The Daily Alaska empire Newspaper, July 22, 1949, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEW§ ALL THE TIME” VOL. LXXIIIL, NO. 11,253 Truman to Ask for Arms for Eur STATEHOOD | Plane Wrecks Hom TREASURER OUTSIDEFOR $1,000,000 Attorney G:tre ral Rules Loan Against Territorial Warrants Is Legal “I hope everyone in the Territory will cross his fingers for me tonight | when I get to Seattle,” commented Alaska’s Treasurer Henry Roden| before his departure today. Roden went outside to engage in negotiations intended to put the Territory on its financial feet, in the face of a deficit of more than a million dollars. He will ask Seattle bankers for $1,000,000" until January, the banks to hold outstanding meantime. Roden is armed with facts and figures to show that the loan can be repaid not later than| January 31, and that the Territory will be able to pay running ex- penses, too, from expected reve- nues. A number of Territorial have agreed to cooperate plan in lesser amounts. Stanley McCutcheon of Anchor-| age, attorney for the Union Bank! there, conferred with the Trea-| surer this morning, and the two reached an agreement as to the ex- tent of that bank’s participation. | HOW IT IS DONE “This way,” said McCutcheon, “we simply hold the warrants a longer time than usual, and at the same time we a.re able to obllxz- customers. “These warrants are all for ob- ligations already incurred. Our di- rectors feel that'it is-in ‘the in-| terests of the institution to co-| operate angd that, by so doing, we | will help pry money loose from the top, and start it in circulation. “Of course,” he added, “there is no way that each bank could care for its own customers, entirely.” | Roden, himself an experienced ! lawyer, has obtained the opinion | of Territorial Attorney Genefal J. Gerald Williams for the transac- tions. i WILLIAMS' RULING ‘Williams rules that it is legal| for Territorial warrants represent- ing valid indebtedness against the Territory of Alaska to be assignea for value to a bank and gives the bank « valid and subsisting claim against the ‘Territory for the amount of such warrants. He maintains that the limitation of indebtedness as set forth in the Organic Act does not apply. “The Territorial Legislature,” the opinfon reads, in part, “by levying various taxes has adopted a means | which will produce sufficient in- come during the 1949-51 biennium to cover appropriations made for that period; ‘therefore, an obliga- tion incurred under appropriations made for that period and:in antici- pation of revenues to be collected therefor, is .not the creation of an indebtedness in violation of the limitations in. the Organic Act, (Continued on Page Two) The Washington| Merry - Go-Round By DREW PEARSON (conmnu. 1949, by Bell Syndicate. Inc.) WASH!NGTON Early this week, Congressman Paul Shafer, Repuklican, of Battle Creek, Mich.,, publicly urged that Gen. Harry Vaughan, military aide to the White House, be suspended. He charged that Vaughan was just as guilly as two other suspended generals who had unwarranted con- tacts with “5 per cent lobbyists.” A few hours after making this statement, Congressman Shafer got a phone call from a White House spokesman demanding that he “lay off.” Shafer was reminded that unless he “piped down” on the Vaughan charges, he could expect no *“favors” in his district from the White House. Some even nastier, though direct, threats were made Shafer, coupled with a more friendly reminder that Shafer, Truman and Vaughan had once traveled to Fort Sill, Okla,, togeth- er when Truman was chairman of the Senate War Investigation com- (Continued on Page Four) warrants banks in the; in- ]62-yes.r-old man and his wife, 67, |launched throughout the west for |Peace Charles L. Wescott | some, {at Walla Walla. He had served 18; ‘cutor Potter said he had a previous {and sentenced to life imprisonment. to | 83524 skippered by William Bent- JUNEAU, ALASKA, FRIDAY, JULY 22, 1949 PRICE TEN CENTS MEMBER ASSOCIATED PRESS Murder Mystery (leared | Bodies of Tm issing Per-| ~ sons Found — Warrant Out for Ex-Convict TACOMA, July 22—(#~-Discovery of the bullet-pierced bodies of an elderly Tacoma couple in the Cas- eade mountain foothills led today to a first degree murder warrant against a missing ex-convict neigh- bor. Berry pickers found the bodies of Mr. and Mrs. Howard Easley last night on a log-strewn trail oft | the Naches Pass highway about| |50 miles southeast of here. The had been missing several days from | their blood-stained home. Chief Deputy Prosecutor Martin L. Potter announced the issuance of the murder warrant this morn-; ing against John Summers, 32, formerly of Kirksville, Mo. He said a search was being the armed suspect. Justice of the issued the warrant. Summers, dark-haired and hand- | was - released less than a! month ago from the state prison months for forgery. Deputy Prose- | {Illinois prison record and a long jai! record. Officers said the search was centering around Yakima, at the {Eastern end of the Cross-Mountain highway, and along -possible routes to Missouri. Summers worked in the Yakima farm area for a few| days after his release from prison. Discovery of the badies last night ended a two-day mystery over the Easleys’ disappearance. 