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HE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” [ = VOL. LXXIL, NO. 11,066 JUNEAU, ALASKA, MONDAY, DECEMBER 13 ,1948 PRICE TEN CENT$ Communists Reported Winners Ciuna Battle Anti-Communisi Group, Marine WHA (K Cooks and Stewards, Airmails‘ Slgned Slalemenilol.m%mmre BIGMERGER OF AIRLINES | TAKES PLACE Pan American, American | Overseas to Consolidate |° ~Approval Awaited NEW YORK, Dec. 13.—®— Pan| American World Airways and Am-| erican Overseas Airlines have| agreed to the biggest merger in Amercan commercial aviation. | Plans for consolidation of Amer can Overseas' routes to eleven| countries in Europe with Pan Amer- | jcan’s Trans-Atlantic services were | announced by both companies last | night. Routes and assets of American | Overseas Airlines would go to Pan| American in exchange for Pan| American stock. After this stock was distributed, American O\crsc.\s‘ Airlines would be dissolved | The merger agreement is subject | to approval by the stockholders of both concerns and the Civil Aero- nautics Board. | Pan American World Airways is the largest international air car- rier, and American Overseas is a subsidiary of American Airlines, the nation’s largest, domestic carrier The merger would leave only the| other U. S.-flag line operating trans-Atlantic service Howard | Hughes' Trans World Airline Hughes Makes Attack Hughes, who was not immediately available for comment, attacked Pan American policies before Congressional investigating comm tee a year ago. Hughes, TW.As largest stockholder, said Juan Trippe, president of Pan American, was attempting to organize an in- ternational ir travel company monopoly and to force TW.A, to merge with it. Sen. Owen Brewster who Hughes had said Trippe—said in a statement l\me.‘ that the merger anncunced last| night “is in general line with what | T've always believed is the inevit- able pattern of overseas air oper- ations.” Merger Is Practical “It is the only practical way of meeting the highly subsidized foreign competition with which we are faced,” said Brewster, who had been in a bitter exchange with Hughes at the time of the investi- gation. Brewster said the plans are in line with recent announcements by the Civil Aeronautics Board that serious consideration should be given to mergers and consolida- tions of airlines, He said each | 1 a (R-Me)— backing | (Continued on Page ' Five) i The Washingion! Merry - .Gfl -Round Bv DREW PEARSON (Copyright, 1948, by The Bell Syndicate, 'ASHINGTON—The Navy has just put out for restricted use one of the most amazing reference books ever printed at public ex- pense—a confidential handbook to guide Navy officers in making pub- lic speeches and, incidentally, pok- ing gibes at the Army Air Force. In fact, the book’s underlying is nothing but the Navy's case against the Air Force. Despite the fact the Congress passed the Unification Bill for the cxpress purpose of cutting out| Army and Navy bickering, the | Navy's confidential handbook ad- monishes: “Always remember that you rep-| resent the Navy and that, what- ever the apparent purpose of your | talk may be, your primary pulpuae\ |rejected by | we ask you to invest Ithey play too important a role in the I'States of POLICE POWERS Employees in the Steward's de- partment of ships engaged in the Alaaka trade do not wish to be rep- nghest Court in Land| resented further vy tne marme Cracks Down on Abuses COOL\ an eward's Union because . . it Omon 1o Communist aomi-| Of Police Authority nated and because the Alaska trade | has special characteristics and prob- lem~ and should be established as a separate labor unit { This is the signed statement re- | ceived by The Empire in the week- {end air mail from Seattle, dated! Dec. 10, from the Marine Cooks and Ste\mrm anti-Commun st Group, Seneca Street, Seattle. A petition for the establishment of such a unit has been summarily the Seattle Regional Director for the National Labor Re- lations Board. No substantial rea- sons were assigned. We are asking the Board to review the decision of the Regional Director. Seventy-five percent of the af- fected employees have freely and voluntarily in writing, requested | representation by the Sailor’s Union |of the Pacific, a distinetly non-com- munist organization. They consider |it their democratic right to select their own bargaining agent. Their |names are not made public for fear of retaliatory acts, tut the original signatures are available for |inspection by any interested, re- sponsible person. In the interest of healthy, non- communist labor organization and in the interest of Alaska shipping, zate and sup- s our outpos gainst Russia, and crews of Alaska ships we feel should not be members of an organization that is communistically dominated, as | al i WASHINGTON, Dec. 13.