The Daily Alaska empire Newspaper, June 7, 1949, Page 1

THE DAILY ALASKA EMPIRE[ VOL. LXXIII., NO. 11,215 * Alaska Tax Cas PLANEDOWN ON ATLANTIC; 47 MISSING Eighty Pers;n_s:\board Two Motored C-46 When It Goes Info Crash SAN JUAN, Puerto Rico, June 7.| ~—{M—A plane jammed with Puerto Rican men, women and children bound for the United States crash- -ed in the Atlantic early today and 47 persons are missing and feared dead. Officials said 75 persons, includ- ing a crew of five Americans, were aboard the two-motored C-46 plane. | The U. S. Coast Guard reported 28 known survivors. Nineteen of the passengers were small children or infants, and 19 were women. One American crew- man, Al Cockrell of Pittsfield, Mass, is réported missing and fear- ed dead. 2 | The plane left San Juan a few minutes after midnight and two minutes later radioed back request- ing permission to make an emer- gency landing. Then nothing more was heard from it. Officials said it apparently had trouble gaining alti- | tude because of an adverse wind. | The plane, en route to Newark, N. | J., via Miami, was operated by Strato Freight, Inc., a charter ser- vice with headquarters at Bradley Field, near Windsor Locks, Conn. The plane sank within six min- utes and the pilot, Captain Lee Wakefigld, said he believed one-half or more of the passengers and five | crewmen went down with it. Twenty-six of the survivors.swam to small islands and reefs, and crews of rescue craft braved death in the churing and .treacherous | seas to pick them off and carry| them to the mainland. Two were plucked from the water. | A-MAN CREW SAVED AS FIRE DESTROYS CHILKOOT ON GULF SEATTLE, June 7.—(#—Four crew | men were rescued from the burning | tug Chilkoot in Gulf of Alaska| waters yesterday and taken to Cor- dova, the Coast Guard was noti-| fied. | The 70-foot craft, owned in Ket- chikan by a man named “Bushre,” burned to the water line off Rocky Point, Montague Island, a message said. They were reported taken off by : another vessel, the New Sunrise, | and transferred to the tug Mahalo. | The crews names were not immed- | iately learned. The Chilkoot went ! to the aid of four disabled barges last week, but had been relieved of that duty. WRANGELL COUPLE HERE i Mr. and Mrs. C. D. Miller ! The Washington| Merry- Eg -Round By DREW PEARSON [Copyright, 1949, by Bell Syndicate, Inc.) of ASHINGTON— President Tru- man would attend his family church, the First Baptist, oftener, except for the fuss and fanfare that occurs when he shows up for Sun- day services. Truman has strong ideas that people should go to church to wor- ship, not to see who's in the con- gregation—even if the President of the United States is on hand. “I don't like being a circus dt-| traction in a place of worship,” he has remarked on several occasions. His pastor, Reverend Edward H. Pruden, agrees with the President, but is always polite to people who phone him on Sunday mornings wanting to know if Truman will be there. Reverend Pruden couldn't resist a little good-natured chiding, how- | ever, when a lady phoned him just before services on a recent Sabbath, “No, the President doesn’t plan,to attend services toda; he advised ‘Army Transport Plane Hits! | wreckage of the plane, a C-47, was MILITARY PAY RAISE INDICATED [ Hopes Are Expressed fo' Members West Point Graduating Class WEST POINT, N. Y., June 7—(# —The Acting Secretary of the Ar- my, Gordon Gray, told some of the | country’s future “top brass” today that he shared in their disappoint- ment that Congress has not yet given officers a pay raise. But he assured the June, 1949, graduating class of the United States Military Academy that he is confident that pay readjustments will be voted by the present Con- gress. “The rates may not be those re- quested in the original bill, but it is my hope and belief that those finally enacted will be just,” he said in his prenared-in-advance text. “There has not peen a realistic, comprehensive, or—what is more important—adequate overhaul of | army pay and allowances for more than forty years,” Gray continued. | He said the conclusion is ines-! capable that those who have enter- | ed the officers corps, and have con- | tinued to serve loyally and well, have not placed an undue enphasis upon material reward. He express- ed confidence in their continued | patience ‘and restraint. (The House shelved one military pay raise after it ran into objec- tions from (1) a group of young veterans who said it was weighted too heavily for higher ranking offi- | cers, and (2) economy advocates. A new version may be voted on shortly.) Gray advised the outgoing cadets that the officer of today must not | be primarily an officer ‘of the Ar-! my, Navy or Air Force. The nation- | al security demands that he be “an | American officer” in spirit and in| performance, he explained. 