The Daily Alaska empire Newspaper, March 17, 1949, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXII, NO. 11,146 Bond Referendum Is Appr {PROPOSES NO SPECIAL SESSION, SAY 2 OFFICERS House andS_enaIe Heads Predict Work to Be Finished on Time By JIM HUTCHESON Presiding oificers of both bran- ches of the Legislature predicted today there will be no extra session after March 24 adjournment of the regular session. Speaker Stanley McCutcheon de- clared that the quick House passage | of the $12,445,163 general appropria- | tions bkill removed the lingering doubts about the Jawmakers’ ability scheduled for 7:30 tonight. Senate President Gunnard Enge- breth said he also did not expect any special session under Govern- or'’s Gruening's tentative call, and never has believed”there would be one. Meanwhile, the House is speeding through the accumulation of bills from the Senate. Yesterday it pass- ed 11 bills and three memorials. ‘The bills were all of secondary na- ture. It killed two by indefinite post- ponement. The House has a session scheduled for 7:30 tonight. One of the bills on which legis- lative action was completed by the House was Sen. Steve MeCutcheon’s to keep the polls open until 8 p. m. on election night. The House also agreed with the Senate on repeal of the law which has allowed air- men to collect bounties upon filing affidavits that they had killed a wolf frem an airplane. It was ex- plained . that the increased $50 bounty might open the way to abuses. Two School Bills The House passed two school bills during the afternoon and sent them on the way to the governor’s desk. One was Senator Walter Huntley’'s measure providing that school boards must give teachers written notice before March 15 if they are not to be rehired. They also would have to be told why. Another approved bill provides for reimbursing school districts for in- terest paid out on money which had to be borrowed because of the failure of territorial school funds to arrive. The Senate joint memorials pass- ed by the House were: Asking Congress to approve the $1,020,000 asked by army engineers for a seawall and harbor work at Nome. . Asking Congress to amend the Jones act to allow Canadian vessels to carry freight and passengers be- tween Hyder and the states. Asking Congress to adopt a pending amendment to raise Feder- al hospital aid from $100,000 to, $250,000. ———————— O'REILLY’S EXCURSION BOAT SOON LAUNCHED Royal O'Reilly’s new excursion boat, the Red Wing, will be ready for the water on about April 1. The Red Wing will carry 20 passengers a trip from Juneau to the O'Reillys’ Taku Lodge making the passage in three hours. Shortly* after the launching date, a trip will be tak- en with local townspeople aboard. The Washington Merry-Go- Round By DREW PEARSON (Copyright, 1949, by Bell Syndicate, Inc.) ASHINGTON — U nc ensored diplomatic reports indicate the Sov- iet Government is planning to place before the ' United Nations the strange case of an American citi- zen reported to be the leader of the anti-Russian underground in Poland and Germany. The mysterious American, who cwns a farm twelve miles ol tside "END OF WORLD' CAUSE OF PANIC WEST GERMANY Other Seclio_n; Excited by Rumors-""Nonsense”* Declare Scientists FRANKFURT, Germany, March 17—®— A minor panic gripped backward rural areas of Western Germany today over rumors of the ‘end of the world.” The rumors that the day is the last day for mankind nave been growing throughout Germany for several weeks. They have been bas- ed upon a publicized prediction of an astrologer whom nobody can identify. Most city dwellers went gaily | about their work, but reports from Bavaria said superstitious country folk were flocking to churches and making their wills. In the Bayrische Wald (Bavarian Woodland), night cut electric power cables and caused considerabe excitement, re- ports from Passau said. Church leaders and scientists lab- eled all the excitement “nonsense.” And in a Frankfurt cafe, a port- ly German bartender commented: “The beer is flowing like usual and as long as the beer flows, the world |is okay.” ——aeo— | TRUMAN'S FAIR DEAL PROGRAM SEEMS KNOCKED New Coalition § Souiherners and Republicans Ap- pear in Upper Hand WASHINGTON, March 17.