—\M—Th9’ supreme court cracked down mdgy on what it ruled were abuses of pb- lice power. By a 6-3 vote, it threw oul con- victiohs of two Washington men for violating gambling laws because police secured their ev.dence Ly forcing their way into a rooming house and peeping over a transom. By a 5-4 vote, it set aside the theft conviction of a Washington} man on grounds that pol'ce detained | him vnlawfully for 30 hours. During | the cetention, policé secured an al-, leged confession from the man. In a third case, the court ruledi 6-3 that Pennsylvania courts should | give a hearing to Eimer Uveges who| is servinz 20 to 40 years in the West- ern Pennsylvania penitentiary for' burglary. Uveges complained that in 1938, when he was 17 years old, hE‘ was arrested, held for two “cek:, without being permitted to com- municate w'th anyone, charged with burgiary and convicted without hav- ing a lawy In another case, the court held in effect that the G. I Bill of Rights empowers a court to award a veteran pay if, on his release from the service, his old emplover did not give him back his pre-war job. The court refused to revive lower court. decisions ordering John Kivo | and Company of New York City, to ‘pay $7,956 to Fred Loeb, e PRESIDENT ASKING FOR | | i nations) defense of the United X Americ: (Signed) ROBERT W. COONEY, MAX M. SCHLOSSEL, DALE A. BECKS, HERBERT L. BAKER, CLAN J. ROTAN Committee of the Cooks and Stewards, Communist Group. Marine Anti- nfs Ralse for Cabinet] Officials, Territorial Governors Also WASHINGTON, Dec. 13.—®P— President Truman asked Congress itoday to raise the pay of cabinet Ofllcg)’s from $15,000 to $25000 a year and to boost salaries of other top-level government officia’s. The President presented his re | commendations through Budget Di- rector James E. Webb, who said the Government must pay higher wages | ito pull the best men into govern-| ent. Webb tcld a Senate post office and civil service subcommittee the Pres-| ident favors overhauling the entire ’pn,v structure, on the higher level. Hospital attaches reported 12! m“;;gbmg";g:se:n;::z;i‘Z;::":so? Fours later she was clinging to life.| . " secretaries, heads of inde- Last rites of the Mormon Church; € i L have been administered. nilslg:)\;:; agencies, toards and com m Guam authorities said she had] 7 »| Wehb told questioners that he has been seized by a gang of “sex fiends, not discussed with Mr, Truman the cr'minally assaulted and beaten. . question of the president’s salary,! They said she apparently put up a Lbut suggested that $150,000 a year, Pretty Girl Raped; Beauty Is Leftto Die, GUAM; Dec. 13.—M—Raped and| left for dead, pretty Ruth Farns-) worth was found unconscious in the | jungle today near the small curio shop from which she vanished mys- teriously Saturday night. oy The 27-year-add San Francisco: beauty was found nude in a pool of | tlood in dense bushes about: 200 yards behind the shop, where she worked part time. | partment | Witnesses - SALARY UPS: Secret Documents Filched From Depariment of Stafe ed, Made Public AreReveal (GRAND JURY OFN. Y. GETS SPY CASE "“Pumpkin Papers fo Be Revealed to Group —Nixon Talks NEW YORK, Dec. 13.—(P— pre-war State Department docu- menfs which have been dubbed the “pumpkin papers” will be spread before a grand jury in New York City teday. The papers are microfilms of the government doc- uments which are said to have Leen given to Whittaker Chambers when he was a member of the Communist undreground. The documents are to be pro- duced today by Representative Richard Nixon of California, a member of the House Un-Ameri- can Activities Committee. has charged that the Justice De- partment and the grand jury are monopcelizing witnesses in the Communist spy case. He thinks it is an attempt to “whitewash” the Jezedly guilty persons. Tighten Espionage id the spy hunt s shown a need for tight- cning the espionage laws. He said that should get first priority in the new Congress. The committee is making its spy investigation here. The Justice De- is conducting the other one before a New York grand