The Daily Alaska empire Newspaper, June 2, 1949, Page 1

THE DAILY ALASKA EMPIRE. “ALL THE NEWS ALL THE TIME” VOL. LXXIIIL, NO. 11,211 Bridges’ Hearing Witness Defies Cou Repairs Quake Damage C. OF C. HEARS HEINTZLEMAN ON ALASKA PROJECTS | Optimistic over prospects for the thoughtful development of Alaska's resources, today gave the Chamber of Com- merce highlights of his five months’ work in legislation in Washington, DC. Besides Forester, Commiss'oner for the Department of Agriculture and Alaska repre- sentative of the Federal Power Commission. He returned to Ju- neau yesterday. Heintzleman reported chiefly on matters already supported &ty being Alaska regior for which he urged active backing. "Concerning agricultural develop- ment, Heintzleman mentioned that scme 150 homestead application? a || nonth are being made, and the Department of Agriculture is con- cerned with getting the best type | ot development. This, he said must be based on tremendous 1e- | “we do not have | search because Iowa land.” To this end, a cocperative agree- ment was made between the De- partment, which provides $675000 a year, and the University of Alaska, the 1949 Territorial Legis- lature having voted an appropria= tion of $75000. Six men already are at work classitying agricul- tural lands. PUBLIC LAND BILLS A dozen bills—some good, some bad, acccrding to the speaker—are in the mill now for dispositicn of public lands, as is an allieq one, the so-called Lemke Bill. This would allow G.I's and, after two years, anyone to acquire 2,560-acre chunks from forest and mineral ! lands as well ‘as-others. A bill is to be introduced soon | for disposition of Indian possessory rights and claims—a measure on which Heintzleman recommended careful study by the ChamZer. Heintzleman urged support of the bill introduced by Delegate E L. Bartlett for .aids to settlement. “This would give homesteaders rights to'get government loans,” ex- plained- Heintzleman. “The Depart- ment has always been wary of group séttlements. It is far better to encourage individual homestead- ' ers by helping them to develop property themselves.” FERRY SYSTEM The speaker stressed the import- ance of a ferry system such as is, presently being surveyed by the Alaska Road Commission, saying i things for the entire Territory, especially Southeast Alaska, and will develop resources as well as bring tourist business. He urged support of the proposed north- | south highway from™ Vancouver and Hazleton to Whitehorse. One important project on which Heintzleman has worked consis- tently js for special appropriations for road improvements. Since 1938, he said, road funds have been in-|* adequate veven for ‘maintenance of existing roads., After being disap- pointed ty failure to have $9,000,- 000 allocated through the deficiency bill, Heintzleman was pleased to read in yesterday's Empire that the Senate Al Commit- tee approved $4,261,000 to the Pub- (Continued on Page Six) The Washington Merry - Go- Round By DREW PEARSON (Copyright, 1949, by Bell Syndicate, Inc.) ASHINGTON— What is des- cribed as highway robbery in the price of gasoline has just been | made the subject of a sizzling Sen- ate report, hitherto unpublished. On the basis of this report, Sen- | ator Maybank of South Carolina will call the major ofl companies before - his banking and currency committee and ask them to explain unreasonabl price boosts. What Senate investigators found was that the average motorist must pay an extra $40 a year for the same amount of gasoline that he purchased in 1946. Yet the ofl companies justify higher prices on the grounds that they are losing profits. Regarding this, Senate investigat- ors state in their so-far-confidential i ZOOMING PROFITS The oil company profits for 1948 (Continued on Page Four) B. Frank Heflntzlemnnf Heintzleman is Alaska the | Chamber of Commerce and others | is one of the most essential | ing was evacuated after the quake | ;VETO ISSUE 'BOGSDOWN - ONBERLIN |Russia Shll Insnstem on Demand for Seftlement | | of Big Problem | (By Associated Press) Settlement of the Berlin prob- llem is bogged down over Russia’s |insistence that the veto be part of ‘any future Four-Power administra- tive policy. The Western Powers and Russ'a split yesterday in the Foreign Ministers conference at ’Pnns ‘The Western Powers pro- posed that the veto power ke limited. Russia’s Andrei Vishinsky |said no. However, Vishinsky hinted that the Russians might agree to trim the area of authority of the Kommandatura (Allied governinz body for Berlin.). French sources said Vishinsky |agreed that the Kommandatura's function might be re-examined. His statement was interpreted to ;mean that some authority might {be withdrawn from the Kommanda- jtura and delegated to local Ger- man administration. This avenue of approach will not be explored in the hope of reaching Four- Power agreement. The Russian press lashed at American insistence that the veto he curtailed. A Tass dispatch on the Four-Power conference sa‘d the U. S. delegation 'would accept only a set-up “in which the de- | cisive word will belong to fhe West- ern Powers who hold the majority of votes.” STEAMER MOVEMENTS Princess Lot\ise from Vancouver scheduled to arrive Saturday an.er— noon or evening. Freighter Square Sinnet scheduled to arrive Friday morning at 7 | o’clock. Aleutian scheduled to sail from Seattle Saturday. Princess Norah due in port Fri- day 8 a. m. and sails south at 9:30 am. Baranof scheduled southbound on Monday. i FROM 'TULSEQUAH ‘George Senko, W. Belinski, and C. D. Bloomfield of Tulsequah are re- gistered at the Gastineau. , lMakes Attack on Mlsman- This 280-fcot inclined hoin is nearing compleuon at the blate legislative building in. Olympia, Wash., for removal of the 100-ton stone cupola, damaged by the April 13 earthquake. will he built around the cupola (upper right) and the heavy stones will be lowered on a-“skip” which rides the inclined hoist. The build- A steel platform when engineers reported the loos- ened stonework could, conceivably, fall through the building. (P Wire- I5p DESTRUCTIVE PASSES' REPORTED MADE ON BOMBER Action of Air i Force Speed. Pilot Revealed in Se- cret Report, Claim PHILDELPHIA, June 2—®- T.IE Philsdelphia YInquirer says today | Air Force speed pilot Charles/ Yeager has “made 50 out of 50 ‘destructive passes’” at the report- edly “invulnerable” B-36 bomber. The six-engine plane has been the subject of Services committee investigation. ‘The newspaper in a story from its information ‘“was to the Inquirer”: A member of the House Armed Services committee has in his possession a letter from one of Captain Yeager's friends who claims that the Air Force has sec- ret fims of the tests which show that Yeager, flying a North-Ameri- can F-86 high altitude fighter was able to attack the bomber in simu- lated com:at missions. The Air Force film showing how Yeager was able to reach the B-36 is under lock and key, the In- quirer story said, but may be pro- duced and possibly shown to com- mittee members in executive session it the committee subpoenas it. Eisler's Bail May . Be Inquiry Subjed WASHINGTON, June 2—(®— The House Un-American Activities committee will investigate circum- stances surrounding the bail that Gerhart Eisler jumped when he fled the country. Democratic Con- iressman Francis Walter of Penn- sylvania proposed the inquiry to Chairman John Wood of Georgia, and Wood promised that the com- mittee would get busy soon. Eisler was under bail of $23,500 when he sneaked out of the country on May 6 aboard a Polish liner. made available SAILOR'S SPLICE LOADS LUMBER FOR WESTWARD Docking yesterday afternoon at 3 c’clock, the Alaska Steamship Co. freighter Sailor's Splice, loaded lumber from ‘the Junead Spruce Corp. deck last night. © Thé' lum- ber is for ports to thé Westward. The {reighter suflm this ' morning | at 9 o'clock. | District” a Hcuse Armed| Washington bureau, said this| EAU, ALASKA, THURSDAY, JUNE 2, 1949 SENATOR 1§ iHOIONAE( INQUIRY NOW | agement - Chairman Lilienthal Is Target WASHINGTON, June 2—(®—Sen- | ator Hickenlooper (R-Iowa) got| specific today about his charge ot “incredible management” in the Atomic Energy Commission. He said the Commission allowed 3,280 persons to work around secret projects, or have access to atomic Information, ‘without checks by the FBI on their loyalty. | That, Hickenlooper said, was vio- | lating the Atomic Energy ‘Law with | “brazen effrontery.” ! Commission Chairman David E. Lilienthal, principal target of Hick- enlooper’s criticism, replied that all the persens granted emergency | clearance for secret work had un- | | dergone some kind of “screening”| by the FBI. “Our judgment was neither ar- | bitrary nor whimsical,” the chair- man said. “We believe it to