy t of the prolonge 9enCY | American action: from the states because of |y Gongress—which must auth- e el e Wiy orize any additional aid—will not undermining Aldska’s Fe, | meet ior another month. liam Maitland, director of the An-| e Military and political condi- {chorage Territorial Employment| yjons jn China are considered so j Bervige, belicves: ticularly heavy | UnStable that officidls believe any | The burden is par ‘C;“ he Yid T}‘:ye!‘ program worked out now probably =on the working man, ‘E s cers would not apply a month from now. cost of lving, he estimated, Nas ' nere are no indications that e 4o 15 per hct‘l:lg:":frefigg‘;‘s' either the Economic Cooperation “There is no shorta 6 Administration or the State De- because an U.Tdi‘l" can be fiinelfn k:’:;Apartmenb has yet presented Presi- the air lines within a minimum | gent Truman specific plans for amount of time,” he said, "butiyeining Chiang Kai-shek’s Nation- there most certainly will be a dol- 1 gjigts jn their battle with the Chi- lar shortage by February. | nese Reds. RS %5 S President Truman said today he SNOW BLIZZARD RAGES i concer wiin aadame cniang AT TEE HARBOR TODAY | to see him. A blizzard is blowing in the Tee _ _ STOCK QUOGATIONS Harbor region today according to! residents who managed to come NEW YORK, Dec. 2 f into town. About a foot of snow has | ot B FOE T “;‘i‘e‘fu fallen within the past 24 hours and.’mme Stock: Loy 45 9%, Atnarican a strong north wind has whippedl Oan 78%, Annéonda 33‘7' Brtts in from Lynn Canal. Temperaturei Wright 7“‘ Intfirnatlon;lv Har\” this morning was near 20 degrees. ler 270 !‘(e‘nnecon. 8%, New York Several residents were unable Cenlr;i 13%, Nedth «l" FIW i to come into fown today and several e i"“ ern Pacl o B high school students were taking an | U:_S- Steel 71, Pound $4.03' enforced holiday. Snow in the area ranges in depth from three to four feet. s r | | | 1 | air is ities 32.76. ——-e—— ‘ At temperatures below 70 degrees | the larvae o1 1"!0& active, but they do not die. | lorite ducks of most U. S. hunters. | They are expert divers and indis- criminate feeders. e i & O R Canyasback ducks are the fuv-' advancing | Nationalist President, arrived here in from Shang- Feals for help. Officials believe mili- | pir I merican officials moved slowly| he face of urgent Chinese H A t uns rossible. Another whether Chiang can remain longer in power. SEATTLE YOUTH IS GIVEN LIFE FOR DEATH OF CARHOP SEATTLE, Dec. 2. —(#—A term of life in prison today faces John Rus sell Gasser, 20, convi of fi degree murder in the death of 22-year-old carhop. A superior court jury delicerated three hours yesterday before an- nouncing a verdict of guilty and a recommendation against the death Ppenalty. The youth's guilt was freely ad- mitted by the defense, but the case centered around his mental condi- tion at the'time of the slaying. He confessed he -choked Donna | ‘Woodcock in a fit of rage on a v: cant lot at the outskirts of the city, July 10. I and political conditions are so able that no immediate help is| uncertainty is much | i i i i I a ——r——— PRINCESS NORAH SAILING TONIGHT! Canadian Paciiic steamer Prin-| cess Norah, making the first trip on the winter schedule, is due tof leave Vancouver tonight at 9 o'clock on the Southeast Alaska | route. The Princess Norah is due to ar- rive in Juneau Sunday and sche-| duled southbound Tuesday. i D HARRY RACE HERE Harry Race has arrived in Ju- neau irom Ketchikan, planning to attend sessions of the Territorial Pharmaceutical Board, of which he is a member. Race has drug | | clothes moths are stores bearing his name in both Kechikan and Juneau. | said Juneau | he: to Charge, Sentenced— jers because it was seat of NEW ORLEANS, Dec. 2—(P—A!Territorial government and because young man pleaded guilty to a;most Federal agencies were cen- harge of threatening the life of| tered there. Prcsk_jem Truman, was semenced: “But,” said Jernberg, “from the to prison for three years, then told | Abotat = Foderal judge he still intends to|Standpoint oi economy, the head- s B |quarters should be in Ketchikan, |8 carry s threat. s il s (which was the headquarters from leTW:l:y;c!fifé;zéz ’v-‘::g:;f _f °{"’ 1940 until the summer of 1947, The T Was s er Ly ! Coast Guard already has there all ;‘HE";‘"‘”‘ Judge Herberl Ohriscen-¢ 0" e - buildings’ i Mith smeds seid “I feel that President Truman is| 0 trapsfer them to Juneau will not adequate to supervise the peu-,f";';:mf"s’ the taxpayers more le of the United States,” Porter ] . - .Eaid after he was sentenced. “And /| Capt. A. C. Richfiond of the lot of other people probably reenC’J"-“ Guard informed a Congress- the same way but don't say so.” Then he added: “The United States doesn’t mean anything to me ‘ The announcement | that current defense plans call for Ithe Coast Guard in an emergency anyhow.” ité