The Daily Alaska empire Newspaper, March 14, 1949, Page 1

THE DAILY A VOL. LXXII., NO. 11,143 Budget Cut COAL OUTPUT IS REDUCED - TOTRICKLE Thousands of Lewis’ Min- ers Stop Work for Two Weeks in 10 States By WILLIAM G. SMOCK PITTSBURGH, Pa., March 14— (m—A miners’ work stoppage today reduced the nation’smighty coal output to a mere trickle. It idled some 471,000 hard and | soft coal miners east of the Miss- issippi. It hit the nation’s ccal- dependent industries by forcing fur- | loughs on some 69,000 railroad| workers. The diggers started a two-week | voluntary lay-off in answer to| John L, Lewis’ call for a memorial to dead and injured miners. ’l'he,1 miners also are protesting ap- pointment of Dr. James Boyd as Director of the U. S. Bureau of | Mines. The idle miners normally work | in these ten states: West Virginia, | Pennsylvania, Kentucky, Illinois, Alabama, Ohio, Virginia, Tennessee, Indiana and Maryland. Lewis’ order for a work stoppage exempted about 32,000 UMW min- ers in these states: Wyoming, Col- orado, Montana, Utah, Arkansas, Oklahoma, New Mexico, Washng- ton, Kansas and Missou~i. Trickle From West ‘The western states produce only a trickle of the nation's soft coal. Pennsylvania produces virtually ali the anthracite mined in the United States and ranks second after West Virginia as a soft coal producer. In Washington, Senator Byrd (D- Va.) called on the Senate to “prcmptly confirm” Dr. Boyd's ap- pointment “as a reply” to the mine shutdown. He added: “As the nomination of Dr. Boyd is now before the Senate for con- firmation, the strike order is noth- ing less than an attempt to coerce and intimidate the Senate of the United States . . . ” The miners may find time hang- ing heavily cn their hands. In oth- er years such “holidays” come later in the season when the men could do spring gardening, go fishing or to the baseball parks. But it was too cold today. R Ordered By Lewis Lewis, 69-year-old leader of the United Mine Workers, last Friday ordered the pits closed down from today until March 28. The first effects of the work stop- page came in the railroad indus- try. Eleven railroads furloughed 57425 workers. They're employed by railroads who get a big chunk of their freight revenue from haul- ing coal. Steel industries will not be hit immediately. They have large sup- plies of coal above ground. The national coal stockpile totals an es- timated 70,000,000 tons. That's ths most coal above ground in any spring since 1942. It's good for about 45 days. WASHINGTON, March 14.—®— The Senate Interior Committee to- day approved President Truman's nomination of James Boyd to be (Continued on Page Two) The Washington Merry - Go- Round By DREW PEARSON (Copyright, 1945, by Bell Syndicate, Inc.) ASHINGTON— John L. Lewis recently won some votes in favor of keeping one of the Taft-Hartley provisions which labor dislikes most —the right of injunction to halt strikes against the public interest. The National Association of Manufacturers backed by George Sokolsky and a battery of propa- gandists couldn’t have been half as effective as John L. Lewis. For Lewis’ lieutenant, John Owens, hinted before a Senate committee that the miners would strike if the Senate confirmed Dr. James Boyd as Director of the Bureau of Mines. . Several Sgnators who have been on the fence regarding injunctions now believe that injunction may be the only way to deal with labor leaders who threatens a strike if Congress exercises its constitutional Bt AL T I R L L (Continued on Page Pour) Governorand Alaska . S. Co. Confer Here [""Most Safifidory” Says Leusler of Meetings with Gruening Representatives of the Alaska Steamship Company in Juneau dur- ing the past week have concluded a series of conferences with Gov. Gruening and his staff on tiR® subject of Alaska transpertation problems and on certain phases of he recently enacted Territorial in- come tax bill. With Admiral F. A. Zeusler, executive assistant to the president of the Alaska Steamship Company, is 8. Duryea, general freight and passenger agent of the S. E. Alaska dfstrict stationed at Ketchikan, and H. Ream, assistant auditor, who have participated in the discussions. Company representatives present- 2d to Gov. Gruening tentative plans for their future ship operation. Meetings with Gov. Gruening, ac- cording to Admiral Zeusler, have peen most satisfactory with the re- sult that another conference is planned for the latter part of March when Gilbert