The Daily Alaska empire Newspaper, February 15, 1949, Page 1

THE DAILY ALASKA EMPIRE VOL. LXXIL, NO. 11,120 “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, TUESDAY, FEBRUARY 15, 1949 MEMBER ASSOCIATED PRESS PRICE TEN CENTS EL TAX FOR VESSELS NOT INCREASED Alaskans Are|No More Troops for Japan Says Royall; Conditions in Alaska Given Preference Opposing New Split Season Object to Profisal on Hali- but Fishing - Alaska Hearings Urged Alaskans concerned with the hali- but industry present a solid front | in opposition to the proposed split season for halibut fishery, regard- less of differences in other matters. The International Fisheries Com- mission, which administers the Hal- ibut Treaty Act, has proposed a sea- son in which Alaska banks would be fished only ten days of each month. ‘Their investigator, H. A. Dunlop, came to Alaska to get reactions. He got them. b Halibut fishermen, represented by | two boat owners in a conference; in the Governor’s office, strongly objected. John Winther, owner of the Sun- more, and Larry Fitzpatrick, of the Ruby, were spokesmen. Each han- dles from 30,000 to 35,000 pounds of | halibut a trip. “The boys object,” they reported, “to being in port for more than half of each month during the season. “They favor short lay-overs be- tween trips.” The split season would present problems to cold storage operators, too, according to Wallis George,| president and manager of the Ju- neau. Cold Storage Company, the largest one in Alaska. “With the entire fleet coming in to unload at the same time,” George commented, “the operators would be hard put to handle such abundance of fish at once. “Should it be impergtive that the whole fleet do not fish at one time,” he added, “why not permit half the fleet to go out on opening day, then stagger the trips. That would give us a chance to handle the catch.” ‘The proposal is said to be in con- sideration of the fact that some banks are not fished at all, under previous schedules; also that the monthly ‘“vacation” would permit banks to Le replenished. Alaska fishermen believe they would be at a disadvantage in mar- keting their catch, as their small<} boats would put into Alaska ports, selling for what they could, while the larger schooners from outside could make the run to Seattle and sell at advanced prices. Asked for his opinion on the split season, Clarence J. Rhode, Alaska director of the U. S. Fish and Wild- life Service, said, “ours is only an enforcement agency in this connec- tion. A split season certainly would pose a larger enforcement prob- HEAVY TAXES ARE OPPOSED BY BOATMEN Claim Prop_t;s;d Rate on! Boats Twenty Times that Levied in Wash. State By BOB DeARMOND Three Alaska boat owners, two of them fishermen, appealed to the Senate Committee of the Whole yesterday afternoon for a reason- | able rate of taxation on boats, but they appeared to have made little progress. The only other witnesses to ap- pear yesterday were Kenneth Ka- dow, Coordinator for the Interior Department in Alaska, and George Sundborg, consultant for the Alaska Development Board. Both assured the senators that the proposed 10 mill tax is a very low rate of property taxation and that the tax is not likely to keep out new in- dustries. With Senator Howard Lyng of Nome in the chair, tne Committee of the Whole hearing opened at 1 p. m. There was an initial flurry when Senator Victor® C. Rivers questioned the Chairman as to who was going to be allowed to testify before the committee. “The law prohibits paid lobbyists appearing before us unless they are registered,” Senator Rivers stat- ed. Senator Lyng settled that matter by ruling that anycne who wished to could appear before the Commit- tered or not. Boat Costs High V. F. “Red” Williams, Juneau fisherman and barber, was the first | to appear before the committee. The tax rate on boats, he felt, should be lower than on other types of property because of high insur- auce rates for boats. The best rate, for a new boat operating on inside waters, is 8 or 8% per cent, Will- iams said, and compared the $36 