The Daily Alaska empire Newspaper, March 3, 1949, Page 1

THE DAILY ALASKA EMPIRE VOL. LXXIL, NO. 11,134 “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, THURSDAY, MARCH 3, 1949 MEMBER ASSOCIATED PRESS PRICE TEN CENTS Income Tax Bill Is Reintroduced In House AMEMBERS U REGENTS | CONFIRMED Dr. C. Earl Albrecht Is Lat- est Appointment fo Alas- ka University Board By BOB DeARMOND The appointment of four men to | the Board of Regents of the Uni versity of Alaska were confirmex ! this morning by the Senate.and ; House of Representatives in jomti session. i The four are: Walter T. Stuart of | Kechikan, reappointed, to setve un- | til February, 1947; Leo F. Rhod of Hawk Inlet, to fill the unexpir- | ed term of the late O. D. Cochran Firemen's Daughter Weds REPORT OF TREASURER - RELEASED Financial Condition of Ter- ritory at End of Feb- ruary Business The Territory’s General Fund was short $161,747.72 of being able to, meet its obligations at the end of | & February, according to a statement issued by Treasurer Oscar Gi. Ol- ! son. ‘ There was $98,124.33 at the close | of husiness February 28, after the| books were closed. Against this' amount, the Auditor’s office held {15 uUnpaid vouchers totalling $260,472.05. | leaving the Territory short $161,- of Nome and to serve until Febru- ary, 1955; William A. O'Neill of Anchorage, to fill the unexpired term of the late Thomas M. Don- | ohue of Anchorage and to serve until February, 1857; Dr. C. Earl Albrecht, Territorial Commissioner of Health, to fill the unexpired term of J. W. Gilson, Valdez bank- er, who recently resigned from the Board. Dr. Albrecht will serve un- til February, 1951. { A roll call of the 40 members of | the Legislature was made on each of the appointments. Three of the appeintments were unanimously ap- proved; Senators Jones and Munz voted 1n the negative on the ap-! pointment of Dr. Albrecht. Te Ratify Agreement Senator Andrew Nerland, presi- dent of the Board of Regents, requested the joint session for con- firmation of the four appointments, ' In answer to a question, Senator Nerland explained that it is urgent that the full Board hold an early meeting to consider and ratify an agreement between the University and the United States Department ot Agriculture. i The selection of a new president for the University, Senator Nerland said, is of secondary consideration at this time, although applications recently received will be studied. He pointed out that the term of Dr.| C. E. Bunnell as University presi- dent doesn’t expire until July 1. | Governor On Taxes A good part of this morning’s Senate session was taken up by the reading of a lengthy letter By Gov- ernor Gruening, addres: to Roy W. Johnson, engineer for the Alas- ka Industrial Company which is in- | terested in pulp devglopment at Sitka. The letter, in reply to one re- cently received the Governor ' from Johnson. e engineer had labeled present; and contemplated taxes in Alaska “a hazard to the investment of capital in the Terri- tory” and expressed the belief that the present tax program “is ex- | iremely inopportune.” i The Governor, in his reply, called Johnson’s impressions of tax legis- lation in the Territory “wholly er- roneous” and said they may have | been kased upon “statements issued by the Seattle Chamber of Com- merce which were entirely false and verged on the hysterical.” (Continued on_Page Eight) Newly-wed;ed . and Mrs. Frank Bottenhorn of Cincinnati, leave St. Stephens Cathelic Church in M of Minneapolis‘firemen. This was Frayne of St. Bernard, Ohio, who a stranger in Minneapolis, to be Actually about 500 persons attended. (/) Wirephoto. inneapolis through an honor guard their answer to Fireman John J. had not wanted his daughter, Pat, without guests at her wedding. SALVAGE OF CAINRAISES LOST SHIPS - MORE.CAIN | Less Special Funds and 1S PLANNED WITH MON| Search 10 Be Madefor Vs- o Ao, s &ir_| sels Lost in War Acion, |, commomain sres o wen | | Truman contending that Mon Wall- Storms, Alaskan Coast gren has associated with Commun-] | { i | | ists. ! ‘ Wallgren, former Governor of [ SEATTLE, Mar. 3.