The Daily Alaska empire Newspaper, January 23, 1950, Page 1

HE DAILY ALASKA EMPIRE VOL. LXXIV., NO. 11,408 “ALL THE NEWS ALL THE TIME” ANUARY 23, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS JUNEAU, ALASKA, MOND \\V Tax Program Is Given Congress By Tiuman TRIAL OF BRIDGES ON AGAIN Defense Hlfi: "Liars” a Witnesses Appearing for Government SAN FRANCISCO, Jan. 23—(®— The defense called the govern- ment’s witnesses “liars” opening its case in the Eridges perjury trial. “These men who are here charged Wwith perjury have themselves been assaulted by professional perjurers, Attorney James MacInnis told the jury at the outset of his statement. MacInnis said he three dcfendants dent Harry Bridges, Presi- of the International Long- shoremen’s and Warehcusemen's Uni and two ILWU office mmidt and J. R. Robert- Each will testify not only for himself, the attorney said, but for each of the others as well. Bridges is charged with lying at a 1945 naturalization hearing at which he denied membership in the Communist party. Schmidt and Robertson are accused of con- spiracy to defraud the government. Film Acor Hale Dies il! l[ollywood (By Associated Press) The life of actor Alan Hale spanned the rise of the film in- dustry in the United States. Hale died last night in 2 Hollywood hos- pital of a liver ailment compl:- cated by a virus infection. The 57-year-old actor played in many silent films, Then he turned to directing in 1925, but with the advent of turned to acting, and stayed with it. His widow is the former Gret- chen Hartman, his leading lady in nt film days. The Washington Merry - Go- Round | Bv DREW PEARSON (Copyright, 1950, by Bell Syndicate, Inc.) (Ed. Note—Another of Drew Pearson’s columns on gambling racketeers and how they affect governments.) ASHINGTON—Earlier in this series I expressed the opinion that President Truman knew nothing about the links which some of his henchmen have with Costelloism and the gambling racketeers. I base this opinion on the fact that, at this moment, Federal grand juries are probing the racketeers in Los Angeles, Miami and in Tru- man’s home town, Kansas City. This investigtion -includes the new Democratic Boss of Kansas City, Charles Binaggio, who has carried the town for Truman by resounding majorities, but who, nevertheless, was hauled before a grand jury by the Justice Depart- ment at the very same fime Tru- man was in Kansas Ciy for the Bill Boyle testimonial dinner. Actually, these grand juries can- not clean up gambling, which comes under local law enforcement agen- cies but they can crack down on parcotics, income-tax evasions, and illegal immigration, which go hand in hand with gambling. In fact,| Frankie Costello, an Italian immi grant, could be deported to Ital tomorrow if the Justice Depart- ment wanted to. Undertaking Law Enforcement The important thing about the gambling rackets, whether they be in Miami, Kansas City, or Fresno, Cal., is the manner in which they undermine law enforcement. Most people probably see noth ing wrong with a $2 bet or with slot machines in a beer tavern. But along with the $2 bet and the slot machines go pay-offs to the police. These pay-offs may be only $30 a week. But when a cop will take $30 a wezk to protect a gambling joint, will also take $1,000 to fix a murder Once the pattern of a dishonest police forcg is fixed there is no boundary line where (Continued on Pngé.Foui) today in | would call all S, | Phil ‘Strand, estimated $750,000; 64 sound movies, Hale re- | FHA HOUSING FOR ALASKA HITS HIGH | AS 3,500 HOMELESS; - OF $30,000,000 CREST MAY ROLL ON (By Associated Pres:) The major flood threat centered ng the lower Mis- sippi River where it already had FAIRBANKS, Alaska, Jan. 23—(® More than $30,000,000 worth of |Alaska housing has qualified since |August of 1949 for Federal Hous- today ing Administration insurance, Clin- |driven an estima 3,500 lowland (ten C. Staples, Territorial FHA di- | dwellers from tr mes. \rector from Juneau, says here. The stream running bank- “ He said $8,000,000 of this money |full and