The Daily Alaska empire Newspaper, January 3, 1950, Page 1

P 'Olson Given Ten Years in Prison; Als T 4 6% THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXIV., NO. 11,391 JUNEAU, ALASKA, TUESDAY, JANUARY 3, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS MARAGON INDICTED BY GRAND JURY Four Charg;;)f Lying Io% Senate Investigators Made in Report WASHINGTON, Jan. 3—(® John Maragon, former bootblack who later had a pass to the White House, was indicted today on four charges of lying to Senate investi- gators. If convicted by a jury on the‘ charges, Maragon would be liable | to possible penalties of 40 years| imprisonment—two to ten years on | each count. The date for a trial will be setl‘ later. | A Federal Grand Jury accused Maragon of perjury in: i 1. Saying his only bank account in 1945 and 1946 was in the Union Trust Company in Washington. 2. Testifying that from 1945 until July, 1949, “He did not negotiate any government business and- did not receive any money for negoti- ating government business or for | any work done by him in connec-| tion with the government.” 3. Stating he was not employed by anyone else when he took a job with the State Department on a| mission to Greece. 4. Saying he borrowed $5,000 from his mother-in-law in 1949. The charges are all based on testimony that Maragon gave last July ‘28 to ‘a Senate committee. The committee was looking into activities of men who offered, for a | fee that frequently was five per- cent, to land government contracts | for business men. FINLAND REBUKED - BY RUSS| | (By Associated Press) i Russia’s stern rebuke of neigh-} boring Finland that she is harbor- ing more than 300 Soviet war criminals was interpreted in Fin- nish political circles as a move to bolster the Finnish Communist party in the coming Presidential election. Russia in a bitter New Year's Day note said Finland violated her 1944 peace treaty by furnishing war criminals with false documents and | names. The Washington Merry - Go- Round Bv DREW PEARSON (Copyright, 1950, by Bell Syndicate, Inc.) ASHINGTON — As Congress opens today, two important thir_xgs are happening to the policy which guides the foreign relations of the | USA. and which in the long run either prevents or foments war: 1 The British are giving us a double-cross in China—at a time when U. S. Treasury experts say two billions more will be needed to bail Britain out. I 2. Congress will soon begin 3| vitriolic criticism of U. S. vacil- lation in regard to China. It so happens that the British Foreign Office is recognizing the Communist Government just at a time when it will hurt the State Department’s relations with Con- gress most. This is not intemionnl.! but rather because British invest- ments, British trade and the prized: British Island ‘of Hongkong re-| quire protection. 1 Meanwhile: Secretary of State Acheson and Secretary of Defense Johnson are engaged in a tug of war regarding our Chinese policy, with President Truman stamping his foot on the sidelines and de- manding definite action, one way or the other. Actually, a firm and definite pol- icy regarding that hetrogeneous mass of 400,000,000 Chinese ple speaking 23 different dialects is i e AUMD CRRRFATH 115 S5 SN, (Continued on Page Four) 11 e r Jacque Mercer, 18, Miss America Douglas Cook, 20, (right), as sh Litchfield Park, Ariz. The Rev. nessed the signature and shortly mony.. # Wirephoto. |ss America_’ "Weds CONGRESS - RESUMES ~ SESSION ;Presidenfilill Deliver Message to Joint Meet- ing Tomorrow . By Marvin L. Arrowsmith WASHINGTON, Jan. —{#—Con- |gress, with one eye already cocked |to next fall's elections, convened | today for its second round of bat- tling over President Truman’s “Fair assembly was mostly a ifi)nm\h y. The real kick-off for | the second session of the 81st Con- }gress will come tomorrow. That |is when Mr. Truman will tell the | lawmakers what he expects from | them. Beginning about 10 a.m. (PST), | the President will deliver his State of the Union address to a joint Senate-House session. All major {radio and television networks will i carry the speech. | At a White House meeting which ended shortly before Congress met, Mr. Truman gave his Congressional {High Command an advance look at the message. They also went Jover his economic message, which !he will send to the Capitol Friday, and his Budget message, due Mon- | day. | of 1949, looks up at ner fiancee, e signs their marriage license at James B. Ostergren (center) wit- after officiated in a surprise cere- Emerging from the one hour and | five minute conterence, the Demo- STATEHOOD TRIAL OF ADVOCATES HAVE HOPES 'Senator Butler, Opposing, Says Federal Controls Would Remain Here WASHINGTON, Jan. 3—(®—Ad- vocates of statehood for Alaska and Hawaii say they have a good ! chance of winning their long battles in the new session of Congress to- day. But Senator Butler (R-Neb), who | has successfully opposed addition of the 49th and 50th states, told a re- porter: “The chance of statehood in the new session or immediate future is very unlikely.” Butler, as ranking Republican member of the Senate Interior and Insular Affairs Committee, out- lined his reasons for opposition. “People in Alaska now are as well off as those in the states,” he said “The Territory has an area two- fifths that of the United States cut only about 80,000 or 90,000 resi- dents, when the armed forces are excluded.” PUCIC DOMAIN “About 90 percent of all Alaskan land is in the public domain and would continue under federal con- trols and free of taxes even under statehood,” he added. As to Hawaii, the Senator said “Statehood should be deferred in- definitely until demonstrate by positive steps a de- termination to put down the men- ace of lawless Communism.” Boosters for’ Alaska and Hawali are counting on these points dur- ing the coming session: 1. President Truman is expected again to recommend favorable ac- tion. 2. Oscar Chapman, new Secreta of the Interior, is expected to pus the proposals with new vigor. 3. A change in House rules wjl permit both measures, already Moved by committee, to reach'a House vote even though delayed to date by the Rules Committee. BUTLER BLOCKED Both Territories now are repre- sented by delegates in the House, who can speak but not vote. In 1947 the House passed a state- hood bill for Hawaii but Senator Butler is credited with Tlocking Senate action. Delegate Farrington (R-Hawail), in a separate interview said “Sen- ator Butler has been the principal obstruction to statehood for more than two and a half years.” {Continued on Page 2) the people there! cratic leaders expressed enthusiasm rover the President’s plans. Speaker Rayburn of Texas told reporters: “It looks like the country is in | pretty good shape—I never saw it B R I D G ES {in better shape.” AGAIN ON' Others who sat in on the con- ference were Vice President Bark- ley, Senate Democratic Leader |Lucas (Il) and House Democratic oy | Leader McCormack (Mass). SAN FRANCISCO, Jan. 3—R— Among rank-and-file legislators, The perjury trial of Harry Bridges | p,, of the talk was about taxes. ipped right ba¢k into gear again Some—particularly the Republi- today, just as if there had been no| ’ holiday vacation. | cans—were saying a lot, too;, about Paul Crouch, government witness outting expenditures; % professed ex-Communist, was | Republican House Leader Martin under heavy cross-examination Ly, (Mass) defense attorney Vincent Hallinan.|SPecial GOP committee to keep tab Crouch persisted that, while a|on the President’s “Fair Deal” ! spending. | Martin gave it the name of the | “price tag committee” and said its 1jo» would be just what its name { implied—to put price tags on ad- |12 nistration Spending proposals whicir “have reached a height detri- | mental fo the welfare of the | country.” Communist, he composed a Com- munist party line resolution which Bridges presented at a CIO meet- ing in Oakland fore the holiday recess in Det 21, Crouch had testified that the Communist party had “constructed a web” around Bridges, head of the CIO Longshore Union, to com- pel him to change over, with the Communists, after Germany at- 5 tacked Russia in 1941, This change, | the floor when Speaker Rayburn Crouch said, was from one of ‘.metcaued the House to order at noon Yanks are not coming,” to one of | They joined the reciting the Lord's all-out support for Russia. | Prayer with their chaplain, the Rev Bridges, Australian-born, was in- | James Shera Montgomery. dicted on the grounds that he swore| Rayburn said the House has nc falsely in his 1945 citizenship hear- | business on