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. THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TII IIE” RY 7, 1949 SECRETARY STATE MARSHALL RESIGNS VOL. LXXIL, NO. 11 ,087 PRICE TEN CENTS v Ml~ MBER ASSOCIATED PRESS - New Jobs and Production Forecast by Truman _____ TWO HIGH PRESIDENT DISPLAYS OPTIMISM }Economic Message AtGlance PALESTINE |N ARMISTICE INDICATED NEW PEACE . BY (HIANG STATEMENT | Wreckage Torn Aparl OFFICIALS QUIT POSTS Lk o y S i+ Economic @sage Given o n emmars, i the nauans @S Fire Is Ordered by Communists Keep Pound ‘Marshall, Lovett -Resign, 1 fo Congress — Stable |owticor and ~ine recommendca| ISrael — Will Discuss | ing at Trapped Nation- | Accepted-Dean Acheson Prosperity in Sight By STERLING F. GREEN shifts-——as presented by President Truman in his economic report to Congress: THE GOALS Peace with Egypt (By The Associated Press) alists-Bullitt Talks ; { (By The Associated Press) | Is New Secy of State | WASHINGTON. Jan. 7—#— WASHINGTON, Beh " m— Employment— 60,000,000 civilian| Israel ordered a general cease Peace talk still echoed in China. Secretary of State George C. Mar- 1 President Trumn’n today forecast jobs, as agdinst 1948's record- |fire today and prepared to dis- | The Nanking Evening News said :'hnll and Undersecretary Lovett re- Y new job and production records in |Smashing average of more than CUss Armistice terms with Egypt.)the Chiang Kai-shek government | signed today and President Truman 1949, 59,000,000,000. The sudden accc«l*pv.nnc‘e of I-:gt;pl, will issue another peace statement ;;nnudDDenn Acheson to head the - Production—A gain of 3 to 4!which maintined until yesterday [in an effort to clear the block taic epartment. o ?e Mgaimwz:‘e hallt of me._n:;gl per cent, about equal to last years.|she never would enter direct talks [produced by Chiang’s New Year Mr Truman announced the setion il bl o Vb g with Israel, sent hopes soaring for |feeler, which had so many con- {86 & newa conferehon: Se S T s S N Shpronetoan: S e permanent peace in Palestine. |ditions the Communists apparent- | appcinting Budget Director Jezas perity, not of an oncoming depres- sion. His annual economic report told Congress that the “fair deal” pro- | gram he laid before it Wednesday | THE OUTLOOK Prices—The overall rise is at a “welcome” halt; but ‘dangerous inflatiogary forces” persist in steel, power and other fields. |the Jews The British Foreign Office said made a new into Egypt yesterday, three miles south of the border town of Rafa. Earlier, the British said, the Is- incursion | |1y rejected it. The Communists are whittling | down swiftly the surviving 150,000 | Nationalist troops trapped on the outer approaches of Nanking. Sur- | TLis daylight view of wreckage of DC-3 plane which crashed on l'lktm'l from Boeing Field, Seattle, | E. Webb as Undersecretary of State. | The changes are effective Janu- ary 20 when Mr. Truman will be inaugurated as President for his new term. Is a two-edged weapon of EOVEr-|" wages_They can rise in some |raels set up a fortified road block |render seemed probable by the b . The President, when snnounciny : ment—that ui is n“a:)ti»depresslon industries without forcing inflation- ;rive R pimlde Beht, sy Heuvypfighung c{mun-l \\axxhl. }l;uv’u l‘u;;‘“ ’hrcnv-n‘(or:lh.l:u‘::z: :itnm"pi‘r“‘lrv. :1:“::(:'14h;::\l:} .::v::::‘m Ta:n::nlnn::r::-::“::: Marshall's' resignation and his aes o e s Ao national | %Y Price boosts. They rose ire-| The Security Council took the ued around the defense perimeter | PUlCd off shory atter crash. Wost of tie i g ) Sinincy ceptance, hetrayed in his voice the ), giv. Fruman Geed Y esehna m.'lil‘ gularly last year. {Palestine question and its hopeful |of industrial Tientsin, where the | ' h'“““r s Wine in b‘“‘k“"'um' Ledlhis '"'"mm |affection he has always maintained ‘ St W g Aty o ey, | _Cost-of-living—Preliminary fig- | auguries under consideration. | Nationals were giving ground. R i |for the ‘World:; War Two Chief of . ;zn-:lfl;a;:‘y“:‘:»;“‘; :;"%:a"oel% ures for December indicate it is| Other Arab countries are expect- | Former Ambassador William C. ‘s'f"' 4 pe e e anothes 3 |still declining slightly. ed to follow the Egyptian lead.