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N THE DAILY ALASKA EMPIRE “ALL THE NEW'S ALL THE TIME” VOL. LXXIV., NO. 11,409 JUNEAU, ALASKA, TUESDA Y, JANUARY 24, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS Early Statehood TRUMAN TAX PROPOSAL HIT; INCREASE UT Congress Talks Excise Cufs, | § No Increase Elsewhere- More Revenue Agents WASHINGTON, Jan. 24 o Congress showed signs today of} writing its own tax ticket, ignor-| ing President Truman's advance notice that he will veto any bill| that cuts taxes without making up | the revenue elsewhere. | There was much talk of reducinz | 8 excises—sometimes calle¢ sales or nuisance taxes—but rejecting part or all of Mr. Truman's proposed $1,000,000,000 tax boost on other things. The President Congress to enact a tax law that would: 1. Increase federal revenue by $1,000,000,000 by higher taxes on| corporations with annual profits over $50,000 and by larger estate and gift taxes; and 2. Reduce many wartime excise rates—:ut only to the extent that the revenue loss is recovered by plugging existing tax | law loopholes. { He recommended no increase in individual income taxes. Shortly after the President’s mes- sage was read in the House and Senate, the House Appropriations | Committee disclosed that the ‘Treasury Department has added the third major point in the Adminis- tration’s tax program: a crackdown on tax dodgers of the middle-in- come brackets who do not report all their taxable income. Reaction to Mr. Truman’s tax ideas was sharp. It indicated: 1. The tax bill Congress finally whips together may slash excises well beyond Mr. Truman's recom- mendations—possibly as much as| $1,000,000,000 to $1,500,000,000. The | President said he couldn't sign any bill reducing excises unless it provided for replacing the lost rev- enue. 2. A concerted drive will be.made | to plug the tax loopholes by whlch' the President said Many groups find legal ways to “escape their fair | share of taxation.” 3. The Senate may not fl;)provei yesterday asked | this year a bill containing the | $1,000,000,000 increase in taxes on| large corporations, estates and! gifts, that Mr. Truman wants. Some increases may be passed ':H the House, but a top Democrat said | informally he does not believe the | Senate will accept them. i 4. Congress probably will join the | administration in a drive against | tax dodgers, giving the Internal | Revenue Bureau about 3,000 addi- | tional agents to check on personal | income statements. ! The Washingion! Merry - Go- Round Bv DREW PEARSON (Copyright, 1950, by Bell Syndicate, Inc.) ASHINGTON — At a secret meeting with General Bradley re- | cently, atomic energy Chairman | Lilienthal made a last-ditch, emo- tional plea against the hydrogen bomb. In effect, he said: “We must exhaust every means of reachinng an agreement with Russia to out- | law atomic warfare before we make | this bomb. We should appeal over the heads of the Kremlin to the Russian people. They will force Sta- lin to come to terms.” H Lilienthal speaks for a torment- ed group of scientists who made the atomic bombs used ‘at Hiro- shima and Nagasaki and who agreed | —somewhat against their better judgment—that the bombs should | be dropped on enemy cities. It is still a secret in the files of the Manhattan district, but the | atomic scientists were -sharply di- | vided into three groups. One did | not want the bomb used at all. ‘They urged that the President an- | nounce that we had the bomb and | would use it unless the enemy sur- rendered. Group No. 2 wanted the atomic bomb dropped over an uninhabited | area as a warning. Group No. 3 approved the action | taken at Hiroshima. This included | Dr. Robert Oppenheimer and Dr.| Harold Urey. But when the photographs of | seared flesh and the medical re- ports from Nagasaki and Hiroshi- | | | | | | 1 (Continued on Page Four) Hiss Atier Verdic Alger Hiss, former State Department official, his face grim, his head up and his wife Priscilla, holding on his arm, walks out of the U. S. Courthouse in New York after jury had Mund him guilty on both counts in his second trial for perjury. tinued until date of sentencing. (P Wirephito. ' FALLSBEFORE ALASKA GUNS Wildlife Decreases with i Roads, Aircraft, Popula- tion Increase Says May By CHARLES D. WATKINS WASHINGTON, Jan. 24—# Wild game in Alaska is falling be- l{ore the advance of civilization, says | Director Albert M. Day of the Fish |and wildlife Service. | Day told a House Appropriation: subcommittee, in testimony made public today, that an increase in the Territory’s population, improve- ment of its roads and increased usc of aircraft