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

THE DAILY VOL. LXXIIL, NO. 11,198 JUNEAU, ALASKA, TUESDAY, MAY 17, 1949 ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” MEMDER ASSOCIATED PRESS — PRICE TEN CENTS Seek Validity non-Resident Fishermen’s Tax ANOTHER TAX PROPOSAL IS UP, CONGRESS New Demands fo Be Made ! on Corporations - One Setback for Truman By JACK RUTLEDGE WASHINGTON, May 17.—#—A Presidential defeat and a new tax plan were tcp news in Ccngress today. The defeat was evident when President Truman withdrew the nomination of his old friend, .Mon C. Wallgren, to be chairman of the| National Security Resources board. The nomination has been bottled up for weeks in the Senate Armed Services Committee, where Senator Byrd (D-Va) joined committee Re- publicans in preventing action on it. Rep. Mills (D-Ark) came up with | the new tax proposal. His plan: Balance the government’s accounts next year by collecting corporate taxes six months earlier than usual. | By deing so, Mills figured a pros- | Jbective $3 billion deficit in fiscal| 1950 could be turned into a $1,700,- 000,000 surplus, eliminating any need for a new tax bill. Ten Must Bills | Mr. Truman and his House lead- | ers have picked ten major bills they | want the house to get busy on as soon as possible. They are Housing, Labor, Mim—: mum Wages; Lobby Investigation, | Orop Insurance, Federal Buildings, | Alaska Statehcod, Rural Telephone | Service Extension, Pay Raises tor Government - Executives, and Dis- placed Persons. This new lineup was decidec on at a White House coni®rence yes- terday. Chairman Sabath (D-IIl) of the Rules Committee, which normally clears bills for House debate said he expects most of them to get the go-ahead within a week or so. Teday the House was scheduled to debate a Weltfare Department bill, but interest was centered more on an individual than on legisla- tion. The House was set to receive General Lucius Clay, back from his duties as U. S. military head In Berlin. Spending Program The Senate was braced for a fresh round of debate on President | Truman’s spending program, and eccnomy advocates faced a major test. Senater Green (D-RI) has asked the Senate to reconsider the | April 28 action which sent the $2,- 400,000,000 Labor-Social Security money bill back to the Appropria- tions Committee with instructions to trim it five per cent. Next in line for Senate action are probably the appropriation tor the Agriculture Department, and| then the Army Department’s Civil| Functions money biil. | | | | CDA OFFICERS MEET A meeting has been called for 8:15 o'clock Wednesday night ot officers and officers-elect of the CDA. The meeting will be in Par- | ;h‘ Hall. FROM PORTLAND H. Hal Wolfe of Portland regis- tered yesterday at the Baranof. The Washington Merry - Go - Round i By DREW PEARSON (Copyright, 1949, by Bell Syndicate, Inc.) ASHINGTON — Today will be unfolded the inside story of why Curtis “Calder, tall, handsome head of giant Electric Bond and Share, delayed 60 days in accepting Presi- dent Truman’s bid, to be Secretary of the Army. & It will be unfolded before the Se- curities and Exchange Commission in what on the surface may appear to be-humdrum hearings, but which benéath the surface, means millions in dividends to stockholders. Beneath the surface also, lurks the most important economic ques- tion placed before either F. D. Roosevelt or H. 8. Truman. In fact it goes to certain root differ- ences between Roosevelt and Tru- man. In 1932 Roosevelt picked the big banks and utilities as his principal target of economic attack and, of SOVIET ZONE ELECTION IS TORRID ONE “Double Cross” Shrieked by Communists-Single Ticket Rejected (By the Associated Press) German Communists shrieked “doucle cross” at their political allies today as early returns from the Soviet zone elections showed a sizeable vote against the single ticket. Elgetion officials were told to hold up vote tallies when the insurgent trend became evident in returns | | | from the People's Congress bal-| loting. Taegliche Rundschau, organ of| the Soviet military administration, accused the Eastern splinter parti of the Christian and Liberal Demo- crats of playing a “double game.” The s paper accused the splinter groups of swearing their allegiance to the Communist-front Congress and “agitating in secret” against it. The two-day balloting for the