The Daily Alaska empire Newspaper, March 11, 1949, Page 1

THE DAILY A VOL. LXXIL, NO. 11,141 House Re-Passes A 'Criminal . TEACHERS' District Court ASKA EMPIRE “4LL THE m WS ALL THE TIME® Russ Falsify | ALASKA TAX JUNEAU, ALASKA, Can Enforce | SaysRoyall, | ATTACKEDIN = (onspiracy’ - NLRB Orders Army Report; S.F. COURT IsRev DAY, MARCH 11, 1949 BILL VOTED DOWNTODAY MEMBER ASSOCIATED PRESS New Spedi of 1 al Session 9th Legislature PRICE TEN CENTS laska Ir;;:;)me Tax Bill Senators Proposing ALSO VOTES . $2.500,000 T0-SCHOOLS A Senate move was under way) today to get Governor Gruening tol issue a call for a special extension ' —t | e et b Judge Folta EstablshesiBerlin Blockade Threat fo,Marifime Unions File New Nafionwide Slot M ‘Senafe Disapproves Re- Measure Would Allot Most Jurisdiction in Juneau | Spruce vs. ILWU Suit | Action fo Stop Deduc- World Peace Says i tions for Income Tax Secretary Interests Charged wi Bribery Racket - firement Act Amendment -Hospital Bill Passed i H WASHINGTON, March 11.—®—{ SAN FRANCISCO, March 11.—(® Judge George W. Folta today filed an opinion in the case filed by Ju- neau Spruce Corporation against the Local and International Long- shoremen’s and Warehousemen's Unions for damages in the amount of $193,000, in which the court ruled it has jurisdiction to hear such cases in the District Court for the Territory of Alaska. The opinion stated that although the jocal court is not strictiy speuk—} Secretary of the Army Royall ac- cuses Russia of duplicity and falsi- fication. He called her blockade of Berlin a “day to day threat to the i | —Maritime unions representing 28 seamen filed suit in Federal Court here yesterday seeking to stop the deduction of Alaska Territorial tax- <7 SACRAMENTO, Calif, March .| | —@—The California Commission’s Organized Crime today accuse tionwide slot machine inter a grand scale “criminal e By BOB DeARMOND i An amendment to the Teachers’ 8+ | Retirement Act which, if adopted, weuld have permitted teachers to draw the Alaska pension while peace of the world.” es from their pay. Royall's discussion of foreign af-| The plaint.ffs were members of fairs, in plain-spoken, unvarnished the crews of the steamers James words, was contained in his annual | W. Cannon and John O. Cropper, report on the status of the army operated by Coastwise Lines. The department. He used it as a pre- ! suit charged Alaskan income tax- amble explanation of the burden- | €s had been deducted since Janu- acy” to buy off governmen cials--or purge them. The comm/ssion estima racket’s annual britery expend at $400,000,000. An investigative body creal the state legislature, the ‘teaching in the states was killed by the Senate this morning by a 4-12 !vote after Dr. James C. Ryan, Com- missioner of Education, desctibed it as “a bad bill.” Making clear that this was his personal view of that bill, and that ing, a “District Court of the United {some occupation duty of the Ameri- { ary. Son SUlInIEeE A it is contrary to the views of a States” which is given jurisdiction of such cases under the Labor Man- agement Relations Act, it is “vested with the jurisdiction of a district court of the United States, and be- ! cause of my conclusion that it was the legislative intent that the act & |can Army. { He reviewed what he cailed “Sov- jiet intransgience,” set down the record of attempts since 1945 to It was allged that such deductions are unconstitutional and an invas- jon of the Admiralty and Maritime {legal action to suppress alleged. jurisdiction of the United States. | The line operates between San Francisco and Alaska and the suit !claims that most of the work per- iformed by the seamen takes place come. to agreement with Russia and said that “from the beginning of the blockade and up to the present to Governor Earl Warren. The cor mission is not empowered to lawful activities. It recomn corrective legislation, however. The commission reported it hi learned through undercover agents it sent to a Chicago meeting fhat number of teachers and at least three members of the Board of 1 Education, Dr. Ryan told the Sena- tors that the proposed amendment to the present law would tend to take teachers out of Alaska at the age of 55. | should have a general and uniform, time the situation in Berlin has application, I am constrained to Leen tense.” And he asserted: hold that the term ‘district court of { “During all this period the ef- the United