The Daily Alaska empire Newspaper, March 2, 1950, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXIV., NO. 11,441 JUNEAU, ALASKA, THURSI)AY MARCH 2, 1950 MEMBER A SSOCIATED PRESS PRICE TEN CENTS Judge Decides UMW Innocent of Contempt Truman Nof Going fo Moscow as Longas He Is President, He Says NINE APARTMENTS FOR 986 FAMILIES T0 GO UNDER FHA Federal Housing Authority made | commitments to insure more than | $11 million in loans for construc- tion of apartment projects through- out Alaska during the last effective days of Title 608 of the Federal Housing Act. The section is one under which authority was given to insure mort- gages on “rental projects of eight or more dwellings,” with 10 per- cent of space allowed for commer- cial uses, such as stores. It ex- pired yesterday. Clinton C. Staples, Territorial di- rector of F.H.A., announced today that commitments had been made to insure apartment projects in four cities. Nine apartment houses are com- mitted, with space for 986 dwelling units from one to three rooms. “We just got them in under the wire,” Staples said. Fairbanks—four sapartment pro- jects to provide 553 dwelling units. Anchorage—three apartment pro- jects, 366 dwelling units. Sitka—one apartment project, 37 dwelling units. Ketchikpz -one apartment pro- ject, 30 d/velling units. Practigilly all this building will begin during-the 1950 building sea- son, Staples said. Backing for the insurance came when $11 million of thé $300 million provided in the federal budget for this type of building throughout the United States and its territories was ear- marked for Alaska, he said. Loan insurance was committed for $260,000 for the construction ot the 30-unit Louise Apartments in Ketchikan. George and Inga Brink and Paul Hansen, all of Ketchikan, were named as sponsors of the project. Loan insurance for the $3,080,000 Fairview Apartment project in Fairbanks was committed by F.H.A. in the closing .hours before Title 608 expired. Cash Cole of Juneau, Everett Nowell of Anchorage, and Nels Mortensen of Seattle are spon-| sors of the project. Construction of the Second and Lacey Street Apartments in Fair- banks will follow the recent com- mitment of loan insurance for $1,- 694,200. Sponsors are R. P. Hill and A. E. Waxberg, both Fairbanks men. Phillip G. Strand of Fairbanks, (Continued on Page Eight) The Washingion Merry - Go - Round fCopyrieht. 1950. by Bell Syndicate, Inc.) Bv DREW PEARSON (Ed. Note: Drew Pearson’s col- | umn today (nkes the for of a umn today takes the form of a Louis Johnson on the all-import- ant problem of our Russian re- lations and future war.) Hon. Louis Johnson, i Secretary of National Defense, | Washington, D. C. Dear Louis: Maybe I am hipped on this sub- ject, but I am convinced that in this day of threatened atomic- hy- drogen war, it is vital that we as a nation chart a more definite course in our relations with Russia and| that the American people be in- formed of that course. You and I don’t always agree, but in this country, thank goodness, sincerity is much more important than_agréement: And you. and Ij have always been frank with each other. To be bluntly frank, therefore, the American people are confused | over the fact that after long de- lays in appointing civilian detense executives, we are now getting up an alternate capital of the United States; we are microfilming essen-| tial documents for safekeeping away from Washington; and we are planning a series of underground guueu as potential air-raid shelt- Nat\uflly this hu people worried. } And I confess that every Sunday WASHINGTON, March 2—#— President Truman said today he will never go to Moscow as long as he is Preésident but will cooperate in any move to preserve the peace. Mr. Truman told his news con- ference he is for any plan to utilize the United Nations in preserving the peace. He did not comment directly, however, on a proposal by Chair- man McMahon of the joint Con- gressional Atomic Energy Commit- tee. McMahon called in a Senate speech yesterday for the Western powers to work out a program for peace and then for the U.N. to hold an unprecedented session in Mos- cow. Mr. Truman made clear that his cooperation will never involve any trip by him to Moscow as long as he is President. But, he said, he would like to visit Moscow after he is through being President. Under questioning, he refused to say when that might be. The President said his offer tc hold peace talks in the United States is always open. BETTER POLICING IN ALASKA