The Daily Alaska empire Newspaper, January 6, 1950, Page 1

'y.' v 5 ; i “ALL THE NEWS ALL THE TIME” i.‘ ¢t VOL. LXXIV., NO. 11,394 JUNEAU, ALASKA, FRIDA\ r\\UAu\ 6, 1950 y MI‘MBFR ASSOCIATED PRESS PRICE TEN CENTS | Truman Optimistic on U.S. Economic Outlook " TERRITORY IN RED i A | (e Dowi uucen < resident Poinis Finger ruman 'S §$11,645 AS THE | | | i BOOKS ARE CLOSED DOESDA y onomic | | | il il o 1 b Rl ‘ SIATED Now | short $281,645.14 to meet .its obliga- | u Rl 7 tions at'the end of December, ac- | ! cording to a statement issued to-| i oN, Ad- ' '—R d | day by Treasurer Henry Roden. | (By the Associated Press) WASHINGTON, Jan. 6—(P— ustmen b 4‘ On December 31, after books clos- | Flood perils appeared mounting | Here is President Truman’s sum- J S S eques'e ed, on hand was $480,184.22. Agalnstl in Indiana and Illinois and a severe mary of his economic report to Power 'o con'rol Cl'edl' o this sum, ttle auditor’s office held | ice storm struck damaging hlowsl Congress today: . 1 unpaid vouchers totaling $701,829.- | in Memphis today. | 1 summarize below the legislative More |_|be|'a| loans 86, leaving the Territory short the| Bitter cold weather which had | reccommendations contained in this : amount mentioned above. ! chilled most of the midwest this ecaffunio TEKUABRdY R JHHeY By Sterling F. Green 3 | | week moderated but more freezing i111:3 Congress enact them into law: WASHINGTON, Jan. 6—(®—Pre- (ANAD' | | weather threatened additional dam- 1. Make some revisions in the tax | yqent Truman declared today the il | age to California citrus and vege- structure to reduce present Inequi-|yy,jieq gtates can offer its people | 1 te-le crops. Mild weather continued tics, stimulate business activity,| g minion jobs this year, 64 mil. [} } AiR COMMA"DER lN in the southeastern states and 2 and yield a moderate amount of lion in five years and' 5 Ehe ' northward to the middle Atlantic s net additional revenue. My spe- d, “the ol : o 3 end, e complete elmination of WIN'IIER MA“EUVERS‘ region. ‘uhc recommendations on taxes will poverty.” ‘- | Hundreds remained homeless in |e transmitted to Congress at an| yn g gober yet optimistic annual 4 | the flooded areas. At least three | early date. economic message, Mr. Truman told OTTAWA, Jan. G—W Group‘ persons drowned as waters from 2. Enact a new program to stim-|c,norecs the nation’s economy has | Sapt. P. A. Gilchrist of the R.C.AF.: ;swollm rivers swept over widely ‘nhuc private investment in hous- emerged strong and stable, and was named today as over-all Air | | separated areas of Illinois and ,“‘}; é"fb‘:“dsllel‘]‘“:"me f_“":g“s- _| with reborn confidence, from its Commander of the Joing Canadian- | | Indiana. £ ko "t" “: y "ire”‘f be ';‘“" | postwar crisis, ¢ American winter military maneuv- | A wide band of freezing rain b= m:’by . ‘:ecz;m“: tion | The way lies open, he said, for a ers next month in the Yukon and | jand sleet impeded highway travel [ v G o rise in national income equal to | Alaskn | from northern Ohio and northwest | Finance Corporation. nearly $1,000 a year for every 18 Gilchrist, 40, will have eight| | Pennsylvania southwestward. 4. Improve the protection of farm | famity by ‘1954, His startling state- fighter and transport squadrons| | The worst ice storm in 17 years | |lncomes and encourage needed|meng seemed to mean an average and other air elements under his | curtailed all public utilities, includ- { |shifts in farm production, by autho- | American family income above $5,- # command for an exercise designed ing transportation, in Memphis. No | |rization of production paymentsgy four years hence. : | to check ability to meet an enemy | | immediate relief was in sight. All i and other changes in present legis- “Magnificent Challenge” | raid. Tt will start in the Whitehorse, | | schools were closed until Monday. ‘ 15?0“- B e Mr. Truman called on business, ; Yukon, region and move up the i Thmkfift*l“dst Olf tMeTPh‘Sd hor;?