sl ing but U. 8 |was for Fairbanks Housing, with|Army Engineers said they expect- work expected to start in the spring. ed the crest to roil safely on pro- | Staples has been here surveying viding the area escapes any heavy military and civilian housing pro- | rains. Jjeets ing under FHA loans. At Cairo, I, wi the Ohio Sixty-two units under consideration | River empties int he Mississippi, are for the Alaska Railroad term- the city counted itself virtually out {inal here. Staples said no commit- |of flood danger. Althouzh still 1 nent has been made as yet, but he predicted approval this year. feet above technical stream had drc d stage, the about a foot Other approved Fairbanks pro-!since Friday, easing pressure on the | jects: |levees. | 256 multiple units, Weeks Field| Temperatures were mild over all {Subdivision, by Fairbanks Realty |:he southern two-thirds of the na- | Co., estimated cost, $3,000,000; 62|:ion and the onl ecipitation was a harmless light drizzle at some points A narrow bana | units, Denali Section, by contractor | , be- units by J. R. Dixon Associat ween @th and 11th Avenues, esti- of subnormal cold OL' MAN RIVER UP l I i | | Was | mediate debate on President Tru- i \ |12y across the northern edge of the {mated $750000; McKinley Manori ooyt o the Dakotas | Apartments, by directers of the | . "Ne oot the mer i Bank of Fairb.auks‘ Reed and M Tl vull helow o, Patabina. N, D [tain, Inc., estimated $3000,000; 100} "\ = oo i e WEATHER BREAKS, PAN AMERICAN IS CARRYING LOADS having opened a The weatherman up the Seattle field after nearly | IField, by Fairbanks Realty and| | Home Construction Assn,, estimated | { | | Staples said approval of insurance Ihas heen given a 25-unit apart- |artment by John and Martha Cush- ing in Sitka. |day, accompanied by his wife and| | Chief Architect Roy L. Swanson Airways had a busy weekend of flying. FISHI“G looKs }zelsinger, Pearl Dore, Mrs. E. Mar- Ishall, A. Mattson, J. Wood, O. Nel- ley, Tom Morgan, Nan Peterson, |John Likness, Mr. and Mrs. Joe private homes, south of Weeks | i | $1,500,000. { i |ment at Seward and a 35-unit ap-| Staples will leave for Juneau to- | LOCAL SHRIMP | Geing to Seattle were John Ar- | GOOD-(HR!SIM AN' n, H. J. Lannem, David Check- 1 4 McNallen, Clyde Frank, Clayton Results of the first drags made| | Pol sl a | during his “shrimp prospecting !’m’ga;do‘h::_/» Guy, Tony Gomez have convinced Harry Christman |° y. X fof Charles Wood, Florence Nash iof the commercial possibilities of | Ahay g PO pall scale | Fred Henning, Nellie Pickell, Geo -‘h“t'!"P J“‘n’eirh““ar‘;: . %€ Jacobs, John Barber, Ruth Ster- (‘n he Jul . { = Ry | ling, Walter Stutte, S. P. Moe, W. | Braving the bitter winterg e 0 ™ prank ' Tilson, Donald | weather, Christman took his 42-foot Gunderson, Virginia Black, Mrs, | Lawco, a cnmhma_tlon fishing ves- |S(earn and N. C. Ruelan, sel, beyond Marmion Island at the Arriving were Joan Anders south end of Gastineau channeljgel., gaale, Norman Arnold, Hazel jand using a 15-foot drag caught|ga; g p Berger, Mrs. J. O. Don- shrimp \f’hich he said “are better !vl-]. Glen Franklin, Morris Hansen quality than I ever caught m’mmd“:v[rs James Frank with Roberta Petersturg and Wrangell.” land the baby. He caught both small pink| preq Kohli Mrs. D. Manthe, shrimp and the larger coon stripe | g nfanthey, J. I. Noble, John Noyes variety before winds forced him to|yy and Mrs. Edward O'Brien with take his boat to sheltered waters. Cary, Mai Linda and Suzanne; Using his own equipment for the | Freeman Schultz, Mrs. Twenhofel, | { | |aided by a small grant from the Ficld, Fred Cole, P. G. Greer. | Territorial Department of Fl.sheries.i d Jacobsen, Evelyn Johnson, | ©On both his tries winter weather | and Lois Klumb, Howard { limited his work to four hours. He s, Clifford Tyler, L. L. Whit- iraid he believed that working full|taker, Evelyn Bratko, Franklin Bos' jtime with a full-sized drag he | N, P. Covett, Harold and Ellen Fos: ck {15 to 20 pickers busy, “right now.” He will continue the prospecting when weather permits, extending