States’ as used in thei rt has been made to stand firmly Act, comprehends this court.” for American rights without being, The court said “The Legislative truculent. Often the decisions have | intent rather than its literal im-:teen close ones where an error on| port must govern.” ‘Ieimer side was entirely possible.! In discussing the impossibility of Fortunately, up to this time war has enforcing the Act in Alaska, if this | been avoided and America’s pozmcn} court had no such jurisdiction, thelhas been maintained. . .” opinion clearly implies that it is; |outside Alaskan waters. The Alaskan income tax law wag passed by the Territorial Legislature last January and, according to the: suit, the Company immediately be- gan deductions. The amount de- ducted from paychecks is 10 per :cent ol the figure deducted for pay- ‘ment of U. S. income and security taxes. The Sailors’ Union of the Pacific and the Masters, Mates and Pilots This, he felt, would not only be a Gov. Earl Warren and Mayor FIEth=3 ¢ *yepcning personnel, but might friBowion of Ty Angeles, gventually break down the entire The commission named Frankj .. .ment system. Costello, of New York, as the re- . puted national head of the slot ma-{ Dr. Ryan, who first outlined the chine racket. It said Benjamin:point of view of the teachers, read (Bugsy) Siegel, who was slain ‘n]: letter from A. B. Phillips, former gangster style at Beverly Hills, Cdll..,.Bupermtendent of Scnocls 1 Ju- two years ago, was a Costello ass0=;neau. ciate. { i noin potn the slot interests ‘wess ot 8 "'fi‘loss to the Territory in the manerl ADMISSIONS TAXIS KILLED BY SENATORS By BOB DeARMOND Another tax measure went into the | Senate wastepaper basket yesterday afternoon when the Admissions Tax bill designed to college $125,000 to $150,000 a year for the Veterans' Revolving Fund, failed to pass by a 8-10 vote. Originally drawn up as a general admissions tax, the bill was amend- ed to cover only adult admissions, but even that change failed to con- vince a majority of the senators| that the tax is justified. Senator Steve McCutcheon, au- thor of the bill, told his colleagues that the expected revenues would approximately cover the administra- | tive costs and losses connected with the Veterans’ Revolving Fund, and would keep that fund from “eating itself up.” “This bill levies a tax on the tonly amusement and relaxation a (great, many peoble find—the picture :shows—and I do not believe it is 1 | of Big Fund fo Rural Buildings By JIM HUTCHESON of the legislative session. It would Le labeled an extraordinary exten- sion session, and would tring the unprecedented situation of three sessions in a row—the January spe- cial, the regular and the extension. Senators said several members already have agreed to the proposal. ‘They include members of both par- ties. A tormal motion for the move was expected in the Senate this after- noon. One senator said eight of the body have signed up for the proposal The territorial House re-passed the income tax bill and passed a $2,- 250,000 school building appropriation measure last night. Unanimous approval was given to the income tax measure, in which some of the loopholes were tighten- ed. There was only one vote against the school building fund bill, and it was by a supporter {sion, one legislative leader said. empowered to enforce the orders ; The commission said its investi- i Phillips LCd oul in his letter? justified,” Senator Collins said and of the National Labor Relations Board and to issue injunctions to prevent jurisdictional strikes and secondary boycotts, pending a Board determination of any case. . The court denied a motion to quash the service of summons on the International union, denied a motion to permit it to withdraw certain pleadings and denied two motions which had asked for a rul- ing that the Attorney General of the United States be informed that Constitutional questions were in- volved in order to permit the At- torney General to intervene if he so desired. The defendant unions were given ten days to admit or deny the alle- gations of the complaint for dam- ages after which time the case can ke set for trial. i ——— ® 0o o9 09 0 0 00 . WEATHER REPORT (U. 8. WEATHER BUREAU This data is for 24-hour pe- riod ending 6:30 am. PST. In Juneau— Maximum, 46; minimum, 27. At Airport— Maximum, 43; minimum, 20. FORECAST (Juncau and Vicinity) Continued fair this after- noon and Saturday, with