its schedule for this ing that he was not and had not;week except to hear the Presi- been a Communist. dent’s address tomorrow. Hallinan, through his cross-| Barkley banged the gavel in th examination today, was trying to|Senate with a smile and an upwarc show that all the points in the glance to the gallery from where controversial Oakland resolution | his pride of six weeks was looking stemmed from Bridges' own Views|down with pride. on policy, and were not Communist | inspired. maT:;\ :::lle o;eBel;:gm will last lor;ARIlEn MAKES stock ouorations - SHIPPING REQUEST NEW YORK, Jan. 3—Closing quo- | WASHINGTON, Jan. 3—(# tation of Alaska Juneau mine stock today is 3%, American Can 105%,| Delegate Bartlett of Alaska askec Anaconda 28%, Curtiss-Wright 7%, Congress today to extend untl International Harvester 27%, Ken-!|June 30, 1951, a law permittin necott 50'%, New York Central|Canadian vessels to carry passen- 11%, Northern Pacific 13%, U. S.|gers from Skagway and Haines Steel 26%, Pound $2.80%. Alaska, to other points in the Ter- Sales today were 1,260,000 shares. ritory. It is due to expire next Averages today are as follows:|Juns 30. industrials 198.89, rails 5288, util-| Tne jaw also permits Canadian ities 41.02. vessels to carry passengers and DR freight from Hyder, Alaska, to other Alaskan points and ports in the SIEAMER MOVEMF“S | United States. Denali from Seattle in port and ¢ K posed tion scheduled to sail for Sitka “"wozs’ffim%emfl‘i o Z:"“::v:fii WeehORsd. ol 3 . aead railroads in Alaska. It was super- Baranof scheduled to sail from | dopted Seattle Saturday. jreded. by 2. AN JAZ o Princess Norah scheduled to sail | ® y“rm:g‘:i :{:w ' i::”bo::- taxc; from Vancouver January 14. ‘t’:: “';h “: &p‘i;'ukgn s would be affected. The Delegate also introduced a bill to authorize appropriation of $25,000 for an addition to the Ter- Only akout 1 members were on FROM BIG BULL MINE On a New Year vacation, V. Jurick and J. Robinson of the Big , Bull Mine, B. C., are in Juneau, |stopping at the Gastineau Hotel. native children, 7 announced creation of ni | | ! | i | GHIGLIONE NAMED CHIEF ENGINEER OF ROAD COMMISSION A. F. Ghiglione has been named to become Chief Enginer of the Alaska Road Commission effec- time Fekruary 1, 1950, at which t‘me Ike P. Taylor, now holding that position retires. Ghiglione has had long/experi- | ence with the Alaska Road Com- mission, originally teing appointed 'z instrumentman on harbor work in southeastern Alaska in 1929 and later as Resident Engineer in charge of the Juneau-Douglas bridge construction. He continued with the Commis- sion in the interior of Alaska as la& stant superintendent of the An- i chorage District until assigned to !Lhc main office at Juneau as Assist- iam Chief Engineer in April, 1948. Since August, 1948, has has been Chief of the Construction Divi- sion of the Juneau office. Ghiglione is a graduate of the University of Washington, class of 1931 and has a degree as Master of Civil Engineering from Massa- chusetts Institute of Technology, a result of a competitive scholarship. He is a member of Tau Beta Pi and Phi Beta Kappa honorary societies and is a member of the American Society of Civil Engineers. He was recently appointed a member of a National Committee of the Ameri- jcan Society of Civil Engineers on | Snow, Ice and Permafrost. As commander in the U.S. Navy Civil Engineers Corps during the war, he served as contract superin- tendent of the Thirteenth Naval District and Officer in Charge ot approximately $100,000,000 worth of naval construction in the north- west. He received special commen- dation for this work. Ghiglione moved to Juneau with his family in August, 1948. Mrs. Ghiglione, the former Alice Palmer, is well known here, as she super- vised music and art in the Juneau schools from 1933 to 1939 They now have three daughters— Ann, aged nine; Kay, aged seven; and Susan, born in October, 1949. Ghiglione, well known through- out Alaska, is a member of the Ju- neau Rotary Club and Juneau Toastmasters Club. WRANGELL TRAPPER REPORTED MISSING Mrs. Frank Young of Wrangell has requested Coast Guard aid in finding her husband who has been unheard of since he departed on a trapping expedition to Gambier Bay on Admiralty Island December 12. He was scheduled to return