The Daily Alaska empire Newspaper, May 6, 1949, Page 1

b ) VOL. LXXIIL, NO. 11,189 THE DAILY ALASKA EMPIRE A “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, FRIDAY, MAY 6, 1949 —_—— MEMBER ASSOCIATED PRESS PRICE TEN CENTS Plane Wrecked By Crash in B. C. Mountain PUSH ON SHANGHAI STARTING Communiss Are Reported| Rolling Up on South- west, Northwest (By The Associated Press) Military observers in Shanghai said the big Communist push for the city may be on, as strong Red attacks were reported rolling up on the southwest and northwest. The Communist stabbed deeper in- to central and southeast China, with apparently little resistance. The economic crisis in Shanghai deepened. The municipal govern- ment abolished the cost of living: index, which has been used for the past three years to figure wage levels. There was uncertainty | about the whereabouts of Chiang Kai-shek. One report said he was still in Shanghai. But his private plane was gone from Lungwha Air Field. | - | PAN AM CARRIES 101N, 15 OUT, ON THURSDAY TRIPS: Pan American Airways brought| in 10 passengers and took 15 out on Thursday flights as follows: From Seattle: Mrs. Bert Lybeck,| Walter Hutchinson, W. T. Riley, Dorothy Gilpin, E. S. Morganrotn, James ™ Livesly, ‘Albert Nelson, Jess Price, Mr. and Mrs. Harold Bates. To Seattle: Kelly Foss, Betty Lou Page, Mary ERiott, F. A. Kutledge, Lee Lucas, Helena Sep- panen, Jane Steffin, Rose Steffin, J. G. Jorgenson, George Jessup, D. E. McMorran, Byron Horton, Mrs.| Elliene De Ville, John Rosswog, J. P. Dyrkorn. — ® © 0 o o o 0o 0 0 0 WEATHER REVORT (U. 8. WEATHER BUREAU ‘This data is for 24-hour pe- riod ending 6:30 am. PST. In Juneau— Maximum, 43; ®zminimum, 36. At Airport— Maximum, 4.1 minimum, 34. FORECAST (Juneau and Vieinity) Partly gloudy tonight and Saturday. Lowest tempera- ture tonight about 35. High- est temperature Saturday about 50. . . . . . . ) . . . . . . . L] PRECIPITATION o (Past 24 hours ending 7:30 a.m. today @ In Juneau — .36 inches; e since May 1, 120 inches; | since July 1, 108.46 inches. @ At Airport — .19 inches; e since .May 1, .62 inches; e since July 1, 6121 inches. . ® 0 0 0 0 0 0 0 0 0 o o mmmaero: oo gi. s sromond LIQUOR LICENSE Upon showing proof of owner- ship of the property, Sunset Man- or, near Ketchikan, Georgia Bry- ant, has been granted a liquor dis- pensary license in District Court. The Washingion Merry - Go- Round By DREW PEARSON (Copyright, 1949, by Bell Syndicate, Inc.) JACKSONVILLE, Ala, — The av- erage Washington newspaperman gets his eyes so riveted on what's going on in the Capital that he sometimes forgets what's going on in the rest of the nation. I know I do. That’s why, every so often, I try to take a vacation from skulduggery-rooting and see’ what the rest of the U.S.A. is doing. Down here in northeastern Ala- bama where the hard rock of the Alleghenies tapers off into the soft limestone of the Black Belt, I found, a surprising monument to people-to-people friendship. This is about the last place in the world you would expect to find such a thing. And if it hadn't been for Harry Ayers, publisher of the Anniston, Alta., STAR, who is as much a crusader for the public as he is a publisher, I wouldn't have found it. ; In New York and Pmlndexplrn (Continued on Page Four) {gency organizations working to re- VA Force Wil Be Dismissed Ihiriy-Day_NEice Given-| Hospital and Medical Services Not Hit WASHINGTON, May 6—®-- The Veterans Administration ord-| ered 8,000 of its employees dismiss- ed today. The agency said it will close 42 offices in 23 states in an ef- fort to meet budget limitations for the fiscal year 1950, starting July Veterans Administrator Carl R. Gray, Jr., said the reductions will not affect hospitals and medical | services, In a letter to members of Con- gress, Gray said every effort will| be made to keep the essential ser- vices to veterans at a high level Gray said notices will be in the hands of the discharged employees as of Monday, egiving them the customary 30 day notice. | The branches to be closed are known as “contact offices.” There are 468 such offices employing one or two persons each. The House has approved a VA appropriation of $5,145,431,940 roH 1949-50, a reduction of $508,750,000 from the budget estimates submit- ted by the President. e | | FUROPEAN RECOVERY | DEPLORED Declaration Made that| Plans Disintegrating Economic Situation ‘GENEVA, Switzerland, May s—m —A United Nations Commission | contended the European Recovery | Program and various national trade policies of European countries are furthering the disintegration ot| Europe’s economy—in effect hurt-{ ing more than they are helping. | The declaration was made in a survey of the U.N. Economic Com- mission for Europe, an agency which includes specialists from na- tions on each side of the iron cur- tain. Ng nations in the Soviet bloc are members of the ERP, cost the United States more than} $4,500,000,000 in its first year ot' operation. The commission was created in! 1947 by the U.N. Economic and So- cial Council to coordinate emer- winlh 1 habilitate Europe. It includes all Furopean countries except Spain. | ‘The commission said a long term program of American capital in- vestment, much like the way Britain financed economic develop- ment overseas in the 18th century, is the only solution it can see. Eastern European countries, the report said, because of American restrictions on imports to them are the only ones in Europe having a favorable trade balance with the United States. HAWAIL MARS IN ARR FOR KODIAK SEATTLE, May 6—®—The Navy seaplane Hawail Mars left for Kodiak, Alaska, at 8:45 am. today with 50 passengers and 10,000 pounds of cargo. The plane, which arrived here yesterday from San Diego, carried members of the Navy's Photogra- phic Squadron 61. The first con- tingent arrived at Kodiak earlier; this week on the Caroline Mars, and another transport will leave; San Diego Sunday to fly the last of the squadron’s personnel to the Alaska tase. After completion of the Navy's annual summer aerial survey of| Alaska’s interior, the squadron will return to its Miramar base near San Diego. HALIBUTER +A Coast Guard cutter picked up AREFACING BIG ISSUES Proposal by Russia fo| Withdraw Occupation Forces Expected | (By The Associated Press) Western diplomats held emer- gency huddles today to figure how they will cope with the touchy issues expected to crop up when they meet with the Russians n| Paris May 23. An expected Soviet proposal to withdraw all occupation troops from Germany is regarded in| Washington as one of the most| difficult issues the west will have to face. Indications are that the United States, Britain and France have | yvet to decide exactly how they will deal with the proposal, if the Russians put it forward. On,many of the other problems, the unified | Western position already is de- termined. West Ge man Government Plans already are under way for creation of a’ West German gov- ernment, thus far developed against Soviet opposition. Those plans will form the basis of Western propos- als for a government for all Ger- mans. | Work on a constitution for an| independent West German Repub- ic pushed forward in Bonn, Ger- many, today. Target date for for- mation of the new republic is July 15. | Gunfire | German police enforced the Rus- sian blockade inside Berlin with 3unfire today—six days before the | barriers are due to be lifted. Ger- man guards fired a fusillade on| the east Berlin boundary in af vain attempt to halt an automobile | racing into the American sec- tor. | | ] PICKED UP OFF COAST PORT ANGELES, May 6.