The Daily Alaska empire Newspaper, May 5, 1949, Page 1

L0 e o ) N3 2 T i G B BT AR RS SN TR 27 DAY THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXIIL, NO. 11,188 JUNEAU, ALASKA, THURSDAY, MAY 1949 5, MEMBER ASSOCTATED PRESS PRICE TEN CENTS Russian Blockade of Berlin Lifts on May 12 Anh Pickefing Injundtion In Juneau (ase Before Court REVEALED At Seatle s Again Delayed RED PACT REPORTED Millions of Asiatics Would | Be Brought Under Russian Control (By the Associated Press) A Red China-Burma-North Ko- rean alliance was revealed today (Thursday) ty the Chinese Central News Agency in a dispatch from Rangoon., The alliance, designed for the mutual defense of ‘the Communist segments of the three Asiatic coun- tries, bore Moscow's blessing, the official Chinese News Agency said. The pacts—one signed Feb. 26 in Burma and the other March 17 in Moscow—banded the Asiatic Communists together in “the joint struggle against American and British imperalism,” said the News Agency. No other source has confirmed the signing of the pacts, which could bring many millions of Asiatics under the Russian wielded hammer and sickle. SHANGHAI “OPEN CITY” Meanwhile Shanghai’s British and American leaders discussed a proposal to ask the United Na- tions to declare the metropolis an open city. The plan was rejected after what one diplomat called a full discus- sion of “the whole mess.” How- ever, there were indications it might be revived later. Rainy weather in Shanghai was reflected in lack of military ac- tivity. All was quiet around there. The Communist radio in Peipiny announced six Nationalist bombers struck Nanyuan airfield near Pei- ping killing or wounding 20 per- sons. REDS CUT ROUTES Shanghai’s land and water routes| inland have been cut by the Reds.| For the first time in years the| ‘Yangtze Cornucopia, which gushed inland merchandise into Shanghai, | was stopped up. As a result the city’s markets were in a chaotic| condition. Chinese and foreigners | grumbled over the situation which slowly choked off the city’s in-; dustry. | One military observer in Shang- hai expressed the opinion the Reds would leave Shanghai alone and| concentrate south and west of the metropolis. e "Spud” Murphy Puls Up Bond, Released; Arrested in Alaska SEATTLE, May 5—®—Virgil A. “Spud” Murphy, 47, former Univer- sity of Washington oarsman charg- ed with abandonment and non-sup- port, has been released from the county jail after posting $1,000 bond and paying costs of his ex- tradition from Anchorage, Alaska. He pleaded innocent at his ar- raignment. He was arrested in Alaska last week. The Washingion Merry - Go - Round By DREW PEARSON (Copyright, 1949, by Bell Syndicate, Inc.) ASHINGTON— The Truman program continues to be slowed down in the Senate. This is part- 1y because the President’s key lead- ers have been torn apart by per- scnal feuds or mowed down by sickness and exhaustion. Majority Leader Scott Lucas of Illinois has been in the hospital, worn out by the grueling grind of trying to keep Democratic forces to- gether. Before going to the hos- pital he had wrangled with Sen. Howard McGrath, chairman of the Democvatic National Committee. McGrath, according to a complaint Senator Lucas made to the White House, was trying to steal the spotlight as Senate spokesman. And this in turn brought some sour private comments from Mec- Grath about Lucas. . Meanwhile, two other Senate fig- ures have been in the hospital— | President ‘tman's legislative program in almost Free Gold (ious injury last night when dyna- les. |cut and burned fingers on his right PRESIDENT'S POLICIES ARE UNDERATTACK Unifed States Chamber of Commerce Takes Rap | at Many Proposals | WASHINGTON, May 5—#—The United States Chamber of Com- merce approved a resolution call- dispute with the CIO Woodworkers'| ing for immediate statehood for Alaska and Hawaii last night. | The 1,700 businessmen also adopted the proposals condemning Truman’'s program of price-wage and allocation controls and terming the farm subsidy pro-; posal of Secretary of Agriculture Brannan an opening wedge to the “complete regimentation of agri-; culture.” ‘The 50 policy statemenis adopted included stands opposing Mr. Tru- every field except foreign policy and national defense. The Cham- ber endorsed the signing of the/ North Atlantic Alliance and urged assistance to help the sxgnntmy nations resist armed aggression. | But It attacked the President's compulsory health insurance plan,| declaring it would reduce American medical care to “a uniform level|ly flight from Sand Point