26 KILLED IN CRASH INBRAZIL | Mounfain Soon Affer Taking Off RIO DE JANEIRO, Brazil, June; 7—(M—Reports from Florianopolis said 26 persons were killed when a Brazilian army transport plane | crashed into a mountain soon after taking off yesterday. The Air Ministry here said the| located near Cambirelas Peak and rescue parties were rushed to the scene. The plane was on normal trans- port service, carrying both army personnel and civillans between Rio De Janeiro and the state of Rio Grande Do Sul. Florianopolis, a coast city, is 480 miles southwest of Rio De Janeiro. CDA SPONSOR SPECIAL | DAY SUNDAY, JUNE 12 ‘The Catholic Daughters of Amer- ica will sponsor a day of recollec- tion at the Shrine of Saint Terese Sunday, June 12 with a mass at 10| o'clock. Breakfast will be served! immediately following the mass. A supper will be served in the af- ternoon at 4 o'clock. All women of the parish are invited to attend and those planning to do so are asked to call Green 770 or Red 629 immediately in order that Chairman Mrs. Evan Wruck may plan for food and transportation. A bus will leave Sunday morning at 8:30 o'clock. Contrary to a former an- ncuncement, it will not be necessary to take dishes, only silverware should be provided by each individ- ual. MARRIAGE LICENSE Edith Charlotte Boisseau, medi- cal X-ray technfctdn, and Lloyd ‘B.| Van Kirk, merchant marine ship's (Continued on Page Four) | master, have applied for a marriage | license. BULLETINS 1man has asked Congress for $150,- “ALL THE NEWS ALL THE TIME” 3 7 1 49 Gordon Gray Nominafed, Secy. of War WASHINGTON, President Truman Gordon Gray the Army. Gray's nomination was sent to| the Senate shortly after the White House announced that Mr. Tru-| man had decided to choose him| for the post. Gray, the Under Secretary, has been acting as head of the Army Department since the resignation of Kenneth C. Royall last month. Today’s announcement by wniteI House Secretary Charles G. Ross indicated that Secretary of De- fense Louis Johnson had failed in his efforts to persuade Curtis E. Calder, New York Utilities Execu- tive, to take the job. ANCHORAGE FIREDEPT.IS T0 DISBAND ANCHORAGE, June 7.—®— In protest over the city government's failure to comply with underwrtter's! June T—(®— today picked | to be Secretary or} ment, the Anchorage Volunteer Fire | Department voted last night to dis- | band June 30. George Neal, fire chief for ten years, resigned recently for the same reason. George Burns, now chief of the Fort Richardson fire department, is scheduled to take| over the job June 15. The volunteer group said advance notice was®given to enable the city to muster new firemen. Expressing surprise at the an- nouncement, Don Wilson, city man- ager, said he and Burns will organ- | ize a new fire department. | | | | | i WASHINGTON—Federal District | Judge Edward A. Tamm has ruled! that under the Taft-Hartley law, the National Labor Relations Board | must hold hearings on charges of | Jjurisdictional fights between rival labor unions. | & | WASHINGTON — President Tru- | 000,000 to continue economic aid to the Repullic of Korea in the year beginning July 1. SHANGHAI—A Shanghai news- | paper publishes a report that Chiang Kai-shek promised to re- capture Shanghai within four months or commit suicide. The Associated Press Bureau in the city? is checking the story, but has not! yet found anyone who actually| hearq the retired Chinese Presi- dent make those statements in a radio broadcast. Pelersburg Added, Denali’s Schedule| SEATTLE, June 7.—(#— The Al- aska Steamship Company today an- nounced that Petersburg has been added to the itinerary of the steam- er Denali for three summer cruises. They are the June 30, August 11 and September 22 sailings. FROMHOLZ TO SITKA Bill Fromholz of tne Forest Ser- JUNEAU, ALASKA, T SLIP ATOMIC IMPLEMENTS T0 RUSSIANS FBI Report on Shipment of Research Materials Ex- posed at Spy Trial WASHINGTON, June 7.