The Daily Alaska empire Newspaper, August 25, 1949, Page 1

THE DAILY ALASKA EMPIRE VOL. LXXIIIL, NO. 11,282 WILLIAMS VIEWS ALASKA FINANCES WITH OPTIMISM J. Gerald Williams, Attorney Gen- eral of Alaska, is not nearly as worried acout the financial future of the Territory as he was before his trip to Seattle this week. There, he interested himself in the mat- ter of & lcan to ease the Territorial ‘Treasury. “Seattle banks,” he said today, “will help out, if the Territorial banks will only take the initiative. “Leading legal authorities in Seattle,” he continued, “agree that the method is legal. Surely,” he added, “the Territory is sound enough financially for banks to take the risk of lending such a comparatively small amount.” Williams referred to his efforts to borrow $1,000,000 from Seattle financiers. Commenting on tms, Willlams said, “While there is approximately $400,000 in outstanding warrants, a Joan for a million would enable us to get ‘things going on a current basis—all Territorial warrants could be paid on presentation. The loan could be repaid by January 31.” Williams also has conferred with Robert Baker of the First National Bank of Anchorage, and quotes the banker as saying it is advisable for Alaska tanks to lend to the limit of their legal ability. “If local and Seattle banks are not interested,” he concluded, “there is some possibility that Eastern capital will be.” The Attorney General was pleased with results of his oratory the last day of the Washington State Bar Association Convention. He talked on statebood, atter which the group passed “a resolution unanimously endorsing it. “I found a lot or favorable re- sponse on the question,” said Wil- liams today. “Many leading Seattle attorneys expressed the opinion that Alaska needs statenood and that Seattle definitely should be concerned with Alaskan problems.” Mayor Devin Is In All Out-Drive, Coast Defenses SEATLE, Aug. 25—®—Mayor William F. Devin announced today an all-out drive to convince mili- tary and U.S. government officials that the West Coast and Alaska cannot be considered “expendable provinces.” ‘The mayor spoke upon his ap- pointment as honorary chairman of a city committee to prevent the moving of the Boeing Airplane Company military production - plant inland and te insist upon adequate defense for the West Coast. Ship Line Charges T-H Law Violation! HONOLULU, Aug. 25.—(®—The Matson Company announced today it would charge the CIO Imterna- tional Longshoremen’s and Ware- housemen’s Union with violating the Taft-Hartley Act. A statement said the union would be accused of a secondary boycott because ILWU pickets pre- vent the loading of the Hawaiian Refiner at San Francisco. Secon- dary boycotts are barred by the act. : The Washington Merry - Go-Round (Copyright, 1949, by Bell Syndicate, Inc.) By ROBERT 8. ALLEN, Substi- tuting for Drew Pearson, Who Is On Annual Vacation. ASHINGTON— An extraordi- nary backstage scramble is taking place within the Congress of In- dustrial Organizations. While the anti-Communist Phil Murray leadership is preparing to boot out the leftist unions at the CIO's Cleveland convention, the latter are racing to beat this move to the punch with a walkout of this own. . The “lefties” have called a meet- ing in New York on August 30. Inside word is they will stage a bolt and proclaim the establish- ment of a labor organization of their own. Informed sources say this is the new Communist party line. Call for this powwow was issued, by the following: United Electrical Workers; Food, Tobacco and Agri- cultural Workers; United Public —_—ee e (Continued on Page Four) Alaska Wage Case Dedision Is Made By (HIII Court SAN FRANCISCO, Aug. 25—(P— The Ninth United States Circuit Court of Appeals has upheld the Seattle Federal Court’s dismissal of overtime wage suits brought against three contractors by six wartime workers on Aleutian Island air bases. 