his runs north into Lynn Canal |and south to the Port Snettisham area, 1 He does not plan to bring com- | H. Vanwert, Mrs, Thorn, A, G. | mercial size gear into use until| Thorton, Andrew Westland, Bill "he has completed his “prospecting.” | Wilscn, Mrs. P. Zambrano and Then, if prospecting indicates |J and Roy Johnson. cound commercial possibilities, he| Going and E. J. Krause, Juneau halibut | Violet Race, W. A, Bates, Andrew fisherman, will go into the business|Dahl, James Morton, C. R. Neill, seriously, using one boat to fish for | Mrs. Sig Thymes and Mrs. Jack | shrimp and another to act as pick- | Urata. § {up boat and bring the shrimp to| Other passengers were carried Juneau for cooking and picking, |between Annette Island, Whitehorse ;Chri‘tman said. land Fairbanks. Krause said today his confidence | in the shrimp fishing possibilities s, Mary Jerome, J. L. LePair. Dr. R. Maisonville, Marion Mai- ille, D. D. McAlexander, Frank { y, *Mr. and Mrs, Schmaltz, Dr. Schuler, Ray Siffer- for the Juneau area will be evident?MuRDER (HARGE as soon as the weather breaks. He lans to construct a building on his | { wharf at the foot of Eighth Street | FllED AGAINST 3 {which he says will be used as a| {plant for cooking, picking and | wou“DED BAND'TS | packing the shrimp. | Christman said he caught a total | | of 300 pounds of sole and flounder | |as a sideline to the shrimp drag-| | ging. SEATTLE, Jan. 23—(®—Charges of first degree murder were filed today against three men, accused | Churchil Gives end tavern operator. Named in the charges, filed in Justice of the Peace William Hoar’s court, were Roy S. Burnett, 34, held in a hospital with a bullet-shat- tered jaw; Louis alias Jack Britt, 35, held in jail with an armpit wound; and a third man identified only as John Doe. The men are accused of the slaying of Fred T. Long, 53, who was shot early Saturday while pro- tecting $400 in his tavern till, | . .. . Warning fo Brit. (By Associated Press) Winston Churchill stirred up Pritain’s election campaign over |the weekend with a warning | against “another plunge into So- | cialist regimentation.” He drew the |fire of Sir Hartley Shawcross, Laborite Attorney General, < ' | week’s closure, Pan American World | could catch enough shrimp to keep |Pat and Velton Goodrich, Hal Grav- | Theo | to Ketchikan were Mrs. | | | | | man and Ray, Jr.; T. R. Vanwert, call up the Alaska bill. By recog- | I | | | | | | of the robbery slaying of a north|ren lakes, planting moose on A | STATEHOOD BILLTO GET BEFORE HOUSE BULLETIN — WASHINGTON, Jan. 23— (M —The House made the Alzjika Statchood bill its unfinished business for tomorrow then turned immediately to state- heod for Hawaii. Demecratic Leader McCormack told Delegate Farrington of Haw- aii on floor it i3 his intention to bring two statehood bills wup “one after another” meaning he wanted to get a vote on Hawaii tight after vote on Alaska. The House cleared the way for considering statehood of both Alaska and Hawaii, but neither will be brought up this week. Ma- Jority Leader MecCeormack said the House weuld program the {wo Lills for later consideration, WASHINGTON, Jan. 23— House leaders tagged an Alaska tatehood bill for consideration to- day in a maneuver to prevent im- man's fair employment practices lation. Epeaker Rayburn told reporters | he would recognize Rep. Peterson (D-Fla) to call up the Alaska bill. Rayburn . said the “bad humor” caused by a rules fight in the House last week does not leave the proper “atmosphere” for con= sideration of the FEPC bill at this t.me, Rayburn had planned originally to put the House to work today on a minor foreign bill. But he s blocked on that “y Chairman Kee (D-WVa) of the Foreign Affairs| Committee. Kee 'said this bill was not “in shape” although it has been pend-| ng since last October. I The whole situation revolves| atout the House's'21-day rule. This| permits legislation to be brought up on the second and fourth Mon- days of each month even though| the Rules Committee, which ordi-| Cther matters to come before! apout 