Congress ended last night. The Communist-controlled People’s | Council took complete charge of issuing a final count, expected later teday. The voting was for 2,000 mem- bers of the People’s Congress. All candidates were hand picked and put on a single ticket. Voters were given a choice of voting “yes” or Before the secrecy lid was clamped on the returns; it was ad- mitted that of the first 7,000 votes counted there were 3,890 voting “no” to only 2,820 who voted “yes.” REBURIAL, JUNEAU VICTIM OF PLANE CRASH, ANNOUNCED * WASHINGTON, May 17— Sixteen Navy men killed in two 1945 plane crashes—one In Japan and the other in the Pacific—will be reburied today in two common graves at Arlington National Ceme- tery. One reinterment will include the nody of Rear Admiral Willlam D. Sample of Atlanta. He, three other | Naval officers, and six Naval enlist- ed men were Kkilled Oct. 2, 1945, when their patrol plane crashed in Japan. i The six victims of the other plane crash died when their plane crash- ed June 2, 1945, during an air-sea rescue attempt in the Nanpo Shoto | area of the Pacific. ‘The bodies to be burled with that | of Admiral Sample’s include Lt. Gil- | bert Delos Lizer, Juneau, Alaska. ALASKA AIRLINES PLANES TO CHINA T0 HAUL REFUGEES ANCHORAGE, Alaska, May 17— (M—Three Alaska “Afrlines DC-4's will be assigned to Shanghai to evacuate refugees to Hong Kong, the firm's office said here. Airline officials said the decision was made after two other airlines withdrew from the invasion- threatened Chinese city. The offi* cials said they did not believe the planes would be damaged by the Communists. The big four-engine liners have been used in transport- ing Jewish refugees to the Holy Land. 5 Labor - Federal Securify Money Bill Passes Sen. WASHINGTON, May 17—M— ‘The Senate approved on a voice vote and sent to the House today the $2,409,000,000 Labor-Federal Security money bill after three roll !call votes scuttled an economy ‘drive. The key vote was one of 43 to 41 which cancelled 4 three-weeks- old order for a five percent cut in cperating, costs of the agencies. FROM TULSEQUAH them, Electric Bond and Share bore e on Page Four) (Con Rod Dcuglas of Tulsequah is a guest at the Gastineau Hotel, GEN. CLAY RETURNS FROM GERMANY; IS GIVEN DECORATION | ? | WASHINGTON, May 17.—#—| Gen. Lucius D. Clay retiring Amer- | ican Military Commander in Ger- many, returned home today and re- ceived from President Truman a decoration for services “of supreme value to his country and humanity.” At a White House ceremony, Mr. Truman awarded Clay a second Oak Leaf Cluster in lieu of a third Dis- tinguished Service medal. The citation read by the President said that Clay, as U. S. Military| Governor in Germany, “added new | and imperishable luster to his rec- ord.” Clay, the citation went on, “‘prov- ed himself not only a soldier in the finest tradition of our American iarms,” but also “a statesman of the highest . order—firm, courageous, dedicated to the cause of peace.” On the other side of the Capitol, the Senate had before it President Truman’s recommendation Clay wind up his 21-year army career with his temporary rank of | full general made permanent. | The 52 year old officer climaxed his long army service with the suc- | cessful Berlin airlift, which brought the necessities of life to the Russian/| blockaded German sectors of Berlin | solely by air tor more than 12 | months. He stepped down from his post with the expressed wish to go back to Marietta, Ga., and-go catfish- ACTION ON STATEHOOD ' REQUESTED | WASHINGTON, May 17 —(®— Gov. Ernest Gfuening d Congres- sional Delegate E. Bartlett joined in a plea for immediate action on legislation for Alaska statehood. | Describing the Territory as the only American land “within naked view of Russia,” the governor told i the House Rules committee: “It is essential that Alaska Le Luilt up, not only as a bastion of defense, but as a demonstration of Democracy. It is necessary to prove our system is the best system. That is the great destiny of Alaska.” Delegate Bartlett said Alaska now operates under a system of “taxation without representation, vhich our forefathers objected to.” Gruening and Bartlett urged the Rules committee to send the state- Food legislation to the floor for a House vote. They were supported by Chairman P n (D-Fla) and Rep. Welch (R-Calif) of the Pub- lic Lands