\-* Adx‘nlfi;fiz&hn an‘g"l:umt;";‘riy‘éflljfii‘lubor and farmers—as well as the Alaska Highw: into Alaska for| | were. without electricity. and many ;. 1 i o " T Government—to rise to the “mag- ! ! .:‘Ji’:ml x‘:.lo)“:y ! {\Auhoul heat. Some 6,000 telephones | President Truman points his finger at chnbhg;m memb , as he | gt Lawrence seaway and power nificent challenge” ahead: A steady | B Known as Exercise Sweetbriar, it | were out of service. addressed a joint session of Congress in Washington, blaming the | project. growth of inoouts; emploomet kg | will involve an estimated 5,000 meny| ; No immedxa‘e relief from the| «jll-considered tax reduction” of the Republican 80th Congress for 6. Provide for federal aid to ele- production to hitherto unkno®n ll * including airborne infantry batta-} iculd was in sight for sou_Lhem Cali- | {he present budget deficit. /) Wirephoto. ;mcn!n.ry a_nd secondary education, | Jevels, lions from ‘toth countries and sup- | | fornia. Temperatures of 24 above| _ _ ot !for 2 limited program of aid in| The President added two points | porting troops. Hundreds of Cana-| ' | were reported in some inland points | support of higher education for|t, pis legislative want-list: Steady Il . dian troops z‘tl!eady have moved i!odfly but generally the readings HOPES BURST | capable students and eive funds powers to control credit, and more 1 into Wainwright Camp, Alta., (or" Busie Willams (above), was Queen of the Iee Bowl football game at | Were not as low as yesterday. | "_‘;"91‘5_ need exists for school con-|jiheral loan terms for little busin- winter training before moving | Fairbanks, Alaska, Jan. 2. Susie, daughter of Lew Williams, Secretary Growers 'in the ‘Imperial fand i o ‘:l“c E‘;’: i Lo He again asked a “moderaté” farther north. | of Alaska and Mrs. Williams, is a student at the Universtiy of Alaska. | Coachella Valley f’egcfi‘b"“ b o Sl A e SR R il B | THe university defeated Lalyl Alr Force, 3-0, In'the game played dn | % tomato crops were badly da i I3 i 4 z Hanas off-Wages e Suches of e Sk 1‘1 ed by the freezing weather. But | 4 {ing old-age, survivors, and unem: Bkl mposiatraed thh itk HEll FREEIB | R N e Ao, I thus far the damage to citrus gro ( ployment insurance, enacting dis=| oy o 8 e S e 4 has been confined to frosting of akility -and health insurance. and P | | Prices—with some nding” e 'n | ‘KiDNAPS GIRl AFIE inew leaf growth alreadv mpped' (Rlll(s OUIET AT JOHN Bull expanding general grants-in-aid to excepHonbaare Bflnon;r;“::m < S —(—The | g er s ssis . # o ‘, Sk % “The basic economic problem fac- T R ANING - ARMY | ASSAULTING MOTHER ' ' : 3 ing the country now is not infla- | { | 9. Continue the foreign recovery B |l stocx auoraions | OF 500,000 MEN Repu? i 15 olar Pzrgtoes" Bné;m Rretlg qt'zfi i P g R R o I F 5 PHOENIX, Ariz, Jan. 3——(,14— on lruman Po |(Y_ | ina 10 Protect In- with need. hopes to keep' hands off. “These ” | arges vl { i 10. Approve the charter for the & » ¢ NEW YORK, Jan. 6 — Closing | Raymond Savala, 18, charged Wwith | DUE Io (OlD SpEll . . | adjustments/! Mr. Truman said, * quotation of Alaska Juneau mine | WA~HINGT\ON Jas. 6-un_ep, | Kidnapping o 14-yeatold gir r:n;x. Americans Remain | ferests, Hongkong | International Trade Organization. | lare now in the hands of mahage. assaulting her r, was cap- | : 5 stock today is 33“;. gmelncm‘:v fflhl'Hp“ce (D-II) ‘said today he has (.u‘:.i‘ near Buckeye, Ariz., today by! SET AIII ss MIllIO“ TR 4 | Lopow, 4 o e 11. Authorize the program Aor!;!)