70 delegates, representing narily controls the legisiative pro sure. the say. This is because he can recognze, or refuse to recognize, | anyone he wishes. STATEHOOD BILL AT TOP | Commission policy in regard to t cars, “Transportation came to a virtual halt in P Telephone and power lines snapped, and trees toppled as shown here. (? Wirephoto, ortland, Ore., as a sleet and freezing rain sheatlied streets and DISTRICT ENGINEERS PLAN1950 ROAD PROGRAM, POLICIES The annual conference of district encineers representing areas of the Alaska Road Commission opened this morning in the Senate Cham- bers of the Federal Building. The nmgeting will continue through the week, i Plans to formulate the 1950 road | program, involving construction,! maintenance and improvements uti the system will be discussed. i the local headquarters staff, four) sram, has not approved the mea- district engineers, the construction for the convention of the CIO | engineer and master mechan'c are|ternational Fishermen’s Union, On these Mondays, Rayburn has | standardization of policy in all dis- ening tomorrow. The meeting triets in the college student re- cruitment and training program, onstruction of feeder roads into \newly opened agricultural areas, |and subsidiary roads into areas WASHINGTON, Jan. 23—® President Truman’'s fair employ-| ent practices (FEPC) legislation was kept from the House floor to-| ay when Speaker Rayburn (D- Tex) put an Alaska statehood mea- | sure ahead.of it. His choice may mean weeks of | | exploration, Christman has heen‘p_ Tabernilla, H. G. Wilcox, Gmce;dcluy for FEPC. Foes of FEPC promptly began filibuster tactic agzainst the Alaska bill Their a'm was to prevent a vote on it today. Then the Alaska bill would be ahead on Feb. 13, the r date there is a chance for FEPC to come up under House rules and the present parliamentary situa- tion. Rayturn had told reporters be- fore the session that he would re- cognize Rep. Peterson (D-Fla) to nizing Chairman Lesinski (D-Mic of the Labor committee, Rayb could have brought up FEPC. 1950 GAME LAWS BE INDER DISCUSSION - TUESDAY, CITY HALL Recommended changes in hunti laws to govern in Alaska during the | coming year will be discussed a public meeting tomorrow eveni: at 7:30 o'clock in the Juneau city council chamters, with offi from the Fish and Wildlife Service| meeting with the Territorial Sports- men, Inc., a sports organization ‘The organization, in conjunction with the wildlife Service, has pro jects in mind to plant fish in bar-| - | miralty Island, planting some v i riety of upland bird in the climate, and running a “bigger and better”| salmon derby. The Alaska Game Commis on | | Smutherman, | has asked all interested in sports | hunting, whether members of the| organization or not, to attend the| meet to put forth their views nn}man and town councilman, was{U S. Steel 28'%, Pound $2.80. the coming season. The commis- sion is made up of men with lhr‘ Wildlife Service, bvt is not a t of it | where mining and industrial plants |liam J. Niemi, | tion engineer of Haines, and Ha | . White, master mechanic of An-!e | are contemplated. The first three days will be taken up with these matters, it was ex-} pected, to be followed by awards | presented for safety records made nd meritorious service given, it was announced to Col. John Noyes Commission head. These include safety commenca- ions to those districts with excel- ent safety records during 1949; distinguished service medal to Ik P. Taylor, retiring chief engineer, in recogniton of his ma r ervice; a distinguished service medal awarded po:thumously Ln, Mr. Hawley Sterling, for whom the Sterling Highway between Homm' 1d Kenai has been named. with the | award to re presented to his widow, now in Juneau; and 17 other meri- torious and: commendable service ards to employees whose formance over and above the mal call of routine duty has made a matter of record by the( Secretary of the Interior. Many service organizations in Juneau have extended invitations the conferees to attend theirl regular meetings while