Navflll ‘speed at a certain rate during ne- of mediocrity.” It urged tax cuts instead of tax increases, and declared no taxes objectives beyond the realm ofj government functions.” or necessary Market Is | Advocated| WASHINGTON, May 5—R—A silver state Senator today urged a free gold market. He is Senator McCarran (D-Nev) who called *“absurd” the present penalties which the law now ap- plies to the purchase and possession of gold by private U. 8. citizens. In a statement prepared for the Senate Judiciary Committee, Mc- Carran said his bill would: - 1. Permit an “open, free mar- ket in which gold can be bought and sold precisely as stocks are bought and sold on the New York stock exxchange.” 2. Repeal the penalties in the present law. 3. Continue the provision in the Gold Standard Act of 1934 requir- ing the U. S. treasury to buy all gold offered at $35 an ounce. McCarran said that in 1947 and 1948 the Treasury bought $3,700,- 000,000 in gold, “more than 96 per cent of which came from outside the United States.” McCarran argued that a free gold market would make it easier to alter exchange rates, help set up a sound monetary policy and “promote both domestic and inter- national stability.” BOY INJURED WHEN DYNAMITE EXPLODES ‘Three young boys escaped ser- mite caps, which they believed to be cap-gun caps exploded after they had lighted them with match- Billy Pegues, who suffered two hand, was fixed up by Dr. Wi, Whitehead. Billy Lee Turpin and Michael Wade, who had been play- ing ‘with the injured boy, were not hurt. ‘The boys were playing behind | record was 39,500 pounds on | party came the long way SEATTLE. Md) —(™ —Federal | Judge Lloyd L. Black put over fo:| further consideration yesterday a motion hy the National Labor Re- lations Board to dismiss a union plea for an anti-picketing injunc- tion, The judge set 4:30 p. for further hearing. ‘The International Longshore- men's Warehousemen'’s Union (C. I1.0.) does not want the board to seek an anti-picketing injunction in federal court at Juneau, Alaska. Earlier it asked Judge Black to prevent the board from doing so. Patrick H. Walker, NLRB at- terney, then asked the court to dis- miss the umion’s request. The ILWU has kept the Juneau Spruce Corp. plant at Juneau closA ed for a year in a jurisdictional | m. Union over shiploading work. The ILWU contends the Juneau District Court does not have au- thority to issue an anti-picketing injunction, The NLRB held recently that the Longshore Union was not jus- tified in its claims for jurisdiction | over the disputed work, and ord- ered the union to cease picketing. e \CAROLINE MARS REACHES KODIAK WITH BIG CARGO SEATTLE, May 5.~M—The Navy's giant seaplane Caroline Mars arrived at Kodiak, Alaska, at 12:41 p. m. (PST) yesterday on Air Station here. The Navy announced the Alaska {arrival of the plane, which car- | should be levied for “social reforms | ried 45 naval passengers and equip- ment. The Navy described cargo of 40,000 pounds as & record | for a long distance flight. It said the 'previous long distance cargo a Cleveland-Alameda flight, ulthough 68,282 pounds once was carried on! ja 390-mile lift. The Caroline Mars and a sister- | ship, the Hawaii Mars, are takmg\ equipment and personnel of Navy | Photographic Squadron 61 to Al- aska from Miramar Base, near San|bia River appeared today | running 20 to 30 per cent smaller ] This squaaron wiii' return to its|than the first few days of the season last year. Diego. base after continuing the Navy's annual summer aerial survey of Alaska’s Interior. The Hawaii Mafs was scheduled to take off from San Diego Bay today on a similar flight to Ko- diak, with a stop at Seattle. FWS PARTY BACK FROM FLIGHT TO |CIO STEEL MEN ARE BROOKS RANGE' MAKING DEMANDS Trying to outrun snowstoitns from Anchorage to Juneau—and barely suoceeding—Clarency J. Rhode set a Fish and Wildlife Service Beechcraft down on the Juneau runway with no time mar- gin last night at 9:45 o'clock. The ’round, via Big Delta and Northway. The ship was that in which Rhode, Alaska F.W.S. director, and two staff members had made an exploratory flight north of the Brooks Ranke. Landing here with Rhode were W. A. Elkins, F.W.S. Wildlife Man- agement Supervisor, ‘and Urban Nelson, Federal Aid Biologist. Elkins and a predatory control agent from Fairbanks had made the complete flight with Rhode. The “explorers” were gone three|U. S. Steel 72%, in| weeks, making observations Arctic coastal regions, touching at Point Barrow, other remote spots. — - — WHITEHEAD ATTENDS PORTLAND MEETING Dr. William Whitehead attended a meeting of the Pacific Northwest Obstetrical and Gynecclogy Asso- ciatio nat Portland last week, re- turning here earlier in the week. Speakels at the session were pro- fessors of obstretics at the Univer- the Seéventh Street Apartments at (Continued on Page Four) Ithe time of the accident. sities of Oregon, Washington and Alberta. today | the | Barter Island and| | | {RAINBOW GIRLS T0 FORD HIT BY STRIKE 0F 65,000 |Desperate Peace Talks Fall Regarding Speed of | Production DETROIT, May 5.