committee, which already has approved, the legislation. Bartlett Alaskg' “has ful- filled all requirements preparatory tc admission to the union.” Bartlett said statehood would mean more taxation of Alaskans, but that “the . fellow who lives there is willing to pay more taxes, for he knows statehood always has been followed elsewhere by astound- ing increases in population and industry, We need more local con- trols that only statehood can bring.” Bartlett told the committee “we just don’t have Communism in Alaska.” The comment led Rep. Brown (R-Ohio) to remark: “You are nearest to Russia, yet you have no Communtsts.” Bartlett declared that statehood opponents for the most part reside| outside the Territory, especially the respresentatives of gold mining and fishing industries. | | METHODIST CHURCH ° FELLOWSHIP DINNER WEDNESDAY EVENING The Monthly Fellowship Dinner of the Methodist Church is sche- duled for Wednesday evening at 6:30 at the Church Social Room. Since the church, is having a rum- mage sale Saturday, part of the fun for the Family Night: dinner will be a parade of the clothes for sale, and a mock acution sale. A few choice white elephants wil be on hand, having just arrived from the snow fields. “The dinner is potluck. FROM HAINES ' George Tobasco of Haines is reg- istered at the Gastineau. that| BONDS FOR EISLER ARE FORFEITED Action Taken—by Washing- fon Court-Extradition Papers Prepared WASHINGTON, May 17—#— The $20,000 bonds posted by Com- munist Gerhart Eisler in two crim- inal cases today were declared for- feited by the U. 8. District Court here. At the same time the court issu- ed a bench warrant for Eisler's ar- rest, as a person ineligible for fur- ther freedom on bail while cases are pending. The actions involve contempt of Congress and passport fraud. W The government plans to use the warrant issued today as a principal exhibit in getting Eisler extradited irom England, where he tled as a stowaway on the Polish ship Ba- tory. U. 8. District Judge James W. Morris entered the orders in the lo- |cal court in response to a series | of motions offered by the United | States government through William | Hitz, assistant U. 8. Attorney for the District of Columbia. [ Hitz presecuted Eisler in the two criminal cases in 1947. Judge Mor- | ris was the presiding jurist then. | The trials resulted in sentences of one year and $5,000 fine for con- tempt of Congress and one to three years for falsifying information on an application for an exit visa. There was discussion, t0o, of adds ing a new charge to the series against -Eisler:: “Departing ;. the | Court.” | Both cases tried in Washington were appealed and the Court grant- ed $20,000 bond pending a final | judgment. Hitz said the $20,000 konds were . supplied in the form of U. S. Treasury bonds by George Marshall of New York City. Hitz |said he understood that Marshall had been the head of the Civil Rights Congress. Eisler is under an additional 183,500 bond posted in the U. S. | District Court in' New York City. That bond is in connection with his | habeas corpus proceedings of last iyear in the deportation case pend- ng against him. It was not af- | fected by today’s orders. RED WAR MACHINE ROLLS ON HANKOW: SHANGHAI THREAT | (By Associated Press) | China’s Red war machine was reported today rolling toward the evacuated industrial center of Hankow. Another Communist force stabbed toward Canton, Nationalist refugee capital. Meantime the Reds built up a new threat to embattled Shanghai, striking into Pootung, dock and warehouse area facing the famed bund across the Whangpoo river. Fires were visicle from down- town Shanghai and all during the night heavy shelling was audible in the main part of the great Asian city. Machinegun bursts could . be heard frequently. Hundreds Flee from Homes as Rivers Are Flooded, Heavy Rain FORT WORTH, Tex., May 17— —Three persons were drowned, three more were missing, and Fort Worth was without drinking water today after rains measuring a:tove 12 inches deluged this area last night. The rampaging -Trinity river knocked out levees in four major breaks. Hundreds of families fled their homes before dawn Tuesday after the first of four major levee breaks sent loudspeaker-equipped police cars through Crestwood and Lin- wood additions. Evacuations had begun before midnight in White settlement, Liberator village and