8 The court said it was convinced that the portal-to-portal pay act of 1947 “was intended to cover a situation such as here presented.” The suits consolidated before Fed- eral District Judge John C. Bowen at Seattle, were those of H. A. Las- siter and others against the Guy F. Atkinson Company; Vernon O. Tyler, William Leslie Cole, Owen McNally and Arthur Sessing against 8. Birch and Sons; and Raymond M. Naylor against the Western Construction Co. The workers sued for overtime and attorney fees under the Fair Labor Standards Act for work done in 1944 and 1945. Originally, they won judgment, but the employers appealed to the Circuit Court and the case was remanded to Seattle. On March 2, 1948, the Seattle Dis- trict Court held the employers had proved proper defenses under the portal-to-portal act. The employees appealed, holding | the portal act, as applied to them, was unconstitutional. This claim; was rejected by the Ninth Circuit! Court, one of seven of the country’s 10 Circuit Courts which has upheld constitutionality of the portal-to- portal act. (INTL. ACTION ON ROAD LINKS T0 B. (. REPORTED Canadian Conclave Dele- gates Speak af Cham- ber Session Neighbors across the British Co- lumbian border and Southeast Alaskans met across the table last week at Smithers, B.C, to discuss mutual problems at a joint session of the Associated Boards of Trade for Central British Columbia and the Panhandle Chamters of Com- merce. Today, Juneau representatives to the international meét reported to the Juneau Chamber of Commerce noon meeting at the Baranof on results of the international con- clave. Col. John R. Noyes, Alaska Road Commissioner, optimistic about fu- ture road connections between B.C. and Southeast, outlined a joint road construction program to link Ju- neau with the inland and British Columbia with the coast. Noyes, who conferred with Ca- nadian road officials during his brief stay in B.C., told the Cham- ber thdt the two governments plan cooperation in working out a time schedule of construction on linking highways. “I was very impressed with the real growing and solid economy of that section of British Columbia,” Col. Noyes said. “It would be worth the while of Southeasterners to take time off to do some traveling over the border.” Miss Susy Winn, who acted as the Juneau Chamber delegate to the Smithers meeting added specific information on road resolutions passed at the Board sessions, calling it the “First concrete action taken on coastal-interior road links.” A recommendation for formation of an association of. Southeast Alaskan Chambers of Commerce was also brought to the attention of the group by delegate Miss Winn. Industrial activity in the Prince Rupert region of British Columbia and a pronounced influx of people into the region points to develop- ment of the roads Alaska hopes to get, Ralph Browne, Alaska Develop- ment Board representative to Smithers, told the Chamber. “Trade between B.C. and SE Alaska has jumped considerably during the past few years,” Browne said, adding that “Juneau alone imports as much now from B.C. as all of Southeast did several years 2go.” Guests at the Chamber meeting included Mr. and Mrs. I. J. Mont- gomery of Lincoln, Neb, John Sieker and Lloyd W. Swift of the U.S. Forest Service, Wash, D.C., Huber Earle and Warren Morgens of the Public Housing Administra- tion and C. L. erson of the Alaska Dept. of Fisheries. Steel has been made from iron for centuries, but only in very small amounts until about 100 years ago. TRUMAN PUTS OUT WELCOME MAT T0 SOUTHERN BOLTERS WASHINGTON, Aug. 256—(®— President Truman put out the wel- come mat for Southern party bolters today, . but demanded that those who cross it get in step with the 1948 Democratic platform. He delivered the invitation— strictly. on his own terms—at a rousing dinner of the Democratic National Committee a few hours after it had read five Southern States’ Rights members from the high command. And, leaving the door open to non-Truman Democrats in Con- gress to fall in line with the Tru- man program, the committee exempted them from the party purge. The fires of revolt, however, al- ready were burning anew. States' Righters announced they are open- ing Washington headquarters to spread the flames. The whole thing was sparked by Southern dislike for Mr. Truman's Civil Rights pro- gram. It was Truman the campaigner— swinging free style in the manner of his “give 'em hell” stumping of last year—who proclaimed his party of today “a national party, and not a sectional party any more.” “The tail no dog,” he said. He went on to say that he won in 1948 without New York, “with- out the industrial East and without the Solid South,” and that he was “prouder of that than anything that has ever happened to me.” Then came the invitation: “And that doesn’t mean that we are not inviting the industrial East and the Solid South and all the rest of the country to join the party of the people, and help the country go forward. That is exactly what we want, and that is exactly what we are going to accomplish in the next two years.” FIGHTERS OF FIRES IN FORESTS GIVEN SOME AID BY RAIN (By The Assoclated Press) The battle against fires