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

THE DAILY ALASKA EMPIR VOL. LXXIV., NO. 11,366 SHIPS NEED COMPETITION, SAYS INTERIOR Diversion Explained to Di- vide Business—Cost Not Primary, Says Dept. By Charles D. Viatkins WASHINGTON, Drc¢. 2—(®—The Interior Department says the “need for some element of competition in steamship lines serving Alaska” has been apparent and has caused it to divide shipments to the Ter- ritory among west coast ports. Rep. Holmes (R-Wash3, who had inquired of the Department as to why it had diverted some Alaskan shipments from Seattle to Portland. San Francisco and Los Angeles, made public the Deparlineni’s re- ply todav. “Briefly stated” the Inlerior De- partment said, “it(7$ the policy of the Alaska Railroad and other agencies of this Department to ship supplies and equipment io Alaska by the method and roule that will result in the lowest cost. There are occasional exceptions to this ruie where considerations of Timing and delivery make it to the interest of the government to do otherwise. “We believe that it is desirable to develop trade with Alaska orig- inating not only in Seattie, but also in other Pacific ports. If the cost is approximately thé same, then we try to divide railroad and other cargo fairly among compciing lines available. This policy has resulted in a division of government freight traffic between Seattle and other Pacific Coast ports.” Divide After Consideration The Department said it decided to divide the Alaska traffic among all west coast lines “only after fuil consideration had been given to the needs of the Alaska trade,” in- cluding procurement for the Alaska Railroad and the Alaska Road Com- mission. “The apparent need for some ele- ment of competition in steamship lines serving the Territory also was an important factor,” it @dded. The Department said Alaskan shipments will decline in import- ance as the rehabilitation of the Alaska Railroad and improvement of the Territory roads move nearer completion. It said it believed that its policy of dividing the shipments among all the ports and shipping by the cheapest route “is completely defen- sible policy” but added it is now ceiving a letter from F. A, Zeus- Holmes made his inquiry after re- : cleving a ‘letter from F. A. Zeus- ler, Executive Assistant to the Pre- sident of the Alaska Steamship- Co. Zeusler said diversion of govern- ment ships from Seattle to the other west coast ports was cost- ing Washington State several mil- lion dollars. He said Seattle had| always handled the government'sj Alaskan shipments and the dlver-i sion deprived longshoremen there! of work they customarily received., ® ® & & n e o > WEATHER REPORT (This data 1s for 24-hour pe- riod ending 7:30 a.m. PST.) In Juneau—Maximum 42; minimum 32. At Airport—Maximum 37; minimum 33. FORECAST (Junean and Vielnity) Mostly cloudy tonight and Saturday with ocCasional mixed rain and snow show- ers. ‘Lowest temperalure to- night near freezing and high Saturday about 38. PRECIPITATION (Past 24 nours ending 7:30 a.m. todsy City of Juneau—.35 inches; since Dec. 1—36 Tiches; since July 1-—4847 inches. At Airpori—20 inches; since Dec. 1—22 ifiches; since July 1—33.22 inches. e s 0@ 0 0 0 0 . 9000000000000 000000000000° © 0000000000000 00%0000000. > Four-Story Hofel Swefly Flames (By Associated Press) In Supulpa, Oklahoma, early to- cday, a fast-moving fire swept through a four-story hotel in which sixty persons were registered. First reports indicate that there have not teen any fatalities, but the Supulpa fire chief says some bodies may be in the ruins. The fire raced through the hotel and several business -buildings. Fire companies from nearby Tulsa turned out to help fight the Supulpe blaze, Offer; 2,000 SHIPMENT 10 MOVE Freighters to—Carry Billion Dollars Worth of Sup- plies to Europe (By the Associated Press) An armada of freighters weighted with the greatest shipments of arm- jaments to leave American shores in peacetime—$1,000,000,000 worth— will start moving to Europe in a few months, Zignal for the American arms aid program to start rolling was 3iven when Defense Ministers and Chiefs of Staff of 12 Atlantic Pact aations initialed a master defense {plan in Paris. The arms shipments must be cer- tified by President Truman as ac- ceptakle to the United States and !there are a few more nation-to- nation agreements to be signed to comply with Congressional safe- yuards But no difficulty is seen on |‘his score since the plan is largely American in origin. The aim of the North Atlantic Defense plan is to stop any aggres- sor—the nation feared is Russia, which has the world’s biggest armies. ITALIAN STRIKE REPORTED