W. Skinner, oresident of the company, will meet with the gevernor and his advisors with a view of preparing a set of yroposals satisfactory to the terri- tory and to the company for pre- sentation to the Maritime Commis- sion and the Interior Department, Admiral Zeusler said today. Recently the Maritime Commis- sion approved one part of the pro- posed company plan: that allotting ships to the company and allowing hem to be retained under the cus- tody of the company when not needed, rather than returning them w the commission for laying up when not on schedule. The cost »f each lay-up and each commis- sioning is $10,000, company offi- cials explained. This procedure will not only make possible the use of +he same ships all of the time, with their company installed improve- ments but it will save money and permit better operation. acquiring of freighters of the laid- vp fleet from the Maritime Com- mission at a more reasonable rate of charter hire or purchase, and for the development of a plan for the building of new passenger shifs, especially designed for the Alaska trade by the government and for cheir acquisition by the company by casy charter hire or purchase. The Alaska Steamship Company is desirous of maintaining the best rates possikle in the face of rising costs, Admiral Zeusler said. Many internal changes have been made within the company and it these propgsals are adopted they would be an important step for- ward in the plans of the Alaska S. S. Company to render efficient and satisfactory service. A resumé of company operations for the months of January and February of 1949 compared to the same months in 1948 was presented at the conference. During these menths the company operated three passenger vessels on regular weekly schedules to the important seaports of Alaska, seven freighters to ser- vice all of the Alaskan open ports where necessary and three freighters in other service. Three ships were laid up. Records show 51,664 tons of freight were carried, including mail. This compared with 19,000 tons for the same period in 1948. About 110 passengers were carried nerthbound; 55 intraport, and 60 southbound on each passenger ves- sel. NATIONAL HEADS OF LEGION ASKED 10 ALASKA MEET FAIRBANK”, Alaska, March 14. —(P—National Commander Perry Brown and Mrs. L. Good, Nation- al Auxiliary President, have been invited to be honor guests at the cenvention of the Alaska Depart- ment of the American Legion at Mt. McKinley National Park, June 16-19. Chairman Harry Palmer of Fairbanks’ Dorman H. Baker Post announced. The other part of the compeny: olan under discussion involves the | “ALL THE NEWS ALL THE TIME® JUNEAU, ALASKA, g{NDAY, MARCH 14, 1949 Three CANNERIES TO CURTAIL OPERATIONS BELLINGHAM, Wash., March 14. —A—Two salmon packing firms here arnounced sharp cutbacks in cheir Alaska fishing operations this summer. The Pacific American Fisheries company announced it had cancelled sailings of three cannery vessels scheduled to leave next week and the Icy Straits Canning Company sald its Southeast Alaska cannery aear Hocnah would te operated on a limited basis by Alaska employees only. The firms blamed the curtailment on rulings by the U. 8. Fish and Wildlife Service, new fishing and trap laws, labor cost and market fluctuation. SRR A HOUSE PUTS 0. K. ON SEVEN BILLS IN CLOSING RUSH By JIM HUTCHESON In a rush to beat tonight's dead- ine for considering its own bills, the House this morning passed seven measures. One was a labor committee bill for establishing disability compen- sation on a basis similar to work- men’s compensation. It would be for disability from non- occupation- al illness or injury. But while the House was passing it 17-5, after smending it to make all payments come from employees, the Senate was killing a similar measure 9-7. The House also passed Rep. Al- fred Owen’s bill to amend the newly enacted law for allowing an unem- ployed person 20 per cent additional ;ut net more than 60 per cent addi- tional. The new bill provides that an unemployed person can draw the increased amount without hav- ing the number of weeks of pay- ments reduced. In effect, it would makz a man eligible for a maximum of about $1,015 in 25 weeks instead of $625. A controversial bill ty Mrs. Amelia Gundersen to allow public schoo. Luses to carry parochial school pu- pils was withdrawn by the Ketchi- kan representative. She said it had | proved so controversial that it might unduly delay consideration of othe: | cills pending in the House. The House passed 23-0 a bill by | registration provisions. It would re- quire any lobbyist to file his salary figures, whether or not any extra cay for legislative service is in- volved. ‘The House also passed a bill by its lakor committee to expand the Unemployment Compensation Com- mission to five persons and change its name to the Employment Secur- ity Commission. Two members would represent labor, two would represent employees and one would represent the public at large. The vote was 13-10. Other bills passed included: H.B. 116 (by Franklin), to pay University regents $15 a day for meetings in addition to travel and living expenses; H.B. 106 (by McCutcheon), to em- power city councils to grant bus franchises; L | H.B. 117 (by Keating), to allow | municipalities which opérate public utilities, but do not have a public utility district, to elect public util- ity boards to operate the services. 'AMERICAN LEGION :‘ AUXILIARY MEETS | There will be a social meeting of the Ladies of the American Legion Dugout. Community Service chair- man Elsie Sofoulis will be in charge There will be a speaker from the Public Health Department. —— HERRING BROUGHT IN | compensation for each dependent,| |Cwen to tighten up the lobbyis\ Auxiliary Tuesday at 8 p.m. at the! of the program and refreshments. NIGHT SESSIONS - DEADLINE By BOB DeARMOND . The Senate, as well as the House of Representatives, night session tonight, since this is jthe last day upon which bills, ex= 'ctpp general appropriation bills, can ’be transmitted from one housé to the other. A joint meeting of the two bodies, called this morning for the pur- pose of suspending the joint rules to allow two more days for the transmission of kills, failed by one vote to suspend the rules. 3 In its forenoon session today, the Zenate passed two bills, killed one. It had eight more Senate bills on its calendar this morning, with the probability that others - would be reported out by various committees ind added to the calendar this af- ernoon. { By a 7-9 vote the senators killed l 1 bill to set up a temporary disa= 1 .lity compensation system under the Unemployment Compensation | Commission. An identical bill wi jowever, passed by the House morning. John T. McLaughlip of the UCC ock the stand in the senate this morning to explain the proj system. | ILLNESS COVERED i The present law, McLaughlin ex- plained, provides benefit payments for ordinary uynemployment. The proposed system would provide com- pensation for unemployment due to illness or other disabilities of & temporary nature. A separate fund iwould be created, with both employ- 215 and employees contricuting one- half of one percent of the total pay- roll to the fund. “Wouldn't this bill put the Ter- ritory of Alaska into the insurance business,” Senator Butrovich asked.|< “I don’t believe 80,” McLaughlin said. “It is a kind of soeial legisla- luon." “Wouldn’t the Territory pay the benefits in the event of illness ol an employee?” Senator Butiovich wanted to know. McLaughlin admitted that it would. “Doesn’t an insurance company pay the benefits if the employee is privately insured?” the senator pur- sued. McLaughlin said that was true and went on to say that this pro- posal would create a form of health and accident insurance. Aun gmendment otfered by Senator McCutcheon to eliminate contribu- tions by the employer and raise employees’ contributions to one per- cent was defeated 7-9. TRANSFER PROHIBITED Another UCC bill, to prohibit the transfer of employers’ experience rating credits, in certain instances. with the sale of the employer’s com- pany was passed 10-6. Also passed was a bill adding some new drugs to the list of those whose sale is prohibited in the Territory. On the calendar for this after- noon were three lengthy Health Department measures—to set up 2 Pure Food and Drug Act for the Ter- ritory, a general xevision of Health Department laws, and transter of vital statistics recording from the Auditor's Office to the Health De- partment. e IRIAI.— CALENDAR GETS UNDER WAY WITH FIRST JURY Delayed by having to issue a special venire Friday, District. Court got under way this morning in trial jury session. A jury of nine men and three wocmen was |sworn in to serve on the case of Holloway vs. Gusjaas. Eager (Red) Holloway, taxicab company owner, is suing L Ludvik Gusjaas for $534.86 damages result- ing from an accident December 18, 1947, Holloway is represented by M. E. Monagle, while Gusjaas’ attorney is Joseph A. McLean. | Accepted without challenge were {Clarence K. Hellonen, Louis Gar- rett, Donald Milnes, Kathleen Pra- may , hold a}l The Patricia Mae arrived from |ther, John M. Thlunaut, Mrs. J. A. Sitka this morning with a load of | Williams, Lloyd B. Connell, Neil approximately 300 barrels of Sitka |F. Moore, Ruth P. Carter, Richard herring for Juneau Cold Storage.