\;l‘:ltldani::;r;,'l‘hnt is where they 106, Anaconda urtiss-wright | poon, advised that Russia is train- | ibhiway. Detrolmedi the Phossix | By SPENCER MOOSA 1 , Jan. 6l | technical assistance to underde- y 8%, International Harvester 28, !;. .n army of 500,000 in the East | * ooy PO 4 TAIPEH, Formosa, Jan. 6—(P— |recognized Communist China today, | veloped countries, and for guaran-| The economic message, read to Kennecott 52, New York Central|, . ot Germany, yolice deparbuient VAUERHOG AL | PHOENIX, Ariz, Jan. 6 — P —i peggent Truman's hands off 1-‘ur-\ breaking relations with her War-!tees by the Export-Import Bank |both Houses of Congress by clerks, Il »: 12%, Northern Pacific 15%, U. 8. "y "Giq his information came! TP girl, Tix‘esa. Vasqulez, “Z" Three nights of freezing tempera- | ;e statement ripped to shreds a |time partner, Chiang Kai-shek. | against risks peculiar to private|Was the second of a trio of early- Steel 27%, Pound $2.80%. ’rmm & Gletiiin neispeperman who with him at the time, zolce ;au tures in the Salt Rwe} valley‘o big balloon of hopes tlown up by| The move was an effort to safe- | jnvestment abroad; and revise cer- | Session reports submitted to the Sales today were 2,010,000 shares. | ;o romain anonymous because of | ““;1 SppREEntly JiFe ‘mxa;met k! Arizona have resulted in an esti-1:jiecn Nationalist news predic- guard heavy British investments in| tain provisions in the tax laws gov- | lAWmakers by the President. A _ Averages today are as follows: et ot raptiiis: | .’l;‘ulmlxnlan'flkz‘xl:iy’ E. Selchow tool mnt?fl 55.000-009 citrus 01‘31’ ’f"i:n tions of American intervention here. China and to protect the British| erning the taxation of income from | Budget Message Monday industrials 20096, ralls 5422, uMl-| ‘prce on hig regm from a|SeYRR Mo CUSLEY { Byron J, Showers, manager of All senior Nationalist officials re- | colony of Hong Kong. It was a|foreign investments, | ‘The first, on Wednesday, was the ities 41.52. month’s tour of Europe as a mem-| “°'0 la, who speaks only Spanish, Grapefruit Administrative Commit- | 05" meni on the President's major split with the foreign policy | 12, Provide additional authority |State of the Unfon message. On ST et o7 {lie Tonse Arled Services\ Vs Wuestonedi iyFREOEQTES tee, made the estimate of damage! . ..iement, One confided: |of the United States and France,!over panking reserves to the Board | Monday he sends Congress the fin- FROM FAIRBANKS .. | Committee, said there is an army’ to a crop the growers had expected _'which are going to take their tine|of Governors of the Federal Re- al que, outlining his budget pro- Mr. and Mrs. Robert H. Bum,o( 50,000 so-called police in lh(’\ would be the best in recent years. | “The matter- is very delicate. We|anout recognizing Mao Tze-tung. | serve System; extend that authority posals for the 12 months starting of Fairbanks are guests at theip..”7inc o Germany and that it| l AD KNIFES GIR[ AGE 1t is now doubtful if more than|do not like to criticize the head of cecretary of State Acheson said|to all banks ineured by the Fedoral|next July 1. Baranof Hotel. {is rapidly increasin yto 100,000 i | 700,000 boxes of grapenuxg anu’. friendly state.” eiterday the United States con-|Deposit Insurance Corporation: .mdl In the economic message, the y g r 1400,000 boxes of oranges will be| Among officials who took the 10 jders such recognition premature. |restore the board's authority to | President seemed to have penned a N, 13 I salvaged for fresh fruit comump-[ummenc line were advisers to The action ranged Britain with |regulate consumer credit. Provide | Potent morale-builder for business. Tne w