highest temperature near 48. Lowest temperature tonight between 20 and 30. PRECIPITATION (Past 24 hours ending 7:30 a.m. today In Juneau City — None; since March 1, 245 inches; since July 1, 9445 inches. At the Airport — None; since March 1, 1 inch; since July 1, 59.30 inches. @0 00000 0g00000000 0000000000 The Washington Merry - Go - Round By DREW PEARSON (Copyright, 1949, by Bell Syndicate, Inc.) /ASHI'NGTON— The real truth about the Soviet Cabinet shakeup is that no British or American ob- server really knows what's going 0 eec0cecceccccccce {Union, Local 90, joined the seamen jin bringing the suit. CHURCHES OPPOSING | S { | ANCHORAGE, March 11—®—| [The Air Force has identified the| lvict!m of an F-80 fighter plane ,crash last Tuesday as First Lieut. Melvin C. Boyd, 28, of Anchorage. | Boyd was killed in the crash of | ;a jet fighter plane near the shore| of Big Lake, a few miles west of (Anchorage, during a routine flight.| i Boyd's wife, Marjorie, and three- iyear-old daughter live in Anchor-' lage. His mother, Mrs. Arlo Dean,| (1ives at Waterloo, Towa. Boyd has served in the Air Force since 1941. i Funeral services and a memorial| iflight were to be held this after-/ ‘noon. | i | i | Object fo Defensive Alli- ance that Might Appear 'Aggresiye fo Russia’ By CHARLES MERCER CLEVELAND, March 11.—/P—A isectional meeting of a conference irepresenting 35 million Protestants. is opposed to any defensive alliance that might appear “aggressive to !Russia.” 1 The meeting, acting on a state- | ment framed by a special commit- tee, said it could not pass on the proposed Atlantic Pact because it had not seen the text or had time to study its results. This was one of a series of dis- cussions at a study conference on Christian influences in internation- al afiairs sponsored by the Depart- ment of International Justice and Goodwill of the Federal Council of Churches of Christ in America. + The action at the meeting attend- ]ed by more than 100 passed over- IwhelminglyA Its recommendation NEW YORK, Mar. 11.—(# —Clos- {POW 80es before the full confer- ing quotationm of Alaska .Yunenul‘“":e for & vote. mine stock today is 3%, American| The resolution Keid; Can 91, Anaconda, 31%, Curtiss-! 1. “No defensive alliance should Wright 9%, International Harvest- | be entered into which might well er 247%, Kennecott 47%, New York |appear as aggressive to Russia as Central 11%, Northern Pacific 15%,|an Russian alliance with Latin {U. 8. Steel 71%, Pound $4.03%. (America would undoubtedly appear Sales today were 1,070,000 shares. | to us.” Averages today are as follows:| 2. Reglonal pacts “may make for industrials 17652, rafls 49.13, util- ities 36.16. ——r YACHT CLUB MEETS At the Juneau Yacht Club meet- ing last night at 7:45 o'clock in the Iris room of the Baranof, two new members were proposed and voted i 1 > —— MRS. (HAMBERLIN HERE ON WAY T0 KOTZEBUE Mrs, Elizabeth Magids Chamber- \lin, the former Mrs. John Cross, ar-| irived in Juneau with Pan American | today and will remain here for sev-i eral days before continuing to Kot- zebue where she operates Magids Brothers interests. She is at the Baranof Hotel. Her daughter Patsy, who anend-} ed school for two years in Juneau, | lis now at Scarborough-on-the-Hud- | son, Mrs. Chamberlin said. | | | STOCK QUOTATIONS | 4 they are within the United Nations framework and are based on “a natural community of interest,” and pursue this interest so as not to “jeopardize world community.” 3. Regional military alliances are “no substitute for the relief of hu- BIG PACT gators had learned: {that teachers cannot live on the | “gt is the common practice of slot ' $100 monthly pension and have to machine operators throughout thej"“d other employment. They can- ./ 1ot, however, take teaching jobs— country to pay 10 percent to - 11 fo f thei 5 fit for fthe jobs for which they are best T Sk _.fir | qualiiied—without forfeiting the tection and graft.” i pension. —————,——— [ Senators Barr, Collins, Lyng and 'HRIll ¢ SEEK'“G Engebreth voted for the bill. % Hospital Assistance { Senator Anita Garnick’s bill to (eppropriate $200,000 for assistance !to community hospitals was passed {unanimously. Senator Butrovich CHANCE T0 LIVE WASHINGTON, March. 11.