premium on a $10,000 residence with the $800 premium on a boat of the same value. ‘The proposed 10-mill rate in Al- | aska will be 20 times the tax rate on boats in Washington State, Will- | lem, but we do not know the merits of the case. “Dunlop says the split season would cover a greater fishing area, some of it otherwise untouched. “They,” he added, “have made detailed studies of the question, and we have not.” Gov. Ernest Gruening today sent a telegram to the Fisheries Com- mission and others interested in the ; matter, saying: “Alaska halibut fishermen, Cham- (Continued on Page 6) The Washington Merry - Go - Round By DREW PEARSON (Copyright, 1949, by Bell-Syndicate, Inc.) Aboard The French Merci Train— The average Frenchman has a gen- eral knowledge of the fact that when he pays his taxes, a small portion of it goes to support the cost of a French embassy and var- jous consulates in the USA in order to improve relations over here. But this is a vague and far-away thing, besides which, being human, he doesn’t like to pay taxes. On the other hand when six mil- lion French men and women volun- tarily contribute a personal keep- sake to the Gratitude Train for the American people, it means some- thing far more important than am- bassadcrs or consuls or State De- partment propaganda. It means that each of those six million Frenchmen considers him- self a personal ambassador, a per- sonal promoter of good will and peace. And when you get that kind of — (Continued on Page Four) iams asserted. He said that he does not advocate an exemption for boats, but feels that the tax rate | skould be the same as in Wash- ington in order to keep the boats here. Tax On Paying Ability In reply to a statement by Sena- i tor E. B. Collins that miners also have high expenses and a question as to whether they should be ex- | empted also, Willjams replied that each industry should be taxed ac- cording to its condition and ability to pay. > Senator Gunnard Engebreth pointed out that property with high insurance rates usually have high depreciation rates to help offset the cost. He felt that a compar- ison between boats and business property, so far as insurance rates go, would show less of a spread than that cited by Williams. “Many people don't realize how ! much taxes a boat pays,” said Lee Ellis, Wrangell guide and charter boat operator who followed Will- iams on the stand. Ellis said that he paid about $300 in Federal and Territorial gasoline taxes last year and that his boat is not exempt from the Federal tax as fishing vessels are. Nothing To General Fund Senators Barr and Rivers pointed out that the Pederal tax does not aid the Territory and that motor fuels tax revenues go into a spec- ial fund. “You realize, do you not, that the Territory provides 75 per cent of the funds to support the Wrangell scliool and that,.except for a $5 school tax, you are not contributing { o any of it,” Senator Rivers said. |® Senator John Butrovich picked | ® up the theme there. “You ‘ren’tl: i (Continued on Page 2) . tee of the Whole, whether regis-‘ WASHINGTON, Feb. 15—(P— The Army has turned down a re- quest by “General Douglas Mac- Arthur for more troops. Secretary of the Army Royall said the supreme allied commander in jJapan had been told it would ke “impractical” more. Royall made the statement to re- porters on returning from an in- spection trip to Japan where he conferred with MacArthur. (At San Francisco yesterday be- fore flying East, Royall said that, living conditions for U. S. troops in Korea and Alaska “leave much to be desired.” Alaska is “immensely important” but the current cutdown in Army strength will not permit troops there to be augmented. He said, however, he will recommend con- struction of more facilities to take care of present needs.) At the time of Royall's visit in the Far East dispatches from Tokyo said MacArthur had submitted a secret report on the American mili- tary situation in Japan in view of Communist victories in China. These dispatches said MacArthur was be- lieved to have asked for more troops and