here, to ad- vise them of road construction and the maintenance program being j carried out. | Attending the conrerence xm'im{ are: Frank Nash, Fairbanks; Wil- Anchorage; John D. Hudert, Nome; and B. D. Stew art, Jr., Valdez. Forrest H. McGowan, construc- chorage, are also in attendance. SON FOR KINNEARS | | : | A son was born to Mr. and Mrs Blake Kinnear of Juneau early this morning at St. Ann’s Hospital. The |child, born at 2:3¢ am. weighed !stock today is 3%, American Can|US seven pounds two ounce: HERE FROM WRANGELL 1 Verne Smith, Wrangell business, in Juneau over the weekend on business for his town. He left this merning on to Wrangell, the Denali to rmurnl il been l. 0,IFU MEET IS TUESDAY (l ITEMS FOR TAX CUTS | ITEMIZED | Twenly Thousand Fisher- |ercsdent rumivs pioposats to- day for excise tax cuts singled men Expeded 10 Be Rep- ,out seven taxes estimated to yield [esemed a' Convemion |the government $1,326,000,000 a year at present rates. The President said nothing about cutting a long list of other sales| taxes which he has figured will yield another $6,316,000,000 in the | n- | Year beginning July 1. op- Liquor taxes, which raise $2,290,- will | 000,000, and tobacco taxes, figures at $1,352,000,000, are the big items among the taxes Mr. Truman ap-| parently wants left at present rates. Joseph Jurich of Seattle, Interna-| Four of the seven taxes marked tional President, said weather ll:\d‘fur reductions make up the com- delayed the arrival of delegates plete present list of Federal levies from Alaska. Until they reach here,'on retailers’ sales. These are all he sal an announcement can'’at the rate of 20 percent of the not ke made of results of balloting | retail value of the goods. on a proposed merger of the fish-| The items subject to tax and es- ermen’s union with the CIO Inter-)timates of their 1951 yield at pre- national Longshoremen’s and Ware- |sent rates are: housemen’s Union, headed by Har-: Jewelry $201,000,000, furs, $55,~ ry Bridges. 000,000; toilet preparations includ- The Executive Board discus‘.(‘d‘ing baby oil $95,000,000; luggage, everal legislative proposals rega jincludings women’s handbags and SAN FRANCISCO, Jan, 23— (M- 20,000 fishermen, are expected here run through the week. The Executive Board of the ion met yesterday and today. un- ing price support programs and|men’s wallets, $80,000,000. Total tishermen’s cooperatives. iyield: $431,000,000. The talk has The question of filing a non-{been that the 20 percent rate might Communist affidavit under provis-ibe cut to ten percent. ions of the Taft-Hartley Law is| The other three excises speci- xpected to come before the con- vention. But Jurich couldn't say when. fied by the President are: Long distance telephone and tele- graph messages, estimated to yleld $325,000,000 at the present 25 per- cent rate. A 15 percent tax has ®® ¢ wr » e o> ¢ *heen mentioned in Congress. S Transportation of persons, mean- —..‘ WEATHER {ing” passenger tickets on railroads, buse s - i 13: us airlines and ships, estimat ed to yield $240,000,000 at the pre- sent rate of 15 percent of the tick- fet price. There has been talk of {reducing this to 10 percent, ‘Transportation of property, mean- ving the tax on' freight -hauls, cal- culated to raise $330,000,000 at the present three percent rate. Mr. Tru- 1 once suggested outright re- eal of this tax, but the Treasury has been holding out for a cut to one and one-half percent, half the present rate, minimum 2. At Airport—Maximum minimum -11. 