have| ‘ been sound.” | { The exchange took place before | the Senate-House Atomic Energy Committee, which is looking into ‘Hickenloopex's charges. Hickefi# | | looper is a member and former | chairman of the group. | There was talk today that the committee’ might go back into the | | time when the army’s “Manhattan; ran the atomic project,] before civilian control. One Senas | tor said that Maj." Gen. Lesl Groves, who headed the Manhattan District, might be called for testi- | | mony. | Yesterday Senator Hickenlooper | | centered his accusations largely on { the turnover of personnel in the | AEC, which he claimed was ex-| ! cessively large. He blamed this on | | “mismanagement.” | | | | sideration for diplomatic posts tut | PRESIDENT GIVES OUT HIS VIEWS Entire Prog;gfi Is "Must” | for Congress - Talks on Many Subjects By D. HAROLD OLIVER WASHINGTON, June 2—(®— President Truman repeated today that any “must” list for Congr should include his whole program. He also told a news conference he will stay in Washington without any extended vacation as long as Congress remains in session and perhaps longer. He said the idea of a train trip across the country to take the issues to the pecple is on the shelf now, for use if necessary. He once tolked of such a tour. The President, in response to| Questions, agreed such a trip might not be necessary. It is definitely not in the works for October Dr! November, he told another ques- tioner. How about next year? He smiledE and said next year will take care of itself. Asked if he and party leaders have added any more “musts” to the legislative agenda, the Presi- dent replied the must list includes the recommendations in his three main messages—on the state of the union, the budget and eco- nomics, | When a reporter said Congress 5 showing no sign of carrying out nost of his program, the President monished that no such conclu-! sion can be reached until Congress has finished its work. On other questions the President | said he: Opposes any Export-Import Bank | loan to Spain for purchase ot American cotton and tobacco. Has several women under con- is not ready to make any choices. LILIENTHAL HAS GOOD ONE WASHINGTON; June 2-—(®— | David E. Lilienthal, Atomic Energy, Commission Chairman, told Con-| | gress memzers today that one rea- | son why employees leave the Com | mission is to have babies. “These who left because they | had babies may be the result of | | incredible mismanagement, but not lon the part of the commission,” he told the joint Congressional Atomic | | Energy committee. | Spectators roared. Lilienthal made the quip in reply- |ing to a charge by Senator Hicken- | |1ooper (R-Iowa) that the commis- sion has experienced an excessive turnover in personnel. The Iowan | made that point a part of his| charge of “incredible mlsnann.ge" ment.” | | BERLIN WORKERS | | TAKE STRIKE VOTE/ BERLIN, June 2—(®—Anti-Com- munist railroad workers in Berlin are voting today on whether to end Russian-controlled railway admin- istration. All signs indicate that their decision will be “no.” Union 1eaders predicted earlier today that 90 percent of the rank and file would favor continuing the walk- out. By lunch time, half of the strik- ers had cast their ballots, The feeling at polling places was almost 100 percent against calling off the strike on the terms proposed by ithe Soviet administration. | The rauroad company had offered to pay West Berlin workers 60 percent of their wages in West Marks, which are worth about four times as much as Soviet occupa- tion money. The workers are de-| | manding 100 percent of their pay| in- Western money. The Russian- controlled railway amanagement also refused to recognize the strik- ing union. It announced it would deal only with the strike-breaking | Communist Trade Union Federa- tion of East Berlin. BOY FOR SMITHS Mr. and Mrrs. Robert Smith are the parents of a baby boy born at St. Ann’s ‘Hospital last .Saturday. The infant weighed 5 pounds, 12 ounces, and will be named James ' Welton. Supposes the question whether | Curtis Calder, utilities executive, will be named Secretary of the| Army is still open. Will decline when the question reaches him whether to accept or €ject any compromise bill on state or federal control of tidelands. House Speaker Rayburn has been working on such a proposal. 