—M— a disabled Seattle halibut boat otf the Washington coast early today. The Coast Guard reported the boat was the West Fjord, regis- tered to Willlam Mordhorst of Se- attle. The cutter Winona report- ed picking it up at 8 a. m. after being dispatched to its aid dur- ing the night about 20 miles southwest of the Swiftsure Light. The Deep Sea Fishermen’s union in Seattle said it was a 45-foot boat with five or six men aboard. RECOVERS FROM BRAIN OPERATION Five-year-old Ruth Ann Dodge, daughter of the Rev. and Mrs. John K. Dodge of Skagway, is well again and on her way home with. her family, after undergoing a delicate brain operation at the University of Minnesota Hospital. The family arrived here this af- terncon by Pan American Airways on their way to Skagway, where Rev. Dodge is pastor at the Pres- byterian church. With the Dodge’s was their baby son Harry, who had also been hospitalized in Minneap- olis for treatment for asthma. | The five-year-old child was tak- en to the states for surgery to| remove a brain tumor in the cere- bellum. Kefchikan Has Parking Mefers KETCHIKAN, May 6.—®—Park- ing meters went into operation on Ketchikan’s main streets this week. Of the 10 meters scheduled, 147 were in operation on “opening day.” -Parking meters are now being in- stalled in Juneau. 8Thousandof DIPLOMATS Heat Wave For East; EDUCATION BILL GOES UNINJURED ' PILOTGOES JUDGE FOLTA TAKES INCOME TAX CASE (UNDER ADVISEMENT 2 SURVIVORS ARE SGHTED, West Cold TO H()lISE1 T0 HOSPITAL s seamsiv o5t AIR SEARCH ThreeHundredCars,Trutks Three Hundred Million Farris Gives Teshmony in| Stailed in Drifted Snow | Along Highway A heat wave blistered mosz of | the Eastern half of the country | again today as areas in Wyoming Federal Aid to Education bill to the|which killed nine persun,. ente in wintry | House today for the second year injed a hospital afterward and Colorado shivered weather. Snow fell over parts of Southern| Wyoming and Eastern Colorado. ! Temperatures dropped in some sec- | snow belt to below | tions of the freezing. Snow drifted along U. S. highway 30 for 60 miles east of | Rock Springs, Wyo., to Wamsutter, | stalling nearly 300 cars and trucks| last night. Crews brought out snow plows to clear the drifted roads. Colorado Springs reported a wet snow and the mercury at 33. Some parts of the Midwest hot belt got some relief today from the 90-degree temperatures which have hit the area for the past four days. The mercury shot to record marks for the year and for the date in many cities yesterday. Chicago and | Louisville had top marks, 94, which was the reading at Phoenix, Ariz. | The 91 at Providence, RI., was a record for May 5, as was the 89 at Cleveland and the 88 at Lan- sing, Mich. Many cities reported marks of 90 degrees, including New York, St. Louis, Pittsturgh and Cincinnati. '14 Horses Entered in Big Derby By JOHN CHANDLER LOUISVILLE, Ky., May 6—(P— Fcuxbeen horses were entered today mr the 75th running of the Ken- tucky Derby, premier event of the American turf, Topping the list for classic, which will have the rich a gross tvalue of $119,650 if all go to the post tomorrow at 2:30 p.m., PST was Fred W. Hooper’s Olympic, the favorite. If Olympic is as right as he's been in the last few months, and there’s no doubt in trainer Ivan Parke’s mind that he is, a victory would add $91,600 to the Hoover coffers. This would be the third richest Derby in history. Assault won $96,400 in 1946, and Jet Pilot collected $92,160 a year later. The entry box had hardly opened at 7 am. before trainer Woody Stephens walked in and put Wood- vale Farm's Halt into the mile and cne-quarter test for the mnation's leading three-year-olds. minutes before the tox closed at 10 a.m., trainer Hirsch Jacobs entered the fourteenth candidate— Palestinian. Olympia hasn’t met defeat since Old Rockport licked ‘him in the Santa Anita Derby in February. Old Rockport, owned by Clitford Mooers, will get his chance to do it again tomorrow for the benefit of some 100,000 bug-eyed patrons. Others entered are the Green- tree Stable entry of Capot and Wine List, expected to be estab- lished second choice in the mutuel betting; J. S. Kinard’s Johns Joy, Joe Goodwin's Ky. Colonel, Calu- met Farm's Pondern, Mar and Mrs. J. H. Seley’s Duplicator, Mrs. Ada L. Rice's Model Cadet, Afton Villa Farms' Jacks Town, Lexbrook Stables Lextown, and Senecas Coin, which is trained and owned ty Mrs. Albert Roth of Louisville. e - STEAMER MOVEMENTS Alaska ‘scheduled to sail from Seattle Saturday. Freighter ,Coastal Rambler sche- duled to sail from Seattle May 10. Princess Louise scheduled to sail | from Vancouver May 11. Baranof scheduled southbound at 1 p. m. Sunday. i NOLAN’S AT BARANOF . Mr. and Mrs. James Nolan of Wrangell are staying at the Baran- of Hotel. Fifteen | Dollar Measure Sweeps Through " Senate By JOHN CHADWICK WASHINGTON, May 6—4/!’)