60V COMMUTES SENTENCES FOR TWO PRISONERS| Gov. Ernest Gruening granted executive clemency to two appli- cants now confined in federal peni- | tentiaries. A commutation of sentence to time already served was granted! Thomas Contreras, a Filipino who! was convicted of murder in 1920 In making the recommendation, the Pardons Advisory Board considered statements in Contreras’ behalf from the trial judge, former Dis-! trict Judge Robert W. Jennings, now deceased, as well as reports by | penitentiary officials during the aa‘ years of Contreras’ incarceration. In the second exercise of execu- tive clemency, the -Governor de- parted from the Boarl recommen- dation that the sentence of Nicho- las Kitka, convicted of, manslaugh- ter in 1942 and sentenced to serve fifteen years, be commuted to time served. Governor Gruening commuted Kitka's sentence to ten years. Burglar Wrifes Victim He's Pleased with Job SEATTLE, July 22—(®—The Far West Furniture Co, has ong pleased customer. Police disclosed today that the burglar who stole 14 blank com- pany checks last week and forged and -cashed three of them for $118.52 each, wrote the General Manager: “Thank you for a pleasant vaca- tion, . . T had to hunt around quite a bit before I found a place that left things so handy. Windows open and such. . . If I get up this way again I will stop in again. In| haste. . . . H. H. Adams.” ON EMERGENCY RUN Late yesterday afternoon, the CG ler made a run to the Sentinel Island light station for relief of personnel stationed there. On the return trip, the troller Robert Barren skippered by Mathew Koo- kesh was towed in from Stephens Passage. ‘The fishing boat had lost its rudder. + have been | $1,600,000) !drive to overcome her severe dollar { by plane last night in connection | with the strike would be deported | from Seattle. LONDON DOCK MEN VOTE T0 END WALKOUT| Workers IoR—eiurn to Jobs | Monday-13,000 Men | Idle Since June 27 | LONDON, July 22—®—Striking| dockers who have crippled the port | of London for 25 days voted today to return to their jods Monday. The vote came at a huge mass meeting in Victoria Park, where the committee leading the walkout recommended that the men call it off. A member of the strike commit- tee told the men of the decision. An average of 13,000 dock workers on strike since the| stoppage began June 27 in sym-| pathy with the striking Canadianl Seamen's Union. By the time the| strikers get back to work Monday | they will have lost about £400,000 in wages. As the de- cision to return to work was made, The stoppage tied up vital British export cargoes, hampering Britain’s | crisis. Troops, concentrating on un-| lcading food ships, have prevented any severe - shortages in British food supplies. Home Secretary James Chuter Ede announced in Commons this | morning that two Americans and a Dutchman who arrived in London for the “public good.” He identified the Americans as Louis Goldblatt and John Maletta. He added that “after satisfying| himself thefr visit here was con- | cerned with the dispute at the London docks, I decided it was conducive to the public good they should be deported.” Maletta is| CIO OFFICIAL DEPORTED SAN FRANCISCO, July 22.—®— | Louls Goldblatt, one of two Ameri- cans the British announced today | would be deported from England, | is secretary-treasurer of the CIO| International Longshoremen’s and| Warehousemen’s Union. His home | is in San Francisco. He arrived in London last night after attending an organization meeting of the World Federation of Maritime . Unions in Marseilles, | France. It is a department of the World Federation of Trade| Unions, which is dominated by Communists. Union officials in Seattle said| the other man, John Maletta, left | i that city July 12 to be a delegate | to the Marseilles conference. He was a dispatcher for Seattle | Union Local 19 of the Longshore- | men's and Warehousemen'’s Union and once was business representa- tive for the union, MRS. ROOSEVELT IS CRITICIZED BY CARD. SPELLMAN NEW YORK, July 22—®—Fran- cis Cardinal Spellman criticized Mrs. Franklin D. Roosevelt today for her opposition to federal funds for