|Bullitt said a top American Gen- on way 'o elr e Ing :Ou‘x‘t::ml:"c;x:;rn}) ‘M'.;lr::m:a.r the to 4 per cent boost in production Trans-Jordan, whose old King Ab- |eral and 600 U. S. officers are need- riod.” he said pe Historic High Production Productions last year was re- ported, in the dollar value of all goods and services poured out, THE RECORD i Consumer Income—It hit a rec- ord $211,000,000,000 last year but, offset by prices rises, brought “no appreciable gain” in real income. { been dullah wants the Arab parts of Palestine added to his realm, has peace for some time. Iraq had a short-lived cabinet dickering with the idea of | ed to stem the Communist advance | in China. He reported to the| Senate-House Committee on For- eign Economic Cooperation that all | the East may fall into Communist lIFE (ROPS ACCEPT3 WITH REGRETS | Mr. Truman emphasized that con= | siderations of General Marshall’s ‘hnlth prompted him to accept the the historic high of $252,700,000, Profits—Another record, $21,000,- |crisis. Premier Muzahim Amin Al |hands unless the United States | resignation, and that he did so But the gaip_which Mr. Truman 000,000 after taxes. Mr. Truman Pachachi resigned after smd,ms!swps in. 4 r°h|c'.nnuy and with deep regret.” wants is in terms of actual goods |Said they are too high. demonstrated for full resumption e e < Lovett, whom - General Marshall Vi and services, with the dollar infla- o of the war against Israel. Gen i A ‘“’“lh‘ into the State Department, « tion squeezed out. THE RECOMMENDATIONS Nuri Pasha Es Said formed a new H | Y " The Aakostaten Bhens) ¢ ‘ald in a letter to Mr. Truman that The President’s report showed| A repeat cf the “fair deal” pro-|cabinet a short time later. Only K St whihiie: it rising m;fi'perz 'he submitted his resignation “‘for that personal income in 1948 was |378m he handed Congress Wednes- | Egypt, Trans-Jordan and Iraq have fires today heiped speed ""'er etk personal reasons with which you are $211,000,000,000. He said consumer day; a $4,000,000,000 tax increase, done any fighting of note aualnsl“ 15 the storm-Yavieked. sfess of tie familiar.” . income rose about in proportion to | falling mainly on business; an the new Jewish state. Egypt and | ‘me pibor gy S oS Acheson, who will take over from the climb in consumer prices, eight-point control program includ- {iraq at least have taken harsh ME0t hodbhurs. shated : Marshall, is former Undersecretary ing stand-by price-wage and allo- ; punishment. | | 1: g S v n -t ay of State, to whom President Tru- But he declared that profits are jcation controls; rent control for “at | i ] bt s "'”'f' ntire country | AN became devoted during their swollen to ‘“excess” and that |least two more years”; a 1000000- | ! i i:ez':r;‘:rr:lf::’ b ::";d‘".rgg"':_;lyy' frequent White House conferenices. “dangerous inflationary forces” | heme public housing program; aAlASKAN J‘ Esuh—;em foaie reuor:edv i _4’ oF Presently practicing law in New . still imperil the economy. Backing ial program embracing higher! | !‘Gl’e(;l River, Utah ' York and Washington, Acheson has Iy up his eight-point request for con- ‘Lnd-age insurance benefits, 75-cent | | o But the d'“m“c' PREORRERIINE | tn_Fkground of more than six |r‘ol_lemslauun, he told .th(‘ .D('ICL)— { minimum wage; and a long-range The CIO Territorial Convention Fked 45 the westerss Alsitas and /the ::i{;e:":m;::nfebl: the State De- \ cfauc qugress in a .xepolt that | farm pm;.mm ; | will convene in Juneau on Monday fSaiiie: tronsing wedthes in’ DL . s 55. % went first to WhpaEIRe L | e ] | morning at 10 o'clock in the CIO] | fornia took a heavy toll, both in ACHESON'S EXPERIENCE g ¢ “We noed. 