—#— Motor Co. was hit by the second major strike in its history today as 65,000 union members walked out at noon (EST). Final, desperate peace talks, pressed right up to the deadline, failed to settle a dispute over speed of production. Some 62,000 . shouting workers streamed out the gates of the big Rouge plant. cury plant, another 3,000 left their Jjobs. Assembly lines, whose speed has| been subject to wrangling for'sev- | eral months ground to a stop. And so, Ford was hit by the first major walkout since the blogdy ten day battle in 1941 when the UAW-CIO first gained recognition. | Within nine days, the company | said, the strike would tie up most | of the worldwide industrial em- pire and hit 106,000 production | workers. | ‘There were no disorders. company reported, however, v,hnv.‘ one worker, Earl Ellis, .52, was, stricken with a heart attack just| after leaving the Rouge plant. He| jdied in the company hospital. Picket lines were quickly estab-| lished in the sweltering heat out-| side both plants, and sound trueks) folled onto the scene, \ The UAW's strike order had,w lowed upen a charge by Thunxs[ Thompson, Local 600 President, that Ford had violated a verbal agreement to keep production | gotiations. The company denied this union| assertion, COLUMBIA RIVER | RUNNING SMALLER' ASTORIA, Ore., May 5.—#—The spring salmon catch on the Colum- | to bel Although enough chinook have been delivered to start canning lines in five packing plants, the catch is not yet as heavy as in 1948. The commercial season op- ened last Sunday. Two factors hampered fishermen: high water, and river bottom snags which tear gillnets. S e FOR WAGE BOOST PITTSBURGH, May 5—#—The CIO United Steelworkers today de- manded “a general wage increase” plus. pensions and soeial insurance to be paid for by the Steel Indus- try. l'y’I'he amount of the fourth round wage increase was not announced. ARG 5 1 LT STOCK QUOTATIONS NEW YORK, May 5—(P—Clos~ ing quotation of Alaska Juneau mine stock today is 3%, American Can 82%, Anaconda 29%, Curtiss- Wright 8%, International Harvest- er 24%, Kennecott 44%, New York Central 11%, Northern Pacific 14%, Pound $4.03%. ° Sales today were. 920,000 shares. Averages today are as follows: industrials 176.34, rails 47.58, util- ities 35.89. — ELECT ON SATURDAY The Order of Rainbow for Girls will hold its regular afternoon business meeting Saturday at 2 o'clock at the Scottish Rite Tem- ple. There will be election of officers and balloting. All mem- bers are urged to attend. Ford | | At the Lincoln-Mer- | | The| | Ten Seconds fo Death Billy Fischer, 23-year-cld Decorah, Iowa, precision flier, plunged to his death ten seconds after (top) picture was taken. The plane lost | MAKING CHARGES \' ’ Blockade Liffing | l [ |isters meet to consider 'WALLACE | Declares State Department Held Back Info on By DON WHITEHEAD WASHINGTON, May 5.—#— | Henry A. Wallace sald today that a Russian offer on March 21 to ltt the Berlin blockade was deliberate- ‘Iy withheld irom the public because |the State Department feared 1t wmn,.{n block the North Au.mun! i Pacl | He said the State Department | held up news of the Russiun “con- | cession” for over & mu “be- [cause it explodes ‘he myth on | which the North Aulantic Pact 1s based and «destroys the lasis on ‘wlmh it is being sold the the American people.” ‘ There was no immediate reply from the Department to Wallace's ‘}chm'g(-. | Wallace Charges | The Russlans told the Depart- ment on March 21, Wallace said, | that they were prepared to end the blockade on the “sole condition” tht the Big Four Foreign Min- German problem, | A Big Four agreement announ- |ced today provides for a meeting the whole a wing and crashed to a concrete runway before a crowd of 10,000 during an air shew at Jackson, Miss. (bottom) An Army fire truck has just balted beside the burning ship seconds after the crash. {dent of the airline, [ Wirephnto. PLANE CRASH DAMAGE CASE samoncarcion | STARTS AGAIN SEATTLE, May 5—(P—Retrial of | a $35,000 suit growing out of last| November's