several other tributary bottoms sec= tions. Rescues were made by boat, rope, a fire department hook-and= ladder truck and swimmers. | 1 | . EXTENSION OF RAILWAY LABOR ACT IS SOUGHT Wants Measure Applied to Water Transportation - to Terrifories WASHINGTON, May 17— —| Delegate Farrington (R-Hawaii) introduced today a bill to extend the Railway Labor Act to cover water transportation between the U. 8. mainland and the Territories and possessions. Fairington said th‘ legislntlonl was requested in a resolution adopted by the Hawalian Terri- torial Legislature and approved by Gov. I. M. Stainback. The Territory, isolated for 95 days by a shipping strike last year, faces another tieup because of a labor dispute involving dock work- ers in Hawaii. Farrington said the Railway Labor Act, originally passed in 1926, was amended in 1936 to cover air transportation. He told reporters he will press for early committee -action on the proposed further extension to ship- png. Under the Railway Labor Act,| the services of a Federal Mediation Board are made available when normal collective bargaining fails. The law further provides that arbi- tration Lte offered in the event mediation fails. If arbitration is refused, provision is made for an emergency fact-finding board, se- lected by the president, and a cooling-off period. Seventy Million Dollars Urged for Alaska PW Program WASHINGTON, May 17—®— Gov. Ernest Gruening urged a Sen- ate committee today to approve a $70,000,000 Alaska Public Works program to make the area more at- tractive to settlers. He appeared before a Public Works subcommittee considering legislation to set up a program which would require cooperation by the Territory and its municipalities. Repayments of from 25 to 5 per cent of the cost of the pro- gram would be necessary, with the average repayment about half the amount spent. The, Governor said the program | would attract settlers north. Such civilian development is necessary, he said, to back up military strength. “I don’t like to always ke calling up the Russian bugaboo,” the Gov- ernor said, “but the fact remains that within 54 miles of our Alaskan shores (in Siberia) there is tre- mendous activity in Russia in agris culture, industry and military in- stallations, with a large increase in civilian population.” James P. Davis, head of the Di- vision cf Territories of the Interior Department, Maj. Gen. Grandison | Gardner, an Air Force officer; Dr. Jack C. I. Hadleman, senior sur- geon of the Public Health Service, of Anchorage, and Joe Falkne, chiel of the Alaska Division of the Terri- tories group, also urged support of the Public Works program. Indian Bureau Is Given $500,000 fo Spend on Roads, Efc. WASHINGTON, May 17. —#— The House approved today legisla- tion authorizing the Indian Bureau to spend $500,000 a year on roads, | address by Lew Williams, Acungl trails, village streets, emergency Governor. The morning session on landing strips and dock facilities n local health was followed in the Alaska. STOCK QUOTATIONS U. 8. Steel 70%, Pound $4.03. Sales today were 780,000 shares. Averages today were as follows: industrials 17532, rails 47.87, util- ities 36.19. FROM HAINES Carl Robert of Haines is at the spend the summer visiting her sis- Baranol- Hotel, {Senafor Magnuson Advo-| NEW YORK, May 17.—#—Clos- Southeast Alaska will cofmnue ing quotation of Alaska Juneau until Priday. mine stock today is 3%, American Can 90%, Anaconda 29%, Curtiss- together at a tanquet table tonight Wright 9%, International Harvester |in the Gold Room of the Baranof 24%, Kennecott 45%, New York|Hotel with serving to begin at 7 Central 11%, Northern Pacitic 15, o'clock. ; PACIFIC ALLIANCE - PROPOSED cates Pact Similar fo that of Aflanfic SEATTLE, May 17—{®—Senator Magnuson (D-Wash) said here to- day he will advocate a Pacific Al- liance similar to the recently signed North Atlantic Pact. The proposal, he said, will te made in a Senate speech next week after he returns to the na- tions capital from the Pacitic Northwest with Secretary of Labor Maurice J. Tobin. - Magnuson termed it essentifl that the countries of the Pacific kasin band together against the Ccmmunist menace of Asia. He mentioned specifically Australia, the Philippines, Burma and Thai- land, which are having Communist d.fficulties on the fringe of China, alonz with nations on the west coast of South