have combined to bring asout a decrease in the number of wild game. The subcommittee was consider- ing funds for the Interior Depart- ment, of which the wildlife service is a part. Day said it has been necessary to declare a closed season on moun- tain sheep and that caribou herds are being depleted in many sec- tions. { He asked $937,500 for handling Alaska fisheries and game and $459,700 for protection of Alaska | seals. The amount for the handling of the fish and game is an increase of $100,717 over this year's funds. SEA OTTER PROTECTION He said the service wants $75,256 Hiss" bail of $5,000 was con- Claim Is Made Millions Being Workedfo Deathin Soviet Slave Labor CONFIRMED WASHINGTON, Jan. 24—(P— Admiral Forrest P. Sherman today confirmed by the Senate as ef of Naval Operations. It was a voice vote. Sherman succeeds Admiral Louls { F. Denfeld, fired by President Tru- man last November 2 at the re- ot of Navy Secretary Matthews. Denfeld, who announced his re- t'rement from the Navy last week riticized unification policies fore ‘a Congressional committee. Just before the vote, Senator Kem (R-Mo) delivered a fresh blast at the treatment of Denfeld. He used the administration of try- to intimidate military officers ing who oppose its po! WHITE HOLLY TO LOOK FOR MISSING TRAPPER The Coast Guard cutter White Holly, departing yesterday for Ketchikan, was instructed to inves- tigate Pybus Bay on Frederick Sound for the fishing vessel Reliet of Hoonah. The veseel, with Howard Erick- son board, was reported to have left from Juneau December 5 for a trapping expedition there. Mrs. FErickson told Coast Guard headquarters here that her huscand | jwas due to return from trapping between January 17 and 19. The Relief carried no Coast Guard officials said. The White Holly reporied this afterncon . that the Relief was not seen in Pybus' Bay. Coast Guar headquarters here ordered an An- nette Island based aircraft to carry out a search for the missing trap- per. radio, 'BULL MONTANA DIES LOS ANGELES, Jan. 24—(®— Lew's (Bull) Montana, veteran wrestler and film actor, died today of heart disease. He was 64. He had Leen hospitalized since Dec. 30. FROM CORDOVA Robert Pheasant of Cordova is a guest at the Baranaof Hotel. ! 1 | | I i for protecting the sea otter herds of the Aleutian Islands. Day said Alaska {fisheries have mproved in the Southeast but the regulations, the pack in Southeast Alaska increased this year and was much better than for several sea- sons. “We believe,” it can be maintained WASHINGTON, Jan. 24—(P— | ‘actory condition if additional The Congress of Industrial Or-|Patrol and facilities for research sanizations (CIO) charged today|and observation can be provided.” Rep. Jackson (D-Wash) asked that more than 11,000,000 persons : 3 are being worked to death in Soviet| that funds be provided for research slave labor camps. {into the habits of Alaska herring. A statement by James B. Carey, | CIO Secretary-Treasuret, prepared | for the Senate Foreign Relations BEN DETSE Committee, said in part: “Both Hitler and Stalin orga- WASHINGTON, Jan. 24 President Truman today nom ed the greatest machinery for Karl R. Bendetsen of California to literally squeezing the blood out ot wman beings for two purposes: ibe Assistant Secretary of the Army. Jdrst to get human energy without pay and secondly, to kill, through Bendetsen, a San Francisco law- yer, has been serving as a sp he testified, “that in a satis- Famps’ yverwork, the undesirable people. “The population of slave labor camps in Germany reached almost | léven million . . . the number ot} inmates from the Baltic nations in the Siberian slave labor camr including the salt mines, is cer- tainly higher.” The Senate committee is holding hearings on the United Nations proposal to outlaw genocide. consultant to Secretary of the Army Gray. HEAT WAVE He is a former Washington state man, Bendetsen has had long service in Army ranks both as an enlisted wan and officer. Now 42, was only 14 when he signed up for the National Guard in Washinzton State. Later on he served as a Re- serve Officer. Shortly before World War II he came to Washington as a Captain in the Judge Advocate Gene office. He moved over to the War Department General staff and rose to .the rank of Colonel Near the close of the war, he organized the Army’s civil alfairs division, NON-COMMUNIST AFFIDAVITS T0 BE FILED BY IFU WASHINGTON, Jan, 24—(®—The temperature in the capital today Lroke another daily record, the fifth time this month, It was 66 at noon, two degrees higher than the previous Jan. 24 high of 64 in 1942. ® 6 ®» 0 o @ e 3 & WEATHER REPORT In