fake over protection of port Porter ‘threatened the President's!and harbor facilities, operate anti- life in a leter sent to the White|Submarine patrols, and so on. House. It was writen while he was; The Army and Navy both have in jail at Franklinton, La, serving|maintained strong establishmenis | a sentence for defamation of char-|in Alaska,reflecting their view that acter. Alaska is one of the nation's “front lines of defense” and would be a fccal point in the event of a war, The Army has made increasing use of Alaska in recent times as a training and maneuvers area, and has obtained large appropria- tions for building permanent in- stallations for troops and ammuni- tion. Coast Guard officers said 17 officers and 32 enlisted men will be sent to Juneau to make up the district headquarters staff, Operations forces will remain |abcut as they were when Alaska was part of the Seattle district. The operations forces, which have a base at Ketchikan, provide alds to navigation, maintain buoys, | lighthouse, and weather ships. There is also an air detachment | which undertakes search and res- cue missions. Governor Gruening, Delegate o Bartlett and other Alaska officials e ' have long sought a separate Coast o Guard district in Alaska as a help e to the Territory's peace-tume econ- e my. i . They have stressed that Alaska e has a 25,000-mile coast line. Not- — e e 00 0 o e c o 00 . * WEATHER REPORT (U. 8. WEATHER BUREAU) Temperatures for 24-Hour Pertod - . . el In Juneau— Maximum, 35; minimum, 28. At Airport—- Maximum, 33; minimum 27. . . . . . . . . . . FORECAST (Juneau and Viclaity) Partly cloudy with lowest temperature near 7 above tonight. Fair and continued cold Lomorrow, Gty Northeasterly winds. PRECIPITATI (Past 24 hours ending 7:30 a.m. Yoday ©0 %000t ee0®0s0cs0c0®r0oe 13 inches; 43 inches; 66.90 inches. .28 inches; 31 inches; 46.18 inches. In Juneau since Dec. since July 1, At Airport — since Dec. 1, since July 1, 1, icnal committee Some months ago | I ‘SERVICES| Senator McKellar Gives Advice on Financial Rat- ing and Unification W'\SHXNGTUI\;‘ Dee. 2. ator McKellar (D-Tenn) the Armed ,nancial rating with the new Con- |gress | | ) ) ad Sen~- rest on whether they can show a unification savings div- |idend. The veteran lawmaker is slated for & key role in settling the mount- ing dispute over ipw much this} country will spend on defense next year. He is due to become chair- |man of the Senhte Appropriations| Committee, which must give clear- ance to Federal spending requests. A staunch administration sup- porter, McKellar indicated he is cking President Truman's plan to Lold military outlays within a $15 000,000,000 limit in the fiscal y starting July 1. Secretary of Dc fense Forrestal had proposed a bud- get allotment ranging up to $2: 000,000,000 MecKellar told reporter he is “greatly intere: in learning if consolidation of the Army, Navy and Air Forces has produced savings by elimination of duplicat'ons and over- lapping. I certainly hope they have.’ The Tennesseean added that his committee “is going to get to the bottom of this” with “full and com- plete hearings.” “No money will be spent essarily,” McKellar said Senator Thomas (D-Okia), anoth- er appropriations committee mem-; ber, said ‘in a arate interview . that he favors a “liberal appropria- tion for the Armed Services." | He did not indicate how “liberal,” | but he recalled that just prior to! World War 11 Congress was sharply criticized for hold ng down the size and funds of the Armed Forces. “We won't have time to build them up if war comes again,” Thom- as said. i | | | unnec- Leen invited to attend the discus- sion. “ Members of the committee are: Wallis George, Norman Banfield, |George Parks, A. B. Phillips, Harold |Foss, Keith Wildes, Simpson Mac- Kinnon, Joseph McLean and George {E. Cleveland. NOMINATIONS Nominations were opened today for members of the Executive Board. i Election will te held at the next 3 d’meetmg‘ ‘The Executive Board elests rvices today their fi-lihe presigent of the Chamber from. {among its membership. The resignation of Frederick Eas- |taugh as secretary was received. Nominat.ons made today were Kenneth Axelson. Felix Toner, and Dr. Clayton Polley. The nomination committee submitted the following names last week: Robert Boochever, Charles Burdick, ‘O. F. Benecké, Henry Green, Dr. R. H. Williams, {Chris Wyller, and Frederick Eas- taugh. LOG EXPORTATION A request was received from the Petersburg Chamber of Commerce i v' | r for the Juneau Chamber's support [in a resolution requesting the For- {est Service allow the exportat'on of s from the Territory until July 1. the present time the Forest ice plans to issue no export vermits alter December 31. A special commitlee, headed by Franz Naghel will investigate this situation rson Lawrence was a guest at s meeting. At