—(®— Capitol Hill leaders hold out little hope ior President Truman’s Fair Deal pregram. Privately, they say that the new coalition of southern- ers and Republicans has the up- per hand. ‘Today that coalition may come through with a victory in the fight to change Senate rules. Administra- tion leader Scott Lucas of Illinois has conceded defeat, and he hopes to get the issue to a final vote before the end of the day. Several speakers remain to be heard, how- ever. President Truman may have his say tomorrow. He's maintained sil- ence as Congress has rebuffed him on measure after measure this week. But tomorrow morning he’ll meet newsmen at the winter White House in Key West, Florida. And the next day—Saturday—he'll re- turn to Washington after a two- week rest. 33 ABOARD PAN AM WEDNESDAY FLIGHTS Pan American carried 33 on yes- terday's flights, with 12 arriving and 21 departing. Passengers in- cluded: From Seattle: William Glen, William Thayer, Herman Haffner, Elton Engstrom, R. Garrison, B. L. McCoy, Robert Swanson, Hi Lucas, W. O. Weaver, F. Kirk Jones, Toni Du Priest, Darvin Hoel, Lolly Patterson. ‘To Whitehorse: H. Isatalo, L. Dehers, Ronald Burrows, Blake Humphrey, George Clark, Lish Hoare, Sylvia Williams, Robert Duffy, Mrs. G. Hyder, Howard Hy- der, Gordon Hyder, Arthur Yuelet, Phyllis LePage, Pauline LePage. To Fairbanks: L. McKinnon, Rus= sell Richardson, Iris A. Jetti, Jerry McKinley, Fred Wendt, H. W. Star- ling, Martin N. B. Holm, STORIS PICKS UP 3 MEN STRANDED NEAR HAINES Harold Yesterday afternoon, Hillman, Minn,, operates under var- j Bloomquist, pilot for the Alaska icas names including Edward F. T'Kach, Count Heinrich Von Geibe, Baron von Tanthen, Heinrich Woy- ceho, Dr. Edouard von Rothkirch;] or scmetimes just Baron X. According to associates, he is the head of the Frei Corps ot Barbar- ossa, the name of the anti-Russian underground in part of Poland and the Soviet' zone of Germany. Baron ——————————— (Continued on Page Four) Coastal Airlines, sighted three men on the river flats opposite Haines. Word was immediatély sent to the Coast Guard cutter Storis. The Coast Guard ship was dis- patched last night and word was received this morning that the men were picked up and taken to Haines. Salt water in their food made it unfit to eat. The men were prospectors and had gone out in a 12-foot skiff. N a furious blizzard last | COMMIES INALASKA FISHERIES Chairman omaska Hous- ing Autharity Makes Charge at Hearing man of the Alaska Housing Author- ity, told a House Committee today Communists are trying “to infiltrate the fishing industry” in Alaska. He made the statement in answer to a question from a member of the House Banking and Currency Com- mittee hearing testimony in sup- port of legislation to create a $15,- 000,000 housing program in Alaska. E. Glen Wilder, executive director |of the Housing Authority, told the committee he did not know of a Communist in the Territory. The Committee was urged to ap- prove the legislation quickly so the building program can be started next summer. Raymond M. Foley, Housing and | Home Finance Administrator, testi- fied he believed the proposed $15,- 009,000 revolving fund for the Alas- ka Housing Authority “is small com- pared with the need.” But, Foley said, it is adequate to start the program which contem- plates start of construction of 1,500 units next summer. Rev. O'Connor lold the commit- tee transportation to Alaska “is ter- rible.” He said he has to pay $11 for a 85 gallon drum of oil at his home on Hooper Bay. He said gaso- line costs $1 a zauon and butter $1.25" 4 pound. 3 NAVAL STRENGTH OF RUSSIANS ON PACIFIC IS LARGE TOKYO, March 17.—P—If war breaks out in the Pacific, it is believed Russian nayal strength would be greater than that of the United States. According to avail- able information the Soviet Far Eastern fleet is bigger now that it was at the end of the war. The Russians have six cruisers, a num- ber of destroyers, and between 72 and 100 submarines. What's more, they are continuing to build new ships in Vladivostok. American naval officers say this country’s naval force from Hawaii to the Indian Ocean is doing its job, in effect, on a shoestring. And even at that, the Navy’s strength is being reduced in line with a “Eu- rope-first” policy. Key officers say they have lost out in a bid to get another destroy- er division assigned to the area, and a cruiser has been taken away. Washington has ordered a 50 per cent cut in Pacific cruiser strength, and a 25 per cent cut in the des- troyer force. 2 Nude "Wolf’ Atlempls 'Meefing’ with Nurse GLENDALE, Calif.,, March 17.