—(®— An FBJ] report introduced in Judith Coplon's espionage trial today said thatatomic research implements have been slipped out of this coun- try to Russia. The document had no apparent bearing on the Coplon case. An FBI agent, Robert J. Lamp- here, testified he prepared the doc- ument in January and called it “authentic.” An FBI ‘“decoy” memorandum which figures in the Coplon case contained similar, but less detailed information. To Russia In 1947 The “authentic” FBI report said that a shipment of atomic research implements went to Russia in Aug- ust, 1947, aboard the steamship Mi- khail Kutuzov. No export licenses were obtained for the shipment, the report said. Included in the shipment, accord- ing to the report, were radiation de- tection equipment, Geiger counters, and other instruments used in atomic research. Shipments Confiscated The document also said that ship- | recommendations for added eq“m_;mem of similar instruments was found aboard the steamship Mur- mansk in New York Harbor Sept. 12, 1948 and removed from the ves- | sel because the shipment had not been authorized. A third shipment was found on a dock in Claremors, N. J, Jan. 14, 1949, and confis-|meet the passenger requirements|rather than fact, is another demon- | | cated, the report said. The document quoted officials of | i, gqdition to regular southbound {bility which in the recent past has manufacturing companies as saying Amtorg, the official Soviet purchas- ing agency, seemed to have ‘“ex- act knowledge” of what type of equipment it wanted. In general,| the document said, Amtorg was in- | terested in the same type of equip- | ment that was being purchased by | the Atomic Energy Commission. The FI report said the equip- ment which actually went to Rus- | sia was purchased from the Cyclo- tron Specialties Company by Am- torg. i Federal Judge Albert L. Reeves ruled earlier today that the jury trying Miss Coplon on' espionage charges is entitled to know all about the contents of her purse when she was arrested. Prosecutors Object Over the vigorous objection of ! government prosecutors, Judge Reeves said 12 so-called data slips withheld by the government must be shown to the jury. He also ruled that the govern-| ment must make available thz full | text of many FBI repcrts which figure in the case. The court had| been considering the questigns since Friday. JAKE BIRD LOSES | HEARING APPEAL SAN FRANCISCO, June 7—#—| Chief Judge William Denman of| the Circuit Court of Appeals mdayI rejected the petition of Jake Bird, convicted Tacoma axe killer, for an Appellate Court hearing. Judge Denman last May 26 granted Bird a 30-day reprieve from the Washington State prison gallows pending study of Bjrd’s latest effort to escape execution. BIDS ARE INVITED FOR ACS PIPELINE TRENCH Bids are invited for excavation and backfill of a pipe line trench at vice, Admiralty Division, has gone to Sitka to look over Forest Service trails. With him is John LaHaije, who will remain there as foreman for the trail work. FROM FAIRBANKS Merrill E. Weis of Fairbanks is at the Baranof. TO SEATTLE FOR VISIT Mrs. R. E. Robertson, accompan- ied by Robert and Alison Eastaugh, left aboard the Baranof bound for 8 visit in Seattle with Mrs. Fred Eastaugh. SEATTLE ON BUSINESS J. 8. MacKinnon is in Seattle on a weekend business trip. the Alaska Communications System | Transmitter Station at 11-Mile. Copies of plans and specifications are available at the office of Lt. Delcert P. Applegate, Officer in ‘Charge of the Juneau Station, at | ACS headquarters in the Federal | Building. Bids will be opened June 21. WED YESTERDAY Bernice Irene Maher and David | G. Tanner, both of Juneau, were united in marriage yesterday in the | U. S. Commissioner’s Court, with acting Judge Gordon Gray offi- | ciating. ‘The bridegroom is a fish- | erman. V. | They were attended by Mr. and 'Mrs, Herbert Hakala. iidle due to a stalemate UESDAY, JUNE 17, 1949 ALASKA STEAMSHIP OPPOSES PERMITS, CANADIAN VESSELS SEATTLE, June 7—(®—Opposi- tion to the bill to permit Cana- dian ships to carry both passen- gers and freight between