—(®— A thrill-seeking “rich kid” who helped hold up a crack passenger train in the West Virginia hills was given a good chance today to survive a police-inflicted bullet wound. He is 23-year-old Luman Rams- dell, who was shot down after be- ing cornered yesterday by police in ‘a pawnshop near the White House. Ramsdell's buddy, “poor boy” George L. Ashton, gave up meekly. Police fired when Ramsdell drew a gun. In Youngstown, O., where the pair lived, friends and relatives describ- ed Ramsdell as just “a wild kid” who had plenty of money and did not need the cash stolen from ter- rorized passengers aboard the Bal- timore and Ohio’s Ambassador Ex-| press. Ashton, on the other hand, was pictured as a pcor boy who had been influenced by “bad compan- ions.” — e ——— MOTHER OF MRS. DON Mrs. Melinda A. Howson passed away this morning at the home of her daughter, Mrs. Don Skuse. Mrs. Howson was born in Peter- borough County, Ontario, May 17, 1862. She resided in Ontario until October, 1946, when she came to common security and welfare” if | Juneau to live with her daughter|ijon and compensation. and son-in-law. A lifetime mem- ber of the United Church of Cfln-' ada, she took an active part in all its organizations. Besides her daughter, she is sur- vived by one brother, Charles W. Carter of Juneau; three sisters, ' pointed out that a $165,000 appro- !priation for the same purpose was !made two years ago and the money {has not been spent, would bring the {total to $365,000. i A “statement of policy” bill in- ‘troduced by Senator McCutcheon (to give veterans preference in Terri- ‘torial employment was rather un- expectedly attacked as ‘“special legislation” when it came before the Senate this morning. Senator Rivers fired the opening guns, asserting that the bill sets up a special and preferential class of petsons who, under the terms of {the bill need not even have served jin a war. He added that he be- |lieves in giving every consideration l ito veterans who were disabled or erans should e on an equal basis with non-veterans. | Handicaps Others Senator Garnick pointed to the | handicap the bkill would create for !non—vetenm who may seek terri- torial employment. Many of them, ishe said, were willing and even eager to enter the service, but were prevented by physicial disabilities or for other reasons. i Senators Jones and Peratrovich !felt that it would be impossible to “give the veterans too big an edge in readjustment to civilian life.” Senator McCutcheon said that he personally lost $11,000 in salary by ireason of being drafted into the service, and felt that veterans should be given special considera- Senators Rivers and Butrovich voted against the bill. A bill to amend the fire centrol Act was passed unanimously after a clause described by Senator Col- lins and Senator Butrovich as “con- otherwise handicapped by war ser- iy, and Rivers. ivice but felt that able-bodied vet-] Gyper ping passed yesterday after- Kr ¥ on inside the Kremlin—and this in. man distress and the meeting of | Miss M. A. Carter, Mrs. Florence |trary to the entire theory of Ameri- cludes our super-secret military in- telligence men as well. The iron curtain around the Kremlin is almost impenetrable, and all the speculation as to what the Molotov-Vishinsky shift means is nothing more than that — mere speculation. There was a time when the United States was able to get rea- sonably accurate inside-Kremlin in- formation from the Czechs and the! Poles but since the Czech Commun- | ist purge and the tightening up in| Poland, these sources have dried up. | However, if past precedents are any criterion, the Russians will not ——— e (Continued on Page Four) {upon. They are Raymond Packard and Tom George, and they will be- come active members at the next meeting, March 17. The annual roll call was held and ‘he capital-to-capital race was dis- | cussed. i i —_—————— BOAT AT PARADES The Parades Boat Co. is building human needs within the area.” — e STOUGH-BAKKE NUPTIALS Married recently in the Northern Light Presbyterian church with Rev. Willis Booth officiating were Richard Stcugh and Miss Yvonne Bakke, both of Wrangell. The double ring ceremony was i | a new 16-foot boat of Monk design | performed before a small group of for Bert Caro. The boat is to be|friends with Pvt. Robert D. Miller, an outboard runabout. ACS, best man, and Miss Jessie The Sweet Loraine, owned by Barlow, maid of honor. Loraine and Raymond Packard, is} The couple is spending their undergoing repairs and speed will honeymoon in Juneau at the Gas- be increased. The sport runaboutitineau, and will return to Wrangell will be