jury. Each inquiry involves the same and the same evidence Up to now, the committee has ailed to get any of the key wit- es, although some of them tes- tified here last summer. On the other hand, the grand jury hasn’t seen the most vital evidence—the Whittaker Chambers microflims the committee got from a pumpkin less than two weeks ago. Microfilms For Jury Nixon agreed to see to it that the grand jury got a look at the microfilms today. sure when the committee would ;et a chance to question the main witnesses. The grand jury has been keeping ' both Chambers and Alger Hiss oc- ! cupied. The jury expires Wednes- day but the Justice Department is geing to replace it immediately. “Present indications,” Nixon told a reporter, “point to action on the part of the Justice Department to keep the wimcsses from the com- mittee.” “Wllfltwllh" Charge He said the committee is will- ing to cooperate with the depart- ment in getting the facts before the grand jury so that any guilty persons can be prosecuted. But he said it is “essential” that the witnesses be heard by the com- mittee before the year ends. Nix- on gave this reason: The | Nixon | He wasn't so| WASHINGTON, De: 13.—M—A batch of secret U. 8. documents giv- ing intimate behind-the-scenes | glimpses of world events 10 years |ago 1s made public by the House Committee on Un-American Activi- tles. The documents were alleged'y filched from the State Department and passed to Whittaker Chamb key figure in the House Commiit {Red spy investigation, for re'ay Moscow. Tae 12 documents released by the committee, part of 656 produced -y Chambers, range over a wide se- iquence of history-making event | They includeq reports on Britain's battlesh'p plans, Japanese designs in the orient and Austria’s vain ef- orts to avoid being gobbled up by | Hitler. Among the documents are type- written copies of 21 diplomatic mes- sages signed by such pre-war f ures in American d'plomacy as for- mer Ambassador to France Willlam C. Bullitt, former ambassador to Japan Joseph C. Grew, and for- mer Ambassador to Poland An- {thony J. Drexel Biddle, Jr. CONFIDENTIAL DOCUMENTS Several of the documents are \marked “strictly confidential,” but | the House Committee said the State to {iong pa ition would no longer be con: red “dangerous” to American securi Rep. Mundt (R-8D), acting chai man of the House group, said he had received a note from Assistant Secretary of State John E. Peurifoy |saying the State Department would not consider publication of the documents ‘“as adversely affectng 'tii conduet of foreign relations” at this time. | BRITAIN'S NAVAL PLANS But their potential value to other governments at the time they pur- portedly “leaked” from the State Department is evident from a cur- sory examination. Britain’s naval plans in 1938, for examp'e, were of vital concern to Adolf Hitler in his then undisclosed plans for conquest of Europe. | crandum which committee records say is in the handwriting of Alzer , former State Department of- , spoke of Brilain's battleship tuilding plans in that critical year /18 months broke out with Europe. LEAK ABOUT JAPAN A long message signed “Grew,” dispatched from Tokyo at noon, | Feb. 12, 1938, and marked “strictly confidential,” told then Secretary of State Cordell Hull of Japan's rsing temper against the British in Chi- na. Grew added: Such information-—that a British official contemplated the idea of endinz British support to Ch'na’s Generalissmo Chial Kai-shek— lo-viously would have been of great Ivalue to the Japanese at that time. Amonz documents relatinz to pre- war Europe, several related to Hi ler's secret plan to seize Austria and of Germany’s hope to necotiate a trade acreement with the Un'ted States a year before he plunged Eu- rope into war. Hitler’s invasion of Department indicated that with the' ge of time the'r publica- | Yet one of the documents, a mem- ' before World War iIl Mrs. Hiss Affer Teshmony | | | | 4P} B ] Smiling Mrs. Priscilla Hiss, wife of Alger Hiss, leaves Federal Build- ing in Washington, D. C., after testifying before a grand jury prob- ing the alleged Communist spying. Following her is her attorney, Edward €. McLean (right), a classmate of Hiss at Harvard. ( Wire- photo. " HISS QUITE SERENE Hiss Resigns; ~ Ges Vatallon 9 NEW YORK Dw 13.