Haines, £kagway, Hyder, Alaska and other| ports in the Territory was ex-| pressed today by the Alaska Steam- ship Company. The bill was ap- proved by the House yesterday. A statement by the company | said: “In so far as Hyder is concerned, the bill is merely a provision for ar extension of the existing authority for such service from June 30, 1949, to June 30, 1950. We did not oppose the original legislation granting this authority, |since we recognize that direct |freight and passenger service to land from Hyder is essential to | the mining activity there. In order for us to provide the limited serv- ice necessary to this port, we ‘would have to divert our ships ap- | proximately 170 miles from their regular routes, whereas Canadian vessels call directly at Stewart, |B.C., a sister port of Hyder. Insofar as the ports of Haines |and Skagway are concerned, the| Alaska Steamship Company pre- sently is offering fully adequate ! freight service |coth northbound |and southbound without the need, jof any augmentation whatsoever. | “On the other hand, due to the |limited number of passenger ves- |sels, available to the trade, we I'have found it impossible to sched-! ule such vessels into Haines and| Skagway more frequeptly than once every three weeks. “That service is only possible on {the northbound leg of yoyages be- Itween Seattle and Kodiak. “We recognize that this limited {'service is not fully adequate to: |ot Haines and:Skagway. ‘nherefore, | schedules, we feel that more fre- quent passenger service is desir-1 akle.” NO FISHING IN KODIAK, June 7.—(®--For the first time since 1941, no fishing boats put to sea yesterday with the opening of the Kodiak salmon sea- son. Fifteen canneries and approxi- mately 100 small fishing vessels are in fish price negotiations between the Al- aska Salmon Industry, Inc., and the United Fishermen of Alaska. Discussions on the price that can- neries would pay for fish this year began several weeks ago, were later broken off and now have resumed again. The two sides were last re- ported only one cent per pound apart. 4 CREWMEN OF B, C. GROUNDED VESSEL REPORTED RESCUED PRINCE RUPERT, B. C., June 7. —IM—Two rescue vessels safely re- moved 27 crewmen late yesterday from the lighthouse tender SS Al- berni, which went aground in the fog on Canoe Rocks in Queen Char- lotte Sound. ‘The fish packers China Hat and Klatawa took the damaged vessel under tow. LIED 7 TIMES TO GRAND JURY goyernment witness in the trial of the former high State Department | official, made the admission on his| fourth ‘day on the witness stand. | In general Chambers' answers to' |the grand jury denied knowledge of government employees ‘ engaged in espionage activities. KODIAK AREA SAYS CHAMBERS ™ * specific) MEMBER AS SOCIATED PRESS LEWIS GETS BLOW FROM | | | Accuses Mi;le ader of "Rumor Mongering"’ -Labor Bill Debate WASHINGTON, June 7—M®—] CIO President Philip Murray to- | cay accused John L. Lewis of “rumor mongering” and “lack of | responsibility.” He made the accusation in de- nial of a statement by the Umwd; Mine Workers chief yesterday. At| that time Lewis said he had heard that Murray had agreed to a “pu-| sillanimous compromise” on Taft- | Hartley Labor Law repeal. Lew:s, in a message to all Sena- tors, said- he had heard reports that Murray and AFL President William Green had agreed to “tour joppressive amendments” for in-|the President any month of the clusion in a new law. | vear,” Gruening added. He did Referring to Lewis as a “rule- |{not say whether Mr. Truman or-ruin union official,” Murray | Would consider going by any other; jsaid the mine workers leader’s|means than by plane. | statement contained ‘“false and | s | malicious libels” concerning him | JOHNSON DENIES AFL DENIAL ALSO A spokesman for the AFL yes-| terday also denied Lewis' statement. | Murray said that ‘“considering the source” Lewis' statement would | be ignored except that it was sent | to Senators on the day when Tatt- | Hartley repeal debate began. Murray's message, also sent to! Senators, said the Lewis statement, “admittedly based = upon . rumor stration of that lack of responsi- so frequently characterized Lewis' | actions and utterances.” While the inter-uniod row went | jon, & small sut potentially trouble- ;some revolt against