AS FLOP (By Associated Press) Communists in Italy made a weak showing in a 24-hour general strike they directed. The bulk of the na- tion’s workers ignored the strike call. The strike was well ozserved n the industrial north where the Communists have a firm grip. Most ports were idle. . But government and Conservative party spokesmen said the strike was a flop and demonstrated that the Communists have not the discip- linary hold over the mass of Italian workers which they ap- peared to have in the immediate postwar years. The Washi;gion {Merry-Go- Round Bv DREW PEARSON Convright, 1949, by Bell Syndicate. Inc ASHINGTON—Young hero of { the nation’s capital last week was football star Leo Speros, who led Wilson High School to a one-point victory in the championship high school play-off for the District of Jolumbia. Leo, who waded down a snowy field to score “Tbuchdown after touchdown, was the toast of the capital's sports world. Unsung and unheralded was an-; other hero in the Speros family— ais father. Operator of a restaurant Speros Senior quietly gave a job to the secretary of Congressman Parn- ell Thomas when she was indicted on a techincal charge of arranging for salary kickbacks. Miss Helen Campbell finally, de- cided that her boss, thé chairman of ‘the un-American Activities Com- mittee was being un-American him- self in requiring alleged members of his office staff to pay. their salar- ies back to him, and reported this ;o the Justice Department. The Jus- j tice’ Department, in order to show a conspiracy, had to indict not only the Congressman who ordered the kickbacks, but his secretary who carried out his orders, Out of a job, 64 years old and un- der indictment as a reward for her patriotism, Miss Campbell fifially got employment at the Silver Fox restaurant, where Jim Speros, a be- liever in clean government, gave her employment. Clergy and Lobbyists It looks as if the real estate lob- by had now succeeded in enlisting the clergymen of the nation—as their opponents. «Continued ou Page Four) SEATTLE VISITOR Roy W. Johnson of Seattle is lswpping at the Baranof Hotei. Krug Makes Third Claim Te 150 Eskimos P “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, FRIDAY, DECEMBER 2, 1949 MEMBER A SSOCIATED PRESS PRICE TEN CENTS HIRING HALLS ILLEGAL Square Miles rqposed WASHINGTON, Dec. 2~4M—Tltc] | Interior Department says it is ox-‘ fering 2,300 square miles of Arctic Alaska to 150 inhabitants of two Eskimo villages. The area would serve the natives! SaYS NI-RB | as a reservation. It was the tmxd’ A proposed oy Julius A. Krug in his; WASHINGTON, final hours as Secretary of the|trial examiner “for e T.TONE: Interior, in adjustment of Eskimo :Labor Relations Toai™ ruled today claims to land. These claims must!that the West Caast niring halis be settled before the land can be|for longshoremen and waierfront opened to development. |clerks operate in violation of the The reservation would be on the|Taft-Hartley Act. Kobuk river in the area of the" The examiner, Irving Rogosin, villages of Shunknak and Cobuk, held that the hiring hall system northeast of the Seward peninsula.|dces not in itself conflict with the The other proposed reservations Act. But, he said, they are operat- are 750 square miles of the Arclic“ed in four west coast port areas in: slope, for 367 Eskimos living at|such a manner as to discriminate Barrow, northern most point of |against prospective employees who Alaska, and 100,000 acres on Prince |are not members of the CIO long- of Wales and Sukkwan Islands, shoremens’ union. for 360 natives of Hydaburg yillage! The ruling, affecting 12,000 long- cn Prince of Wales Island. shoremen and 3,000 waterfront Krug said 88 square miles ofclerks, was made on charges mineralized ground inside the pmJbrought against the union by the posed Cobuk river reservation would | Waterfront Employers Assoclation remain open to prospectors and|of the Pacific Coast. miners, and would still be subject| Also involved are the Waterfront tc mining laws. Gold, asbestos and | Employers Association of California jade have been found in the area. ‘and the Waterfront Employers of “erotection of the way of life ;Oregon and the Columbia River. of these Eskimos in the. forbidding| The hiring halls are operated Arctic land that they occupy is Jjointly by the union and the Em- essential to maintenance of their|ployers Association. They are lo- villages and culture,” Krug said in|cated mainly in Seattle, Portland, a statement. San Francisco and Los Angeles, Estaclishment of the reservations S e will depend upon the outcome of an election of the natives. BAlAN(ED { i 1 STOCK QUOTATIONS NEW YORK, Dec. 2.fclosmg‘ quotation of Alaska Juneau mine stock today is 3%, American Can Secretary of Treasury Snyder Reiterates 3% Year Old Statement 100, Anaconda 287% -Curtiss-Wright 7%, International Harvester 277%,, Kennecott 50%, New York Central, 10%, Northern Pacific 13%, U. S.