—® —This is the Story of a wolf in'no clothing. Miss Veda Davis, 23-year-old nurse, told police that a youth drove his car along the curb last night and asked her politely, “Which way is Montrose?” At | first noticing only that he had a crew haircut, she replied: “About two miles that way.” Then she saw that a crey hair- cut was all the young man had on. He started climbing out of the car, apparently more interested in getting to Miss Davu than Mont- rose; She dashed into a nearby house and called police. iled by the time the law arrived. —_———— JUNEAU YACHT CLUB MEETING TONIGHT The-Juneau Yacht Club will meet tonight at the City Council rooms at 8i30 o'clock. Bob Cowling will report on the Capital-to-Capital Yacht Race. s, —————— The ordinary wart, although con- spicuous, is one of the least dan- gerous of skin afflictions. The Rev. Paul C. O'Connor, chair-| JUNEAU, ALASKA, THURSDAY, MARCH 17, 1949 ALASKA HOUSING REQUIRES QUICK ATTENTION NOW Witnesses Urge Approval of Fifteen Million Dollar Program-Tell Why By CHARLES D. WATKINS WASHINGTON, March 17.—#— Alaska's housing problems were des- cribed to a Senate Banking Com- mittee yesterday by witnesses who urged prompt approval of a $15, 000,000 program. They told the committee that if the legislation is enacted in the next six weeks the Alaska Housing Authority could start construction of 1,500 housing units next summer. And, they urged that permission be included to permit putting floors and roofs on Eskimo igloos. Needs of Eskimos That, said Fathet Paul C. O'Con- nor, of Hooper Bay, Alaska, is all the Eskimos need, for they are not ready for a modern house as known in the United States. He said putting floors in the ig- loos and roofs over thera to keew out the dampness had been knowan to cut tuberculosis amorg the Es- kimecs by 80 per cent. W. E. Warne, Assistant Secretary of the Interior, testifind present housing In the Territory is inade- quate. And more people, he said, are needed there for naticnal de- fense and developing the Territory. “People in some bparts of' the Territory,” he said, “are living in garages, attics, basements and 1) cheap, inadequate cabins and what is worse, are paying fantastiz prices for such space. i Higher Ancuorage Prives “One family. in Fairl hies been* paying $110 a month-for teen feet in size. “A rental of $300 per month fs being paid for two room quarters in Anchorage with sub-standard wiring. In another instance, in Anchorage, a one-room, tar-papered shack rents for $125:a month. “As a final example, a row of log cabins in Anchorage has seven housing units, about 2 1-3 small rooms each, which command a rental of $200.” The mn:casure would provide a broader lending authority than is customary in the United States It would provide for a secondary market for mortgages so banker: could use them as liquid assets. The Alaska Housing Authority would be allowed to construct housing pio- jects on government land and the $15,000,000 revolving fund, to be re- paid in 40 years, could he used fo. housing projects by the AHA or for loans to public or private agen- cies. Kenneth Kadow, director of the Alaska Field Service of the Interior Department, testified contractors are ready to start work on housing as soon as the legislation is enact- ed. Senator Magnuson (D-Wash) said the Army’s program in the Territory will be speeded up this summer, adding to the need for housing. The same witnesses wvill testi- fy before the House Banking Comn- mittee tomorrow. g Production of Gold In January Reduced Because of Weather WASHINGTON, March 17.—#— Old Man Winter froze up the gold mines of the western states and Al- aska in January. As a result, the Bureau of Mines said today, gold output that month was 21 percent lower than in De- cember and 29 percent below the monthly average for 1948. January gold production was 118, 857 fine ounces, including: South -Dakota, 31,591; California, 30,060; Alaska, 12,657; Washington, The ~udist had | 5,800; and Oregon, 350. — SON FOR McLAUGHLIN’S Thomas Shane McLaughlin, | weight 7 pounds, 8 ounces, is a | new arrival in the John McLaugh- |lin family. The new son was born |at noon yesterday at St. Ann’s hos- pital. He joins twins, Molly and Terry, 5% years, and Tim, 19 months. His mother 1s the former Helen Harrow, high school home econom- ics teacher. His father is director of the Unemployment Insurance Di- vision of the Alaska Unemplnymem compensation