|Moses, J. B. Caro and Jack €. With weather permitting, the Pat- JGould ricia Mae will leave this afternoon' Inez Johnson Vosotros pleaded for Sitka to take herring to Peli- not guilty tcday to a charge of can. Skipper is John Young with |grand larceny, and Kurt Nordgren, Jacob Joseph and Ben Didrick- indicted on a bribery charge, also son as crewmen, ertered & plea of not guilty. MEMBER ASSOCIATED PRESS LASKA EMPIRE PRICE TEN CENTS As a married man, Rep. Bill Egan ws when a jest about teminine ces has gone far enough. He ran up a white flag today and Withdrew a bill he introduced for $50 tax on single women with 5. The bill cited the tax as an [ald to furthering the happy state 0f matrimony and relleving the housing shortage. Egan displayed letters of protest from as far away as Detroit and Newburgh, N. Y. They enclosed clip- pings from New York City and othex ‘Pepers. Egan had playfully thrown Asnowtall and started an avalanche. You couldn’t get Egan to propose 4 tax today on a woman—single or married—if she inherited a million Lueks. He just isn't interested in any female tax. . 'A letter from a Detroit woman said: “I am healthy, petsunable, adapt- able and have a college education. f you can put me in touch with ¢ of the males spurned by the Alaskan ladies, I shall be glad tc glve them a hearing.” A Newburgh, N. Y., man wrote that the female tax idea is “most preposterous. 1 sincerely trust, sir, you were joking.” '\ Egan says he was. He wants to hear nothing more about it. SENATORS CLEARING . (ALENDAR By BOB DeARMOND Spurred, perhaps, by tbe whip )i a threatened extension session, he Senate got. into full stride n a Saturday aiternoon session and sliced nine bills off of its dwindling celendar. Six of the bills were passed, most of them unanimously; three of ‘hem were killed. School Boards of independent school districts, apparently at odds with City Councils within the dis- tructs, especially in the Anchorage school district, were handed two setbacks by the Senate. A bill to provide for the dissolu- ion ef incorporated and indepen- Jdent school districts should the sit- | sation, in the opinion of three- ifths of the voters in the district, become too fractious, was passed unanimously and without discussion. It was introduced by Senator Enge- breth at the request of the Anchor- ige City Council. The second school district bill, ntroduced by Senator Huntley at the request ci the District School Board at Anchorage, was defeated by a vote of 6-10, The Lill provided that the school soard of an independent school 1strict having 2,000 or more pupils would have authority to assess, lévy md’ collect taxas on real and per- cnal property within the district up to 50 per cent of the legal tax mitation, for school purposes only Anchc age Only At the present time the bill, il it had passed, wculd apply only to the Anchorage school’ district, the only one having 2,000 pupils. Pro- ponents of the measure argued that, since the school board wanted it, it should be tried out. “School Beards, which are elected by the people, know best whai funds are needed for educational purposes, and should have the pow- er to collect them,” Senator Rivers stated. On the contrary, Senator Lyng argued, the bill would destroy a basic principle of the Republican form of government, the system of checks and balances. “All city councils, as far as we have heard, are opposed to the bill,” Senator Engebreth asserted. “It would require a double assess- ment of property and a double tax collection system, and I see no need for it.” Also killed by the Senate, on an 8-8 vote, was Senator River’s bill to create an Alaska Youth Commis- sion. Dr. C. Earl Albrecht, Territorial Commissicner of Health, and Miss Alice Brandebury of the Depart- ment of Public Welfare, appeared before the Senate in support of the bill. The Youth Commission, t was stated, is desired by the U. 8. Children’s Bureau. (Continued on Page 2) House Group HOUSING FOR ALASKA SEEN IN NEW BILL Sen. Magn&; Visualizes $75,000,000 Program as Result of AHA Loan WASHINGTON, March 14— A $75,000,000 housing program for Alaska is visualized by Sen. Maz- wson (D-Wash) in a bill on which he Senate Banking and Currency Committee will open hearings to- TOITOW. Magnuson said his measurc should pave the way” for con- struction of 4,000 family units and 1,000 apartment units. Seventy-five per cent of the pro- osed apartment development can e accomplished by private con- s'ruction, Magnuson quoted private huilders as saying. The rest, he sud, i5 needed in nterior and Western Alaska, where >rivate builders have shown no in- erest. 