America. Cemmenting on the situation in China where the Communists are | making sweeping advances, the ‘Washington senicr Senator said: “We've been asleep at the switch. It's no one’s particular fault and it's everyone's fault.” Turning to Territorial problems, Magnuson said he would try to “get the cart before the horse” by hav- ing Alaska’'s statehood approved before Hawaii—which has a priority because it had its Lid in first, “Statehood for Hawaii,” he asserted, “has been held back be- cause some-congressmen are afraid we might wind up with a couple of Japanese members of Congress.” Magnuson declined on grounds of Senatorial courtesy to name the men to whom he referred but said they could be “described as geo- graphical.” He will leave tombrrow for British Columbia to confer with provincial officials on plans for a preposed rallroad from the United | Etates to Alaska thrugh Canada. He said, however, that final ar- rangements would have to be made ! “on the State Department level.” DR. LEE POWERS OF U OF W, HERE FOR HEALTH MEET Dr. Lee Powers, executive officer in the school of medicine at the University of Washington, is here to take part in the five-day public health meeting which went into its second session at the Scottish Rite Temple this morning. Civic leaders, agency officlals and health department personnel opened this morning’s meet with discussion of Alaskan community facilities and how they dffect the health problems of the Territory. Visiting panel members taking part in the discussion included Mayor Waino Hendrickson, John H. Brillhart of the U. S. Forest gervice, W. A. EIkins of the Fish| and Wildlife Service and Felix Toner of the Alaska Engineering Survey. Health department discus- |sants were L. W. Coe, Lauris 8. Parker, Mrs, Magdalene Lobo, Miss Eeatrice S8hepard and Dr. Duncan M. Chalmers. Sectional meetings this afternoon will food and drug con- trol, water pollution, children’s problems and laboratory techniques. ‘The public health meetings be- gan yesterday with an opening; | | |afterncon by a discussion of the school health program. The sessions which are yearly for health workers held trom Participants and guests will get MISS GORE LEAVES Miss Dorothy Gore of Auk Bay planned to leave on today’s Pan American flight to Seattle, enroute to Charleston, West Virginia, to | Proceeds above expenses will Salmon Derby Dates Are Set Dates for the Golden North Sal- mon Derby at Juneau will be July 29, 30 and 31 according to co- chairmen Keith Wildes and €im MacKinnon. These co-charmen| were appointed by Charles G. Bur- dick, President of the Territorial Sportsmen, Inc. He says that the organization is most fortunate in having two such outstandingly capable businessmen and sports- men handle this year's derby. It will undoubtedly be, according to Eurdick, the biggest and best sal- mon derby the Capial City has ever had. y Wildes and MacKinnon are orga- rizing committees and plan to have them working in the near future. They emphasizé that the Golden North Salmon Derby will be con- ducted 100 percent with volunteer workers. Expenses will be held to an a:solute minimum and will be principally for prizes and printing. be used by the Territorial Sportsmen incorporation for improvement of srort fishing and hunting in the Juneau area. Wildes and MacKinnon suggest that all circle the last three days in July on the calendar in red and start planning now to fish in the Derby. NOMINATION OF MONS WALLGREN IS WITHDRAWN WASHINGTON, - May 17 —#— President Truman today withdrew Mon C.. Waljgren's nomination to be | chairman of the National Security Resources Board. The President withdrew the nom- ination at the request of Wallgren, former governor of Washihgton state. At the same time he wrote his warm personal friend and former associate in the Senate: “I want you to know that my faith in you is undiminished.” Wallgren's nomination was tabled many weeks ago by the Senate Armed Services Committee under a procedure which did not pérmit a vote on confirmation by the en- tire Senate. Senator Byrd (D-Va) cast the only Democratic vote against Wallgren in the committee, assuring bottling up of the nomi- ration. WrangeliVoles For Sales Tax WRANGELL, Alaska, May 17.