Juneau—Maximum 15; minimum 2. At Airport—Maximum 10; minimum -7. FORECAST (Juneau and Vieloity) Increasing cloudiness with very light snow flurries and lowest temperature near 15 tonight. Cloudy and warmer with light snow and highest temperature near 30 degrees ‘Wednesday. SAN FRANCISCO, Jan. 24- The CIO International Fishermens Union which has been accused by National CIO of having leftist tendencies will file non-Communist PRECIPITATION (Past 24 nours ending 7:30 a.m. today City of Juneau—None; since Jan. 1—1.08 inches; since July 1—55.02 inches. affidavits under the Taft-Hartiey At Airport—None; Law, President J. F. Jurich of Se- since Jan. 1—65 inches; attle told the convention today. He since July 1—36.34 inches. said that at recommendation of its officers, the Executive Board ordered them to comply but cau- tioned delegates however to tell their locals “not to go running to the NLRB every time they have a small problem.” SITKANS HERE Mrs. Ernest Somers and Miss | Janet Somers of Sitka are regis- | tered at the Baranof Hotel. situation is still critical in the|the waterfront. Arrival of 750 feet Bristol Bay seection. | of hose from Juneau yesterday bol- He said that due to stringnd stered the fire department. Slists mate, Vote Now Assure WILD GAME {jnidentified Submarine Is Reporied Seen Lurking Off Navy PETERSBURG WATERLESS PETERSBURG, Alaska, Jan. 24— This fishing community of persons ran out of running vater today. | The sturdy fishing folk undrr-l tand sympathetically how the.r New York cousins have been feel- Coils are being pulled from hot water heating systems. Drug stores |are having a run on disposable | diapers. Housewives are discovering Low much snow it takes to make A pan of water. L | An enterprising taxi company | advertised fresh water from creeks | outside of the town at 50 cents for 5(1\/9 gallons. The price threatened |to go up today—as the water weni j down. | Cold weather is to blame. | Ironmically, this is happening in Alaska's rain belt. The town is a | neighzor of Ketch'kan, which had 202 inches of rain in 1949 and also has water worries now. Most of Southeastern Alaska lies under two to four feet of snow. But it’s the dry kind. As residents eye every new cloud { hopefully, their main fear is Iire.‘ The town has four salt water, | pumpers at strategic positions on | The water situation has been! | eritical for a month. It began when the first cold spell of winter began to hold back moisture in the town's watershed, keeping it from running iinto the reservoir. The temperature plunged below 'zero Sunday night and has stayed there ever since. | 'FUNERAL SERVICE FOR C. F. MDOWELL TO BE ON THURSDAY SEATTLE, Jan. 24—(®—Funeral services will be held here Thurs- day for Charles Friend McDowell, who helped install machinery on; one of the first cold storage boatsj ;0 bring fish from Alaska. The re-} tired refrigeration engineer dxedl 3aturday at age of 79. For about 3 years, he divided his i|lime between Juneau and Seattle.! PERSONNEL CHANGES REPORTED ON STORIS The following recent personnel changes have heen reported from ! the U. 8. Coast-Guard cutter Storis ! William B. Weimer, EN3, has de- oarted on six days leave, Donal E Hudson, FN, has returned from inpatient treatment at St. Ann's| Hospital and has departed on fivep days convalescent leave. Clifford, D. Tyler, SN, has reported from Seattle for resumption of duties Herman A. Maahs, chief machin- has departed on six lays leave. Joseph E. Franken, chief boatswain’s mate, has been admit- ted to St. Ann's Hospital for in- patient treatment. WOMEN OF MOOSE | INITIATE SEVEN| Seven women were initiated imol Women of the Moose Lodge at their last meeting. New members are: Coral Betts, Bennie Boland, Lil- lian Stearns, Doris Stewart, Mar- garet Hoisington, Patricia Balog and Alice Riley. The meeting was pre- sided over by Mrs. Edna Card, Sen- lor Regent. Mae Larson, Jumcrl ment pin for her work last year. Following initiation ceremonies, Mrs. Frank A. Metcalf gave an in- formative talk on child care. Re- freshments closed the evening. Several women volunteered to assist the men in serving a dinner on January 28, for the Moose Lodge. SCHWINN BIKES AT MADSEN'SJ ceed 2,700 degrees Fahrenheit. |man who said they saw the sub Grade Regent, received an achieve- {nounced by Club President Branch |industr | UNDERWORLD LID IS OPENED SH QuiZ Base in Alaska IN CA ase in Alasia BOSTON, Jan. 24—(P—-Sharp de- | tectives dug deep into the under- world today in efforts to crack the week-old $1,500,000 Brink's Armored Truck Company robbery. They prepared to return to state 1 prison to question Samuel 