1 Will be unable to attend the Democratic party's farm ('onference‘ at Des Moines June 12-13. Would not comment on Britain's |release of Gerhart Eisler. NAVY SHIPS WILL BRING SUPPLIES TO ALASKA PORTS| SAN P'RANCIECO, June Z—W— Eleven U.S. Navy ships will leave| Seattle late next month on an an- nual expedition to deliver supplies to Point Barrow and other stations cn the North Coast of Alaska. Rear Adm. B. J. Rodgers said elements of the amphibious force 1 their 13-day-old strike against theiplus vessels from the Naval Trans-|Missouri, portation Service and the Service Force, Pacific, will be used. About 45,000 tons of cargo will be delivered. An exploratory unit, Navy Petroleum Reserve No. 4, will be the principal recipient. The unit operates in a 35000/ square mile area within the Arctic Circle. Annual supplies also will be de- livered to Air Force, Coast and Geodetic Survey, Civil Aeronautics, Weather Bureau and Indian Af- fairs Organizations in Alaska. The plans call for the entire cargo to be unloaded in less than a* week in' mid-Augist with crews! working around the clock by the| light of the midnight sun. | Capt. Richard M. Scruggs, USN. has been named expedition col- mander. Included in the expedit.on will be the U.S.M. George Clymer, U.8.8. Union, U.8S. Seminole, LST| 1110, LST 1123, LST 1126, LST| 1146, the fice breaker U.8.S. Burton| Island, the fleet tanker USS Neches and the U.S.8. Oberon and| U£LS8. Achenar. 4 The ships, will leave San Diezo about the middle of this month to take on cargo at. Port Huenemc, San Prancisco and Seattle. - Squids move backward by squirt- ing out water. [bank l(-cuntry's top mark yesterday was 1106 at Presidio, Tex. MEMBFR A SOCIATED ?’RESS PRICE TEN CENTS I rt Order AWAITS DIYORCE FROM FLYNN i(OMEMPT CITATION PREPARED Union Member Frank Sta- by Refuses fo Give Testi- mony fo Grand Jury SAN FRANCISCO, June 2—(®— A subpoenaed witness refused—de- spite court ovder-to testity today before a Grand Jury investigating Longshore Leader Harry Bridges. F. Joseph Donohue, Special Assistant to the U.S, Attorney Gen- eral, sald a contempt citation is being prepared against the witaess Longshore Union mem:er Frank Slaby. Earlier Donohue had announced that recorded testimony of Ge:- hart Eisler, fugitive Communist |leader now in Europe, will also be a part of the prosecutions case | against Bridges. Slaby is one of eight witnesses who, through their attorneyz have challenged subpoenas summoning tiiem before the Grand Jury, Slaby was in and out of the Grand Jury room in less than 60 seconds. When he came out, he went into consultation with hig at- torney, Herbert Resner, who an- nounced his position as follows: “The Grand Jury is wishont RELAXING AT LAS VEGAS HOTEL, Nora Eddlngton Flynn Is |power to swear or question any or taking Nevada “curc” of six weeks prior to obtaining divorce from \ Actor Errol Flynn. Hollywood 7avmes to head for altar when she obtains decree. lATHROP SELLS FAIRBANKS BANK | T0 LOCAL PEOPLE FAIRBANKS, Alaska, June 2.—(¥ —Capt. Austin E. Lathrop today an~ nounced the sale of the Bank' ¢ Fairbanks to 23 local business peu-‘ ple. Lathrop has owned the bank| since the year after it opened in 1940. The gmount of money involv- | ed in the sale was not disclosed. | Philip A. Johnson, present man- ager, succeeds Lathrop as president, Leslie Nerland, furniture store own- er, becomes chairman of the Board of Directors. | Lathrop said his plans to erect a new - building was shelved be- cause of “high building costs and generally unsettled political condi- tions,” He added the latter- factor iniluenced his decision to sell the {14 ARE INJURED, | SMALL TWISTERS CHICAGO, June 2—(@—Fourteey | cersons were injured and several ‘arm homes were destroyed yester- day as tornadoes skipped over areas n four mid-west states. The small twisters hit rural areas of Southwestern Iowa, Northwestern Northeastern Kansas and Southeastern Nebraska. Eleven per- sons in. the vicinity of Tark'o, Mo., were injured, while the twister which hit near Essex, Ia., injured a family of three. The tornadic winds Iollowed jthunderstorms over midwset states yesterday. The shower activity to- day was if parts of Iowa, North- west Illinois and Southwestern Wis- consin. Most of the country had fair weather and mild temperatures to- aay. Some rain fell in' Wyoming and Montana and in the Pacific Northwest, Highest temperatures were in the Gulf States. The Extension Service | For Alaska Okehed By Com. of House WASHINGTON, June 2.