the plans of | Zenator Taft (R-Ohio) to retain! most of Taft-Hartley brewed in| Republican ranks. ANOTHER RIFT Sy far the rift hasn’t given Taft any real concern. But it appeared icertain to be a major issue for a iparty policy conference of all the! |GOP Senators on labor legisla-| tion. The Republicans arranged their {pow-wow while Senate debate on the administration’s labor bill and counter measures halted tempo- rarily. Senator Elbert D. Thomas (D- Utah), sponsor of the Truman bill ito rgpeal the Taft-Hartley law, ifired the opening gun in the de- 'buu yesterday. He spoke for four | hours, and then the Senate ‘set the | bill aside and agreed to take up the State-Commerce-Justice De- partments appropriation measure. | l Following the action on that bill, |lhe labor de:ate was to be re- isumed, possibly late today. FOR SHOW-DOWN VOTE WASHINGTON, June 7.—P—The | Senate Democratic policy committee agreed today to keép the Admin- istration’s labor bill before the lSenate until it reaches a show- { down vote. ! Senator Lucas of Illinois, the : Democratic leader, sald this will delay any action on the North At- lantic Security Treaty. Lucas also told reporters there was | lno truth in reports that a policy | | committee decision last week to! jbring the labor measure before the Senate ahead of the pact was in- fluenced by demands of labor lead- | ers, including CIO President Philip Murray. ‘The bill also has brought a shnrp‘ exchange between John L. Lewis| and Murray. In it, Murray accus- | ! ed Lewis of “rumor mongering” and i responsibility.” | | NEW YORK, June 7.—#—Whit-| taker Chambers admitted today that he had lied seven times be- fore the federal grand jury which indicted Alger Hiss on two per-| jury counts, Chambers, one-time courier for a STEAMER MOVEMENTS | Aleutian from Seattle scheduled | to arrive at 6:30 tonight. | Princess Norah scheduled to sail from Vancouver Wednesday, 8 p.m. Prince George scheduled to sail| pre-war Soviet spy ring and star|from Vancouver Wednesday 8 p.m.;day is 89%, Anaconda 25%, Curtiss- with Los Angeles Chamber of Com- merce party aboard. Denali scheduled to sail from Se- attle Thursday. Baranof scheduled to sail from, Seattle Saturday,. , .. Princess Louise scheduled to sail from Vancouver Saturday. i recommend anyone flying to Alaska | stated apd aideg in drafting a top | i | PRESIDENT WOULD LIKE TO COME ON | VISIT T0 ALASKA However, as Long as Congress in Session WASHINGTON, June 17— (P-— Gov. Ernest Gruening of Alaska said President Truman told him today he would like to go to Alaska, but would not do so as| long as Congress is in sesson. Gruening is returning to Alaska next week after being in the States about two months. He told reporters he discussed with the President his long known desire to visit the Territory but Mr. Truman sa.d it depends en- tirely on Congress. The Governor sald he would not after Aug. 15 as they are apt to run into a lot of fog. Congress may 2¢ in session that late or even | ‘ater, 5 “But we would e glad to see MILITARY WANTS CONTROL OF A. E. iSecretary of Defense Writes Letter to Chair- man of Probing,Com. WASHINGTON, June 7—(M— Secretary of Defense Johnson said today the military establishment i coes not want control of atomic energy developments. He added in a letter to Chair- man McMahon (D-Conn) of the Senate-House Atomic Committee: “I intend to see to it that this attitude is maintained by the mili- tary establishment.” McMahon, whose commitiee is conducting an inquiry into charges by Senator Hickenlocper (R-Iowa) of “incredible mismanagement” against AEC Chairman David E. Lilenthal, had written Johnson observing he had heard reports that “the armed forces are some-| how involved” in that Investigatior. Colleagues said that if the Sen- ate-House Atomic Committee lets him, Hickenlooper may attempt to prove that about a score of per- sons whose loyalty has been ques- tioned at one time or. another are still holding key jobs in the AEC! setup. H REGULATION LOOPHOLES In addition, they said Hicken- looper probably will try to show that loopholes in security regula- tions—and lapses in enforcecment of the rules—have been such that alert spies could have obtained some vital information. Add:ng these together with what he called “wasteful” administrative practices may sum up Hickenloop- er's cause of “incredible misman- agement” against Lilienthal as AEC Chairman. COMMITTEE SPLIT The Senate-House committee re- mained split today, however, on whether to let Hickenlooper g0/ ahead with his plan of calling at-| tention to commission employees whose loyalty has i:een ouestioned, | without naming them wublicly. | He did that yesterday. He| asserted that a man once suspen- ded, after an FBI investigation produced a 50-page report con-; tain'ng “serious derogatory infor- ‘mation” on him, later was rein- secret report to the Senate-House Committee. STOCK QUOTATIONS NEW YORK, June 7.