8. Granito, 42, of Brooklyn, N.Y. Granito is serving a 10 to 15 year sentence in connection with the $110,000 B. F. Sturtevant ro:bery in 1947, | That raid was the biggest in the }r-:(y until Tuesday’'s history-mak ng | sweep on Brink's vaults by eight KODiIAK, Alaska, Jan. 24 (D el A cloak of official secrecy today shrouded reports that an unidenti- | f.ed submarine was sighted Sunday lurking within a half mile of one of the Navy's far northern tases The report was made by five Ci Aeronautics Administration crew- from Woody Island, one of five a short distance off shore. All were interviewed by high- ranking naval officers and said later they had been instructed to divulge no details. Admiral F. D. Wagner, Com- |heavily armed desperadoes. mandant of the 17th Naval District,| Police believe the gang that en-|{ gave newsmen a terse ‘no com- | gineered the Sturtevant robbery ment.” | may have master-minded the Brink Planes were sent out to search|lholdup. Granito was the only one| convicted in the Sturtevant raid. Detectives said that “so far we have met only with rebutfs” in| efforts to get information from the area but result of the search was not disclosed. i Offical sources did not link the| submarine's- appearnace with Navy winter maneuvers now being con- | Granito. ducted in North Pacific waters. Several other ex-convicts were - grilled overnight by local and state police. Meanwhile, special squads toured “hot” spots in search of clues| which were running low as the sec- | ond week of the investigation ap- | proached. | The state’s chief prosecutor, Atty. Gen. Francis E. Kelly issued a flat statement last night that “some one | Can’'t Be So WASHINGTON, Jan. 24—(®—The | Navy termed “improbable” today' reports that an unidentified sub-: marine had approached within half a mile of Kodiak, where the Navy has one of its Alaskan bases. Navy headquarters here made this evaluation after studying informa- tion from Rear Admiral F. D.|connected with Brink's may be Wagner, Commander of the 17th|connected with the job.” Naval District. bt i Planes from the Kodiak base searched the area without success after the sighting report had been made Sunday by five members of a Civil Aeronautics Administration crew. 8 There was a flurry of submarine sighting reports in American waters in 1949. None of them led to any positive identification. ALWAYS CRISIS IN GERMANY, OFFICIAL SAYS;NAZISM BACK! (By Associated Press) | The U. S, High Commisisoner. for Germany, John J. McCloy, who is on a ftlying visit to Washing- | ton, said, “there’s always a crisis in Germany.” He said his present: visit is not due to any particular emergency. He declared he was ready to crack down “swiftly nnd' firmly” if dangerous nationalism like Nazism should develop in west- ern Germany. BELLINGHAM (OLD COUPLED WITH €0 MILE NORTHEASTER BELLINGHAM, Wash,, Jan. 24—| (P—While a northeaster that be- gan to reach 60 miles per hour in | Meanwhile at Bonn, a west Ger- gusts tore through clothing of | man government communique saidi workbound residents, the temper- |the cabinet had decided that es- ature was 5 degrees above zero ullmbllshmm'. of good relations be- 7:30 a.m. today. tween France and West Germany Hour by hour, starting shortly is too important to the unification after midnight at 13 degrees, the [of Europe to be upset by the Saar mercury went down, one degree for | CORLIOVersy. : each hour. Once it dipped to 4.4. Germany wants to reincorporate It was comparable to January the coal-rich Saar into the West 2, 12, 13, and 18—previously the German Reépublic. France, which is most agonizing days of the stormy | Using the Saar's coal and has link- weather—in ferocity of wind and ed the Saar with French economy, cold. wants the area to remain detached Snow depth varied, with drifts |{fom Germany. forming, but 6 to 7 inches was re- ported average depth. DIMAGGIO TO GET BIG PAY BOSTON'S UNION CLUB LOSES $2000 IN ARMED ROBBERY BOSTON, Jan. 34—(P—Two gun- exclusive men robied Boston's NEW YORK, Jan. 24——Joc| Union Club of $2,0%0 wday—just DiMaggio, center fielder for the|aiter the payrell had been de]ivercd New York Yankees, has signed a|by an armored truck of Brink’s, money transport company was robbed of $1,- b 1950 contract that is expected to|Inc., net him as much as his estimated | which, itself, $180,000 salary of 1949. 