ravaging North American forests took a fav- orable turn today. Rain and diminishing winds aid- ed the fire fighters in Idaho, South Dakota and Yellowstone Park. The situation is still -serious, however, in many areas. Flames longer wags the have wiped out valuable timber in western United States, land and Canada. One person was Killed and four injured yesterday in California’s forest fires. Harry T. Meyer, 32- year-old lumber crewman, was Kill- ed by a falling tree in Stanislaus National Forest, where flames have blackened more than 7,100 acres. PRIBILOF TAKE IS 10,891 SEAL SKINS WASHINGTON, Aug. 25—(P— The Fish and Wildlife Service says it harvested 70,891 fur-seal skins on Alaska’s Pribilof Islands this year. The fotal was only 749 more than last year, but it was a good sea- son nonetheless, the agency said. Other banner years have been 1941, 95,000 skins and 1943, after a full year of no hunting, 117,000. The sealing season began June 10 and ended July 27. Killing is con- trolled by the Fish and Wildlife Service, and 20 percent of the take of skins goes to Canada, a partner in the seal hunting regulations. The services said the Navy supply vessel Titania is at the Pribilofs unloading an annual shipment of supplies. It soon will load the furs and kyproducts of this year’s kill— about 350 tons of meal, 14,000 gal- lons of carcass oil and 33,000 gallons of blubber oil—and return to Seattle. The government estimates the seal population of the Pribilofs at about 3,837,000. STEAMER MOVEMENTS Princess Louise from Vancouver due Saturday afternoon or eve- ning. Aleutian scheduled to sail from Seattle Saturday. Princess Kathleen scheduled to sail from Vancouver Saturday. Prince George scheduled to sail from Vancouver August 30. Princess Norah scheduled to ar- rive 7 am. Friday and sails south one hour later at 8 am. Baranof from # west scheduled southbound 1 a. m. Monday. New Eng- “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, THURSDAY, AUGUST 25, 1949 Florida's Eniry i HOPES of Florida in “Miss America” beauty contest rest with Shirley Anne Rhodes, of Tampa, selected queen of Pen- insula state. She is ash blonde, green eyed. (International} INTER-UNION FEUD IS INDICATED, ALASKA, BY CORDOVA ACTION CORDOVA, Alaska, Aug. 25.—® —Cordova district leaders of the CIO Fisheries Union declared to- day it would refuse to join in any merger with the Harry Bridges- led longshoremen’s union. ‘The local has directed a circular to all other affiliates of the In- ternational Fishermen and Alliea “Workers of America. It stated that if the International votes for a merger with the CIO longshoremen, the Cordova union will withdraw from it. i Observers viewed the stand of the Cordova local as the possible} makings of a future inter-uniou feud in Alaska. i H. J. Lannen,/agent for the' Cor- dova district union, said one of}) the prime reasons for the decision against the merger was the reluc- tance of the group to submit to the leadership which the long- shoremen’s union has. He sal | the Cordova action against any ! merger was taken May '7, but hadl not been made public until balloting of other units of the Internation- al Fishermen’s Union was nearing completion. He said other Alaska units ot the union will complete their votes within another week or two. Despite the unwillingness to sub-’ !mit to the longshoremen’s union leadership, the Cordova union said in the statement that it would continue to support the CIO long- shoremen. A key figure from longshore lead- er Bridges' San Francisco head- quarters, Germain Bulke, was a Cordova visitor this week. He said| he was “on an inspection tour.” | |ANNUAL TRAVEL SEASON STARTED BY CONGRESSME (By Associated Press) ‘This is the annual Congressional travel season—the time for trips and tours by Congressional Com- mittees at the taxpayers’ expense. Officially, all the projected tours will be on government business. The first will come Friday when a Judiciary subcommittee sails on the Queen Mary for England and Europe to study immigration prob- lems and population trends. The subcommittee will be gone about six weeks, returning late in Sep- tember. Cther trips now in the planning stage include the following: A tour of England, France, Nor- way and Sweden by a House Com- merce Committee group which says it wants to study medical pro- grams in those countries. A trip to the continent by an Armed Services Committee to study military morale. And various other trips to the farm areas of Europe, to Mexico, Panama, Japan and Puerto Rico. According to one veteran House member who has not missed & foreign trip in years, about half the members of the House will soon be! out of the country. | Fairbanks, {MEW YORK COURT New Chief of Army Field Forces Expecis fo Make Trip fo Alaska Promptly SAN'FRANCISCO, Aug. 25.