ready about the middle of the first of next week by Alaska April, Coastal, Cameron and Mrs, Gertrude Leep- er, all of Norwood, Ontario; two grandsons and one granddaughter, also of Norwood. Funeral arrangements are being made o'clock Chapel. STEAMER MOVEMENTS Princess Norah from Vancouver 1s! due to arrive Sunday afternoon orj evening. Alaska scheduled to sail from Se- | attle Saturday forenoon. | Baranof from west southbound Sunday P. M, in the Carter Mortuary scheduled can jurisprudence that a man is iinnocent until proved guilty” was amended out. Senator McCutcheon’s bill to keep [polung places open until 8 p. m. on for Monday afternoon at 2 election days, instead of 7 p. m. as at present, passed unanimously. With the pressure of bills con- stantly mounting, the Senate knocked off for only one hour at noon today, and went back into session at 1 p. m. e - If all the buses, street cars and trolley coaches in America were parked bumper to bumper they would make a solid line reaching from New York to Cincinnati, was echoed by Senators Jones and Peratrovich. “Plcture siiows are a luxury and| it is better to tax luxuries than ne- cessities,” Senator Rarr asserted. “It is better for a man and wlm*’ to go to the show than to stay home and quarrel, and this tax might| prevent some people going to the show,” Senator Collins commented. ! “If we are going to tax family quarrels we will raise entirely too| much money,” Senator Barr retort- ed. Dangerous Practice Senator Butrovich attacked the bill from a different angle. | “This 1s a nuisance tax and will {be resented,” he said. “It won't take care of the Veterans’ Fund—we are Igolng to have to dream up about two !million dollars for that fund or else scrap the Act—tut if we levy this; tax most people will feel that mel |veterans have been taken care of| by it.” Senator Nerland felt that the ad- missions tax would be an additional burden on the people who are al-| ready carrying the load of the in- come and property taxes. Voting for the admissions tax on| final passage were Senators Barr, Huntley, MacKenzie, McCutcheon, noon in the Senate were: S.B. 46, to allow branch banking| offices in the Territory under cer-| tain conditions. 8.B. 37, to create a Territorial Li- brary Board of five members ‘or !ht7 purpose of administering any Fed-! eral library funds that may become available and otherwise assist in| library development. £.B. 28, to allow !ndiependent and incorporated school districts to in-| crease their area to 500 square miles. | SB. 33, to allow Public Utility, Districts greater powers. A bill to amend the Teachers’ Re- | tirement Act caused a flurry and three senators changed their re- commendation from “do pass” tol “do not pass,” when it was discov-| ered the till had been incorrectly| |drawn. As introduced, the bill would have | prohibited teachers who retire un-| der the Alaska retirement act from drawing their pensions if they ac- cept teaching jobs in the States. Discovery that the opposite was intended and that the bill, if en-| acted, would allow retired teachers to receive both the pension and a| salary while teaching in the states, brought immediate objection. “If we are going to make a dif-! ference, we ought to allow this in the Territory and prohibit it in the states, so as to keep the money at home,” Senator McCutcheon as- serted. The bill had not gone to a vote when the Senate adjourned just “with two or three others lukewarm”|who wanted to be in position for ion the idea. !a conference committee appoint- The extracrdinary session agree-|ment in case of deadlock with the men. would provide for considera-,senate, tion of only those bills that have| A million and a half dollars was already been introduced although marked for rural schools apd $750,~ they would have to be reintroduced |gpp for cities. The cities wowld be in the extraordinary extension ses-;required to provide matching funds [rmuing from 10 to 50 cents for He said many legislators feel they | each territorial dollar. won't have time to act on numer-| By a vote of 21-3, the House also ous important bills, while opponents | adopted a, measure to ban general of the idea are suggesting longer|outdoor advertising from, Alaska legislative hours and night sessions! highways. The avowed purpose is as an alternative to the special|{“to keep highways scenic.” meeting. ¢ All the bills passed were House (ONVICTED WASHINGTON, March n.