airplanes. Royall was asked about the re- ports. He replied that MacArthur “was told it would be impractical to put more troops over there.” Royall then was asked whether MacArthur had mentioned return- ing to the United States. “There was no discussion at all about his return,” Royall said. “Hz2 didn't say anything and I didn't.” Royall added that “we don't con- template any change” -either in troop strength or command in Ja- pan. The Secretary spent 18 days in the Pacific area, including six days in Japan. Royall was asked about reports that Pacific defenses would have to lag behind Europe as they did during World War II. “I don’t know anything about a ‘Europe first' strategy,” he said. “I have said this—that at the present time, the principal stresses are in Europe, that is, involving the U. 8. Army.” - .- — INCREASE IN TAXES PROBABLE vSpeaker R;;l;m\ Makes Statement-Legislation Not Pushed Aside WASHINGTON, Feb. - 15—®— | Hcuse Speaker Rayburn, |(D-Texas) ('said today “in all probability we'll huve to have” an increase in taxes. He made the statement shortly after a group of top Democrats left a White House conference with President Truman. Rayburn” told reporters he was making the statement to deny re~ perts that tax legislation has been pushed aside because the House !'Way and Means Committee decided to take up Social Security legisla- tion ahead of tax ———o—— 000000000 WEATHER REPORT (U. 8. WEATHER BUREAU This data is for 24-hour pe- riod ending 6:30 am. PST. In Juneau— Maximum, 26; minimum, 18. FORECAST (Juneau and Vieinity) Decreasing cloudiness with snow flurries. Lowest tem- perature near 15 degrees to- night. Partly cloudy Wednes- nesday. Gusty northeasterly winds, PRECIPITATION (Past 24 hours ending 7:30 a.m. today In Juneau City — Trace; since Feb. 1, .1.IY inches; since July 1, 9055 inches. At the Afrport — Trace; since Feb. 1, .88 inches; since July 1, 57.37 inches. to send him any I §5-550 FISH LICENSE ACT | UP INHOUSE Bill fo Raise Fishermen's Fees Sharply Gains Support By JAMES HUTCHESON A bill to raise fishermen’s licens- es to $5 for residents and -$50 for | non-residents saileq along in the House this morning. i ‘The support it received indicated| . likely passage this afternoon, The bill as presented to the House called for licenses of $10 and $100, instead of the present $1 and $25. ' 1t was originally introduced by Rep.* Marcus Jensen, Douglas Democrat. | i Rep. Warren Taylor, Fairbanks Democrat, offered the amendment to cut it to $5 and $50 and it carried by a 22 to 2 vote. Reps. Glen Frank-; _ lin and Almer Rydeen voted against | it, in final form. 1 Taylor argued that the $10 to| $100 disparity might bring a legal 1 ' during Navy cold weather exercises threat to the whole bill. He said the courts might hold that it was in- valid as undue discrimination against outside fishermen. 10 TO 1 RATIO Jensen replied that the Attorney General believed the 10 to 1 ratio} under $100 and $10 original would| stand up in the courts in view of | Task Force Landing in Alaska & Navy landing craft near an icy beach at Portage Bay to land U. S. Marines from Camp Pendleton, Calif., Next War Will Probably Be in "Damn Cold Weather,” Says Commander Back from Alask | | | i | | i SENATE VOTES EXEMPTION IN INCREASE BILL Highway Pairol Expendi- fures Limited fo 10 Per Cent of Road Fund By BOB DeARMOND Alaska boat owners, whose pleas j before the Senate for lower prop- erty tax rates on their vessels were rather coolly recelved yesterday | were granted some relief from the ! burdens of taxation this morning. The Senate, by a 9-7 vote, gave boats a 50 per cent exemption from the proposed new motor fuels tax of four cents a gallon. This would leave the tax at the present two cents per gallon ocn motor fuel for marine use. 3 Senator Frank Barr of Fairbanks, who offered the amendment to his own S.B, 11, said that he was not doing it because of the sorry con- dition of the fishing and boating | industries, as drawn by the boat- 1men. or because he favored exercp- ! tion of certain classes from gemersi | {axation