—(M— Gen. Mark W. Clark, new chief of Army Field Forces, says, “From my point of view the more troops we have in Alaska, the better.” At a press conference after the Washington® announcement of his elevation from commanding gen- eral of the Sixth Army, Clark in answer to questions, said: “T think it (Alaska) is a very important strategic area. We should be prepared to take care of its defense. I hope to have the op- portunity of going up there very promptly to see what the situa- tion is.” The General said the Army is in contact with the Navy, the Air Force and the Canadian gov- ernment on Alaska problems. “All our plans for defense of the Northwest are being integrated,” he added. ALASKA DEFENSE | PROJECTS GIVEN APPROVAL BY COM. WASHINGTON, Aug. 25—(®—A bill - authorizing defense construc- tion totaling $26,602,000 in Alaska and $12,324,000 in Washington state has been approved by the Senate Armed Services Committee, Senator Cain (R-Wash) announced. He listed the following proposed Alaska expenditures: Alaska — Adak, $22,616,000 for Navy defense installations; Kodiak Naval Air Station, $2,548,000, run- ; way extensions and additional quar- personnel; Ladd Field, $5,610,000, extension of fighter squadron facilites and establishment of a cold weather test detachment; Eielson Air Force Base, Faircanks, $28,156200, addi- tional plane and personnel facili- ties; Fort Richardson, $3,644,000. Details of the approved Alaska projects were withheld for security reasons, Cain said. ters for JUDGE DENIES RED MISTRIAL MOTION NEW YORK, Aug. 25.—(P—Fed- eral Judge Harold R. Medina today denied a motion by defense counsel for a mistrial in the Communist conspiracy trial. Judge Medina also denied the motion that Russell Janney, a jur- or, be disqualified and that an in- quiry be made as to his possible “influence” on other jurors. Defense attorneys yesterday ask- ed for a mistrial on the ground that Janney—author of the best- gelling novel “Miracle of the Bells” —had shown bias in private con- versations with an actress and sing- er, Miss Carol E. Nathanson. The Communist leaders are charged with conspiracy to advocate violent overthrow of the govern- ment. Two Bond Issues Are Proposed, Fairbanks FAIRBANKS, Alaska, Aug. 25.— (P—Plans for two bond issues, totaling $4,500,000, to finance con- struction of a city-owned power plant . and utilities system, should be completed this month, Mayor Ray’ Kohler says. The mayor said the program in- volves a $4,000,000 revenue bond issue and a $500,000 general obli- gation bond issue, both of which are under consideration for financ- ing by the B. J. Van Ingen Munici- pal Bonding Company of New York. Kohler made his announcement in answer to a resolution passed last week by the Fairbanks Central Labor Council. The resolution criticized the city for spending $125,000 on the program without a “comprehensive report” on the ex- penditure. The mayor said the union's ac- tion resulted from ‘“misinformation or lack of information,” and added that the latter possibility is “ob- viously due to the City Council’s inability to anticipate questions that arise in the mind of the pub- lic.” Work ta date has consisted in de- | veloping a plan economically feas- | fble for marketing the bonds, Kohler said. | for cuts in appropriations. MEMBER ASSOCIATED PRESS PRICE TEN CENTS HOUSE T0 ADJOURN TOMORROW Action Taken Regardless of "No™ Resolution of Senale WASHINGTON, Aug. 25—®— Speaker Sam Rayburn says the House will adjourn tomorrow until September 21, regardless of the Senate’s refusal to approve an ad- journment resolution. “We are going away anyhow,” Rayburn told his news conference. The House adjournment, he said, will be accomplished by passage of a simple resolution by which a few members of the House will agree to meet twice weekly until September 21 with the understand- ing that no business will be trans- acted. Such a resolution coes not require Senate approval. Rayburn said that procedure will | be followed if the Senate does not reconsider its rejection of a reso- lution which would give the House a straighaway adjournment. He said the Senate's action was “the first time in history” as far as he could recall that one cham- ber refused to agreed to procedure approved by the other in respect to meeting. The action, he added, “certainly does not” promote com- ity between the two branches ot Congress. CONGRESSMEN ARE CAUGHT IN SQUEETE DLAY WASHINGTON aug. 25.