—A - Alger His investigation, tion as head of the Carnegie dowment for International Py day, but trustees tabled the nation. He was granted months 'eave of absence. e to- ' resig- | a Hiss is accused by Whittaker Chambers of delivering secret gov- ernment papers to Chambers, a selt- confessed Soviet esplonage courier. In the meantime Rep. Richard| M. Nixon (R-Calit.) from Washington with microfilms of secret goveinment papers which Chamcers produced 10 days ago from‘a hollowed-out o his Maryland farm. Nixon brought the films here to show them to the Federal Grand Jury probing Russian espionage activities. - e FLASH FIRE 'IN HOTEL; 5 ~ PERSONS DIE CHICAGO, Dec. 13 Five _persons died and 12 oth suftered |injuries or burns as a result of a | ANCHORAGE; Dec. 13.—(®— The flash fire which raced through the (| City Council has increased from fifth floor of the seven-story Vic- i$1 a ar to $10 the license fee toria Hotel in the Loop District. ALGER HISS, former employee of the U. 8. State Department, appears quite calm as he arrives at the Manhattan Federal Grand Jury which is investigating Com- munism ani espionage. Due to the discovery of microfilm of top secrets in a pumpkin on the farm of Whittaker Chambers, the in- vestigation hage been given new mpetus lcense Fees Gnven | Upping, Anchorage three- | arrived here | pumpkin on| 2 alleged | ATTACKERS CLOSING IN ON NANKING ‘Reported Only Eight Miles from Peiping - Nation Charged Off as Loss (By The A.. clntcd Pross) Chinese Communists fought to- day within 50 miles of the capital | of Nanking and a bare eight miles | frem Peiping in the north. | Officialdom in Washington, pre- pared to write China off as an ai- | most certain loss, regarded the | Communists successes as not so [much evidence of Red China's strength but of C}flnng Kai-shek's weakness, Mrs, Chiang's mission to Wash- ington is regarded as a tatlure. There is no evidence Secretary of State Marshall or President Tru- man has even given her program i the slightest serious censideration. The Communists, with superior numbers, better spirit and appar- ently much better leadership and €quipment, were closing on Nan- king much sooner than expected. The Hwai River line, 105 miles from the capital appeared lost al- jready and oniy the broad Yangtze River bulwarked Nanklng from the | Reds, . Government sources said more than 50,000 government troops in the trapped 12th Army group have 'been wiped out. The Communists (said they had cut in half the 250,- CC0-man strength of the former 1 Suchow garrison, which tarried too long north of Nanking and also was trapped. — SAILORS 10 FIGHT FOR WAGE BOOST gbtiafibns‘B-egun with | .lundeberg by Ship- i owners Assn. @& principal in the Soviet spy! submitted his resizna-| Fn-v ‘Ne SAN FRANCISCO, Dec. 13.—(P— Harry Lundeberg today pressed | his APL sailors' demand for a wage boost exceeding that won by CIO | maritime unions in the recent West ‘Coasl strike. Negotiators for the Pacific Am- |ex ican Shipcwners’ Association were ischeduled to give their answer to Lundeberg’s threat to pull his men off the ships if agreement is not reached in 60 days. The AFL Sailors Union of the Pacific did not participate in the ! 95-day strike but was idled by it. The CIO seagoing unions won an _\vemge $21 monthly increases. Lundeberg, executive secretary of the AFL union, is demanding rais- es ranging from $20 to $60 a month to a minimum of $190 for. ordinary seamen and $350 for boatswains. The AFL union’s demands and a continuing controversy over pay - terrific struggle. 1 double the present rate, “would be far more acceptalfe.” Webb said he hopes the commit- “After the new Congress comes into power, without question there will be an all out attempt by the INVASION OF ior bars, markets and restaurants.| Otto Dahh, a deputy fire marshal,|{ rates on coastwise steam schooners It Is expected to boost the City sa'd the quick work by two bellboys|hauling lumber held up a return evenue to $3,000 frem the present and the recent encasement of the to complete maritime harmony. administration to suppress any 33090, hotel's stairways as a fire preven-, E— o | Palestine tee also'wil' consider the vice-presi- dent’s salary, now $25,000 a year, in lthe light of “the present great dis- iparity” with that of the president. He said he would favor increasing t “perhaps by several times.”~ Territorial Governors of Alaska, Hawaii, Puerto Rico, anll the Vir- SouNDED OFF zin Islands would receive $17,500 Iunder the president’s recommenda- | tions. FRESH BLAST (By The Associated Press) Russia left the adjourned U. N. sessions in Paris bitterly. - tempered old Andrei Y. Vishinsky, who had lost to the west on every| single issue, said the meeting mok more steps toward a policy ut wrecking international coopera-| NEpw YORK. Dec. 13.