Alaska Airlines crash ‘at the Seattle-Tacoma airport |which killed nine perscns, started in U.S. District Court yesterday. A jury of 11 men and one woman was empaneled. The original sui, brought by Mr. and Mrs. Ralph Tracy, ended in a mistrial after an attorney men- tioned insurance matters betore the jury. James Evans Farris, pilot of the plane, was yesterday's principal witness. He blamed the accident primarily on failure of the plane’s hydraulic system. He said he could not stop the plane and it rolled off the field, onto an adjacent kighway, and crashed. Edward S. Hudson, Vice Presi- was on the witness stand today. He was asked, on the basis of a company investi- gation, what caused the crash. He replied: “I don't know definitely.” R s - WEATHER REPORT (U, 5. WEATHER BUREAU This data is for 24-hour pe- riod .ending 6:30 am. PST. In Juneau— Maximum, 41; minimum, 36. Kl At Airport— Maximum, 42; . (Juneau and Vicinity) Cloudy with rain tonight and Friday. Slightly warm- er with the low tonight near 30 and the high to- morrow around 46. South- easterly winds 25 to 30 miles per hour tonight, decreas- ing slightly Friday. PRECIPITATION (Past 24 hours ending 7:30 a.m. toduy In, Juneau — .05 inches; since May 1, .84 inches s.nce July 1, 108.10 inches. At Afrport — .02 inches since May 1, 44 inches; since July 61, 1.03 inches. . . . . . . ® 6 0 0 0 0 00 0 00 oo 1-5 FIRE CALL A smoking refrigerator motor | the Ferry Way Apartments calied the fire department out this "l'i ternoon with a 1-5 call. There was no damage. 'MAGNUSON ASKS MONEY FORHOUSING - | | WASHINGTON, May 5.—(#— Senator Magnuson (D-wash) ask- | ed the Senate yesterday to pro- vide $15,000,000 to finance Alaska's | home building program. He introduced a bill calling for appropriation of that amount to the Housing and Home Financing Administration. Under recently passed legisiation that agency 13 authorized to purchase $15,000,000! of notes from the Alaska Housing Authority. The money would con- stitute a revolving fund for fi- nancing the Territory’'s Housing Authority. j President Truman sent a mes- sage to the Senate yesterday ask- ing that the money be provided. The bill must be approved by the Senate Appropriations Committee before reaching the Senate floor. - e —— Corporation Curb Made by Senafor . (By The Associated Press) A Republican Senator will ask| today that “voluntary limits” be imposed on the growth of big cor- porations. The proposal is made by Senator Ralph Flanders of Vermont in a| speech prepared for delivery before the United States Chamber of Commerce’s annual meeting in Washington. Flanders claims there are dan- gers in what he calls the “unre-| stricted trend toward grear econ- omic emplres” ‘Transporl Plane - (rashes; 2 Killed | OGDEN, Utah, May 5—#— At| least two persons were killed early today when an Air Force transport crashed and burned near Ogden, Utah. The plane was a C-47 from McClelland Field at Sacramento, | california. It was attempting a takeoff at the time of the crash. ‘ — e FROM ENGINEER OFFICE Malgelm R. Gilpin, Jr., of the U. S. Army District Eugineers at Anchorage, is at the Baizrcf He- tel. i | | | | ate Foreign |and cabinet officer, was testifying lof the Foreign Ministers May 23, | eleven days after the lifting of ’the Berlin blockade and the West- ‘ern counter-blockade of the Soviet zone in Germany. uce, 1ormer Vice President und now head of the Progressive Par!y, was one of seven witnesses xscheduled to testify betore the Sen- Relations Committee today to argue against the 12-na- | ton defegse alliance. Vote On Treaty he committee is laying the groundwork for a vote on the treaty which is not binding on the United States until after ratitied by the Senate. For six days it has heard those in favor of the program. Now those against it have their turn, Wallace, in a prepared state- ment urged the committee to with- hold action on the treaty unti after a Foreign Ministers conter- ence is held on the German sit- uation in New York. “This 1s vur great—it may be our last—opportunity to arrive at a Ppeaceful settlement of our differ- ence” with Russia, he said. He said the Administration @s- timate of the cost of the North At- lantic military pact is “a plam fraud on the American taxpayer.” | He predicted the eventual cost will be as high at $30,000,000,000 instead of the slightly over one billion dol- lar figure some have set. He charged the defense pact was | “aggressive to Russia.” VANDENBERG RETORTS WASHINGTON, May 5 — (@ — Senator Vandenberg (R-Mich) re- buked Henry Wallace to his face