—— Members of Congress found them- selves squeezed today between a military economy drive many of them had L and, the out- raged cries of constituents affected | by the proposed cuts. A typical example was offered by a western House member. He said he has been deluged up to now with letters urging him to vote Now, he said, the same people are com- plaining , bitterly agamst military cutbacks in his district. The predicament resulted from Secretary of Defense Johnson’s announcement yesterday that the Armed Forces plan to fire 135,000 of their 905,000 civilian employees, while returning 12,073 Reserve offi- cers from active to inactive status, That program aims at a $200,- 000,000 saving during the fiscal year which started July 1, and sav- ings of $500,000,000 a year there- after. It would help bring next year's military budget down to $13,- 400,000,000. The 1949 budget totals $14,900,000,000. Despite Congressional protests military officials were reported ‘pushing ahead with plans for the cutdown. As the first step they were pre- paring quotas to be used as a guide by unit commanders ordered to cut down Reserve officer strength. SOUTH FLORIDA IS ALERTED,HURRICANE MIAMI, Fla., Aug. 25—(P—South Florida today has put on the alert for a hurricane. An erratic hurricane in the At- lantic had recurved to the west- northwest during the morning after following a northwest course for a time. The new course caused Grady Norton, chief storm forecaster at Miami, to inform the Northern Bahama Island to take hurricane precautions and Eouthern Florida to stand by on the alert. An older storm, known as “Harry's Hurricane” because it coincided with President Truman's visit to Miami Monday, brought high seas to the North Carolina coast and a boatman drowned there when he attempted to retrieve a loose skiff. COUNCIL MEETS TONIGHT A special meeting of the City Council has been called for 8 o'clock tonight In the Council chambers. It should take only a few minutes, says Waino Hendrick- son, as only one matter will be considered. This is passage of the amended ordinance on the airport bonds— the last step here before the bond issué is executed. The amendments pertain to the manner of payment, ;No Fraud, - Bomber Program Complete E)Eéralion Giv- | en Air Force, Defense Dept. Officials WASHINGTON, Aug. 25—(P— The House Armed Services Com- mitte today completely exonerated Air Force and Defense Department officials of collusion, fraud or dis- honesty in the B-36 bomber pro- gram. The finding was reached after the committee heard: 1. A flat denial from Floyd Od- |lum, head of the firm that makes the B-36, that there is “one rivet of politics” in the giant bomber, and 2. A repudiation by its author of an anonymous memorandum which touched off the inguiry. The committee, including Rep. Van Zandt (R-Pa), voted unani- mously to clear Air Secretary Symington, Defense Secretary Johnson and all others connected with rumors of political influence in the military air policy. It was a speech in the House last May by Van Zandt, relaying some of the material in the un- signed memorandum, that led to the investigation. Today Cedric Worth, suspended Special Assistant to Dan Kimball, : Undersecretary of the Navy, backed away from all the suggestions of political influence and corruption that he had written into the paper. Before he finished, he was saying that he regrets just about every- thing he put into the memo. Worth's repudiation of the docu- ment produced a sensational climax jto the hearing. The committee ordered a recess until Oct. 5. "CONFIDENTIAL DATA" DIVULGED IN BOMBER CASE WASHINGTON, Aug. 25—(@®— The suspended Navy official who wrote the anonymous memo that touched off the B-36 investigation acknowledged today he put “confi- dential data” into it. Cedric Worth also told the House Armed Services Committee he had given a copy of the document to plane manufacturer Glenn Martin without knowing whether Martin | was entitled to secret information. ‘The document now has reached many hands. ENEMY GETS FACTS Committee Counsel Joseph B. Keenan suggested that parts of its relating performance figures of the giant, six-engine intercontinental tomker, “might help an enemy or potential enemy.” “I don’t doubt that they had it,” Worth said. The exchange on ° confidential | material came shortly after Worth had backed down on part of yes- terday's