measures. ‘Ihe moter fuels tax Is not a gen- { eral revenue levy, the Senator i pointed out, but is designed to pro- |dueo revenues to benefit the par- ticular vehicles which pay the tux. Fagilities Not Needed the present 25 to 1 disparity. He expressed the belief it would be advisable to have fees that would keep some outsiders from Alaskan ! waters because “there is too much gear fishing in Alaska now.” ' Rep. Andrew Hope, Sitka Demo- | crat and chairman of the Fisherie: 1 note. “Once I was agreeatle to keeping | outsiders out by high license razes,"; the fisherman-legislator declared.; “But now the season is so short that our fishermen have to go out-l side part of the time. We face Lhei prospect of being cut down to 15; criminatory practices, and ‘I don't! think we should offend the people! Committee, sounded a conflictingi, . t Anna louisfirong of Se- attle, in Custody, Spy Charge, Be Deported By EDDY GILMORE MOSCOW, “Feb. 15—@— The Moscow press announced today that Anna Louise Strong, well-known American author and correspondent, |has been arrested on charges of spying and will be deported. Miss Strong, iormerly of Seattle, Wash,, has been in Russia most of days. Other states are dropping dis- [the time since 1621 writing books | and articles which "reflected a strongly pro-Soviet viewpoint. She in Seattle in view of the situation. I has been one of the seven American, think we are on the wrong track'con‘espondents in Moscow. She was to antagonize others.” listed as representing the allied Rep. Alfreq Owen, Jr., estimated |labor news. the $5-$50 fee schedule would raise{ The deportation of the 63-year-old around $200,000, and “this would be [writer leaves the following American one way of financing the proposedicorrespondents in Moscow: Eddy Fisheries Department.” {Gilmcre and Thomas P. Whitney for Rep. Abel Anderson, Juneau Dem-!the Associated Press; Henry Shapiro ocrat, expressed the opinion the orig-}{or the United Press; Joseph New- inal $10 proposal for resident wnslmm‘ ,New York Herald Tribune; “g bit high; some small fishermen|Edmun Stevens, Christian Science might not have $10 for a license.” IMonnar; and Andrew Steiger, Over- Kills Major Amendment ;seas News Agency. Provision that two representatives| A visa for a seventh correspon- of the salmon industry should be |dent, Harrison E. Salisbury, who on the Territorial fisheries board Will represent the New York Times, proposed in the bill by Rep. Altred | Was authorized by Soviet authori- Owen, Jr., was knocked out in tne |ties, atout three weeks ago. The House at yesterday afternoon’s ses- | Times has not been represented }xerc |since the spring of 1947 when Drew sion. It was the major amendment to | Middleton left on home leave and I House didn't pass the bill yesterday ! | was that it carried a $300,000 ap-| propriation, which requires approv- al by the Ways and Means Commit- tee. After the amending had start- =7, ’ > olliz D- od on the Tioor, the legislators diss (B Bell Kriown intelligence op covered the bill had not been clear- !"‘3‘0:- 'hEL A:‘;rififfn ;:mc::; .h;::; ed through Ways and Means so it jpalist, A. L. Strong,-who g o was sent to the committee afterithe U. 8. S. R.as a consequencc'm the House agreed on the contents the carelessness of certain foreign relations officials, yesterday was ar- of the measure. . Cutting out the two industry rep-[":“d by state. security organs. resentative reduces the size of the| ‘Miss Strong is accused of espion- proposed fisheries governing board ;8¢ and undermining activity against from seven to five members. They would be one fisherman from the First Division, one from the Third and two members repre- senting the public, all appointed by ithe governor, and a fifth member NOTICE OF ARREST The Soviet newspapers disclosed her arrest in the following an- nouncement: in the next few days she will be sent outside the boundaries of the | Soviet Unton.” SECOND AMERICAN ARREST BLIZZARDS, FLOODS IN - WIDEAREA Washingtomate High- ways Blocked-Nebraska Fighting High Water (By The Assogiated Press) Fresh ground nuzzards put a vir- SEATTLE, Feb. 15.