6 M Sviimbie . &) |Hall for a four-day session. Dele- | lives and crops. Flood waters in Mis- | Throughout World War II he range of governmental —measures ! , |zates are expected to attend from sissippi, Alabama, Tennessee and|served as Assistant Socretary of which can be applied as a brake Or Rather He Locates His|« over the Territory. The cro {Georgia leit more than 3000 tem- ' State under Cordell 'ull. He be- or as accelerator according to the i ¥ |now has 42 locals in Alaska and nnx porarily homeless. |came Undersecretary August 27, s Wife — Rebellion Starfs |approximate membersnip of 12000 As the job of rescuing the thou- 1945, and held this post until his ax Increase g L % & including seasonal workers sands stranded in the western bliz- | resignation was accepted with His proposed $4,000,00000 tax SUPPORTED nghf Off n Famfiy ‘ Chris Hennings, Executive Secre- zard belt continued, the death toll|“great regret” by President Truman b increase, to be drawn mainly from 5 tary, pro tem, of the CIO Territorial mounted to 17. Nine persons lost |effective July 1, 1947. . corporation earnings, can be ap- | g Committee said today that the Con- | SINGER MARGARET WHITING, 24, and Hubbell Robinson, 42, |tneir lives in Wyoming, ‘ncluding a Since leaving the Department, plied “without unduly interfering SEATTLE, Jan. 7 —— MIs.| 0 .00 il discuss ways and means| Vice-President of CBS radio network, shown before boarding airliner | family of f i Colorado and | Aehi h s 4 A e Jessiebelle Walker, Kenai, Alaska, | wi scus S ¢ 3 i y of four, six in Coiorado and | Acheson has kept in touch with ¥ with prospects for continued busi- had her misplaced bear-slapping |°f Stacilizing the shipping indus-| at Los Angeles for (llqht to Las Vegas, where they are to be married. !two in western Nebraska. Trains| Government affairs as a member of 7 ness expansion,” Mr. Truman said. Hualond ¥ t;fll“:émn :;;:y "‘;g‘{"g try at the session. S SRR started moving slowly. former President Hoover's commis= < The report was notabl ore it 4 | S e legis- i ia's €0 he . conciiialuer‘; toward bu.sl:;s o WASHINGTON, January 7—® l“h;?,i it a TR 1a3«1:::) & ;ilepffg:iiaw:g ok T:— fwet:nesro ‘::k;n;eu?i”:.’;;;:.:ul Ce::g:fl :fi?mlzrt.rmr“mzmon s 4 the State of the Union message | President Truman voiced again to- |, ;:;:gitsoluth to }5‘!“"7”59 him at| joora1 Legislature at the regular ruman en'es mp a 'ca y early estimates placed crop losses| Webb, 42, is a native of Oxlord, which, 48 hours earlier, stressed [day his support of Statehood o |yne bein tronteq: cns tnangled &I | ocsion. Organizational matters of at more than $25,000,000 N. C. and a graduate of the Uni- the inflationary hazard and’ failed |both Hawsii and Alaska. bt :M :e she found yester- | . 616 will be discussed including p . gl | vers'ty of North Carolina. He was . even to mention the price declines | He id so at a news conference,| oy ©pats e rdd“"h:m;" Tues- | he formation of a Territorial CIO H H . ! o o |Practicing law in Washington with . of recent months. Today's mes- [saying his position was covereq in|p oV SL° YOSETaay. be heard of | gounc), ere s Iq l "‘ a Ine fe e e oo ® *lthe late O. Max Gardner, former p sage had this reassurance: Ihis state of the union message. 'ypo oee 0" T cwme" R wony ;’; © | Invitations to speak at the meet- | f o o | Governor of North Carolina, when 1. “It is possible that we may | A reporter said that he couldf "p2 mnner" P:"Y h‘j"’:“m"“'mg have been extended to Gover-| bl WEATHER lll“.l Q;"Sr | President Truman appointed him P not, in fact, be forced to use such |find nothing in the message on| . o AEH YWy WaE €Y | nor Ernest Gruening, Henry Ben- . w. s WLAJ“{”"" : Budget Director in August, 1946, controls” as the standby price, |statehood for Hawali and Alaska. ey sood‘thin e son, Territorial Commissioner of 23 PASSENGERS | WASHINGTON, January 7.—@— This data is .