Commission. one-room shack, nine feet by thirs MEMBER ASSOCIATED PRESS PRICE TEN CENTS CHANGES, INT. DEPT. Vast Expansion Suggested by Sharply Divided Hoover Com. WASHINGTON, March 17, —(®— A sharply divided Hoover Commis- sion today urged major changes in the Interior Department to tighten efficiency and eliminate “disastrous- .y wasteful conflict.” In a report to Congress studded with “dissents,” “abstentions” and “further views” by individual mem- bers, the 12-man commission pro- posed a vast expansion<of the de- partment to include all “major pub- lic works” projects. . If a similar proposal offered in 1924 had been foliowed then, the government re-organization group declared, “hundreds of millions ot dollars would have been saved to the pubic over these years.” Now, it added, “it is a complete necess- ity.” The commission majority recom- mended major divisions for the re- organized department which includ- ed: Division of Territori®¥ and Island Possessions —to remain with the Interior until Congress sets a policy for administering overseas areas. e INTERNATIONAL NEWS BREVITIES In Stockholm, Lt. Gen. Helge Jung, commander in chief of Swed- en’s armed forces, said he hoped a defense alliance cculd be worked out between his country, Norway and Denmark, “before it is tco late.” An Istanbul informant said Turk- ish Minister 'Necmeddin Sadak is expected to go to Washington soon to talk over a proposed Mediter- ranean defense alliance. At Rhodes, Israel and Trans- Jordan agreed last night on armis- tice lines dividing between them the Holy City of Israel—sacred to Christians, Moslems and Jews. The agreement, based on their Nov. 30 truce talks, covers the entire Jeru- salem sector. The Italian news agency Astra reports in Rome that Soviet troops and anti-Tito Yugoslav forces are massing along Yugoslavia's frontiers. The Bulgarian government said in Zofia that reports of such concen- irations are ‘“groundless and fabri- cations.” An Astra report says that the radio of the Cominform (Commun- ist Internaticnal Information Bu- reau) has been clampring for “di- rect action to bring down the regime of Marshal Tito.” In China, Communist attempts to near today. At the same time Red uprisings in South China grew. A government spokesman said 100,000 Manchurian Red troops had rein- forced the Communists at Suchow, 180 miles northwest of Nanking. Other troops under Red Gen. Lin Piao’s command, were massed just north of the capital. —_——w—o— - WEATHER REPORT (U. 8. WEATHER BUREAU ‘This data is for 24-hour pe- riod ending 6:30 am. PST. In Juneau— Maximum, 38; minimum, 31. At Airport— Maximum, 39; minimum, 20. FORECAST (Juneau and Vieinity) Variable high cloudiness to- night and Friday with occa- sional gusty northeasterly winds. Lowest temperature tonight near 30. Highest Friday, 44 PRECIPITATION (Past 24 hours ending 7:30 a.m. today In Juneau City — None; since March 1, 245 inches; since July 1, 8445 inches. At the Airport -— None; since March 1, 1 inch; since July 1, 59.30 inches. ove cross the Yangtze river appeared|’ Pofenfial Waler Resources 0f Alaska Will Be Studied By Engmeers of U.S. Army MARINE STEWARDS | PETITIONING FOR NLRB ELECTION SEATTLE, March 17.—®—A peti- | ton for an NLRB election among steward department person- ael on Alaska ships was filed yes- terday by the Sailors Union of the Pacific, AFL. The CIO Marine Cooks and Stew- #rds union currently holds col- lective bargaining rights for stew- ard personnel on all ships operat- ing out of Pacific Coast ports. The "petition was filed on behalf of the Pacific Marine Stewards Union, a division of the SUP. A previous petition was denied on the grounds that the Alaska Steam- ship Co.—as a member of the Pac- ific American Shipowners’ Asso- clation—bargains on a coastwide vasis. tion contended however, the com- pany was “coerced” into entering the coastwide agreement. The affidavit also charged the Marine Cooks and Stewards Union spent union funds for Communist- front groups in Seattle. The affidavit was signed by Dan L. Rotan, international organizer for the Pacmc Marine Stewards. Professor Gundlach Convicled in Seattle SEATTLE, March 17. —#— A former University of Washington professor was convicted by a Super- ilor Court jury last night. The charge was refusal to answer questions re- garding communist membership te- fore an un-American Activities Com- mittee of the state legislature. The professor is