—P—A Pacific fleet's amphibious commander hls| returned from Alaska maneuvers, | and said the next war "prohnbly! will te in damn cold weather.” | Rear. Adm. Bertram J. Rodgerpl?:x"::'x ";.'fl :nl:‘u:::s prefaced the remark with “we don't{ .:q ditenienta” Sitietos know where it's going to be, but—." | 8 He added: “We want to be pre- pared.” He said that exercises at Kadlal,mmd be taxed the same &s other -4 Island had given 20,000 men train. | kinds, whether or not the facilities ing—so that “they aren't afrald of| ... noaded. the cold and know how to take care’ ? 3 g Creiob i { The amendment was adopted 9-7 i b i { with Senators Anderson, Barr, Gar- The men included nearly 2,000;rwk Huncey, Lyng, MacKenzle, Marines who invaded the island,. pocuteheon, Peratrovich and Rive their supporting navy force andiers yoping for adoption. army and air force units which re- Patrol Is Limited sisted the invasion. Senator Munz, after fafling to Rodgers, who returned by air, had} jymi¢ expenses of the Territorial special praise for the Marines and;piphway Patrol to five per cent “While fifty million dollars would not build all the roads we need, and we are still short of necessary airports, boats do not require man; the measure. The only reason the Was not granted a re-entry permit the Soviet Union. They report that; tual halt to road travel over storm- battered SBouthern Wyoming and ESouthern Idaho today as flood dangers mounted higher in the blizzard-stricken areas of Nebraska. Winds diminished and tempera- tures moderated over the northern plains states, giving new hope to relief workers. In Washington, fresh falls of snow blocked Snoqualmie and Blew- ett passes in the Cascade mountains and cross-state motor travél was halted. Snequalmie Pass, the state’s major east-west highway, had teen open only two days when a new blizzard blocked it yesterday. Trains moved with difficulty across the Cascades. BLIZZARD HITS BOISE A blizzard which swept over Boise, Idaho, was the heaviest local storm in 17 years, the weather bureau sald. Six inches of snow fell in seven | Delegate Bartlett of Alaska s seek- hours last night. ‘lng permission for Canadian ves- There were only a few scattered | %€l to carry passengers between reports of sub-zero températures in| Heines and Skagway, Alaska, and the storm belt today. These includ- | other Alaskan ports. ed Roosevelt, Utah, -12, and Ely,| He has introduced a bill togrant Nev., -6. The only other below-zero | Stich authority to the Canadian ves- area was in Northern Maine. | sels and also to allow them to carry NEBRASKA FLOOD WORRIES | merchandise and passengers from Nebraska, which has Leen fight- F¥der to and from other Alaska ing snow storms for mpre than six | POXtS. weeks, had flood worrids. New falls| Bartlett said giving Canadian ves- of snow in the southeastern section | 5¢18 the right to carry passengers of the state increased flood dangers.| Wil prevent long waits by Alaskans A survey said In_the Missouri bas- | fOF American boats. in as a whole only a very gradual |’ T change from winter to spring could SIO(K OUOTAHONS avert serious flood in the areas cov- | ice and snow of Kodiak. anything under those that they can do here,” he said. BARTLETT SEEKS 'HELP FROM SHIPS, CANADIAN LINES Infroduces Bill Permitting Vessels to Carry Pas- sengers, Freight WASHINGTON, Feb. 15—P— ! for Navy Seabees who ‘“beat” thelof road fund revenues, sccured pas- ;sage of an amendment to limit “They demonstrated they can do.expenditures by the Patrol to 10 conditions, pey cent of road fund revenues. The amendment, when offered, caused considerable scurrying around and thumbing of the Alaska Code to see where the Highway Patrol gets its funds. Senator Barr protested the Munz amendment’ was unnecessary be- jcause the Bill, as written, excludes jthe Patrol from the use of any i motor fuel revenues. Expenses of i that organization, he said, could be lpflid from vehicle license receipts ‘and other Highway Department funds, Senator E. B. Collins protested “this