—m—-l‘, Mildred E. (Axis Sally) Gillars has v:slot:n‘:n C:‘:e;;‘;:l ‘:::ufmh T been convicted of treason but her Another change provides exemp- punishment probably won't keition of military pay of .members known for a week or more. tot the armed forces stationed om A mixed jury found her guilty of [temporary duty in Alaska. broadcasting propaganda for the| The tax, as in the m.mn bill, wartime German radio. The jury convicted Miss Gillars of only one of the eight treasonable acts charged to her in connection with her broadcasting. This, how- ever, did not alter the range of pos- sible penalties. ‘The maximum possible sentence is death in the electric chatr; the min- imu, five years in prison, a $10,000 fine and loss of her American citi- zenship, The convictian was based on a radio drama called “Vision of In- vasion.” In “Vision of Invasion,” Miss Gil- lars played the role of Zulelyn, an ©Ohio mother, who dreamed that her son was killed in the invasien. The Germans broadcast it four weeks before allied troops landed in Nor- mandy. The indictment said it was broad- cast to American citizens at home and abroad as an element of Ger- man propaganda and as an instru- ment of psychological warfare. Even in advance of sentencing, Miss Gillars’ attorney served notice that he is not through fighting. His first step, said James J. Laughlin, will be to file a motion asking Federal Judge Edward M. Curran to set aside the verdict and order a new trial. Laughlin has five days in which to take this action. Miss Gillars, 48, tearfully swore from the witness stand that she always loved this country and never intended to betray it. L ity e MRS. McCORMICK IS IN DEACONESS HOSPITAL IN SPOKANE; MUCH BETTER of Juneau frienas will be glad to|layed to this afternoon on motion learn that doctors are greatly en-|of Glen Pranklin. is 10 per cent of a person’s or |flrm’s federal income tax. H Strengthens Legality The only fipor comment on the income tax measure last night was by Rep. Clarence Keating, who ex- pounded the Democratic majority's position: “A vote for this bill is not an ad- mission there is any doubt about the legality of its passage at the special session. It is for the pur- pose of amendment and to safe- guard against possible costly and time-consuming legislation.” The House also passed a bill to | provide $40,000 for establishing a& Wildlife Research unit at the Uni- versity of Alaska, with the expecta= tion of getting federal funds in & grant, The House also voted to double faid to dependent children to $30 |x month for the first child 16 |years or under and to raise from $15 to $25 the sum for each addi- tional child. The vote was 23-1. The highway sign bill, introduced by Rep. Frank Angerman, was for licensing and regulating the busi- ness, but Rep. Stanley McCutcheon amended it to an outright ban in order to “keep highways scenic.” The vote was 21-3. The bill was amended to allow businesses along highways to post signs within 2,500 feet of the establishments. The House also -passed, 14-10, a bill for licensing children’s’ homes, but amended it to exempt exist- ing homes unless they desire to come under the act. The exemp- tion was primarily a concession to Minfield Home. The vote on the home licensing kill was scheduled for reconsidera- tion this morning, but it was de- couraged about the condition Mrs. John (Betty) McCormick, Who Mm&?;e:m::n:;- had been hospitalized here for sev-i o "ol dosoteq 'Z) s hml::zfl;‘ eral weeks. Mr. MeCormick brought the good o etite oensing bil, whieh arew news after refurning from Seattle A . She testified from the gallery, on yesterday’s PAA flight, having where she sat with several Of the' taken 18 days of annual leave in children from Minfield Home about the interests of his wife's health.jp.. gpe @ded her & 1y She gained six pounds while in m’lhflnflnl e % e Virginia Mason hospital, where shelang™ yitimately the whole nllery‘ was. for ten days. and House membership, with a recl- Mrs. McCormick now is in the|sapion of the pl Deaconess Hospital, Spokane, Wash., ! tpe fln"gI one fh:di:c‘::\l::“ s before 5 p.m. yesterday. —l The use of cocaine leaves is for-; bidden to women in Sovt: Ameri-; ca. and is doing very well. Her cousin | Miss Al Brandel Dr. Merritt Stiles, is resident phy-‘pubhc w!"n:m Dq)llrt:.or:t ;“t by sician there, and she plans to visit . 1) the Stiles family when abl® to leave w the hospital. Continued on Page Two)