—P—A Spec- |washington state, is a close friend ially designed hedvy-duty salvage of mr. Truman. The ‘President has | vessel, the Kodiak Salvor, will leave | cminated him to be chairman of | here within the next 10 days Iniine National Resources Board. Cain search of ships lost in war action ,or storms in Alaskan waters. Owner Rcbert O. Fleming said the Kodiak Salvor was a former !Navy LCT and that it was convert- ed for salvage duty at a. cost of $100,000. Fleming said Alaskan ~waters were a graveyard for ships and car- goes of all types. He said Capt. Balfour G. Logan, salvaBe master. will be in charge of operations. Capt. Robert Guld wiil be’skipper of the vessel. They will take a look at the pos- ibilities of raising the Alaska Rail- road barge which broke in two and sank with a $700,000 cargo last |summer near Cape Spencer, Flem- ing said. | The Kodiak Salvor will also seek several Japanese freightors sunk in the Aleutians early in the war. Fleming said the ship will re- | imain in Alaska the year around. The W ashing’ t O] |basing at Cordova in winter and Fleming is a marine insurance Merry - Go-Round ' By DREW PEARSON (Copyright, 1949, by Bell mg. Ine.) W;smnamn— 1t's tunny how, ! when you make a promise to your wife, something always happens so you can’t keep it Last week while riding home from California, I made a lot of prom- ises first to myself, and later to the little -Woman about spending more time .at home, seeing mare of my family, and taking a good rest on the farm. I had had enough of international good will, I told myself. And after I got caught up with a big pile of mail and wrote letters to the heads of rail- “roads, and a raft of governors, may- ors and other folks who had been extremely nice. I would take Mrs. P. away for the little rest we'd always talked about but somehow never seemed to manage. So, filled with all these good thoughts, I got home and began to put them in operation right away. Mrs. P. looked dubious at first, but then she ‘almost : began' to “believe a——————————— (Continued on Page Four) breker and heads the Kodiak Aleut- ian Salvage Company which will operate the Kodiak Salvor, BIG JET BOMBER SETS NEW RECORD ON ALASKA TRIP FAIRBANKS, March 3—®— Riding a 100-mile-an-hour tailwind, ian Air Force B-45 four-jet bomber Istreaked from Anchorage to Fair- ‘banks in 24 minutes yesterday. The Ladd Field information of- ‘fice said the ship average 675 miles [nn hour on the 270-mile flight from Immendort Field. It was piloted by {Capt. Louis Stokes, 28, of .Chicago | Heights, IIl. | About the size of World War II heavy bombers, the B-45 carries a 10-ton tomb load and crew of only four. It has been undergoing Arc- tic tests since January. — e, —— Because of its many islands Korea has 11,000 miles of coast line. fighting Senate con- lirmation of the appointment. “ Cain made public’ letters to the ‘Px'csident and to John R. Steelman, |a presidential aide. In his letter to | Steelman, Cain expressed “hope that i the President will come to under- | stand 'that his appointee is not the yman to protect America against war, lor the man to win if. it comes.” In substance, that amounted to | Cain's saying he hoped the Presi- |dent would withdraw the nomina- | tion. $ e o 060606 00600000 WEATHER REPORT (U. 8. WEATHER BUREAU This data is for 24-hour pe- riod ending 6:30 am. PST, In Juneau— Maximum, 41; minimum, 33, At Airport— Maximum, 41; minimum, 33. FORECAST (Juneau and Vielnity) Cloudy with rain tonight and Friday. Southeasterly, winds 20-30 mph. temperature tonight 38; and highest tomorrow 40, ® PRECIPITATION (Past 24 hours ending 7:30 a.m. today In Juneau — .22 inches; since March 1, .75 inches. since July 1, 82.75 inches. At Airport — .02 inches; since March 1, .53 inches; since July 1, 58.83 inches. ® e 0 000000 0 I is against Lowest STOCK QUOTATIONS | NEW YORK, March 3,—(®—Clos- ing quotation of Alaska Juneau mine sf today is 3%, American Can 90%, Anaconda 32%, Curtiss- Wright 9, International Harvest- er 24, Kennecott 45%, New York Central 10%, Northern Pacific 14', U. 8. Steel 71%, Pound $4.03%. | Sales today were 600,000 shares. Averages today are as Xouowstl industrials 173.76, rails 47.56, util- ities 34.75. —_————— A small turkey with an average live weight of less than 10 pounds | is called the Beltsville Bird and was first developed in 1940. Balance 0f 747.72. Bank Balance as of February 28, 1949 Less Outstanding War- rants $1,996,191.67] On