parochial and private schools. In a letter to the former first lady, the Catholic prelate said “your record of anti-Catholicism stands for all to see—a record which you yourself wrote on the pages of history which cannot be recalled—documents of discrimina- tion unworthy of an American mother.” The Cardinal’s attack was based on articles written by Mrs. Roose- velt in her column, “My Day.” Mrs. Roosevelt’s secretary said at Hyde Park that the letter had not| yet been received and that there would be no comment until after its arrival, if then. Cardinal Spell- man made the letter public. He wrote that, after Mrs. Roosevelt's first column on the Barden Bill June 23, he had intended ignoring it. “But, as the days passed and in two subsequent columns you con- tinued your anti-Catholic cam- paign, I became convinced that it was in the interest of all Ameri- cans and the cause of justice itself | | some 15,000-040 dackers were idle,| " the next session, instead, whety | people of Alaska as to the circum- | 'R.R. Engineer Speeds that your misstatement should be challenged . . , ” BILL GOES ON SHELF Action by House Not o Bel Pressed This Year, Says Peterson WASHINGTON, July 22—(®— Chairman Peterson (D-Fla) of the House Public Lands . Committee said today he will not press for House action this year on bills to give statehood Alaska. “Witn the House rushing to ad- journ and with so much contro- versial legislation still waiting for | action, we might jeopardize the legislation by forcing a vote on it now,” Peterson told a reporter. He said he had considered, but given up, the idea of trying to force a House vote despite refusal of the Rules Committee to clelri the bill. i “We will press for action early there will be more time and our chances will be much better,” said. GOVERNOR'S STATEMENT Informed that the statehood bill will not be pressed at the present session of Congress, Gov. Gruening made the following statement: “The decision of the House Lead- ership not to push through the Alaska Statehood bill at this session | of the 8lst Congress is naturally | a great disappointment to all of us who feel, as I do, that statehood is absolutely essential to Alaska's| development and progress and to | the fulfillment of it great destiny. | “In view oI the early satisfactory,' progress of the bill, its favorable report for the second time by a House Public Lands Committee m, iMarch, in view of the overwhelming | | public sentiment in favor of| Alaskan statehood throughout -the | nation and the obvious justice of | granting the expressed wish of the ipeople of Alaska, failure to act at! | this session is, of course, hlghlv regrettable. I have discusseq the ! matter by telephone with Delegate Bartlett who 1is informing the 1 stances set- | back. “But while we have had a re- | verse, there is not only no cause! for discouragement, but on the contrary every reason for redoubled | efforts on the part on the people | of Alaska. I am communicating | with the members of the Alaska Statehood Committee for their| views, and it is probable that as soon as Delegate Bartlett is avnll-; able we will seek to develop a. program of action.” which lead to this | | | His Train Through! Seething Flame Wall MONTEBELLO, Calif., July 22— (M—A heroic engineer who brought‘ his streamliner train through a, seething wall of flames death today. The driver of the gasoline truck hit by the train died last night. He was Harry G. Heaton, of Bell, Calif. The engineer, H. E. Byers, 55, of Las Vegas, Nev., was credited by officers with saving some 150 pas- sengers by staying at the controls and rolling the Union Pacific's| “City of Los Angeles” through the flames, which roared .several hun- dred feet high as the 73000-gallon truck exploded. Byers was burned critically on his arms and upper body. A sec- ong engineer, Edward M. Dennis, 45, Las Vegas, was burned less ser- lously. JUNEAU ANS BILL PASSES IN HOUSE WASHINGTON, July 22. —(®— Legislation to authorize the Interior Department to transfer to the Al- aska Native Brotherhood or the Al- aska Native Sisterhood a small building in Juneau no longer used by the Department has been pass- ed by the House. It now goes to the Senate. is mear | to Hawaii and I {Cl0 United Aufo Workers; | pr sary to comply with terms ot {Michigans Bonine-Tripp Labor Law. INew Loan Agency ia hbill to create a $70,000,000 com- Plane Wrecks Homes engine. ) Wirephoto. THREATENED, FORDPLANTS Make Plans fo Call Qut | Men-Secret Vote DETROIT, July 22— (®— Final moves are underway to enable the CIO United Auto Workers to pull the Ford Motor Co. production em- ployees out on a wage strike. Michigan’s Labor Mediation Board is preparing for a secret