De- cember 23, Mrs, Young told Coast Guard officials. Young was aboard 31C93. the vessel AUTO LICENSES ON SALE Alaska auto licenses for 1950 are now being sold at the City Clerk’s office in the City Hall here, C. L. Popejoy, City Clerk, announced to- day. FROM TYEE J. C. Ray of Tyee arrived in Ju- ritorial school at Nome to care for{neau yesterday, and registered at City. OReilly i1s a guest at the the Gastineau Hotel. INSISTING HE CAUSED DEATH of e Fined CHARGE 'MERCY DEATH' DOCTOR WITH MURDER Mrs. Abbie HELP FORMOSA IN 6-8 WEEKS (Editor’s note: Stanway Cheng, | veterai correspondent in China has close connections in the Nn- tionalist Government. The fol- lowing dMapatch from him in Formosa was obfzined from sour- | ' ces considered reliable in’ Taipeh, | capinl of Naticnalist China and headquariers of Generalissimo | Chiang kai-Shek). | | By Stanway Cheng TAPEH, Formosa, Jan. 3—(P—| Well informed sources said to-| day U. S. miiltary and esonomic| aid will come to Formosa [ if the | Nationalists can hold the Island from Red Chinese for another six to eight weeks. These sources said economic will come from the $48,000,000 un- lused portion of economic aid ad- ministration funds alloted to China and will precede military aid. Military aid, they said, will main- ly be centered in the $75,000,000 :mimury assistance program voted by the American Congress. | This same source revealed both/ American economic and military assistance will be closely supervised by U. 8. advisors whose status may | !'not be as United States Govern- | ment representatives but as private individuals invited here by the Nationalist Government. | When Generalissimo Chiank kai- Shek arrives from interior For- mosa he will have his hands full streamlining the Formosa defense and civil administration for the, anticipated arrival of U. S. aid | aid. Chiang is expected back from the Sun and Moon Lake tomorrow. | |BIG BOX OF OREGON FRUIT, NUTS, GIVEN GOVERNOR BY BAND! I A large box of Oregon products, chuck full of walnuts, apples, cher- ries (in the can, because it's win- ter) and other delicious ediblesl Borotto (right) as “act of mercy,” Dr. Herman N. Sander sits with wife at Manchester, N. H., hearing at which he was released on $25,000 bail after being charged with murder of woman suffering from “incurable” cancer. He admitted injecting air into woman'’s veins with syringe, causing her death few moments later, |sending American troops to the JUDGE RAISES D. A. SENTENCE DECLARATION Defendant Waives Hear- ing, Pleads Guilty-Sen- fenced in 15 Minutes Oscar G. Olson, former Terri- torial Treasurer, was sentenced to 10 years in the federal peniten- tiary and fined $46,475.30 on two counts of embezzlement by Federal Judge George W. Folta. Sentence took place in a 15-min- ute period this afternoon. Olson had thrown himself on the mercy of the court, waiving indictment | by grand jury, waiving arraignment, and waiving time to enter a plea. Olson was represented by Attor= ney Robert Boochever. Two charges were made by in- formation following the defendant's signing the waiver, the first cover- ing a period from 1046 to 1949, in- volving $19,348.71, and the second that he neglected to account for $23,237.65. U. S. District Attorney P. J. Gilmore, Jr., after a short review of the case, recommended a seven- year concurrent sentence and the ligure the judge used, which amount is double the sum named in the second count. ¥ Boochever asked the court that because of circumstances, for a two- year sentence and an “applicable” (International) 1 Hvbdver,fl Talf Urge Formosa NavyBe!ense Strong Proposals Made in Troubled China Situation fine. -M v ' pxmm penalty is 15 years unk Moves Suggested | cout. s o sine sotmre... PLEADED GUILTY Clson entered a plea of guilty on both counts, but made no state- ment. “We don’t say this isn’t serious,” said his attorney. “It has been on his conscience a long time. He has cooperated with the district attor- ney with all his power. No bargain- ing was attempted, in saving the territory excessive amounts of money involved by waiving a grand Jury hearing, “The defendant has led an ex- emplary life until this course of events began,” Boochever con- tinued. “Embezzlement is one of the easiest crimes in which to be- come involved, especially where accounting proceedures are not taken.” The attorney said that Alaska was actually “just as guilty” as the defendant, and declared the dis- trict attorney oversevere in his recommendation. WASHINGTON, Jan 3.