Ralph H. Gund- lach, who denies that he is or ever was a membker of the Communist party. ‘The conviction carries a penalty of up to $1,000 fine, a year in jail, or both. Dr. Gundlach says he will Appeal the verdict. Another Washington professor dismissed by the university, Her- Lert .J. Phillips, was acquitted of similar charges last week. Phillips and Gundlarch were dropped from the Washington faculty following in- vestigation by the State Committee of asserted Communist activity on the campus. Phillips admits mem- bership in the Communist party. et ARCHITECT LOCATES TURNAGAIN ROAD RECREATION AREA Linn A, Forrest has returned from a two-week trip to the Westward, where he went to look over possibil- ities for recreational areas along the new Turnagain Arm road. “I think we have found an ideal location,” said the Forest Ser- vice architect today. “Frcm what they tell us, it could be developed for both winter and summer use. “The pvea,” he-continued, “is be- tween the Seward-Hope highway and Turnagain Arm.” (This would be south of Turnagain Arm, near its head.) Forrest added, “There is a beau- tiful valley which is a natural ski area—this section is the nicest one on the new road.” STEAMER MOVEMENTS Baranof scheduled to sail from Seattle Saturday. Princess Norah scheduled to sail from Vancouver March 21. Alaska scheduled southbound ear- ly Monday. —————— +KETCHIKAN PRISONERS U. 8. Marshal Willlam T. Ma- honey spent the weekend in Ketchi- kan, prisoners, Lily Shayen, to serve a 60-day sentence in the Federal Jafl, | and Luke Kashooks, whose sentence is one year, [ ‘The aftidavii supporting vne peti- returning Monday with two SEATTLE, "March 17.—(P—Alas- | ka’s vast potential water resources| are to be studied by Army Engi- neers with a view to long-range de- | velopment and attention to “nation- | al security and the strategic im- portance” of the northern terri- tory. . N Col. Theron D. Weaver, North Pacific Division engineer at Port- land, announced the” project today. He said the survey would result in a coordinated plan for Alaska water resource development, comparable in scope to the three-billion-dollar Columbia basin program completed by Engineers’ Corps last October. SURVEY JUNEAU AREA Because the whole survey of Al- aska's 586,000 square miles may take several years, Weaver sald the studies would be undertaken pro- gressively by sub-areas. Mirst work will be done in areas where “rapidly | increasing population and possible industrial expansion” have created pressing protlems—such as Fair- banks, Anchorage and Juneau. Weaver said the survey would “plan for development to meet the needs of Alaska's rapidly expand- ing population for power, flood con~ trol navigation and other water uses." He said the investigations would not duplicate the actual work done Ly the Bureau of Reclamation en- gineers recently in Alaska. “Indications are,” he added, “that the region's* industrial expansion will be relatively rapid in the next |few years with' resulting increased demand for electric power. At pres- ent, including utilities and indus- trial units of all kinds, Alaska has only 74,000 kilowatts of power, which is less than the output of one-and-a-half generating units of Benneville Dam.” The survey will be carried out by the Alaska and Seattle engineer districts, under supervision of the North Pacific division. Coincident ' with. the survey an- nouncement, the Seattle division re- ported that preliminary studies have shown several promising dam sites in Alaska. These include: PROMISING DAM SITES Rampart Canyon on the Yukon river, where a 300 to 350-foot dam 1102 miles downstream from the head of the canyon would create a reser- voir ‘250 miles long and produce 2,000,000 to 3,000,000 kilowatts a year. A series of low dams in lower Nenana River Canyon, downstream from McKinley Park. A system of three to six dams on the Susitha River, 130 air miles northeast of Anchorage. A dam on the Tazimina River 220 af® miles southwest of Anchorage. A dam is proposed above the river falls, with a powerhouse below. A series of dams on the Chaka- chatna river, 80 miles west of An- chorbge, below Chakachatna lake. Dams on the Tanalian river be- tween Kontrashabuna lake and Lake Clark, and on the Newhalen river below Lake Clark. [ R SUPPOSED THEFT REFINED URANIUM IS INVESTIGATED MEXICO cm Ml!rl:h 17.