aShlngton pA(I"( "oR’I’HER“ tion, Showers said. . | Generalissimo Chiang Kai-shek. o, ;o0 pucsia against continuation | authority to regulate speculation |H¢ 8ave credit to industry, labor * ‘RU" DRIVES AWAY Temperatures dropped in sections! Also silent were Princeton educated of Chiang’s Nationalist regime as|on the commodity exchanges |and agriculture for the “judgment . G R nd ERE | Ny {of the Salt River valley to as low | Governor W. C. Wu, Foreign Min- the TepReskiiaties af Ohing the T |and restraint” whioh, he said, help- erry 0 ou (ARRIES 13 H | . —_ | as 13 degrees. ister George Yeh, and Gen. Chen 1.;" A fiatlcns Security Council.| g ed pull the country through the I | LOS ANGELES, Jan, 6—®—A 13- Cheng, Southeast China military .. .- i T United 1949 recession. b By DREW PEARSON 9 Io WESIWARD | year-old girl told Juvenlle officers/® ® © = ¢ = & @ » & »|commander, and s gaduste of g ot g?;:az‘gh?;:e S‘ll;«'ml ,l:u‘i- Lofty Genls Ahead (Copyright, 1950, by Bell Syndicate, Inc.) | ia story of a half-hour of horror;'. WEATHER REPORT : lgxi? ithgxcmwa;i ;ES:::i‘:}:kim . |2 aDQEESRae e Tight to The lotcy’ goals ahead, he pre- te. Twenty-two rsons arr:ved Or|guring wkich a koy carved figure- S e e veto. BY (HI"A GU“S (B SNOle pDoew, (EEREIR. Whe | d ,‘edyJ oY Baiiay est- | cights of her chest with a knife|© (This data s for 24-hour pe- ¢ | Truman’s statement caused concern | 7 dicted, can be achieved if the same has spent 3 good part of his |depar uneau yesterday on w | elghts 5 | @ rlod ending 7:30 am. PST) ®|und dismay. Tre Undersecretary of Foreign i groups pull together and if gov- | journalistic career specializing on ward flights of Pacific Northern®@pecause l_xe liked to see blood run.” | i " 33 e “ # 4 X 1i- Affairs, Christopher P. Mayhew, ernment hews to wise policles— - foreign affairs, Ins written ' a |Airlines. Arriving from Anchorage| The girl, Joy Fern Chase, was e In Juneau—Maximum 33; It left them with the sad reali- 10 reNE T Ohina was By Tom Lambert sty 4 polioies. ha bilgoetntes Ar- | treated last night at a medical |® minimum 22. ¢ | ation they can count only on Y - ®| TOKYO, Jan. 6—(®—Ambassador > ” ! penetrating series of columns on Welr; Ot atarks Elm,y r;lay mfd ireniss for ok lgcuts e At Alrport—Maximum 32; ®|:hemselves to hold Formosa. an acknowledgement of fact and |, oo PriN Jessup today stuck | t048Y's message and Wednesday's 4 how the seeds of war are plant- |nold Hansen, R. Berg, Mr. reenger f P s | 3 ° e R not a mark of approbation.” The | State of the Union address. his is the fourth and last’of | Mrs. James Sudin, D. B. Harris, S.} | ® minimum 13. REPUBLICANS ROAR f q | PV his statement the United States Thy amilagn m [ ot This e tle fonn K. Patrick, M, L. Anderson, William | ' She _told jstficers that as she|s FORECAST e| WASHINGTON, Jan. 6—m—A Olficial mote of recognition sald|y, ;o4 ghandoned and will not| The Proposed tax Increase W | the sl g | Featherstone and Rita Haas, all| Wes returnfig from Westchester | o (Junean and Vielolis) o | ufiet official move to clear Ameri- Dritain has ocserved that the Mao !, pangon Ghina, [ mo#-be covste, 1o, Lromise (s l ¢ 4 i The G from Anchorage; also Mr. and Mrs. | Junior High School, a boy, about|e Fair and continued cold @ | .ans out of Communist-threatened ime “is now in effective control| "n "yecq was asked if he still | D€ “e‘: his secret °“; the kind “:l ASEINGTON ;= e, Congiee- | o nded at Gustavus, | 15, dashed from behind some|e tonight and Saturday With ®|rormosa today underlined a U.S. Of Ly far the greater part of the giooq by that statement in view|!2X changes wanted, using the sional turo_r over Britain’s impex;d- e:;‘;:;] v:ro ?:om Ju:em e Bkt e gusty