emergency landing at. Hill Field, Ogden, Utah. 682,662.79| was thrown through nose of craft, suffered cuts and bruises. Total Funds incorporated in the General Fund which are not avail- able for the general operation of the Ter- ritory: Public School Perma- nent University of Alaska —Permanent Smith-Lever - Engineers’ and Archi- tects’ PeAlA Museum Bequest and Donation Radio-Telephone Teachers’ Retirement, . $ Vocational Ed u cation, Federal School Lunch Pro- gram, Federal Forest Reserve, Fed. Aleutian Island Mon- ies, Federal Old Age Assistance, Grants, Fed. Old Age Assistance, Administrative, Fed. Child Welfare Serv- ices, Federal Allowance to Mothers Administration, Fed. Unemployment Com- pensation Commis- sion, Federal . Control of Tubercu- losis, Federal 5 Emergency Maternity and Infant care, Federal General Health, Fed. Maternal and Child Health, Federal Crippled Children, Fed. Venereal Disease Con- “trol, Fed. Hospital Survey, Fed. Cooperative Clinical Evaluation of Strep- tomycin in Bone and Joint Tubercu- losis, Federal Alaska Grants, Federal Veterans' Administra- tion, Special Veterans' Refund Ac- count, Special Alaska Merit System, Special Territorial Building Fund, Special Vision Conservation Program, Special Dental Care of School Children, Special Alaska Crippled Chil- dren’s Assn., Special Alaska Crippled Chil- dren’s Assn.—Trans- portation, Special Motor Fuel Oil Tax, Special Second Injury Fund, Special Nurses' Examin Board, Special Matching % Contribu- tions, Teachers’ Re- tireme nt Fund. Special - Military Base Schools, Federal .. Amt. certified avail- atle to U. 8. Treas- urer for Old Age Assistance, Fed. Xn‘g Total Cash in 14,319.73 10,222.68 19,898.44 5,943.02 1,488.04 5,085.65 150,620.43 7,023.49 2,919.56 78,020,80 17,917.62 9,220.57 6,450.63 3,992.34, i !the full Public Lands Committee | Nine Men Walked Away ly one of the crew of 10 in this B-29 was injured when it veered into a snowbank when making an Lt. Lawrence Whitehead of 'New Jersey, the bombardier, Plune was enroute from Tucson, Ariz, to Spokane, Wash,, when No. 3 engine caught fire. Lt. Lcuis H. Breininger, pilot of Glendale, Calif., said $1,31352888] No, 4 engine failed as he landed. P Wirephoto. STATEHOOD | BILLS ARE ' TAKEN UP 4 LE H 1 House Territories Subcom- & - . ¢ . “millee Acting on Hawaii . and Alaska Measures : —_ | | WASHINGTON, March 3.—(P— ;The House Territories Subcommit- |tee today approved statehood for 1Hawaii. ‘The subcommittee acted favorab- ‘ly on & bill by Delegate Joseph R. | iFarrington (R-Hawaii), after a ‘brief hearing and review of prev- n i, PENSION IGURE, ' Eighty dollars a month appears to be the likely tigure for territorial | old age pension payments. | The House voted for $90. The Sen- | ate voted for $75. A conference com- mittee of the two houses met yes- terday with. the. powers of free con- ference ‘and #greea on dn$80 com- promise. The House quickly approved the Tfigure. ‘The Sehate was expected to vote Injured-Would Tax PuuMaids v By JIM HUTCHESON ¥ House Votes Care for Sick,l REVISED ACT HAS 2 MAIN TAX CHANGES Ship Crews Section Clari- fied-Hope to Avoid Legality Tests By JIM HUTCHESON Alaska’s new gradyated income tax law came back to the legisla- ture today for re-enactment and tightening. o The principal revisions are to clarify its application to personnel on ships in the scheduled Alaska {trade and to clear the way for wage earners to make. claims for overpayment in withholdings from : their paychecks. 3 4t was reintroduced by Rep., Will- iam Egan, Democrat from Valdez. He and Speaker Stanley McCutch- ieon said the reintroduction also in- i intended to insure against any court challenge of the legality of its ori- ginal enactment by the special ses- sion. The tax remains at the same 10 percent of a person's or firm's Fed- ral income tax payment. Clarification The clarification of the ship per- scnnel tax was dictated by court challenges filed by unions in Se- attle. The revision is intended to make more certain of tax collec- tions from the ships’ personnel, by company withholding, despite the attempts of the unions to have the courts rule against ft. The ship crew clause reads that he tax “shall apply to that por- ~ion of the voyage pay of vessel sersonnel of interstate or foreign . i carriers ”umfi’?h%lh?n trade which is earned in waters of Al- aska, including the continental sheli. The tax shall likewise apply . Ireached it before the noon recess. A bill to provide for the care“of (to that portion of pay earned in fishermen for injuries at work o1 | Alaska of personnel of carriers op- for occupaticnal ailments was ap-|erating vehicles or airplanes on land on the issue today, but had not The present pension is $60. The Lill includes the present law's re- quirements of citizenship and five years residence in Alaska during the past nine. — ., proved by the House yesterday. The 'wte was 23 to 1. It carries a $100,000 appropriation and is similar to bills which have ;oeen before the legislature unsuc- jous Congressional investigations. | Chairman Redden (D-NC) told ! reporters the subcommittze’s action (in closed session was unanimous. The subcommittee voted to urge ito approve the bill for House ac- 7121729 gon. A bill to admit Alaska to the un- | 9450.18[ ;o as & state will be considered 6,746.48| 24,175.99 {tumorrow (7 a.m. PST) by the same committee, No opposition witnesses appeared !at the Hawail statehood hearing 1 toda, y. 3305749} Reps, Larcade (D-La), Mansfield 22,977.52 15,179,591 516.93 2,918.12 194,408.22 256,991.57 55,702.85 371.63 3,467.25 369.26 6.50 892.50 6,452.99 10'1,403,34] 3,797.713 710.54 217,015.47 19,023.29 17,917.62 o 8121480455 | D-Mont), and Hale (R-Maine), spoke briefly in support of Hawail's admission as the 49th state. ! Hawailan statehood was approv- {ed by the House in 1947, but the Ibill died without action in the Sen- ate. } Alaska statehood was approved |last year by the House Public Lands i Committee, of which the Territories | Subcommittee is a part, but the bill failed to reach a vote in the House. Chairman Redden (D-NC) weeks Iago urged subcommitte members to jread the record of hearings con- ducted on the statehood question in the past Congress. He said he felt that no purpose would be serv- ed in duplicating testimony al- ready in the committee files. Delegate Joseph H. Farrington | (R-Hawall) was prepared to sum- marize Hawaii’s plea for statehood which began in 1903. : Delegate E. L. Bartlett (D-Al- aska) will speak on the Alaska bill, Hawalii, with a population in ex- cess of 500,000, has more people than any other territory at the time of admission to the union, ex- cept Oklahoma. Alaska became a possession of the United States in 1867 and an in- corporated Territory in 1912, Voters in Alaska in 1945 approv- |ed statehood by a vote of 3 to 2. The Putlic Lands Committee com- Icluded last year that the Territory, having a population of about 85,000, is ready to assume the responsi- ibilities of statehood. | —_— . —— | ACS CABLE REPAIRED | Al is well again with ACS com- | munications northward. Plowing General Fund ..........$ 9872433 around in the Mendenhall mud- el lup to a smash climax. fiats, dn ACS crew located the This is a starter toward building cable break and successfully re- (paired it. cessfully in previous sessions. Its administration would be in the hands of the proposed but non- existent Fisheries Board. The House has passed a bill for creation of GEN. SCOTT or in the air on routes to and from Alaska.” Another change exempts the mili- - tary pay of armed forces personnel who are not legal residents of the territory, The bill contains a section re- pealing the law enacted by the special session, but declaring: “Tax withholdings effected and other ad- such a board, but it still is in Sen-{ ministrative steps taken thereunder ate committee, FEELS NORTH NOT SECURE SEATTLE, March 3—®— The Commanding General of the Army in Alaska said yesterday special de-| fense training for service troops in the Territory does not constitute full security in the far mnorth. Maj. Gen. Stanley L. Scott said in eveny of an attacK the Army would put up a fight, “but resuits would depend on the nature of the at- Ld}.