\5{1g4:llf{ur pers. £ Acheson actually is pickinz up g wage and allocation powers bhe| Mr. Truman replied that he hadf, “C % GO0 0 g, tm"fll €, | akor; Leonard Evans, Territorial | President Truman denied today, fod ending 6:3" an. PST. @ again at an advanced stage where wants on the law books. asked for them by his assertion inly "t Joor o ot m:: ;‘fw to fly back | pepresentative of the IJJ s De;m- [ mhp.z‘uu(cnlly t;r.d ;"n t‘lelall. a e;';u:)- "ml dnu.:]x:“m Maximum, 30; :,h!el zl;.’;ngl (‘;‘ m-:R - ~———————————————— | the message that he stood squarel, 3 ment of Labor; Dr. James Ryan, I“Bou"n FlIGHIs | lished story that he is engag n ) MARSHALL PLAN (Continued on Page Two) behind msgcwu rights pmpo‘:ls' Hfi m"fif;n:“mé k;:l.nnned to take him | mryitorial Commissioner of Edu- |1 tight within his cabinet to soften|® At Airport— Maximum, 27, @| As Undersecretary he played an said those proposals include state- | ° " r:z;:ue 5 --s;"}' the W"}?flv cation, and Hugh Wade, Director of AI. ASK A (o ASI- Al. J. 8. policy toward Russia. |® minimum, 14 ® |important part in developng the 7 hood for both territories. B T ke there | o] Security. | At his'news conference the chtet | ® : CAST olCiethiiwidl “Truman DS The w a snlng ton HEr i A AR T G, ity " i | scutive asseted that tides W me) 3 FoRng s :’A‘;‘?g:l;w‘:u::Eslr::g:::m‘:l::s;;: * i a7 5 \change in this country’s forel . ssion. Merr Go Round u S Ambassado’ !somniecezg‘:iofl;o‘; s SIO(K 0“0“] ONS Alaska Coastal brought 23 |):\;.(ln-'pullc)gu E’fl,: lg,],f?: ul’i-‘x'n:;“m nl::lx‘lur:wv:ll‘:; . :::N,:MT!F’.O‘:“ ju'b “;‘ drafting the Y - - « Ju Walker and thelr dog B X9 — gers into Juneau yesterday and flew | H. said the article, by Jay Frank- | § vesing S for European eco- . il . g g iy L by NEW YORK. Jan. 7.—(®—Clos- 13 people to nearby towns as fol-|in in Life Magazine, is without ® 7 desre ncreasing - hig nomic recovery To Sovie' ul“on badly mgsuled asa:h July. He was |ing quotation of Alaska Juneau |lows: | ‘oundation in fact in nearly every ® cloudiness and v g Sat- e | Hull, Acheson’s chief for nearly |« Bv DREW PEARSON 7 she escaped, aid- | mine stock today is 3, American | prom Haines: Mr. and Mrs. Leo|instance and paragraph. e urday Occasional - gusty ® [four years in the State Departy | Cor H H ed by their dog's distracting the|can g4, Anaconda 34%, Curtiss- yane jon willard, Carl Hein-| Mr, Truman said further that he ® bortheasterly winds tonight. ® [ment, praised the appointment as » ICRPYRNEE 0 B2 S S Bndioata IS III HOSpIflI Soimals. Wright 87, International Harvest-|mier Mys. M. V. Thomas, Fred never had a private conference S FaECILPITAT 1 ON o g splendid one from every view= o er 27%, K““"""“") 5"'"?";’: ‘l{:_;‘k Young, Ruth Shanon, G. E. Koenig, | nterview with Franklin in his life. | "";"‘ J' Bours ¢ “"'“‘ ""“\ ")'w“""" : ‘Pos:l-" A o ASHINGTON— it is A | Central 13%, Northern Pacific ¢ s sMachim, ol Kce-| "He said the writer had n Juneau e, nator Connally ( ex.) ¢ all over nO?’ :):; é\:::»mu%:fl is »Bitf;‘.'rgegov%?l?e‘rg:éefla:m’ah Ale“"an I’ans (o. U. S. Steel 71':, Pound $4.03%. ;';g " % Macbim. Ostulil | L,{{ m::‘d about 'a job a :::;,‘,n ::; since Jan. 1, 664 inches; Democrats’ foreign relations chairs | % again in the saddle as chairman of [y, S, Ambassador .to the Soviet | Sales today were 1,400,000 shlm: From Sitka: Dr. C. Sherwood, Miss | imes and that was all he knew.. |® TUVAJ”:“ 3 ]'{l" f,"f,','f“' : :fln Iloru the new Congress, praised p the GOP policy committee, here |Union, has been admitted to the | Has filed pa IS, Averages today are as follows: | o Ao 87 P EUINANE T | vanklin never saw a top seeret L Airpor ;12 inches: o |Marshall highly and said his des are the off-the-record minutes of | Charlotte Hospital for treatment pe industrials 13131, rails 54.29, util- F. Wyller, J. P. Reher. document, the President said. :- sin Jan _1 ‘.'J inches; arture is “regrettable. the war council called by liberal |of a stomach aiiment, owner Jim ities 34.22 'me }immu“ Mary Brouillette. The President spoke out on the © since July 1. 