—(P—For-| tlon. 'mer OPA Director Leon Henderson The U. N. will meet again ifijhas resigned as National Chairman | New York April 1. Its main re- of Americans for Democratic Action. | sults from 72 days of work were a| Submitting his resignation, effec- conciliation commission: |tive next Jan. 15, he told the A.D. declaration of human A's national board yesterday he rights; a treaty outlawing geno- could not fulfill his duties with the Henderson Resigns AFDC Chairmanship a world 15 to inform the puldic to the benefit of the Navy.” The prospective Navy speaker is warned to co a little reconnais- | ples; cide or the mass killing of peo- group because of his private respon- a condemnation of Yugo- sibilities as chief economist for the slavia, Bulgaria and. Albania for Research Institute of America. He and further public airing of this case.” — - — STEAMER MOVEMENTS Baranof, f{:.:a Seattle, scheduled ' to arrive 10 tonight. Princess Norah scheduled to sail from Vancouver 9 tonight. Denali scheduled to sail from | Seattle Wednesday, Dec. 15. Victoria scheduled to sail from Seattle December 16. Alaska scheduled to sail Seattle Friday December 17. e NOYES AND STODDART 'GO TO FAIRBANKS from Co!. John R. Noyes, Alaska Road Commissioner, who called a special hearing in Fairbanks for Wednes- day, will go there tomorrow, ac- companied by H. A. Stoddard, di- vision engineer of the Public Roads Administration. Colonel Noyes expects this to be a one-day hearing. It was called to investigate and!. COSTA RICA SAN JUAN, Dec. 15.—(P—Authori- ties in Costa ica say they have the country wel on Saturday. The authorities say the invaders are being held in a! ismall area in the northwestern ex- |tremity of the country near the Nl- “Laraguan border. They. ctaim the ir vasion was launched in Nlc‘uzqua 'with the support of Communists Meantime, Costa Rica's appeal for inter-American help under the Rio! pact has gone hefore the foreign ministers of 21 western hemisphere nat'ons. The foreign ministers will (decide by tomorrow | whether to call an emergency se: Jsion to consider defensive measures ‘in Costa Rica. > | n7s to CONVROLLED under control in} \spite of an invasion which started| afternoon; i The new health ordinance also re- 'tion measure probably prevented a quires hotels to provide rooms with much worse disaster. adequate hzat, light and ventilation | The belltoys, Sanders Davis and and k{us stricted provisions for bed Rudolph Taylor groped through the sheets and pillow cases ~ >o sleeping guests. gFormer Mnmster L on Alaska Is Dead N i SEATTLE, Dec. 13.—®-—The Rev. Clyde L. Walker, retired Methodist Iminister who had served many pas-{ torates in the Pacific Northwest and Alaska, died Saturday. He spent five years— Kel(') ikan -+ D ORTH ATLANTIC PACT TAKEN UP BY 7 NATIONS (By The Associated Press) | U.S. and Canadian representatives {met with those of the five Western European Union countries—Britain, ance, Belgium, Holland and Lux- un NIg—to Wi -k in mmusz on lhe Anthorage Barber SEATTL ¢ A Clmrlr’m The pact would commit the U. S. C. Davis, a ‘ber lrom An{)l()hlg\‘,‘V ) assist European members of the Alaska, told police he was forced |alliance aga'nst attack from anhy into an yesterday morn ngjquarter, meaning, as of now, from | |at 1920-1933— } dense smoke to sound alarms for the ! Cause of the blaze was unknown 1 . JUST SILLY NEW YORK, Dec; 13— Mrs. Eleanor Roosevelt says a proposal that President Truman make her Secretary of State if the ailing Secretary George C. Marshall retired is too silly to comment on.” However,” she told newsmen last imahu “I hope Secretary Marshall {wil' not retire, for the good of the cuntry and the good of the world,” - eee ICUTTER CLOVER | © ON MERCY TRIP EEATTLE, Dec. 13—(P—The Coast {Guard reported today the Cutter Clover is en route to Kodiak with a man stricken with *appendicitis. He was picked up Sunday at Chig- nik on the Alaska Peninsula. Rough weather prevented his re- moval by plane. helping Greek - Communists; will have to spend considerable time | discuss winter maintenance and use, approval of South Korea, a:road, he said. of Alaska highways. Pope Pius sent his bles the Spanish people and to (Continued on Page Four) Franco. and robbed of the East The victim was umdemmed