idea of sniping at the High-~ way Patrol.” It is an efficient or- ganization, sayes many lives, recov- | ers stolen property and should be | maintained, the Senator felt. { " Limitation Protested [ “Since the Marshal's office has become merely a bunch of process servers, we need the Patrol more i than ever,” Senator Collins charg- 1ed. “They are Johnny-on-the-spot when there is any emergency along the highway.” Senator Barr said that he agrees with Senator Collins but that what | che Territory needs is a State Fo- lice. “I cee no need for further expansion of the Highway Patrol,” he said. “What Senator Barr wants is to build a lot eof airports with the money,” Senator Collins asserted. { to be named by the other four. He would be director of the Fisheries Department, at a salary not to ex- ceed $12,000, under the tentative Miss Strong, who married a Rus- sian in 1932 but continued to use her maiden name, is the second American correspondent in a year ered with mountainous snow drifts, In Idaho, V. H. Kimbrough, re- gional Red Cross director, said the Teton river, jammed by ice, caused “I want to build airports, roads, and a State Police,” BArr replied. Senator Munz charged that the Highway Patrol during the past bi- NEW YORK, Feb. 15—(#—Clos- ing quotation of Alaska Juneau 3%, American terms of the bill. 1to be charged with spy activities. He could be an “outsider” but the | Robert Magidoff was ordered to other hoard members would have to 'leave Russia in April, 1948, when be Alaska residents. flzvema published a letter from his ;' Heated Argument secretary, Cecelia Nelson, of Mich- Debate over eliminating the two'lnn, accusing him of spying. salmon industry representatives{ Miss Strong has been in Russia, prought charges that they are in-;most of the time in the last 22 terested only in exploiting the fish [years, and is known as the author resources. Counter-arguments were!of a score of books and articles that all sides should be represented | which gave her the reputation of by such a board. One point in the jbeing strongly leftist and pro-Rus- argument brought a heated ex-!sian. She also has traveled widely 1 mine stock today i the evacuation of nine homes at)Can 84%, Anaconda 3 St. Anthony. Heavy rains sent rivers and small | er 24%, Kennecott 47':, New York streams overflowing in western Ken- | Central 105, Northern Pacific 14%, tucky. | U. 8. Steel 721, Pound $4.03%. BLIZZARDS KILL STOCK Sales today were 610,000 shares. Meanwhile, in Washington, thei Averages today are as follows: Agriculture Department reported inaustrials 172.44, rails 49.08, util- 178,000 sheep and cattle died in the |ities 34.24. blizzards in four western states up e to Feb. 1. . Shortly after the report was dis- | closed, Senator Langer (R-ND) in- 2%, Curtiss- R FROM SEATTLE W. E. Peet of Seattle is here for Wright 8%, International Harvest-i ® e00000c00s000 000000000 change between Rep. Marcus Jensen and Speaker Stan McCutcheon. The wvote to reduce the size of the board by two was 13 to 11, The amendment cutting out the ln-l lln China and Central Europe. WAS POLITICAL LIBERAL SEATTLE, Feb. 15—/— Anna Louise Strong, American journalist (Continued on Page Six) ; troduced a bill proposing a $150,- 000,000 fund to re used in reim- bursing western stockmen. - Mrs. J. W. Allie of Sitka fis registered at the Gastineau, several days after stopping off at Ketchikan enroute here on a busi- ness trip. D H FROM PETERSBURG j Chris Dahl of Petersburg is at the Baranof. ennfum has taken about 20 per cent of fuel tax revenues. His amendment to limit the Patrol to 10 per cent was adopted by a 9-T ; vote. Traps and Sailboats Second of the three measures considered in second reading by the Senate this forenoon, was H.B. 4, which would quadruple basic li- cense taxes for salmon traps and 1impose an additional levy on the catch. No amendments were offer- ed and the Bill went on to take _its regular place on the calendar, The sailboat tax Bill occupied the Senate for nearly an hour during which Rep. C. Chester Carlson, au- (Continued on Page Two)