—(#— Clos- ing quotation on American Can to- wright 8%, International Harvester 23%, Kennecott 40'%, New York Central 10%, Northern Pacific 13, U. S. Steel 21, Pound $4.027%. Sales today were 1,040,000 shares. Averages today are. as follows: industrials 16529, rails 42.86, util- ities 34.39. PRICE TEN CENTS e Being Argued in Fed.Court TESTS FEES FOR OUTSIDE " (10 MURRAY can't Make Any Plans,é FISHERMEN Friendly Suit Seeks Court Ruling on $50 Nen- Resident License In a friendly test case brought by two non-resident masters of halibut vessals and a processing company, the first challenge to the new law increasing license tees for non-resident fishermen was argued today in District Court. Judge George W. Folta took it under advisement this afternoon. The suit, a controversy without action, asks court determination on Chapter 66, Session Laws of Alaska, 1949, Attorney . A. H. Ziegler of Ket- chikan represented three plain- tiffs — Kristian Martinsen, Seattle resident and owner of the halibut vessel Tatoosh; Edward Wick of Seattle, master of the Mary R., and Polar Fisheries, Inc, a Ket- chikan firm which buys, processes and ships halibut and other fish. In ccmbination, they presented a number of test points for de- cermination of the law as it ap- plies to owners and crew members, to fishing within and outside the three-mile limit, angd whether pur- chase by a processing firm from non-licensed fishermen constitutes a violation, TAX IN QUESTION Attorney Ziegler opened his arugment by pointing out that C‘hlpm 66, which imposes a tax of $5 for resident ‘fishermen ar 350" for” heh-residerits, 1s mxfifi: and confusing in reference to ‘fisheries resources of Alaska.” He maintained that halibut fisheries outside the three-mile zone are not such resources. Ziegler charged that this act is ‘part of the legislation from ses- sion to session, of discrimination against non-residents.” “It is for the court to determine,” said Ziegler, “whether the Alaska legislature has jurisdiction over waters beyond the three-mile limit. We think not. Fishing in the high seas is beyond the control of the sovereign ashore.” LAW DISCRIMINATES Ziegler charged that the law discriminales between Americans and Canadians, and that the effect of this Alaska tax is to divert businéss of landing and processing from American to Canadian ports. He further declared the act to be in violation of Interstate Com- merce regulations and of the civil rights act, Assistant Attorney General John H. Dimond presented the case for ithe Alaska Tax Commissioner, di- viding his argument into two parts —first offering proof that the act applies to territorial waters only, and dealing with the charge of discrimination and violation of constitutional rights; second, to proving that no invalidity attaches because the law may have a prac- tical® effect for those bLeyond the three-mile limit. Sy DIMOND'S CITATION Dimond cited precedent - ing that discrimination !| :F:w- able, and maintained t the question for the court to deelde is' whether the degree of disérimina~ ~ (Continued on Page Eight) LJ WEATHER REPORT . (U. 8. WEATHER BUREAD ‘This data is for 24-hour pe- riod ending 6:30 a.m. PST. In Juneau— Maximum, 49; minimum, 42. At Airport— Maximum, 50; minimum, 42 FORECAST (Junesu and Vieinity) Variable cloudiness with an occasional light rain shower tonight and Wednesday. Lowest temperature . tonight about 43 degrees. Highest on ‘Wednesday around 53. PRECIPITATION 'ast 24 hours ending 7:30 & m. todsy In Juneau — .36 inches; since June 1, 202 inches; since July 1, 114.86 inches. At Airport — .21 inches; since’ June 1, 155" inches; sfrice July 1, 6550 inches.