-"1‘1\9 James Evans Farrls, uninjured a1 Commissioner Senate delivered a $300,000,000 a row. ‘The measure swept through the 15 after all efforts to amend it were beaten down. | It would authorize $300,000,000 | to be appropriated annually to help [the states pay teacher salaries and |other school {Many schools have lost teachers to better paying employers, an argu- |ment advanced by the bill's sup- | porters. By providing for the largest per pupil allotments to the poorest | states, it is intended to more nearly cqualize education opportunities throughout the nation. An almost identical bill passed Iby the Senate last year was pigeonholed by a House committee. | This year’s measure, part of the ! social welfare program for which | President Truman campaigned last |fall, had strong bipartisan support n the Senate. | s s | (CAA GIVEN CRITICISM . FOR CRASH | Administration Advised fo | Tighten Up on Safe- i ty Regulations WASHINGTON, May 6—(P—Rep. Mitchell (D-Wash) suggested to- day that the Civil Aeronautics Ad- ministration should tighten its safety regulations. Commenting on the CAA report of a January 2 crash in Seattle, Mitchell said a study of the re- |port “indicates what I believe to be either gross negligence and in- competence on the part of the officials connected with the flight or a dangerous zone in which the [public is not protected by CAA regulations.” Eleven Yale University students and three crew members were killed in the crash, which the CAA report blamed on wing icing. Mitchell said the report showed that the pilot, Emmett G. Fiood, 2ad cancelled his contract to pilot the plane Lecause of weather con- lditions and had notified an un- named CAB “safety agent” of his action, | An hour and a half later, when the accident occurred, the agent still was conferring with his “su- perior,” Mitchell said. “ .. .Immediate action by either lof those two officials could have and should have prevented the flight,” Mitchell said. “Were they ing this action?” port of a 1,500 pound overload on the plane and of ice on the wings, land asked if the CAA allows take offs when such dangerous condi- tions ‘exist. STOCK QUOTATIONS NEW YORK, May 6.—(®—Clos- ing quotation of Alaska Juneau mine stock today is 3%, Ameman Can 92%, Anaconda 29, Curtiss- ‘Wright 8%, International Harves er 24%, Kennecott 44, New York Central 11%, Northern Pacific 14%, U. 8. Steel 71%, Pound $4.03" Sales today were 780,000 shares. ‘Averages today are as follows: industrials 175.50, rails 47.38, util- ities 35.90. — e SQUARE DANCERS MEET There will be a meeting of the square. dancing club tomorrow night ‘at 8 o'clock in the High School auditorjum. Senate last night by a vote of 58 to| operating expenses. | precluded by regulations from tak-| Mitchell cited mention in the re- 1 ' Damage Case of Plane | Crash at Seaftle SEATTLE, May 6—®— leot Airlines the 1947 Alaska £l lflihfi “beca it would look better,” he testified | In Federal Court yesterday. | Among the injured were Mr | Mrs, Ralph Tracy, who are suing | the Airlines for $35,000 | | Farris said he went to a hote. | aiter® the crash, but later went to| a hospital although he was unin- | Jjured. | | “It was explained to me by the | putlic relations man of Alaska| Airlines that it would look better| for me to go to the hospital inas-| much as I got off scott free and| some of the passengers were hurt| and burned and killed,” he testi-| fied, adding he stayed there lww {or three days and then left the | | hespital of his own volition. \ | Richard F. Whitting, copliot with | Farris, and now a pilot captain for the comany testified he thought the plane could have taken ofi| from the Seattle-Tacoma airpoct and tried another landing after| ! the first landing instead of rolling | to the end of the runway and| | crashing. 