URGED BY CHURCHMEN Churchmen believe an improved means of enforcing law outside the incorporated towns and cities in Alaska is one of the “critical needs” of the Territory. ‘This was brought out by the Rev. R. Rolland Armstrong, field repre- sentative for the board of national missions of the Presbyterian Church, who spoke at the noon meeting ot the Juneau Chamber of Commerce today in the Gold Room of the Baranof Hotel. He said that at the meeting ot the Home Missions Council in Co- lumbus, O., in January, 1000 churchmen, representing 30 denomi- nations, went on record as favoring a move by the U.S. Department of Justice to completely revise anc modernize the law enforcement system for Alaska. Nine churchmen active in Alaska worked at formulating the aims o! churches for work in Alaska, one ot | which is to support a revision of the “inadequate” law enforcement system outside incorporated com- munities, including the commissions system of inferior courts, he said. Other matters to which the churchmen decided to give support included native claims to land in the Territory. Urges Conference The churchmen urged that De- partment of the Interior heads “confer with native leaders and use power already given them” to jsee that the natives are granted ownership of “sufficient land to as- sure a livelihood.” He said the churches also aim to assume part of the responsibility in helping young people coming from boarding schools to take their places in society. This is in line with the stated aim of the council to support the advancement of vocational and trade training for children in school. The churches would liks to see at least one year’s elementary nursing training given in the schools, Rev. Armstrong said. The churchmen also voiced Sup- port for the move to grant Alaska statehood immediately. Rev. Arm- strong said it would give Alaska a | greater feeling of responsibility for herself. “We would also favor control of the distribution of liquor on the wholesale level,” he said. Aviation — Runway ©O. F. Benecke of the Chamber’s Aviation Committee reported to the Chamber on the outcome of a meet- ing with the Territorial Commis- sioner of Aviation, Tony Schwamm, which was held last Saturday. The meeting was held to consider the problem of getting the Juneau airport’s runway lengthened. It was brought out at the meet- ing that the Juneau airport, which |is owned by the Federal Govern- ment, is not eligible for Federal aid to airport funds. (Continued on Page Four) (Continued on Page Eight) STATEHOOD BATTLE, BEGUN IN 1916, MAY RISE AGAIN TODAY BULLETIN — WASHINGTON, March 2—(P—Resumption of de- bate on statehood for Alaska and Hawaii was awaited in the House today. It hadn't started yet at 4 p.m. but there was still a chance that it would begin before the House called it quits for the day. Late this afternoon a prolonged House debate on a relatively minor farm bill blocked considera- tion of statehood for Alaska and Hawaii. Majority Leader Mec- Cormick, Democrat Massachusetts said the two bills will be consid- ered tomorrow. Leadership had expected a recess of the House until Monday at the end of todays session but it decided to have Friday's session for the sole pur- pose of voting on the two bills. By HARRISON HUMPHRIES WASHINGTON, March 2—#— The House is expected to resume debate today on statehood for Alaska and Hawaii. On Jan. 23 the statehood bills were discussed and cleared for House action but were put aside without coming to a vote, Non-voting Delegates to Congress from both Territories confidently predict House passage of the two measures. The Alaska bill was set for consideration first. The road ahead in the Senate is much less certain: The statehood bill was passed by the House in 1947, The Senate has never voted on statehood legislation for either. Both Territories have been seek- ing statehood for many years. The first statehood bill for Alaska was introduced in Congress in 1916, four years after its Territorial gov- ernment was established. But as 2arly as 1872, long before the Klon- dike gold rush, a number of Sitka residents appealed for representa- don in Congress. In 1946, the people of Alaska voted 3 to 2 in favor of statehood in a plebiscite. Alaska has been a part of the United States since it was pur- *hased from Russia in 1867 for $7,- 200,000, Its present population is estimated at 100,000, including 30,- 000 natives. Hawaii, once an island kingdom and later an independent republic, voluntarily surrendered its inde- pendent sovereignty in 1898 to be annexed to the United States. It became an organized Territory in 1900. As early as 1903, the Territorial Legislature began petitioning Con- gress for statehood. Every Delegate o Congress from Hawaii since 1920 has introduced statehood bills. The people of the islands voted 2 to 1 for statehood in 1940. The oresent population is estimated at 533,000, with about a third of Japa- nese ancestry. Impatient for statehood, the Ha- waii Legislature last year authorized a constitutional convention to dratt 1 state constitution for the islands.