| WASHINGTON, Dec. 2—(®-—Sec- retary of the Treasury Snyder said today the government’s budget should be balanced—now. Steel 25%, Pound $2.73%. i Sales today were 2,020,000 shares., But he made no suggestions be- yond reiterating a 3': year old Averages today were as lollcws:I industrials 183.63, rails 50.29, util-| ities 39.52. statement that the government should reduce spending “in every possible way” and “maintain ade- quate tax rates” to keep receipts! and outlays in balance. Appearing before a Senate-House subcommittee studying governmeni money, credit and financial policies, Snyder said: “It seems to me, that in times as prosperous as these we shoula have a talanced budget. | | I | | | i | i | West Coast Organizations Operate in Violation Des. 2 . ADVANCE NEW HIGH NEW YORK, Nov. 9.—(#—The| stock market advanced to a 13- month high today in fne year's fastest trading. Railroad issues powered an ad- vance which carried key issues up fractions to around two points, and | in a few cases ‘more. Heavy trading accompanied the, rise, with turnover at a rate of; around 2,000,000 shares for the fulll day. Previous high this year was 1,850,000 shares on March 30. | Aggressive buying started late | yesterday following news that John |L. Lewis had called off the coal strike. The market kept driving +added he would present the matter ahead today despite heavy profit itaking sales. Big Plane Runs “National income today is close to the highest level in our history, jand, by every standard of sound government finance, the time to i have a balanced budget is now.” Into Flock of Geese; Damaged (By Associated Press) One of the less known hazards of aviation was emphasized today in a Trans-Atlantic plane flight. Seventy-five miles out of New; York, a Royal Dutch airliner en-| countered a flock of geese. One of | the wild birds struck a wing of the{ airliner, causing a dent the size of a football. The plane’s captain took the safe cqurse. He turned about and returned to the New York International Air- port. Trial to Uncover | Underground Group Is Now EProgress (By Associated Press) A strange trial is proceeding in Sarajevo, Yugoslavia, where the spark of world War T was ignited. The Yugoslavs are trying 10 Rus- slans accused of spyfhg for the Soviet Union. A gray-bearded Russian Ortho- dox Russian priest today pleaded “partially guilty” to the spy| charges. Yugoslavia, now an outcast from the Russian-directed Cominform, is trying to uncover the Cominform | underground which aims to oust Premier Marshal Tito and bring Yugoslavia back into the Kremlin- led bloc. Federal expenditures this fisca' year are expected to be $43,500,- 000,000, a peacetime record. He blamed a $5,000,000,000 tax cut voted last year by the Repub- 1 lican-controlled 80th Congress—ove | President Truman's veto—for the $1,800,000,000 deficit of fiscal 194c ended last June 30, and the pros- pect of a three-times greater on¢ this fiscal year. PROSTITUTION IN ANCHORAGE 15 DECLINING ANCHORAGE, Dec. 2—(®—Dr. C Walter Clarke of the American Social Hygiene Association reports that commercial prostitution in An- chorage is declining. He said a survey in the summer of 1948 showed flagrant conditions ir. the operation of bawdy houses. A follow-up survey last July, he said, indicated vice generally had been driven outside the city. Under- cover investigators were used in the surveys. He said the venereal disease rate also was lower. STEAMER MOVEMENTS Denali scheduled to sail from Seattle Saturday. Princess Norah scheduled to sail from Vaneouver Saturday. Baranof from west scheduled southbound Sunday afternoon or evening. One WHI Be Rosé Quee s * Here's the Queen of Pasadena’s annual Tournamen' of Roses and her six Princesses—but which one will be Queen is yet to be decided. The seven have been selected from 150 coeds who sought the royal honors, which include presiding over the Rose parade and the Rose Bowl game. (Left to right, lower): Betty Brusher, 20; Dorothy Welsh 17; Carole Lynn Collins, 17, (Left to right, upper): Marion Brown, 19; Eddy Ruth Stewart, 17; Dorothy E. Scott, 17; ‘Barbara Jones, 17. (PWirephoto. STRENGTHEN 'ALASKA NOW: WICKERSHAM WASHINGTON, Dec. 2—(®—Rep. Wickersham (D-Qkla) plans = to carry to Defense Secretary Johnson Uls proposal that defense in Alaska _e strengthened without delay. And, Wickersham said, he also will, present his views to the House Armed