5203 inches. . WELL TRAINED MAN l « Republicans against the leadership |Kelly of the Eagle's Nest hunting| OLYMPIA, Wash.,, Jan. 7—i#— —r e Mr. and Mrs. Prosper Ganty, F. J.|is5ué after some top administration|® ® © ® © © © © ¢ ¢ © ¢| Of Acheson, Connslly said: | of Senator Taft. The closed-door |lodge here said. Articles of incorpdration were filed SITKA ROAD SURVEY g officials had indicated velief that Rotin i ST The appointment of Mr. Deat ' debate is significant, even though| Dr. W. B. Clement, who treat-|Yesterday by Jesse H. Petrich, Se-| Back from Sitka, John B. Reher | g " o ooy viola Sullivan, [he would have to clarify his per- g Adbason Ky Bacrerasy. of SRRy Taft won, because it shows the|ed Smith, indicated the illness was|attle, for the Aleutian Transporta-|and Chris Wyller report satisfac- ...~ . v “rroy gapowski onal attitude toward Russia soon. Ex ans!on pro ram zive to that high office a mar well L vigor of the liberal rebellion in-|not serious. tion Co., Inc. Capitalization was|tion with the road survey begun T'o Haines: Homer Nordling, J"(,kl These officials held that an ex~1 p ]Lrnlned m foreign r_el-uons and side the Republican party. listed at $50,000. Monday by the Public Roads Ad- Dias, Alfred Bonnett, Karl Arto. |Pression from the President was! . familiar with the administration of Aggressive young Irving Ives of (Seattle waterfront sources could | ministration. The 6%-mile road ) po g o® ~OM DO T Vip | nceded to end speculation here and | A' oak Rldge p'am the Department of State. His ap= New York, who presided, announc- “E‘MER Movmms |not identity Petrich). from Sitka to the site of the pro- |0 = GBI T e abroad on the future of American| 5 Dg"::mem mr pl:mrg to : ;n: as » ed that New Hampshire’s Charles o | posed pulp mill is being widened | ™ "r T T Rhode | policy. ! e PN U Loy T B b Tobey couldn't be present, but —— STODDART OUTSIDE and improved. i ~ Dave| - .. | OAK RIDGE. Tenn. Jan. 7.—#-— | Foreign Relations. d 3 Bari sel 4 i To Skagway: Mrs. Bec A $70,000000 expansion program | The committee will n Ache~ wished to join in any action taken anof, from Seattle, schedul-| H. A. Stoddart, division engineer | Reher is PR.A. design engineer, |y o oo ™0 P o b ger, Mrs.| LUBCKE TO ANCI HORAGE Aoy I o AL R ee will pass ol by his liberal colleagues. Ives add- |€d to arrive Monday. of the Public Roads Administra- [and Chris Wyller, district engineer.|p™p " | A PO e atnachec ':“”f‘"l“ . od json’s formal nomination, yet "khfi v ed that in a previous meeting with | Denali scheduled to sail from Se- | tion, went Outside yesterday for a | They returned yesterday after a| [ ‘Al Lubege, Highway .Pfl!rolman.lmdgc atomic: engrgy DisU {sent up for Senate confirmation. | three other liberals—Ralph Flznd- attle tomorrow. three-week business trip. He will | twosday inspection. went yesterday to Anchorage, where | Work on the project, a new uran- | Early Congressional comment, on | . ers of Vermont, Cabot Lodge of | Princess Norah scheduled to sail|go first to San Francisco for al ——-,e— While most members of the ro- he will be stationed for about ium production plant, will begin in |the average, was highly favorable to Massachusetts, and Wayne Morse |{rom Vancouver January 13. {week at the Western headquarters| The absence of cobalt in the!dent family live on or under sround, three months—or until the Halnes akout six months and will be com- | the Achesn selection, without any » Alaska . scheduled to sail from of PR.A. then to the Washing- soil of pastures can be fatal to some are tree-dwellers and others CUtoff is reopened. His regular sta- ipleted in two years. The program |suewest'on of troutle over contirs (Continued on Page Four) Seattle January 15. ten, D. C. Office for two weeks. sheep. * are semi-aquatic, |tion is at Haines. lwas announced last night. mation.