| The convention will convene April t with 63 delegates to be elected by voters in a general election. STOCK QUOTATIONS NEW YORK, March 2—Closing juotation of Alaska Juneau mine stock today is 3, American Can (11%, Anaconda 30%, Curtiss- Wright 8%, International Harvester 27%, Kennecott 53%, New York Central 13%, Northern Pacific 16%, U. S. Steel 30%, Pound $2.80%. Sales today were 1,340,000 shares. Averages today are as follows: industrials 203.54, rails 55.75, util- ties 42.82. ® ® o v o & o » & WEATHER REPORT In Juneau—Maximum 45; minimum 35. At Airport—Maximum 42; minimum 33. FORECAST (Juneau and Vielnity) Cloudy with intermittent rain tonight and Friday; little change in temperature. Southeast winlls occasionally as high as 25 miles per hour. Lowest ‘temperature tonight about 35; highest Friday, 43. PRECIPITATION (Past 24 nours ending 7:30 & m. today City of Juneau—.14 inche since March 1—42 inches; since July. 1—58.67 inches. At Airport—.06 inches; since March 1—.18 inches; since July 1—36.69 inches. o0 000 00 0 0 ALASKA SAILORS MUST PAY INCOME TAX, COURT HOLDS SAN FRANCISCO, March 2—#— The U.S. Circuit Court of Appeals upheld yesterday the right of Alaska to require the Alaska Steamship |ing income tax from employees’ wages, 4 ‘The appellate court upheld the federal district court’s judgment. The Alaska Steamship Co. said it was caught in the middle of a fight between the Territory and the AFL Sailors’ Union of the Pacific. The company operates steamships After passage of the Territorial tax law last March, the company Territorial Commissioner of Taxa- tion, to withhold the tax. The Safl- ors' Union then got an injunct! prohibiting the company from - ors did not live in the Territory and should not have to pay the tax. ‘The company put the withheld prevent Alaska from forcing it to collect the tax. A steamship company had at- i tacked the income tax law in its entirety, paid seamen. The District Court, however, held the act of the special sesison was invalid but that the Legislature's reenactment of it in regular session validated it. In sustaining the Alaska Court’s decision, Appellate Court stated: “Payment of taxes is not included gress undertook to protect seamgn. We know of no Congressional enact- ment and of no expressed or implied policy opposed to Alaska’s requir-| ing seamen who earn money in Alaska to pay taxes on their in- comes. This action (an attempt by Legislature to make its tax law conform to federal act) makes sense. It makes for convenience for tax- payer and for simplicity of admini- stration. “A nonresident employee whose carnings outside Alaska were taxed along with his Alaska earnings might well complain the attempted tax was wanting in due process. No such employee is party to this suit.” Concerning company’s charge interstate commerce in favor of intraterritorial commerce, the court | said the company hadn’t shown it was adversely affected. It was pointed out the act provides tax ap- | plicable only for part of voyage in Alaska waters. E. W. ALLEN RESIGNS SALMON FISHERIES; STAYS WITH HALIBUT s WASHINGTON, March A— Edward W. Allen of Seattle has resigned from the International | Pacific Salmon Fisheries Commis- | sion but will continue as chairman of the International Fisheries Com- mission. W. M. Chapman of the State De- partment told a reporter today the resignation from the salmon commission which regulates the taking of sockeye salmon in the Fraser River in Canada has been received from Allen but not vet acted upon by the Department The International Fisheries Com- mission regulates halibut fishing 11 the North Pacific. Chapman said the department regretted Allen found it necessary to resign. He added Allen’s personal business made it impossible for him to continue work on commissions. The jobs carry pay. He indicated Allen’s resignation will be accepted. A Congressional source was quot- ed by the Seattle Times to the ef- fect that John Plancich of Ancor- tes, has been proposed to succeed Allen, Plancich, manager of the Fisher- men’s Packing Corp., has been & member of the advisory commiltee to the Commission. 