'Chis part would be sponsor- od by the Alaska Housing Author- ty under Magnuson's proposal. ‘The same Autnority,” he said “is expected to sponsor three- fourths of the single homes needed for stable development of the Terri- ory. Requirements for housing of he military have not been met and his poses an additional problem of urgency.” He said the Federal Housing and Heme Finance Administrator and the Alaska Housing Authority would handle administration. ‘The appropriation would be limit- 'd to $15,000,600 in & loan.to the i B s, supports estimates,” Magnuson as- serted, “that this would 1d to construction work $75,000,000 in Alaska.” His bill would authorize the Territorial Legislature to permit the Alaska Housing Authority tc undertake construct.on projects. It would also give the Federal Nation- { Mortzage Associz:ion and the Tederal Housing Administration au- thority to make real estate loans ind mortgage arrangements. - e SHAKEUP IN 9 AGENCIES PROPOSED WASHINGTON, March 14.—(P— Che Hocver Commissicn tripping executive powers from ine agencies which regulate such "nes as shipping, radio, power and labor relatiofs. It said these agencies perform aach funecticns “badly” and thus wamper the tegulation of vital in- dustries. The 12-memicr commission on Government reform, filing its 12th report with Congress, proposed as ¢ means of cutting Federal regula- ory costs and reducing “delay and nefficiency,” that: The Maritime Commission yield to the Commerce department its power to build, buy, sell, charter ‘and ubsidize ships. The Federal Power Commission e shorn of pewer-development ~lanning and that the Interior De- partment get the assignment. The Interstate Commerce Com- mission hand to the Commerce De- artment its railroad and high- way safety program and the con- trol of railroad cars. Efficiency-boosting measures also were urged for the Federal Trade Cemmission, Ci1vil Aeronautics Board, Federal Reserve Board and National Labor Relations Board. e STOCK QUOTATIONS NEW YORK, Mar. 14.—(#—Clos- ing quotation of American Can *eday is 90%, Anaconda 31%, Cur- tiss-Wright 9%, International Har- vester 25, Kennecott 47%, New York Central 9'%, Northern Pacific 12%, U. 8. Steel 73%, Pound $4.03%. Sales today were 800,000 shares. Averages today were as follows: industrials 176.98, rails 4891, util- ities 35.31, proposes |- Confirmation, Gov. Gruening, Is Pos_lPoned WASHINGTON, March 14— The Senate Interor Committcc rostponed today actlon on the nomi- nation of Governor Ernest Gruenin of Alaska for another four-yea: term. A week ago, the committee post poned action on the nomination un- til today to permit persons opposing |it to testify. None appeared at to- day's session, devoted to legislative aatters and the nomination of James Boyd to be director of the aines Lureau. Chairman O'Mahoney (D-Wyo.) aid that when the committee reach- 'd the Gruening nomination objec- tion was made to its consideration on the grounds the Senate was in session. The Committee adjourned then without fixing a date for its aext session. - SPECIAL SESSION COSTWOULD RUN §2400 PER DAY What will the special extension of the legislative session cost if held under the Governor’s tentative call? The Lest unofficial estimate ic alout $2,400 a day. The estimate 1s based on the regular session appropriation of 112,000 which included roughly an werage of $1,200 daily for em- “loyees, printing, etc. It also would “W“fl"m, 1,200 daily for the 40 leg. living allowance. During the regu- lar session, the Pederal Gevernment ‘cots the legislators’ daily pay, but the Territory must pay for special essions. Governor Gruening issued the pecial call Saturday, asking an ex- ension to start March 28 and last- ng for not more than two weeks. Joth houses had asked him to issue he call for consideration only of neasures which may be left hanzing )y the regular session. The present session is due to eng