—P—Two Republican leaders—former Presi- dent Herbert Hoover and Senator Taft of Ohio—want the U. 8. to use armed strength if necessary | to protect Formosa from the Chin- se Communists. Their strong proposals spomgm-‘ ed the troubled China situation as lawmakers flocked back to Capitol Hill for the second session of the 81st Congress. The Administration is working on new strategy aimed at checking Communism in the Far East. However, President Truman s reported to be firmly opposed to defense of Formosa. This does not rule out the possibility of supplying cconomic aid and advice to the Chinese Nationalist defenders of the Island. Hoover—now the GOP's elder| statesman—said the government should use American Naval power if necessary to save Formosa and less islands laying off the coast of Communist-held China. He suggested a three-point pro- gram of U. S. Military defense of the islands, no recognition for the Chinese Communist . Government, and continued recognition and sup- “CONSIDER FAMILY"” “The defendant is not a young man, and can never get out of Leing a pauper,” he sald. “Seven years:is too much. He has a family —a wife and two daughters. They were not asked to appear here, but it is asked that the court consider port of Chiang kai-Shek’s Nation- | them.” alist forces now on Formosa. (Olson will be 59 years old June 23) . These moves, he said, would build “a wall against Communism in the Pacific.” And he added they would give "at least a continued hope of some time turning China in the paths of freedom again.” Taft told reporters that both U. S. Naval power and Air power should be used to defend Formosa and prevent the spread of Com- munism in Asia. Hoover gave his views in a let- ter to Senator Knowland (R-Calif) who released it yesterday. In rebuttal, Gilmore agreed Olso: had cooperated, and that his re- commendation took that into con- sideration. In his opening statement to the court, Gilmore said: “Your honor has known the ac- cused longer and better than I. Both of us have known him over a long period. My duty here is to roint out that the information does not quite truly reflect the true situ- ation as to amounts. The amount charged shows a figure over the from the Webfoot State, was pre- sented to Gov. Ernest Gruening three-year statutory period, and the Saturday night by Dean W. Mickel-j® ® ® o ¢ & © @ 3 & 9 re‘;;ort skm: n:c;lre ai A udge a, a brief statement et e ii’ffélf i WEATHER REPORT ¢ | efore pronouncing sentence, aia in concert. ¢ (This data Is for 24-hour pe- ¢ |there “was no more flagrant or The gift was received by Lt.|® "‘r’fi 3’;";2;)1’;;’3;::;1;5:‘4{ : (Conuinuea on Tage Six) Comdr. E. P, Chester, military aidel. min{d 10 S to the Governor, in his absence. & "ERS' Im Presentation was made following| J ":A“';m.:l’;pogt——vMaxlmunl i : Ino To E the band’s performance. | . y 'E HHD 'om 4 y . FORECAST . everything unyulgmse G(‘)vvernur re-|® Mostly clear and colder to- @ | 10ca] 100 of the United Trollers turned from Fairbanks, where he|® Uiht. Increasing cloudiness @|of Alaska will hold an clection at had gone to attend the Ice Bowl|® weg"efg“ with snow by ®|7:3) oclock tonight in the C.LO. thatball game! j® Wednesday night. Lowest ®|pp) i e temperature tonight about e! An executive secretary for the ROYAL O'REILLY HERE |°® 10 degrees in Juneau to as efjoca) will be elected at the meet- e low as 2 in outlying districts, ® ing as well as members of the Royal O'Reilly, who has bccni: :‘f;r;'ne‘::“g:“““” Wed- : union’s ‘toard of directors, Dele- th:Baranor BURRE RASm here, re- | S T4 3 :Dours sding 130.8.m, $ad: the CIO. hall here January 16, turned to Juneau yesterday. He has : sicl::' ?,::““f““;'s‘:ni:itf' will also be chosen, according to t tur- N E union of! 3 been entertaining at the pictur. since July 1 e mig wfi;{lfilfl; o few miles outside of the Interior Gastineau Hotel, esque Fairbanks Country Club, al At Airport—.52 inches; since Jan. 1—53 inches; since July 1—36.02 inches. ® e 0 0 00 00 0 0 also be chosen by union locals at Ketchikan, Sitka, Petersburg, Craig, ‘Wrangell, and Point Baker,