1 Alaska Airlines President James Wooten testified that he believ.d his firm’s pilot “was partially re-| sponsibie, definitely,” . for a 1947 landing . erash that claimed nine lives, The pilot in the Seattle-Tacoma airport accident was James E. Far- ris, Wooten listed responsibility of the\ pilot, in landing the four-engine| plene halfway down the runway,| was one of three factors in the crash off the end of the strip. The others were rain and a ccmmnn-‘ tion of factors which caused the teraft to “hydroplane.” The plaintiffs’ attorney did not allow him to elaborate on what he | meant by hydroplaning. At the; previous trial he had described it as the piling up of water beneath the tires, causing skidding. Wooten said ridges on the air- port’s runway, when wet, ‘“cause! you to scoot like you're on balk wearings.” FLEET BASIN FOR | ASTORIA, LARGEST ONE, UNITED STATES ASTORIA, May 6—(P—Prelimi- nary construction work was under- way here today on the largest small boat and fishing fleet basin in the United States. ‘The total cost, most of which has already been appropriated, will' be $1,414,000. The government report said it is the largest small boat vasin planned in the United States iat the present time. The Senate! appropriations sub-committee this week restored $139,000 cut out by the House. The basin will cover over six city tlocks and hold a fleet of 1,000 fishing and small craft boats. A 30- foot wide roadway will be built atop some 3,700 feet of steep and rock-filled breakwaters in the Co- lumbia river here. When completed, the manage- ment of the basin will be in the hands of the Port of Astoria com- | mission. ——— '(ORDOVA EMPLOYMENT OFFICE CLOSES SHOP The Corddva office of the Terrl- \torinl Employment Service has been icfosed. Art Hedges, director of Territorial Employment Services, announced today. Former man- ager of the Cordova office was Lou Taylor. Closing of the Cordova office | follows similar action in Kodiak, |enacted under directives from | Washington, Hedges said. e - | FROM CORDOVA Karl D. Stettler of Cordova is | ALASKA COASTAL | terday brought in 15 passengers) im the Baranof Hotel. | Against Commissioner | Is Concluded ? In a dx-:mnod courtroom tattle on legal phases ©f the new Alaska |Net Income Tax Act, the Alaska stenm*hxp Company presented its| case yesterday against the Tax | of Alaska, and the| Territory’'s legal representative | argued against it. | ‘The suit for a permanent in-| junction to enjoin the company | "um payment under the act is the | Grant and | tirft test case of the act passed by |R.C.AF. the 19th Legislature. l It opened at 10 c'clock yesterday | moin.ng in District Court, Judge George W. Folta took case under advisement about yelock yesterday afternoon. H. L. Faulkner of Faulkner, Banfield and Boochever, opened | the Steamship Company's case, addressed the court against ln(“ validity of the first Income Tax| Law approved January 22, and of| _hc special session itself. Frank L. Mechem continued the| | company’s case, challenging two| sections of thie second Income Tax | Law, approved March 26, and thvi act itself. . John H. Dimond, Assistant torney General, spoke first for Territory, Attorney General Gerald Williams continuing argument. After closing arguments on both sides, the case went to Judge Foita, who will hand down an opimonl iater in this important case. An_ example of “offstage” rela- t'ons betweer courtroom rivals was giveri- aftér “the Judgé fetired ves- cerday afternoon. “The finest lecture on t.uxntion‘ this side of Harvard,” is the way cpposing counsel characterized the main presentation of the Steamship Company’s case. Attorney General Williams made the comment. It concerned the “speech” of Frank L. Mechem, Seattle attorney of the firm of Bogle, Bogle and Gates. Williams ~ took his first dourse, one in contracts, Mechem in, 1928. Mechem has the background for ar. authoritative “lecture” on taxa- tion. He .served for some time as issistant chief counsel for the In- ternal Revenue Départment in Washington, D.C. TG S | and the 4 At- | the J. the law from CARRIES 32 ON THURSDAY TRIPS Flights by Alaska Coastal yes-; and took out 17 for a total of 32. For Pelican, passengers were:| Merle Sepprell, Howard Steutten.