testimony. At that time he told the House 'Armed Services Committee, making the investigation, that he told his Loss, Navy Undersecretary Dan Kimball, four or five days ago that ne wrote the memo. Today Worth said what he ac- tually told Kimball was that Chair- man Vinson of the committee was saying Worth was the writer. EMBARRASZING The whole situation was embar- rassing to the Defense Department in its etforts to smooth out friction between the supposedly unified Army, Navy and Air Force. The Navy and Air Force in particular have had disagreements, mainly over strategic bombing assignments. The 49-year-old Worth was un- cloaked yesterday as the author of a memorandum which Chairman Vinson (D-Ga) the integrity of high government officials. The memoranduin im- plied that the Air Force's billion dollar B-36 bomber program was a mistake, deliberately fostered by politics. Following the disclosure, Worth was suspended from his post by Secretary of sthe Navy Francis P. Matthews, pending a departmental investigation. MRS. BOYLE OUTSIDE ‘To be with her mother, Mrs. Elizabeth Morris of Victoria, B. C.,, during her serious illness, Mrs. | Frank A. Boyle has gone outside said retlected on' for an indefinite stay. She was a passenger south on the Baranof.' SUDDEN HALT, 5 PERCENTER PROBE TODAY Privaté MeE‘t-)f Vaughan Implicates Truman in Military Permit WASHINGTON, Aug. 25—(P— Senate investigators today turned up a memo from Maj. Gen. Harry H. Vaughan to State Department authorities saying President Tru- man was “personally interested” in a prospective Europcan trip for John Maragon in August 1945, Agents of a Senate Investigating subcommittee introduced into its records a memorandum by Vaug- han, dated Aug. 3, 1945, which said that Masagon was interested in visiting Italy for the Albert H, Verley Perfume Co., of Chicago. The memorandum contained this pencilled note in the lower left hand corner: “Col. Vaughan informed Mrs. Zhipley (Mrs. Ruth E. Shipley, Chief of State Department Pass- port Bureau) that the President is personally interested in Maragon's trip to Italy--Col. S. agrees that he is 1-D.” It was signed JFS 8-28-45. ‘The military permit procedure in effect at the time listed as “1-D" persons “whose travel is authorized oy the President.” b % The Senators, digging into the question of whether there has been .mproper influence in the conduct of government business, have wanted to know how Maragon and other agents of the perfume com- pany managed o get rassage on military transport planes to Europe in 1945. It was on the'return from the July trip for the perfume company that Maragon got into difficulties with customs dgents who found he had valuable perfume oils disguised MARAGON PADY The committee was tflozmec_ day that Maragon settled that 2 for $1,500—:ncluding $1,145 assessed as a penalty, Francis D. Flanagan, ‘Assistant Counsel, intrcduced the various documents, fncluding the State De- partment memorandum. Flanagan said “JF3” was a “Mr. lSecanlon," assistant to Mrs. Ship- Y. Senator Mundt (D-SD) com- mented that he thinks President Truman “probably” had no personal knowledge of what Vaughan was doing. Maragon was waiting to testify when the documents were intro= duced. But Chalrman Hoey (D-NC) sud- denly announced the hearing would -| recess until tomorrow, ® e o 0 a0 0 0 0 WEATHER REPORT (U. 8."WEATHER BUREAU) (Thi; data is for 24-hour pe- riod ending 7:30 a.m. PST.) In Juneau—Maximum, 69; minimum, 47. At Airport—Maximum, 69; minimum, 40. FORECAST (Juneau and Vicinity) Continued fair tonight and Friday. Lowest temperature tonight 45; highest Friday 68 PRECIPITATION @ (Past 24 hours ending 7:30 a.m. today In Juneau City — None; since Aug. 1, 556 inches; since July 1, 10.85 inches. At the Airport — None; since July 1, 298 inches; since July 1, 6.95 inches. ] .Cot.....'n.og'ccoo.'..pi e r o =+ 0 e STOCK QUOTATIONS NEW YORK, Aug. 25.—(M—Clos- ing quotation of Alaska Juneau mine stock today is 3%, American Can 93%, Anaconda 27, Curtiss- Wright 8%, International Harvest- er 26%, Kennecott 46%, New York Central 10%, Northern Pacific 14%, U. S. Steel 22%, Pound $4.02 13/16. Sales today were 730,000 shares. Averages today are as follows: industrials 179.01, rails 45.77, util- ities 36.50. FRANKS IN TOWN Of the Harry Frank sales Co., Anchorage, Mr. and Mrs. Harry Frank will be at the Baranof for about a week. She was the form- er Edna Baum of the Anchorage Times. They arrived in town yes- terday, he from Los Angeles via Pan American and she from An- chorage on Pacific Northern Air-