Services Committee at the irst opportunity in January. There are insufficlent defenses n the Territory now, he said. He o Johnson by letter. The Oklahoman recently visited Alaska as a member of the House vierchant Marine Committce. Alaskan officlals and citizens feel here should be additioned defenses, ae sald. “1 personally believe the Joint Shiefs of Staff should use avail- iile funds for Alaskan defense vithout delay,” Wickersham told a eporter before leaving for his wome in *Oklahoma. “I believe that Alaska might be i open spot for any country that vanted to come in from the north.” DRIPPING BODY IS FOUND; IT IS BEEF KODIAK, Dec. 2— (M — Deputy farshal Clarence Dizney got orders ‘rom his Anchorage superiors to nvestigate what sounded like a laying. He d'scovered that a vizitor from nckorage had overheard a conver- ation about moving a tody that as dripping blood. The visitor re- orted it to authorities at Anchor- ge Dizney found the body had been iripping all right—but it was a side o1 beef. 1ORTH VANCOUVER SECTION IS AGAIN HIT, FLOOD WATERS VANCOUVER, B.C, Dec. 2—IP— For the second time in a week, naywire waters of Seymour creek ‘n flood-beset North Vancouver re- ceded today, dropping five feet after high tidé. Throughout the night, 400 soldiers ind civilians piled 20,000 sandbags ilong the creek’s banks. At least 50 homes along east and west banks of the coffee-brown: | & | Seymour creek were evacuated yes-y .o Communist party?’ and you| terday, The surging Seymour ate away the foundations of dozens of homes. Three houses were cabled to trees to prevent them from being swept away. i Emergency ferry service remained the only link to Vancouver for the| 13,000 residents of West vancouver. | They were isolated again yesterday when the Army-constructed Bailey | Bridge over the Capilano came down with a thunderous roar. Ausiie Dock Worker Takes Wiiness Box "Bitter En;fi” Testifies Against Bridges - De- fense Tries Trap SAN' FRANCISCO, Dec. 2—(®— The government called a former Australian longshoreman who fought through the bloody 1934 waterfront . strike with Harry Er.dges as a wilness today in the West Coast Longshore leader’s per- jury trial. Tne witness is Henry Schrimpf, lid, barrel-chested and once characterized by Bridges as “a bit-i ter enemy of mine.” He testified he joined the Communist party 1034 at the behest of longshore ofticer Henry Schmidt, on trial with Bridges. Echmidt, along with anothe: union official, J. R. Robertson, is charged with conspiracy to de- fraud the government in connec- tion with Bridges' natural.zation iearing in 1945, Bridges, Austra- lian-born, charged with stating alsely at his hearing that he had in ¢ REPORT OF TREASURER OF ALASKA The ‘Teritory’s Genersl Func| | was short $560,018.60 to meet ite chligations at the end of Novem- ber, according to a statement issued today by Treasurer Henry Roden. | ~On November 30th after the cloting of the books, the sum o. $228,018.60 was on hand. this amount, the Auditor's offict held unpaid vouchers totaling $797,- 125.89, leaving the Territory shor $569,018.60. Treasurer Roden said that he x¥peets the shortage to be pared charply by the end of the year with the payment of the Lalance of .1949 fishtrap taxes and early _Jiyment of 1950 fishtrap fees. H2 pointed out that 1949 fish- trap license fees were paid undel the old law. The new law, tried in court, upheld the new tax rate on the traps themselves, and the bal- ance will te paid by the ‘end of the sear. CHINESE NATS ARE AGAIN LOOKING FOR never Leen a Communist ix-Communist John H. Scho= maker, who sparred with chief de-| fense attorney Vince Hallinan: through a stormy cross-éxamina- ANOTHER CAPITAL (By Associated Press) tion yesterday, mentioned Schrimp! jin his testimony as a leader in a mecting to discipline ‘Bridzes’ pri- “vate ' secretary. ZAYS TOOK ORDERS Schomaker was a key witness in the government attempt to prove that Bridgzes was onc: an active member of the Communist party. Zchomaker said he gave Bridges an application form and that Bridges was admitted to the party in 1933, paid dues, attended meetings and took Communist orders in the 1934 str.ke. In an attempt to impeach Scho- maker’s testimony yesterday, Halli- nan worked a trick which set the courtroom in an uproar and threat- ened new trouble for himself. Halli- nan is already under a six-months delayed sentence for: contempt of court. Hallinan had read several ques- tions and answers from a ten- year-old court transcript and then asked fchomaker if he remembered testitying he was not a Communist. Schomaker didn’t remem:er being asked. “WHO, ME?" “Do you remember,” Hallinan went on, “that you were asked the question, ‘Are you a member of gave the answer, ‘Who, me? No.’ Do you recall that?” “That is very possible,” answered Schomaker, “but I do not recall it in those word, No. There were two hearings and I don't know yhich one you were talking about. You'd have to let me see what went be- fore that and after that in the transeript.” (Continued on Page Five) The Chinese Nationalists arc looking about for another capital They fled from Chungking tc Chengtu this week but the Red orces are right behind them. Ob- cervers said Sichang, high in the nountains of Sikang province would 2¢ their next stop. If all mainland | coints fall the government is ex- pected to make a last stand at Taipeh, Formosa. At Lake Success the Nationaliste arried on a losing fight in the United Nations to win commitments that the Non-Communist world would not recognize the Communist cegime of Mao-Tze Tung. BRAZILIAN PLANE CRASHES IN RAIN; 22 PERSONS DIf RIO DE JANEIRQ, Brazil, Dec 2-M—A Real (Royal) Airlines DC-3 plane crashed in a rainstorm at an emergency field in Sao Paulo | state yesterday, killing 20 of the 22 persons aboard, the line an- anounced today. A woman and her five-year-old daughter were the only survivors ot the crash, which killed the other 16 passengers and four crew mem- Lers, the announcement sald. No foreigners were aboard. | | MOVING SOUTTI { Mr. and Mrs. James Wendt, who {have been connected with the Ideal ! paint Store here for the past three years, are leaving shortiy for Ta- coma, Wash, where facy will make their future heme. | EXTRA PLANE IS DOWNNEAR WRANGELL | Craft Runs Info Heavy Snow Storm-Pilof Lands on Flats—Aid Is Sent An Alaska Coastal Airlines Grum- man flying boat enroute from Ju- neau to Ketchikan made a forced ‘anding just before noon today and is down on the Stikine flats north - of Wrangell, Five passengers were aboard at the time the accident occurred but not positive information regarding injuries was availatle at The Em- pire’s press time. An Alaska Island aircraft, piloted by Trygve Hanson, was first to reach the scene after ACA had alerted all airlines on the Grum- man’s route when the aircraft failed to make a regular report ty radio. : ‘The plane was discovered dam- aged on the grass of the Stikine flats by a northbound Ellis Airline plane which turned back to search for the unreported Grumman, ACA officials said the Grumman attempted to make a forced landing when it encountered a sudden heavy snow storm. 5 ACA chief pilot Ray Renshaw, companied by Civil Aeronautics Authority airways inspector John Bowen, left for the scene of the accident immediately after the plane was found. Meanwhile, Alaska Island pilot Hansen returned from the scene to Wrangell for a doctor, . Boats - from toth Wrangell and Petersburg wete hurrying to the flats soon after the plane was found, and the Coast Guard cutter Hemlock of Ketchikan was dis- patched to the scene. Passengers aboard the Grumman * at the time it made the forced landing were Margaret Bell of Wrangell, and Zeke Dale of Ket- chikan who boarded the plare at Juneau; and June Otness, Harry ! Dierks and Dave Dreibelbus, who boarded the Grumman at Peters- burg. The pilot of the Grumman was Mike Fenster, ¢ PETERSBURG REPORT PETERSBURG, Alaska, Dec. 2— Alaska Coastal Airlines plane down at mouth of Stikine river. Trygve Hansen pllot for Alaska Island Air- Unes just returned from scene of crash and reported one woman pai- senger killed in crash, one man with broken leg and he said trap- pers on Farm Island told him an- other passenger lost an eye. l Dr. Jesse E. Herrell is at the scene of crash, Weather too bad land tide too low tobring rest of passengers to town. Plastic Phonograph Records May Have Caused Big Fire (By Associated Press) Chemists are analyzing plastic phonograph records .taken from a burned building in Barberton, Ohiq. The records may have released poisonous gas that doesn’t take effect for 24 to 48 hours. Two firemen were seriously in- jured in the blaze, which hit a jewelry store last night. About twenty other persons were hoi- pitalized after the fire, which is estimated to have caused dimage of $100,000. 3 CHRISTIAN SCIENCE PROGRAM BROADCAST An authorized Christish Sclence program, featured on a “Columbia Church of the Air” transcription, will be broadcast by station KINY, Juneau, on Sunday morning, Dec- ember 4, from 9:30 to 10 o'clock. This program was transcribed in San Antonio, Texas, by Waiter P, Simons. Mr. Simon's subject is: “Handwriting on the Wall” BLISS HOUSE SOLD E. W. Bliss of the Bliss Trading Co., announced today that he has sold his large concrete house on South Franklin Street to Haroid Westman, ey