9; ° FORECAST (Juneau ana Vieinity) Continued fair with occa- sional gusty northeasterly winds. Lowest temperature tonight near 5 degrees in Juneau and as low as -10 in cutlying areas, ° . ° NAVY PROBING INTO STABBING, MESS ATTENDANT KODIAK, Alaska, Jan. 23—(P— An investigation was continuing here today into the fatal stabbing a mess attendant aboard the 5. Burton Island. The Navy authorities said the death was the result of a fight be- tween two mess attendants. The Navy ice ireaker is one of a six- ship expedition for testing of cold weather gear and making practice PRECIPITATION (Past 24 nours ending 7:30 a m. today e City of Juneau-—None; o since Jan. 1-1.08 inches; e since July 1--55.02 inches. At Airport—None; since Jan. 1-—65 inches; e since July 1--36.34 inches o0 0 0 0 0 0 0 0 o e e0 000t ceecsc000s 0000000802 STOCK QUOTATIONS NEW YORK, Jan. 23—Closing quotation of Alaska Juneau mine | of 112%, Anaconda 29%, Curtiss-| Wright 8%, International Harvester | 27 Kennecott 54%, New York Central 12%, Northern Pacific 14%, Sales today were 1,340,000 shares. ! ging of CUT CALLED IN "SALES" LEVIES NOW 'Billion DoII; Boost on Corporations, Etc.~oLp- hole Plugging Urged By FRANCIS M. LE MAY WASHINGTON, Jan. 23— President Truman sent Congress a tax program today calling for a cut in excise or “sales” levies, plug- loopholes, and a billion- dollar boost in taxes on corpora- tions, estate and big gifts In a special message, Mr. Tru- man did not say specifically how much reduction he thought should be made in the excise taxes. But he said cuts are “most urgently needed” in the taxes on freght, railroad and bus tickets, long dis- tance telephone and telegraph bills and “the entire group of retail excises, including such itemg as toilet preparations, luggage and handbags.” While the President used no figure, some Congress members said they understood the Treasury — | which will give detailed recommen- dations to Congressional committees later—would suggest a cut from 20 to 10 percent in the retail tax on such things as cosmetics, luggage and handbags. PLUG TAX LOOPHOLES Mr. Truman d!d specify that these taxes should be cut “only to the extent that the loss in revenue can be recouped by eliminating the tax loopholes which now per- mit tome groups to escape their fair share of taxation.” He sald the biggest “loophole” is “the excessive depletion exemptions now enjoyed by oil and mining in- terests,” adding: “Under these exemptions, large percentages of the income from oil and mining properties escape taxa- tion, year after year. Owners of mines and oil wells are permitted, after deducting all costs of doing business, to exclude from taxation on account of depletion as much as half their net income.” AS REGARDS BUSINES3 As to business, the President recommended: “A moderate increase” in the tax rate applicable “to that part of a corporation’s income which Is in excess of $50,000.” At the same time he recommended that the tax rate on corporate in- come between $25000 and $50,000 which is now taxed “at the ex- cessively high ‘notch’ rate of 53 percent, be reduced to the same rate as applies above $50.000." The message avoided many de- tails in the proposed tax legisla- tion, leaving this to be filled in later by the Treasury Department. TO DISCOUNT LOSS However, the President made it plain that he would veto any tax cut that does not at the same time bring in new revenue to make up the loss. “I wish to make it very clear,” he declared, “that I could not ap- prove excise tax reductions unless they are accompanied by provision for replacement of the revenue lost, because I am convinced that ! sound_ fiscal policy will r:ot permit 2 weakening of our tax system at this time. “Under present conditions, we cannot afford to reduce excise taxes first, in the hope that action will te taken later to make up for the loss in revenue.” “SHOCKING” LOOPHOLES In his 4,500-word message, the President discussed at considerable (Continued on Page Six) SON FOR EDWARDS Mr. and Mrs. Sigurd Edwards of Douglas became the parents of a son Saturday evening at St. Ann's Hospital. The child weighed flve pounds eight ounces. FROM ANCHORAGE Fred G. Kohli of Anchorage is stopping at the Baranof Hotel. FROM METLARATLA Mrs. Elmer Booth of Metlakatla is a guest at the Baranof Hotel. FROM SITKA Mrs. Leslie Brendille and son, of Sitka, are registered at the Bar- anof Hotel. landings in the north. The F.BI. at Anchorage was notified of the case Averages today are as follows: industrials 200.41. rails 55.23, util- ities 41.87, FROM HAINES F. H. McGowan of Haines is stop- ping at the Baranof Hotel,