2- no SITKA PAIR APPLY FOR MARRIAGE LICENSE HERE Richard C. McDorman, 19-year- old Coastguardsman of Sitka, and Sharon Sunde, 19, also of Sitka, ap= plied for a marriage license today before U. 8. Commissioner Gordon Gray. Co. to deduct a Territorial withhold- | between Seattle and Alaska ports.| was directed by M, P. Mullaney, | mitting the withheld taxes to the| Territory. The union heid the sail-, amounts into a special reserve fund, | then it sued for an injunction to| contending Congressional ' law prohibits deductions from wages | in those things from which Con-| | that the act discriminates against | both j { | | MORE CASH FOR TITO | ADVANCED - Economically sick Yugoslavia, squeezed by Cominform countries, |has been granted another $20,000,- 000 loan by the United States. Responding to urgent pleas for help frem Premier Marshal Tito, | the export-import bank approved |the loan yesterday. It is the second in the past six months. The bank is under heavy pres- sure by the State Department to do lall it can for Tito, who is fighting him own cold war with Russia and her satellites, Everybody expects Tito to come back for more Ameri- can aid in another six months and he'll probably get it. | The Greek elections next Sunday lpruvlde an oprortunity for Yugo- {slavia to improve her trade and diplomatic ties with Greece. Observers in Athens sald Greece, away over to the right politically, is likely to ease towards the middle- | road parties in Sunday’s balloting. Deputy Premier and Foreign Minister Constantin Tsaldaris, lead- er of the populists, has long been a symbol and a target of Communist teharges that Greece is “monarcho- | Fascist.” And the majority of political |experts now concede that Soph- locles Venizelos' powerful Liberal Party may top the field. If the Royalist Populists slip to second or third place it would give Tito a chance to tell his people that the Greeks are veering from “monarcho-Fascism” towards demo- cracy. Tito is in need of friends right now and a change in the Gretk political pieture would help him make a new start with his neighbor. AIR INJECTION KILLED WOMAN, ASSERTS WITNESS Medical Exam—iner of N. Y. Testifies in ""Mercy Killing” Case MANCHESTER, N.H., March 2 —{P—The state’s star medical wit- ness said today that he believed Mrs. Abbie Borroto was Killed by lan air injection in her veins ad- | ministered by Dr. Hermann N. Sander. Dr. K. Milton Helpern, Deputy Medical Examiner of New York City, gave this testimony as the state neared the close of its Iirst degree murder case against the 41- year-old country doctor. At the end of a long hypothetical question, Dr. Helpern said: “In my opinion death was caused by ‘an air embolism resulting from the injection of 40 ccs of air.” That is the amount of air the state charges Dr. Sander injected into Mrs. Borroto’s arm last Dec 4 in a gesture of mercy to end the agony of her cancer. ! The state rested its case p.m. (EST). | “The state rests,” said County Solicitor William H. Craig at the beginning of the aftefnoon session The jury retired from the room and chief defense cqunsel Louis E. Wyman immediately moved for a directed verdict of acquittal. Judge Harold E. Wescott denied the motion. STEAMER MOVEMENTS Freighter Square Sinnet from Seattle due 10 a.m. Friday. Baranof scheduled to sail from Beattle Saturday. Princess Norah schedueld to ar- rive at 7 am. PFriday and salls south one hour later at 8 a.m. Denali sdheduled southbound early Monday morning. at 2 (By Associated Press) ' Defenses of U. . Now in Best Shape Than Ever in | PeaceTime, Says Iruman“ READY T0 GO WASHINGTON, March 1 President Truman said today ited States defenses are in best shape they have ever {in peace time. Mr. Truman told a news confer-| ence he is aware of criticism in| H me quarters that the Defense \Depart.ments economy moves had weakened the nation’s defense. That's not the truth, the Presi- t said. He added he didn’t think ‘thcre was a word of truth in it, As a matter of fact, he went on, the country is in the best sit- uation as to defenses that it has ever been in a period when it was not at ‘war. Defense economy moves hatve come under fire from colmunists| and others, including some members | of Congress and some military of-| ficers who feel their own branch Un- the been | !of the service is being cut