1500,000 & week ago. No terms were made putlic|/ Two women employees, who only although it was announced that|minutes before had ‘“kidded” the the pact, making DiMaggio one|Brinks guard about the robbery at| of the two highest priced players | his firm, were held up. " in the game this season, was [or| only one year. | STOCK QUOTATIONS | ROBINSON SIGNS NEW YORK, Jan. 24 — Closing | quotation of Alaska Juneau mine stock today is 3, American Can d in House LEGISLATION IS "TRAVESTY' FOE PROTESTS {Brought Ufi;Keep FEPC Bill Off Floor Says Repub- lican—Wans 1 Senator "| WASHINGTON, Jan. 24—P—An early House vote on Alaska and Hawaii statehood was assured to- day. . ‘The House late yesterday approv- ed special resolutions making the statehood legislation in order for House action. Majority Leader McCormack (- |Mass) announced that the bill will be programmed for future consider- ation but he said it will not be this week. He did not indicate when they will be called up. When the House session opened the majority of the members ex- pected to vote on the controversial Fair Employment Practices Bill, a part of the President’s Civil Rights Program. Speaker Rayburn (D-Texas), however; recognized Chairman Pet- erson (D-Fla) of the House Public Lands Committee, who offered a resclution calling up the Alaska statehood bill, and later one for the Hawail bill, Rep. Coudert (R-NY) told the House the failure to call up the FEPC legislation and the tak- ing up of the Alaska and Hawali Lills “was a travesty on parliamen- tary procedure.” No Warning He protested that the statehood questions were “flung in our teeth” without any advance knowledge that they would be the subject for debate. “It is brought up,” he sald, “just to keep off another hill that should be considered.” He protested that granting state- hoed to Alaska and Hawall would add four more Senators who would be exercising power and influence teyond that of the entire delega- tions from large states. Such action, he said, would open the door to making states of the Virgin Islands, Pacific Islands such as Guam, and other possessions. He recalled that we has pending a constitutional amendment which would permit Congress to reduce the nurhber of Senators in a new state to one. Coudert’ argued that the chiet reason the bills were called up was that the two territories have “at- tractive, genial and persuasive dele- 1ates whn can wrap the membership of this House around their fingers.” Delegates Urgent The delegates, Bartlett, Democrat of Alaska, and, Farrington, Re- publican of Hawali, each urged ap- proval of the rule permitting the oills to be considered. McCormack laughingly told Cou- dert and Rep. Halleck (R-Ind) that he had promised Farrington that the Alaska and Hawail bills would be considered in that order. “Alaska,” McCormack sald, “is 1+ good democratic community and Hawaii is a good Republican com- munity. I am going, to keep my promise if the House permits me to do so.” Reps. Crawford (R-Mich), Engell (R-Ore), Jackson (D-Wash), D'- Ewart (R-Mont), Murdock (D-Ariz), Fulton (R-Pa) and Mansfield (D- Mont), supported the action ta bring up the Alaska bill, The resolution on the Hawaiian statehood bill was debated only a few minutes and was gpproved by voice vote. Farrington related that six House ccmmittees have investigated the juestion of Hawali statehood over the past 10 years and all reached the conclusion that the territory meets all the requirements for ad- mission to the Union. What It Takes “We have the population, we | 111%, Anaconda 29%, Curtiss- | | Wright 8%, International Harvester | BROOKLYN, Jan, 24—(®—Jackie 271, Kennecoit 54%, New York| Rotinson, Brooklyn second base-|Central 12%, Northern Pacific| man, signed a 1950 contract for a|14%, U. S. Steel 28'%, Pound $2.80% sum estimated at bgtween $30,000| sales today were 1,250,000 shares and $35000. No figures were an-| Averages today are as follows: 199.62, rails 55.15, util- UP WITH DODGERS Rickey. ities 41.6: Robinson, voted the league’s most | valuable player after helping u:e‘ Dodgers win the league pennant last year, received an estimated $18,000 n 1949, STEAMER MOVEMENTS Baranof from Seattle due to- night at 8, bound west. | Princess Norah scheduled to sail Temperatures inside a railroad from Vancouver Saturday. have the wealth and we have the ability to manage our own affairs,” he said. He urged, too, that statehood for Hawali is in the “national interest in view of the situation developing in the Far East.” Supporters of the Hawaii mea- sure included Reps. Crawford, Ful- ton, Mansfield and Javits (R-NY). Delegate Bartlett said today he expects that Majority Leader Mc- Cormack (D-Mass) “will set the bills up for action at an early date.” “Alaska’s chances for statehood are far brighter than ever before,” Diesel locomative engine may ex-| Denali scheduled to sail from Seattle Saturday. (Continued on Page Two)