March 24. R Org;on State UCLA Meeting Again Tonight CORVALLIS, Ore, March 14— (M—Oregon State and UC.L.A. go into their third and final game of the Pacific Coast Conference sasketball title series at full strength tonight. At stake along with the West Coast crown is a berth in the N. C. A. A. Western Regional Playoff at| Kansas City. | Coach John Wooden of the south- | arn school and Elats Gill of the| Staters report no hang-over injur- es hampering their players after the Friday ‘and Saturday night games. OSC caught the Bruins by sur-| prise in the opener, winning 53 to 41. The Bruins deadlocked the play- off by winning 46 to 39, the next 1ght. - LABOR OFFICIALS T0 WESTWARD FOR APPRENTICE SETUP Four labor officials were bocked on today's PNA flight to Anchorage —Leonard Evans, director of the U. 8. Bureau of Labor, and John A. Nyman of that otfice; also Ed Garnick and Tem Moore of the Territorial Department of Labor. Nyman will make a routine wages and hours inspection, ‘The other three are going in re- sponse to requests to help set up apprentice programs in the build-| ing and metal trades, both in An- 15 pay and the same Ydi" MEASURE 15 GIVEN ~ PRUNING General Appropriation Bill Reaches Floor- May Be Surplus By JIM HUTCHESON The heavily trimmed general ap- sropriations bill reached the House locr today. Nearly $3,000,000 has eon: lopped from Budget Board re- uests. The sharpesi cul vy the Ways nd Means Committee is on the Pniversity of Alaska appropriation, ithough it still is listed for three imes what it received during the oresent biennium. The University's budget request of $3,500,000 was pared to $2,055,000. fost of the trimming was done on 1ew construction, which was mark- d down for $900,000 instead of the 1early $2,000,000 requested. Nearly alf a million was pared from other ‘niversity items. ] The budget for the support of :ommon schools was left virtually ntact at: $4,935,000. A sharp cut trimmed the controversial Aldska Development Board request from i380,000 to $160,000. And even- that ligure was expected to draw heat- :d Republican Senate opposition. tome Ways and Means Committee nembers favored cutting it to +100,000. g The Public Weltare Labor ld to dependent chfldren cut o $450,000, des- The bill provides for an increase In Territorial officers’ salartes from 36,000 to $7,500 with an added boos! o $8,800 for the Commissioner of ducation and $8,500 for the At- crney General. On the basis of revenue measures racted, Rep. James Nolan, chafir- nan of the Ways and Means Com. mittee, estimates o the Territory should have a surplus of $1,500,000 to $2,000,000 at the end of the bien- nium. He based his estimates on prob- tble revenues of $19,000,000. tenate Finance Chairman John 3utrovich, Jr., Fourth Division Re- ublican, has placed probable rev- nues at $20,000,000. The omnibus appropriations bl carries $12,221,000. A separate bill contains an additional $2,225,000 ‘or school buildings which origin- lly was included in the budget. 3iils which have passed poth the 1cuses appropriat2d another $400,000 making the total nearly $15,000,000. Original budget requests came to «bout $17,500,000. Bills passed by the House and now in the Senate call for an ex- ra $2,150,000 appropriations, with 51,000,000 of it for the Veterans’ Revolving Fund. Besides estimated revenue ap- oroaching $20,000,000, there are three Zouse-approved tax bills still before he Senate which would raise an | estimated $4,000,000 more. They are the raw fish and can- ned salmon tax, doubled schcol tax, and higher fish licenses. Their pros- pects of passage, however, are grow- ing slimmer. Three Senators who have sup- ~ted basic tax legislation, Butro- vich, Andrew Nerland and Howard Lyng, have indicated on the Senate tioor that they are through voting for tax bills. ———t——— SAN FRANCISCO HAS 2ND QUAKE WITHIN 5 DAYS SAN FRANCISCO, March 14.—# —San Francisco had its second earthquake in' five days last night, but it was so slight in some parts cof the city it wasn't noticed. The show was recorded at 10:10 p. m. (PST). It was felt from the San Francisco Bay area to Mon- terey, 120 mles to the south. No damage is reported. CLEVELAND, March. 4.—P— John Carroll University's seismo- chorage and Fairbanks. The pro- grams will start immediately. | ‘The three expect to be gone akout | iten days. | graph recorded a “deep” earthquake at 10:53.29 a, m. yesterday. Opera- tors placed in in the sparsely in- habited Aleutian Islands. »