—P—A | supposed theft of refined urnmum‘ irom a U. 8. atomic laboratory is | being investigated by Mexican sec- | ret police, A month ago a Mexican was ar- | rested with a small cylinder of ur- | anium, police sald, but newspapers were asked then not to publish the information. The uranium was said by the po- lice to have been earmarked for shipment to Panama. The arrest of the Mexican with the uranium has been kept secret. — e STOCK QUOTATIONS NEW YORK, Mar. 17.—(#»—Clos- ing quotation of Alaska Juneau mine stock today is 3, American Can 90, Ahaconda 31%, Curtiss- Wright 9%, International Harvest- er 26, Kennecott 46's, New York Central 10%, Northern Pacific 15, U. 8. Steel 73, Pound $4.03%. Sales today were 760,000 shares. Averages today are as follows: Industrials 176.28, rails 48.31, util- | ities 35.02, d By Senators VOTERSALSO 10 EXPRESS TAX CHOICE Referendum Jn Territorial Wholesaling of Liquor Is Voted Down By BOB DeARMOND Alaska voters will express their opinion, in the next General Elec- | tion, on the matter of bonding the Territory for $20,000000 for the construction of schools and other purposes if the Senate and House can reach some accord on separate bills they have passed. In addition, the voters will be given a chance to express a prefer- ence for an increase in the income tax, increase in the property tax or for a sales tax as a means of paying off the proposed bonded in- debtedness. The latter feature was amended into the Senate bill by Senator Wil- liam Munz this morning on his third attempt. The same amendment was rejected when the bill was in sec- ond reading and rejetted once more this morning. Voters who favor the bond issue will be asked to vote upon thg tax question also. Senator Lyng, who had previous- ly expressed himself as opposed to the bill, spoke in favor of it after the adoption of the tax referendum section. “This places an entirely differ- ent complexion on the maiter,” he sald. “People will clearly understand that the bonds must ke paid for, as well as the interest ‘on the: Senator John Butrovich. also changed his point of view after the adoption of the amendment. COLLINS OPPOSED Senator Collins, however, opposed tonded indebtedness for the Ter- ritory on any terms. “We have al- most taxed business out of existence now,” he said and complained that “this is just a shoe on the other foot,” after the ndoptlon of the Munz amendment. Another referendum measure-—on the duestion of placing the Terri- tory in the wholesale liquor busi- ness—was killed by the Senate on a 7-9 vote. Senator Lyng led the attack on the bill, quoting planks 11 and 15 in the Territorial Democratic platform to the effect that the party opposes the entrance into competition with any private enterprise and specifie cally into either the wholesale. or retail liquor business. MEMBERS WERE PRESENT “Senators Rivers, Peratrovich, Mc- Cutcheon and MacKenzie, all mem- bers of this body, were delegates to that convention and the platform was adopted unanimously,” Sena- tor Lyng said. “The platform doesn’t contain any plank inHibiting the holding of this or any other referendum of the peo- ple,” Senator McCutcheon retorted. Voting against’ the liquor refer- endum measure were Senators Barr, Butrovich, Collins, Dawes, Garnick, Jones, Lyng, Munz and Nerland. Senate Blll 63 boosting the rates of compensation for death or injury under the Alaska Workmen's Com- pensation Act, met speedy death this morning when it cam2 up for third reading. Without any prelimi- nary argument Senator Butrovich moved to table the bill and the mo- | tion carried ty a vote of 10-6. . Nymerous telegrams had been re- ceived by the Senate from logging companies and other industrial and | business firms protesting passage of the bill. NON-COMMUNIST OATH A new Senate bill, by Senator Mynz, was introduced this morning under suspension of the:rules. The bill would add the following wording to the oath to be taken by an officer ‘of the Territory and would also require all employees of the Territory to take the oath: “I do solemnly swear (or affirm) that I am not a member of the Com- munist Party or affiliated with such party, that I do not believe in, am not a member of nor do T support* any organization that believes in or teaches, the overthrow of the United States Government by force or ty any illegal or unconlmunon- al method.” With a long calendar before it, on which are the wages and hours bill and the raw fish tax bill, the (Continued on Page 6) Page 6)