strike poll of the 75,000 Ford work- ers in this state. A strike to back up current wage and contract demands—including $100-a-month pensions — already has been approved in a UAW-con- ducted vote among 106,000 Ford employeas. That poll showed that they are 7 to 1 in favor of a walkout, if necessary, although they were idle for 24 days in a speed-up strike that shut down Ford - plants in May. But the state balloting is neces- In other states, the strike vote conducted by the union is ample authorization for a walkout, and Ford workers may be called out by the UAW Executive Board at any| time. The UAW filed a 10-day strike notice with the mediations board yesterday, but said it would take| no walkout action until the vote was completed. Thit may require three weeks, Board Chairman Noel P. Fox said. Is Proposed For Alaska WASHINGTON, July 22—P— The Senate Public Works Commit- tee today recommended passage of munity facility program in Alaska. The bill would require that a minimum of 50 percent of the amount of the loans and grants to the Territory, cities and public Lodies - be repaid to the govern- ment. UN PLANE IS FIRED ON BY GUERRILLAS | ATHENS, July 22.—(®—The Uni- ted Nations Balkan Commission (UNSCOB) announces that one of its observation planes was hit by guerrilla fire from an emplacement | in Albania while flying over Greece ‘Two .30 calibre machinegun slugs hit the plane, the announcement said, kut neither the pilot nor the observer were hurt. The announce- ment called the incident a breach of international law. ) This scene of destruction in Seattle was caused by a C-46 airplane that crashed with 32 persons aboard, and then exploded. The center house was demolishe d; four others damaged; the plane’s route was toward the camera. The plane hit power lines atop poles in the background after takeoff with one faltering WAGESTRIKE Salmon Pack ;DEADLOCI( Reporf Shows Big Decrease SEATTLE, Jul) 22 —{P- ediction made yesterday in Ju- neau by Haakon B. Friele of a dire shortage in the salmon pack in Al- aska coincides with a report issued by the U. S. Fish and Wild- {life Service of a sharply reduced early take. The report listed 521,608 cases for the Bristol Bay area, as of July 16. It compared with 1,171,358 cases on July 17 last year. of the pack is red salmon. The Western Alaska total, includ- ing Bristol Bay and the Alaska Peninsula north side is listed at | 541,648 cases on July 16, compared | with 1,218,160 at the same period last year. The Service reported the early Central Alaska total at 346,207 cases compared with 346,056 at the same period in 1948, The Southeast dis- trict total for July 16 was 16,372 cases. It was 21,581 for the same period last year. The Alaska July 16 total was 904,227 cases, compared with 1,585,- 797 a year ago. "Trial Run’ Farm Plan Defeated By EDWIN B. HAAKINSON WASHINGTON, July 22—(P—A | orushing House defeat of its con- troversial farm -plan set the ad- ministration to work today on sal- vage operations in the Senate, With a powerful combination ot Democrats and Republicans in con- trol, the House late yesterday voted 239 to 170 to kil a proposed ‘trial run” of the faym subsidy plan of Secretary of Agriculture 3rannan on eggs, potatoes and ~ool. The coalition was led by Rep Gore (D-Tenn), normally an ad- ministration follower. It triumphed despite a plea from Speaker Ray- urn (D-Texas) to give the Bran- aan plan a try. Instead, the House voted 383 to 25 'to continue for another yean the rigid wartime farm price supports at’ 90 percent of parity. Parity is 1 computed price intended to give farmers a purchasing power in fair relationship to the cost of things they must buy. ‘Today Senator Elmer Thomas (D- Okla), Chairman of the Senate Agriculture Committee, indicated he hoped to turn the tide in the Senate, or at least gain a com- promise. An American B-29 Superfortress crashed and burned last night near Wisbch, England, while on a rou- tine flight. A spokesman for the Air Force said all 12 crewmen par- achuted to earth, o The' Most IN STRIKE IN HAWAII Employers Object to Peace Talks in Washington —Is Local Affair 1 By DOUGLAS LOVELACE HONOLULU, July 22— (®—Em- ployer objections halted plans for peace talks on Hawali's waterfront | strike in Washington today. The Senate Labor Committee had | ‘hoped this 83rd .day of the tieup! !could mark the start of negotia-| tions in the natien's capital for a settlement. Senator Douglas (D-IlI) had pro- posed a down-to-brass-tacks ses- sion by three men: (1) Harry| Bridges, President of the CIO Long- | shoremen’s and Warehousemen’s Union to which Hawaii's 2,000, striking dockworkers belong; (2) ll representative of the Islands’ seven stevedoring firms; (3) Cyrus .