today for insisting before the world “that your Atlantic Pact is imperi- alistic in attitude.” Wallace, former Vice President| |to the Senate Foreign Relations | committee in opposition to the North Atlantic Security alliance. He called the pact “aggressive to| Russia” and accused the State De- partment of keeping secret a Rus-| sion offer on March 21 to lift the| Berlin blockade, And, Wallace said, there are in- dividuals. of *“evil actions” who want to “enforce our will by force in all parts of the world.” Finally, Vandenverg told him that he could not condoge Wal- lace’s action “in going about in- sisting that your country is im- perialistic in attitude and objec- tive—that it is bent’on world con- quest in one rurm or another.” D SIEAMER MOVEMENTS Alaska scheduled to sail from| Seattle Saturday. Freighter Coastal Rambler sche- duled to sail from Seattle May 10. Prihicess Louise scheduled to ar- rive at 8 a. m. PFriday, sailing south two hours later at 10 am. AGREEMENT IS REACHED BY BIG FOUR ' Council of Forengn *Mini- sters fo Meet May 23 fo Decide Other Issues (By the Associated Press) The 10-month old Russian block- ade of Berlin will be lifted May 12 under a Big Four agreement an- nounced today. The communique, released this norning in Moscow, London, Paris, Washington and New York, said the Western Powers' counter block- ade of the Soviet zone of Germany Will be ended at the same time. The announcement said the Council of Foreign Ministers will meet in Paris May 23 “to consider questions relating to Germany, and problems arising olit of the situa- tion in Berlin, including also the question of currency in Berlin.” The communique represented the climax of more than two months of | intense negotiations between the |powers. It marks the beginning of |the end of one of the most critical situations in the postwar struggle | setween Russia and the Western powers, Back To Normal It will require the full week from now to May 12 to make the com- plicated arrangements for restoring normal rail, highway and barge traffic cetween Berlin ang the Western Occupation zones. A copy of the statement was |given to Trygve Lie, United Na- |tions Secretary General. ‘Lie said ' the ‘agreement’ marked - ‘a great step forward for peace and the strengthening of the United Nations.” Conflict Not Ended American officials were obviously cheered by the success of the New | York negotiations. Many observers warned, however, that the people of the United States and the rest of the West should not interpret it as meaning that the conflict be- tween Russlan Communism and Western Democracy has suddenly ended. Russia is expected to interpret the Berlin settlement to her people as a sweeping victory for Soviet Russia and world “peace” forces. The Russian press limited itself today to announcing that “agree- inent was attained on all important questions of principle” at the New York talks on the Berlin problem. Bright Omen All Europe haileq the scheduled ending of the blockade as a bright omen, but whether it was a vie- tory for the East or West de- pended on which newspaper you read or which statesmen you listened to. Communists said Russia had won a round in the battle with “West- ern imperialists and warmongers,” | Western European nations took the view that Allled diplomacy—plus the airlift—had scored a victory. Soviet-licensed East German Papers contended the Western Al- lies have “backed down” in agreeing tc new four-power talks on the German question, Airlift Continues Lifting. the blockade brings up the question of winat will happen tc the giant Allled airlift which supplied Western Berlin all these months, Gen. Lucius D. Clay said he has received no instructions yet re- garding the air haul. The retiring militarygGovernor said, however, he expects the lift to continue until Western Berlin has a stockpile of 200,000 tons of supplies. Air Force officials in Washington said the airlift probably will be kept in standby condition in Europe until it is reasonably cer- tain Russia has no plans to set up another sudden roadblock to Ber- lin, U.S. Defense Secretary Johnson issued a statement this morning commending the men of the airlift lor carrying out “one of the 3reatest transportation teats in the hlstory of the world.” TRUMAN PLEASED WASHINGTON, May 5—(P— President Truman says he is very happy over the Big Four agreement to lift the Berlin blockade angd consider the whole German prob- lem at a session of Foreign Min- isters in Paris. J Baranof scheduled southbound at 1 p. m. Suhday. (Continued on Page 2)