—| This city voted in favor of a muni- cipal sales tax at the special elec- tion held Mohday by a margin of 216 to 24. Wrangell is the first town levying a sales tax under the new Territor- ial law allowing municipal sales tax not to exceed two per cent. The tax is éffective Jume 1. MOTION FOR NEW TRIAL, JSC, LWU CASE IS FILED Representing the International Longshoremen’s and Warehouse- men’s Union, icoth local and inter- national, Attorney William L. Paul, Jr.,, today filed a motion for a new trial of the damage suit brought by Juneau Spruce Corpo- ration. Today was the deadline for tiling such a motion. A verdict against the co-defend- ants, with assessment of $750,000 damages, was brought in Priday by the jury. The motion, with two other re- lated ones, will be argued Friday in District Court. STEAMER MOVEMENTS Baranof from Seattle scheduled to arrive 3 a. m. tomorrow. Denall scheduled to sail from Se- attle Thursday. ‘ Aleutian scheduled to sail from Seattle Saturday. Princess Louise scheduled to sail| | ter, Mrs. James Kincaid, from Vancouver Saturday. ¥ 5 HALIBUTMEN BRING CASE 0 TEST ACT § Ketchikan Atforney Ziegler Files Suit Against Tax Commissioner A “friendly ;e—s;-;aae" was filed today in which non-resident fisher-" men of two halibut vessels, and a ccld storage process company chal- " lenge the validity of Alaska’s $50- a-man non-resident tax. Submission of the controversy without action asks court deter-+ mination on Chapter 66, Session’ Laws of Alaska, 1949, to restrain: the Territorial Tax Collector from* collecting the non-resident tax. In stipulations in which both par- ties agree, it is pointed out that all fishing for halibut in anc out ot Territorial waters is governed by, the International Halibut mty between the United States and the { Dominiion’ of Canada; further, that Canadian subjects can fish beyond their three-mile limits and land their catches at Alaskan ports of entry, without paying the $50 I cense, In Court Tomorrow The case will be presented to the court tomorrow morning, with a re-. quest that a date be set for its hearing, » A. H. Ziegler, Ketchikan attor- rey, filed the action late today against M, P. Mullaney, Commis sioner of Taxation for the Terri borzy‘..:mi the Territory of Alaska. ' ler represents three plaintifts: Kristian ‘Martinsen, a reswent of Seattle, owner of the halibut sel Tatoosh; Edward Wick, of Be- attle, master of the halibut vessel Mary R., and Polar Plsheries, Inc., a corpax:nthn engaged in halibut ‘and other fish at Ketchi- kan, processing it in cold storage, and shipping through Prince Ru- pert or Seattle. . y i ael.t Cited y 8, the Mary R, luppor‘- ed by Wick and with a cr;' of two men, arrived at Ketchikan with a 16,000 pound catch, all but 1,600 rounds of which had been caught outside the three-mile limit. Fish buyers refused to purchase it be- cause the men had not paid the tax. The catch was sold at Prince Rupert, where the vessel was out- fitted for the next trip. : i The Tatoosh, with Martinsen and a crew of five men arrived May 12 in Ketchikan with a 35,000 pound lhnllhut catch, all taZen about 35 miles out. Although the Polar Pisheries de- sired to purchase the catch, the company, was unable to do so be- cause the six men had not obtained the $50 non-resident licenses. The Tatoosh proceeded to Prince Rue pert, where the catch was sold, The two parties, with Attorney General J. Gerald Williams repre- senting the Tax Commissioner, agree to 12 stipulations. 4 Together, the parties ask determ« ination of the constitutionality anc validity of the act requiring non. residents fishing beyond the three- mile limit to pay the $50 license if the catch is sold In Alaska, and | specifically in the cases of the two: vessels, and specifically to the pur- chase of fish under the circumstan~ ces. BLACK BEARS SEEN BASIN, THANE ROADS Anyone wanting to have a long distance look at bears may prob- ably accomplish the wish by taking & walk up the Basin Road early in the evening, according to Dr. J. C. Rude. i Four black bears out for spring gamboling were sighted last night at the slide area opposite the Basin Road by Dr. Rude, who said they would probably stay around the area for several days. Out in Thane, residents were getting a close-up look at one black bear. The small bruin has taken up * permanent residence on dwellers' back porches, tipping over garbage cans and making a general nui- sance of itself. FROM ANCHORAGE S. Sgt. and Mrs. J. E. Goode 'of Anchorage registered yesterday at the Baranof Hotel, g