| Ching, Director of the U.B. Con- | ciliation service. Bridges and his union said yes| to the Douglas proposal. Late yes- terday the employers rejected it. | “The stevedoring companies can-| not see ‘how a trip to Washington | to meet with Mr. Bridges would contribute to ending the strike,” said W. Russell Starr, negotiating chairman for the employers. ! “We believe it can, and should, be settled quickly through collec- tive bargaining here in Hawaii.” Starr’s statement quickly brought| this retort from Jack Hall, Hawaii ILWU leader: “The employers fear a change in venue to a calm, objective atmos- phere where mature and reasoming | men can appraise their case be- cause they know it would collapse overnmht Y SIEAMER MOVEMENTS Prince George from Vancouverf scheduled to arrive 6 tonight. Princess Norah from Vancouver i | i | i 1 due Saturday afternoon or eve- ning. Denali from Seattle due to arrive Sunday. Baranof scheduled to sail froir Seattle Saturday. Princess Louise scheduled to sail from Vancouver Saturday. | Princess Kathleen scheduled to“ sail from Vancouver July 27. | Aleutian scheduled southbound 8 a.m, Monday. STOCK QUOTATIONS NEW YORK, July 22 —M—Clos- ing quotation of Alaska Juneau mine stock today is 3'%, American Can 91%, Anaconda 28, Curtiss-| Wright 8, International Harvester | 25%, Kennecott 45%, New York Central 9%, Northern Pacific 13%, U. 8. Steel 22%, Pound $4.03%. Sales today were 730,000 shares. | $1,450,000,000 for foreign military {ment leaders, pean Allies REQUEST IS IN MESSAGE T0 CONGRESS Overwhelming Senate Ap- proval of Atlantic Pact Promotes Action Rv JCHWN H. HIGHTOWER WASHINGTON, July 22—P— Overwhelming Senate approval of the North Atlantic Treaty cleared the way today for President Tru- man’s formal request that America help arm its European allies. The White House announced that the President will send the pro- pesed program to Congress Mon- day. Vice President Barkley said it will be pressed for passage at this session. Barkley, who attended a Cabinet session, said the Administration | hopes to pass both an authoriza- tion bill and an appropriation to finance the arms program before it quits around Sept. 1. He said he does not expect as much debate on the arms program as occurred in the Senate during consideration of the pact, which the Senate ratified yesterday by a vote of 82 to 13. The President originally planned to send the arms message to hoth houses today, but postponed this until Monday to suit the conven- ience of Senate leaders, Charles G. Ross, Presidential Press Secretary, told reporters. Authaorization Bill It is understood that the pro- posed authorization ‘will be for | aid, of which $1,130,000,000 would go ‘to this country's associates in the North Atlantic Treaty. Ross ‘sald the message will run | from 2,500 to 3,000 words and that it is already prepared. No Atomic References Ross denled the communication had been held up to write in atomic references in response ‘to questions raised on the Senate floor as to whether the pact obligates this country to furnish atomic weapons to its new allies. He would not say whether there are any atomic references. The President’s propcsal was also expected to provide a bar against giving the Europeans atom bombs. It was understood the Administration bill would specify « that nothing in it would super- | cede the Atomic Energy Act, which | forbids release of atomic explosives. The 20-year treaty won through to ratification late yesterday af- ter Administration leaders had giv- (Continued om Page 2) PACT OKEH GOOD NEWS FOR PEACE Approval of_Afliance by U. S. Hailed in Western Camp Areas By OSGOOD CARUTHERS LONDON, July 22—iM—Govern- politicians and plain men in the” Western camp hailed the U.S. Senate’s approval of the Atlantic Pact today as good news for the cause of peace. Eastern Europe maintaingd, as it has from the start, that the Paat is the “first step to imperialist war.” The London News Chronicle headlined the story of the Senate vote for ratification “82 Votes Be- gin New US. Era.” ‘The official Soviet Army news- paper in Berlin, Taegliche Rund- schau, front-paged the news under the headline: “Atlantic System Coomed to Failure!” Just before the French National Assem:ly began its debate on the Pact today, Radical Socialist Floor Leader Jean Paul David described the Senate's action as “an act of faith.” “Europe has been awalting the <olid support of the great American Democracy,” he said. Deputy Paul Antier, leader of the Averages today are as follows: industrials 174:53, rails 45.02, util- ities 35.20. 4 small Rightist Independent Repub- licans, said “the alliance means peace and'a check to Russia.”