—(®-The House Agriculture Committee has approved a bill to provide agricul- tural extension service programs and agricultural experiment stauon ;GROIIND DEFENSE | the ground defense structure of the | work for Alaska. expects Nora and Actor Dick | (lntcnmlwunl) FORCES AT LADD FIELD INCREASED. Three Companies of First, Battalion, Fourth In- iamary, in Interior FAIRBANKS, Alaskn June 2% | —The arrival of three companies ul* |the First Battalion of the Fourth! Infantry Regiment for permlnent\ 'assignment to Ladd Fi:ld was an- nounced today by Brig. Gen. Dnl» V. Gaffney. He said the troops wouid augment | installation, Units here are Headquarters Company and Companies A and D, all under command of Lt. Col.| Noble L. Riggs of Chandler, Ariz. Companiés B and C, which arrived!| also from Fort "Lewis, were sent to/ Fort Richardson, | The Fourth Infantry boasts more battle streamers than any other regiment, Company A 1eceived the Presidential Citation for Action in the battle of Attu during the Aleut- ian campaign. One company of um{ regiment was stateioned at Ladd! in 1940 when the instellation was | new. The regiment was reactivated at Fort Lewis last October. The troops will be housed in Quonset huts, standard Alaska mili- tary quarters, at least until the end the eight witnesses who have chal- lenged validity of the subp enas summomng them before the Grand Jury.” Slaby wes the first of the eight {to go before the Grand Jury. Resner also expressed his opinion thut. nch of the wmu-m has (he 4Conmfuéd “on Pue 2 PROBE ON BRIDGES KEEPS ON {Grand Jury Hears Three | Witnesses-Eisler's State- ment May Be Used SAN FRANCISCO, June 2.—#—A | sworn statement by fugitive Com- I munist Gerhart Eisler will be used in the trial of Harry Bridges, a government attorney says. Bridges, president ot the' CIO Longshoremen’s and Warehouse- men’s Union, {s under federal in- | dictment on charges of perjury and conspiracy to defraud in obtaining his U. 8. citizenship in 1945, He is accused of ‘testiying falsely he had never been a Communist. Eisler fled to the Soviet Zone of Germany after he had been con- victed in this country for perjury. F. Joseph Donohue, special assist- ent attorney general, said after yes- terday’s grand jury session: “A'sworn statement that Eisler made before an., administrative of this year. By then two barracks, each with a capacity of 500 men, | are expected to be completed. | Chicago fhealre Destroyed by Fire CHICAGO, June ZVYM—'ChICflgol bad a big fire this morning. The empty Apollo Theater at the corner of Clark and Randolph streets was destroyed by flames which appar- ently <roke out under . the stage and burned through the roof. But it was no great loss—*‘he structure was scheduled for demo- lition s0 a new bus terminal could be built on the location. STOCK QUOTATIONS NEW YORK, June 2.—(P—Clos- ing quotation of Alaska Juneau mine stock today is 3'sx, American Can 91%, Anaconda 27%, Curtiss-| Wright 8%, Intérnational Harvester 23%, Kennecott 42's, New York Céntral 10%, Northern Pacific 13%, U. 8. Steel 65%, Pound $4.027%. | Sales today are 670,000 shares. .| Averages today are as follows:| industrials 168.15, rails 44.39, util-' ities 34.90, board in this country will be used when Bridges comes to trial.” (Bridges. was in Portland, Ore., last night, addressing Portland ! members of the ILWU.) (The meeting was closed. The Portland Oregonian said admitted “possibly I may have been wrong concerning the Third Par- ty, Wallace and the Marshall Plan.” He supported Wallace and the Third Party and opposed the Mar- shall Plan.) The grand jury yesterday heard three witnesses. Another sSubpoen- aed witness refused to tumy. how- ever. He was Frank Bllby o( San PFran- cisco, an ILWU member. Slaby was ordered by Pederal Judge Mich- ael J. Roche to reappear today and testify. A key government witness yester- day was Mervyn Rathborne, a for- mer associate of Bridges. Bridges’ attorneys visited Rathborne last week after Bridges' indictment. At- torney General Tom Clark has or- dered a probe to determine if there has been tampering with gov- ernment witnesses. Union headquarters last night an- nounced ‘the vote re-electing Brid- 3es as president was 30,408 to 7,070 for Tcmmy George of Portland. The ‘wo were nominated last April, and voting has been going on since.