too much. In a report to Congress today, Secretary of Defense Johnson said the services have saved $501,000,- 000 of the $13,900,000,000 ol‘lghmlly‘v | set aside for this year's spending. Emergency in Coal Shorfage Is Now Acule Unemployment Mounting— Temperatures Being Cut ' ~Power Is Rationed PITTSBURGH, March 2—#— Sub-freezing temperatures in part of the nation made the soft coal emergency more acute today. Unemployment in allied industries | was mounting hourly. ¥ More than 200,000 workers now have joined the 372,000 striking United Mine Workers in idleness. The Governor of Massachusetts was given emergency war-time| powers. The Massachusetts State Execu- tive Council, acting on Governor Paul A. Dever's request, gramed‘ him authority to seize and ration soft coal. Dever says there is a threat to industrial production althcugh | there is “no immediate crisis in providing fuel for heating homes.”! However, householders in some states are cutting down tempera- tures to preserve their fast-dwind- ling supplies. i to seize the mines unless the union COAL MINES SEIZUREPLAN Truman Wofifommil Self on Use-Banking on Con- tempt Case Outcome WASHING'T'ON, March 2—-(»—' President Truman said today a| draft of plans for seizure of coal mines has been drawn up. But he did not indicate when or under what circumstances it might be| used. | His news conference comment came when he was told that there was a report around Washington that the Government was prepared | and management reached an agree-| ment, The President said the matter was still in the hands of the courts | and that he had nothing to sny‘ about his plans. ‘ Told of a report that seizure draft of some sort had been pre-| pared, the President said drafts| are always prepared covering all| the President's powers. (A story published by the Even-| ing Star said the coal seizure plan was drafted with a view to putting | (it into action if other measures fail to end the strike of 372,000! |coal miners by early next week.) Mr. Truman said that he would follow the law to the letter in an effort to break the coal strike, | He did not elaborate on that.! 'However, there is a provision in the Taft-Hartley law for a report to Congress when emergeney pro- cedures under the law fail to end a threat to the national health or welfare, | The President said the situation | {is very serious. A reporter quoted Henry Ford! |as saying there will be an indus- !trial close down within two weeks. { Mr. Truman commented that ne {would not go as far as that, but the situation is serious. The Government’s main hope of | ending the strike s pinned, for the moment, on the contempt case; |against the United Mine Workers. |A decision in it is expected soon.| 14KILLED INBLAZES INNATION Fourteen persons were killed and Cold Wave A cold wave moved Kentucky, West Virginia afd West- f2rn New York and Pennsylvania.| | Temperatures skidded to five above. zero in some sections. The industries which use coal are taking it on the chin. In addition to the more lh'xn‘ 200,000 laid off, untold thousands| are on short work weeks. Some of the men being laid off a day or two a week are in industries which depend on electric power. Electric power is being rationed by some utilities. Big Duquesne Light Company in| Pittsburgh has requested its domes- | tic and industrial users to reduce their power requirements 50 per- cent. into Ohio, | Trolley Service Cut The Pittsburgh Railways Com- pany took off 10 percent of its trolleys today. A big heating company supplying downtown Pittsburgh office build- ings rushed plans to convert par- tially to oil barges anchored in the Allegheny river. Heating companies in other big cities have ordered temperatures lowered. In Knoxville, stay out overnight. As the strike grinds on, the steel| industry is cutting back daily. Re-| public Steel at Youngstown, Ohio, It furloughed 2,500 men after tap- ping out 13 open hearth furnaces. FROM PORTLAND David Rockwood of Portland, Ore., lflobel. is registered at the Blrmol |tires in widely separated sections | A three-inch oil linel, is being laid several blocks to oil| Tenn., owners of some buildings are allowing their | furnaces to die out at midday and | is the latest to announce cutbacks.| one was critically injured in three |today (Thursday). The heaviest loss of lite from a single blaze was at Monson, Me. { Eight members of one family were (killed and a ninth was in “very poor" condition from second and| third degree burns, received when their home burned. The dead were Elwood Smith, 36; |his mother, Mrs. Harriet Smith, 168, and his six children, ranging |from a baby to 11 years old. Smith’s | wife, Norma, 32, was found strug- |gling in the snow toward a road.