northeasterly winds. ®l.1p notour-fight” decision whxch;'l tory of China.” of President Truman’s announce- |S4Me word: as before: Changes ing recognition of Communist China | ERSEREEs TOR TUAt O Ber-] At the point of a knite, he forced | ® Lowest temperature tonight {.rought roars of protest from Re-| Britain was the first major west (ment the United States will refuse|"hich will reduce present inequit. will not st,}(:p tfhat ricognmon B‘lmnxe::ggdome Mre ?md . wovat- | her henind’ & hignbtus ordered e 15 in town and near 6 in | ublicans, | ern power to recognize Mao. to intervene !to save Formosa— leis,msumulaot: business acuvm;, n:d orensic n come 3 igen . eld a moderate amount of ad- | out. @ he e | ney, MacKay ‘Malcolm, Ben Stone, | her to disrobe partly. |® outlying areas. Highest tem- ®| piyomatic officials said the word | |last stronghold of the tottering|¥ B8 Smabnt i —if the State Department is on its Yy ay colm, . t Saturday, 16. . 3 2] BREAK RELATIONS Ch Nationali: G t ditional revenue. L toes—a joint Anglo-American coun- | | Clarence Keating and Rlchald, Then, her story continued, he pera “"’: 8 Yo 18 o | 3d gone out to Americans to leave| 3 hinese ationalist overnment. Balnncing Budget ide the forel i £ | Roberts. sat upbn her, and began cutting|* PRECIPITATION he Chinese Nationalist stronghold = ‘The Nationalists promptly replied | Through a spokesman Dr. Jes- The budget will be bal q § (o ol to B ek. kv, Y i 4 the figures. She sald she screamed | ® (Past 34 nours ending 1:30 am. L008Y @ | age yhoy paq important business {rom Chiang’s Formosa headquar-|sup said he had “no reason to make | .. B g; ot i Shoad, Be | English-speaking countries in the| 'Im_ help but the youth told her “to|® City of Juneau—05 inches; ®f . o ters with a note breaking off diplo- |any change” in his statement of |52id: "at the earliest date coneis- | future. - & i inches; . o - & ek tent with the welfare of the coan- | ki still, that he'd t en,® Ssince Jan. 1—99 inches; : vacuate Matic relations with Britain. yesterday. Too many times in the past Bn- eep: . Sugl, QUi ey i eo| A general warning to evacuate, s try.” Progress will be helped by fonal balance-of-power | | deeper.” Bawe gl 30008 lohes. vas avoided, authorities said, lest| Other western European powers| The Ambassador” sald yesterday, d bust dit 4 tain’s traditional balance-of-power| | The boy tired of the brutal. tor-|® At Airport—o8 inch . avoided, ek umu ciu'uu" s ccted to follow quickly |the United States does not con- mprove usinegs . conditions, and policy 18 Je-Ha0- YR doift indo ture, she added; and dro e since Jan. 1—82 inches; o Weaken Generallss °7¢ | Britain’s lead, Authoritative Danish |sider that country' “lost” and Re | !he fact that “Federal expenditures wars, following which the United 0,8 A @D ve away on 5 " o | Kai-shek’s precarious hold on the 8 ritative (should decline somewhat over the ) | f e since July 1—36.31 inches. A P ReEe, aid £ nd | added, even though the Chinese | states has had to bail out the his bicycle. sland. Chiang reportedly faces a|Sources s Norway, Sweden and next few years.” Stajge 088 o il .88 .8 0.5 05 0 9 0, ¥ g 1epa) X ' Communists control most of it. ool I British. Sl o Tk Rl | srave threat of internal revolution | Denmark probably would announce He said the United States in.