| For Atlin: Clair Williams. For Hoonah: “Whitey” Thorpe. For Sitka: J. Paul, W. H. Shiels, William Leivers, Mr. and Mrs. Mit- rovich, Mr. Shaffer, Mr. and Mrs. J. E. Putnam, Howard Stabler, Al Wwillard, Ray Willard, R. Han-| son, Roy Downing. From BSitka: Tom White, M. Oliver, Cyrus Peck, Mrs. Young, Art Kontors, C. J."Old, Rod Dar- nell, Mr. Lavine. From Tulesquah: Willlam Gor- don. From Excursion Inlet: Mrs. Peter T. Johnson, Johnson. From Pelican: R. M. Steele, Ed- ward Fox, Rudy LaBru:.n | Mr. and Arnie| (GC NORTHWIND TO MAKE ALASKA TRIP SEATTLE, May 6 — (A — Coast Guard cutter Northwind, veteran of expeditions to both poles, will sail Tuesday for Alaskan out-| posts to provide medical nnd dental | care for the natives. She will visit isolated villages the Aleutians and in the Brlsl()l[ Bay and Bering Sea areas, carry- ing a physician and dentist. ‘The Northwind is the second or‘ her class to bear that name. The first was lend-leased to Russia. The | present Northwind took part in the 1946 Arctic expedition called “Cperation Nanook” and the 1946-7 “Operation High Jump” in the Antarctic, i |trall, could not identify | Alcerta, | talks | urer would be paralyzed [Reported Dows: in Almosi Inaccessible Country- : i Ground Parfies Aid VANCCUVER, May © persons were sighted by searchers today six miles southwest of a plane which had ¢ B the mountains near Princeton, BiC. “It is hoped the ‘e Pilot Bill and Miss Theila Cure,” an spokesmen sa The wrecked plans was sighted shortly tefore 10 a.m 1 7,000-foot high Mount Hozomeen, 40 miles southwest of Princeton and 160 miles east of Vancouver. R.C.AF. searchers, who reported sighting the couple on an isolated them. The couple waved to the alrmen |as supplies were dropped. A para-rescue unit of the C.AF. was ordered to the scene, and ground parties were organized to enter 'the almost inactessible country Flying officer J. H. McLeod of |Prince Rupert. who first sighted the crashed plane reported that it was not badly damaged. Pilot Grant, of Vancouver, and nurse-passenger Cure of Cardston, had ceen missing since late Monday on a flight from Card- ston to Vancouver, B.C. The scene of the crash is four miles from the international Loundary. ROUGEPLANT OF FORD IS LOCKED UP Five Thousand Pickels Parade Before Gates -65,000 Are Out DETROIT, Mny 6.~ #— Ford Motor Company's huze Rouge plant was locked today in its first major strike since 1941 as an estimated 5,000 picke®;s paraded peaceably before the main gates. It was the second day of id ness for approximately 6,000 C United Auto Workers, who walkel out at noon yesterday in protest against what the called a “spced-up” of assembly lines. Nearly 60,000 stiuck &t the Rouge plant, one of America’s industrial glants, and appresimately 5,000 more waiked out at Ford's Lm.olu- Mecury plant nearby. Just how long the strike might last was anybody's guess. No im- mediate renewal of company-union negotiations for settlement of the dispute was scheduled. But it was felt that both Ford and the UAW would be agreesble to early peace in view of the critical as- pects of a prolonged strike The comphkny has estimated that within approximately a week the worldwide operaticns of the sec- ond largest automobtile manufact- Ford has more than 100,000 production workers in 49 plants in the United . States. Picketing continued in an order- ly fashion today, just as when the walkout began, Long lines of pickets, some bear- ing signs saying simply “Pord is on sirike” cled in front of all main gates at the massive Rouge | plant. , -+ . WINNING STREAK OF |YANKEES IS SNAPPED CHICAGO, May 6—(D—Lelty Bill Wight stopped his old New York Yankee teammates with seven |kits today as Chicago snapped the league leaders three-game win streak, €-2. €vec Shea, making his tirst. staxt bf the year, was the loser. AT A A