‘. d He salg every man is trained, bas his weapons and knows his} emergency station during mommy'mvo" 8 b Sut hme and have less alerts. int “But you can't expect (omplew!,m:::‘ ’m:’“ than the ‘The House alsq passed: A bill for a $1 and $2 tax on punchboards, by a vote of. 21-3. A memorial asking military and iederal officials to keep the Rich- ardson Highway open the year around. OLD AGE PENSION Besides approving the Old Age pension figure, the House passed all six bills and three memorials dur- ing an afternoon session which ran overtime to 6 p.m. Efforts to transfer the injured fishermen bill to the Public Healfh Department failed on a 12-12 dead- lock after Rep. Alfred A. Owen, Jr.. the original sponsor, argued the Health Department might become combat work from men who are not On the . . specifically trained for that as- the final vote, Rep: George signment,” Scott said. “The special troops could no! launch and maintain a counter-at- { Miscovieh was the lone dissenter. | The bill by Rep. G. E. Almquist lon punchhoards'was passed despite Rep. Essie R. Dale’s complaint the tack against an invading enemy.” koards Scott flew here to confer witn| ids wese dllagal. Brig.-Gen. Fenton §. Jacobs, com-}RepheJ.l:.l":.“" u;.:fl:dbmunlam:‘r)::::li mandant of the Seattle prt of em-| mm;m““y, iy M:_ m“x:s barkation, and Brig.-Gen. Paul F.i, the mbm'“"“.”l :" '"dp’fl“_ Yount, assistant chief of argy o4 23-1, Rep Wfllilr:l Aflxzé‘l .l me transportation to came to Seattle for " ” . Egan’s i or a $2 bcunty on Eagles from Washington, D. C. i Generals Scott and Yount will /1 'KNOCKS FWs Unanimous approval was also giv- fly to Edmonton, Alta., this week| i ¥ and then make a routine inspection j L £ “:;.‘n:hg JHO‘::]?: J 3?;:10‘;‘ tomo- | of the Alaska Highway by automo: Service of making regulations to Pt o |“suit its whim and caprice,” and ADAK NAVAL CAGERS LOSE T CHAMPIONS ALAMEDA, Calif, March 3—®— ' po, o ¥ i . an and Rep. Glen El Toro Marines and Squndron;n-mz“n i_mm:”d (lm‘ r‘nt’nsure VR-5 of S(:‘Bllle were wmne.rs l'“llsking Sailary ‘and federsl offis night in iirst round games of a clals to keep the Richardson High- Navy basketball championship. SRS on & véar-round beals Ax El Toro, champions of the 1ith|{, B aia civiian artery et Naval District at San Diego, de- R and Falrbankh feated Adak Naval Base, 17th Nav-l FOR ALASKA FISHERMEN al District, 67-48. Th e roved with one VR-5, 13th District title holder |4, oo gl"e“fiemfigza‘: o Rep: St:n and leading contender for the Navy’s coast honors, out-ran Treas- lMcCutcheon and Qwen providing 8t (Continued on Page Five) ure Island, 12th District, 56-4%. direct the service to conform to provisions of the federal adminis- trative procedures act. This, the memorial stated. would give Alas- kans “their day in court.” D. {asking Interior Secretary Krug toj tare hereby ratified and confirmed and made applicable hereunder so far as conformable.” An emergency clause would make the new act eflective immeditely upon passage by the legislature and signing by the Governor. Both are taken for granted. The ship clause reference to | “foreign carriers” would mean the inclusicn of Canadian ships plying im regular Alaska trade. That would l cover the ships calling at Skagway on the supply run for Whitehorse. Rivers’ Explanation Attorney General Ralph Rivers said the ship personnel clause was revised to make it definitely and specifically applicable only to ships in scheduled Alaska trade, exempt- ing vessels which are only “cas- ually” in Alaska waters. Rivers explained that the clause allowing claims for overpayment through withholding of the tax is |intended to allow wsge earners equality with persons who are not subject to withholding. It is de- signed to eliminate any chance of a legal challenge of discrimination. If workers irom the state make big money for a few months in Al- aska, with consequent large with- holding tax, and then have low fn-" comes in the state for the rest of the year, they would be able to file ireturns and ask for overpayment {retunds on the basis of their feg- °ral income tax for the total year’s earnings. | STEAMER MOVEMENTS Denali from Seattle due at 7 o'clock tonight. ’ Prince:s Norah from Vancouver due at midnight tonight. Baranof scheduled to sail from Seattle Saturday. Alaska from west scheduled south some time: Monday, maybe, — e ¢ All persons inw:ested in the study cof the mental sclences and related philosophies are invited to &ttend the weekly meeting of the |I‘mnhyslcnl Group tomorrow eve- ning. The' meeting, at 7:30 a'clock,” will: Ihl in the home -of -Mrs. Garland Boggan, 414 Dixon Street.