| | Her nightclothes had been burned off, | The casualities raised Maine's |fire death list since the first of |the year to 28, including 20 child- | ren. | A family of five was wiped out in a flash fire that swept a small |frame cabin in a trailer camp at the edge of Kenosha, Wis. The dead were Carroll Maxwell, 28; Ris wife, Betty, 26, and three children anging from two months to four| years. A Chinese, Lin Shew, 60, was killed when he jumped from the top floor of a three-story brick building in a fire that raged in a |block of Montreal's Chinatown. Others were feared trapped in the flames. (LUTHERAN LENTEN | SERVICE TONIGHT ‘ Tonight at 8 o'clock the second i of the Lenten Services will be held in the Lutheran Church. The topic (ur this week will be, “Of Man, and ‘ His Aspirations.” A sincere invitation to attend is | extended to all interested persons. | cent MINERS ARE HELD NOW AS DEFIANT Court Takes Only Two Min- utes to Make Devision- Government Up in Air WASHINGTON, March 2—(»—A Federal Judge today found the United Mine Workers Union inno- of contempt although the UMW's 372,000 coal miner members are defying a court’s back to work order. The decision left the government without any apparent ready weapon | to enforce the court order or to get the coal production needed to head i off a_ nation-wide industrial break | down. There was new talk in Congress of seizure of the coal mines. The | administration was reported to be considering it. At the Justice Department there | was a huddle over the next step. A possible move would be to seek | “stop strike” injunctions in courts | throughout the eoal fields, seeking action directly against defiant UMW | locals. Case Against IU The case here was against the in= ternational union, Federal Judge Richmond B. Keech, who heard the case without a jury, announced a verdict of “not guilty” on both the civil and crim- inal contempt charges. The Judge said that he had con- and “found on the record” that the charges of contempt of his Feb. 11 back to work order were not sup- ported. The union had contended that it was in no way responsible for the refusal of the miners to work. Its | defense was that the 372,000. coal diggers had each quit work by in- | dividual decision, not by direction ot | the union, and that officers of the union had done all they could to end the strike. New Negotiations A new session of union-operator negotiations on a coptract began in mid-afternoon, some two hours after Keech's decision. For the first time since last week, John L. Lewis took part in them. As Lewis walked down a corridor to the conference room at the Hotel Statler, reporters fired questions at him, about the Keech decision. He ignored them. Taft Gets Busy At the capitol, Senator Taft (R- Ohio) told reporters he will ask the | Senate Labor Committee to investi- :‘ (By Associated Press) | zate the coal strike and the govern- ment’s handling of the contempt case. Taft said he knew of affidavits, sent to the Justice Department and not used in the contempt case, in which sworn statements were made that Jocal union leaders told the men Lewis did not want them to go back to work. Taft said a new contempt case should be brought using these affi- davits and other evidence he said is available. It took Keech just two minutes to announce his decision. At the Capitol, meantime, Rep. Cox (D-Ga) told the House the coal stoppage has developed to the point of “insurrection against the gov- ernment and cannot be longer toler- ated.” “I'd put it down if it called for the use of soldiers to do it,” he said. Mr. Truman’s news conference was held some two hours before Keech announced his decision. MINERS JUBILANT PITTSBURGH, March 2—#— Striking miners today jubilantly hailed the court decision freeing their union from contempt. Said Frank Harper, employed at the Pittsburgh Consolidation Coal Company’s big Montour Number 10 mine at nearby library. “This will help settle the dispute and hurry a contract.” Harper added: “It will be a big lift for the miners but they still won't go back to work until they get a contract. “A heavy fine would have made things worse by making the men more bitter.” FROM YAKUTAT Mr. and Mrs. R. L. Frankforter and Mr. and Mrs. Floyd W. Sever- son, all of Yakutat, are stopping at the Baranof Hotel.