| “In the long run, the Govern- Up until the early 1930's, the| OKLAHOMA C‘TY' a5 ion Formosa, as well as a possible Joint action‘soon, simultaneously in | | ment's fiscal position depends. upon i | Football is no longer a member of . ; the threc Scandinavian capitals. |tends to continue its traditional # pored and blase policy of State| Uui\'emly s |FREIGHIER HEAD | ‘ommunist attack. ® prials, policy of friendship and support| (the health of the national econo- Department diplomats was: “In|the Okla);fmn L 4 The possibility of an uprising may | The Chinese Natlonalist Ambas-| " " cpinese people. {my. It will not be promoted by # Europe and.ASia' e kb, oux gHea “p‘f;ts;"g‘ gmnh p,Ls,dem ,mdg DOUGMS HARBOR Pu“‘ ¥ HAI, :ave played an important part in sador in London, Dr. Chegg Tien- | drastic slashes in expenditures [ 7 from Britain. In Latin Ame'l:xcu, tHe anboimeement after. meeting f |the decision announced yesterday | fsi. mdqx} lter:ned zhei Brmshhalcli which are essential to our economic | Britain takes the cue from us” | Lo, & 20 (4 players. He sald! Thel Harbor ‘Commiittes of the By Wayne Richardson {1y President Truman. not to send}tion “equivalent toburying us whilst growth and to continued peace. | That, of course, was in the hey- | A , we are still very much alive.” His- Neither will it he promoted i i a majority of the university’s 40 United | Trollers of Alaska, Juneau ABOARD AMERICAN FREIGH |any military help or advice toj - P | V't v gomE e pomes v D eh aoproved his recommen- | Branch, has gone on record as ap- | TER FLYING ARROW, SaturdayChiang at this time. tory, he said, “will Say that China by tax increases so drastic as to banks dominated world trade and | trustees approved his re has received a knoek-out blow, not | stifle business activity.” e palh t only | dation to discontinue the sport. proving the construction of a small|—(#—This big cargo ship slipped, Mr. Truman’s announcement trora hat fobs MBS st triends | o' o’“eyr :.a:nm:s b;;:ej:f il Mt nbuyfl' Coach Orville Tuttle and assist- boat harbor at| Douglas. quietly out of Hong Kong early to-|irought a near-solid-wave of anary | ~o /" 065 E0 i3 AL | e | s illing 2 Bob| In a letter written to the Office |d. nd headed for Red Shanghali, al Re- & | a navy meant something. ks R.alph_ thlllm, and_ inee e 3] se Na- at Ix’om o g | Britain was the -fourth non-! WASHINGTON, Jan. 6—@—| smMEl Movmms pe| Fenimore will te paid until the of the District Engineer, U.S.|whose approaches the Chinese oublicans, They promised not to| | I Today British banks would i - | O f Engin IS ined. e : r- | Communist nation to recognize the | President Truman today nominated —_— i d|end of the school year. Scholar Corps of Engineers, in Seattle, the |tionalists say are min ive up the fight for aid to Fo! » Jonexistent without U. 8. help, and| 50 O 8 i red for the | committee’ poirted out the need mokk Peiping government. India and|Everett W. Hepp of Alaska to be| Baranof scheduled to sail from the British Navy is far more im-|Ships also w i b o S E | : Pakistan, both members of the|US. Attorney for Divislon No. 4, Seattle Saturday. 2 than the Bikini U.| remainder of the year. for a new barbor to relieve the pre OTIS MAN HERI The debate ecrackled on the! 8. 4 4 Pflli:“ s g -bombed U. sent congestion of the' Juneau| L. R. Beals of Seattle is regis- gonovo oo e TH o T tive | British commonwealth, Burma, as | District of Alaska. rmn‘”" Norah scheduled to sail 5. Navy. ¥ re- O R4 lavia, Soviet Russia| If confirmed by the Senate, he | from Vancouver January 14. v small boat harior as well as to|tered at the Baranof Hotel. He re- e, o _!well as Yugosl y Thuk sthe Mime’ ¥oule ppeat. to W, :Tnz:x:fh g:;,;;os:fi: guest | make room ‘for the future growth |presents the Otis Elevator Com- hous yesterday, jiOme chief com and the scvlet satellites previously | will succed Harry O. Arend, re-' Denali from westward scheduled (Continued on Page Four) | at the Baranof Hotel. of the fishing fleet here, pany. (Continued on Page Slk) " had taken the recognition action. signed. southbound Sunday evening.