The Daily Alaska empire Newspaper, April 18, 1950, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXIV., NO. 11,481 JUNEAU, ALASKA, TUESDAY, APRIL 18, 1950 MI"\‘[BER ASSOCIATED PRESS PRI(‘E TEN CENTS Charge Russ With Shooting Down Chilean President Reaches U. . Territorial Building Sum Is Approved:; $1,260,000 for Strudure; Vole on April 20 EVIDENCE IN MARAGON CASE IS INTRODUCED Checks Show He Had Two Banking Accounts Which He Denied Previously WASHINGTON, April 18 — @ — ‘The perjury trial of John Maragon produced evidence today that at the time he admitted having only one bank account he had anothe. in Texas under the name of J. H. Maragon. The onetime bootblack, who used to have friends at the White House, is on .trial in federal court on charges of lying to Senate investi- gators last year about his business affairs. Among other things, the govern- ment has accused him of lying when he told the Senators last July 28 that in 1945 and 1946 his only bank account was in Washington. The committee was looking intc the activities of five percenters— men who handle business deals with the government for a fee, usually five percent. Carmine S. Bellino, a certified public accountant who worked for the committee, told the jury thai the day after Maragon appeared before the Senate group it was established definitely that .Maragon had an account in the National Bank of Commerce at San Antonio. The swarthy Greek American de- fendant chewed on his glasses and twisted his hands while the checks were offered in evidence. FORMER CALIFORNIANS T0 MAKE HOME HERE Waldo V. Morris, from Centrai Valley, Calif.,, who is registered at the Gastineau Hotel, arrived here yesterday via Pan American plane and is now connected with the Alaska Road Commission. Morris was formerly with the Bureau of Reclamation in its Cen- tral Valley project. His wife and two children, who are at present visiting in Tacoma until living quarters are found here, will join him and the new home of the family will be established in Juneau. VISITOR FROM L. A, Here from Los Angeles, Calif., V. ll.gclinle is a guest at the Baranof. The Washington Merry - Go-Round (Copyrisht, 1950, by Bell Byndicate, Inc.) Bv DREW PEARSON 'ASHINGTON—Despite the red carpet rolled out for the likable young Shah of Iran during his lengthy visit to the U, 8. A, al- arming diplomatic dispatches from’ the near East indicate that Russ- Ja is getting closer to taking over his vital, oil-rich country. ) Able U. S. Ambassador John Wiley has been cabling the State Department for weeks that Mos- cow is, making tremendous prog- ress in Iran. Its weapons are largely beyond control of the Uni- ted States—political and economic turmoil growing out of a crop failure, business panic and govern- ment graft. These are bringing new members to the noisy Tudeh, or pro-Communist party, which is being egged on by Russsian radio trangmitters across the border. ‘The Shah, who made a big hit during his American visit, returned to announce “a holy war against| . corruption.” However, this got him in wrong with wily politicians ar- ound the throne who now would be’ glad to dump him and play ball with Russia—provided they weren’t afraid of being purged la- ter by the Communists. Mean- while, secret talks: are taking place in Moscow on economic aid to Iran. The crisis is moving so rapidly that diplomatic cables indicate: the —_— (Continued on Page Four) ;| dent for that year in his January Approval of $1,260,000 to build a new Territorial Building was ap- proved today by the Washingtoh office of the Community Facilities Services organization, it was an- nounced by John Argetsinger, Ju- neau representative for the agency. Advanced in cash for drawing plans, making surveys and other preparations prior to actual con- struction was $40,000. The approval comes practically | on the eve of the special election w 2ome before city voters Thursday, 0 pass on the proposition of turn- ing over city property on which the A.B. Hall is located, the site next loor occupied by a parking lot, and the site of the present city hall, with the vacant lot next to it. The Board of Administration wreed to pay the city $60,000 for he property, free and clear of all lease agreements, the city being re- quired to demolish present struc- sures on the lots. Everything Scattered The 19th legislature appropriated $660,000 for erection of a new build- ing to house Territorial activities, now scattered throughout numerous private office buildings in Juneau. The $60,000 set aside for pur-[ chase of the property by the Board of Administration would be used by the city—if the voters give their skeh—to tear down present build-| ngs on the site, including the city hall, the AB. Hall and a-smal aealth department structure, and opurchase a portion of the sité now owned by the Juneau Memorial| Library board hetween 4th and 5th| streets and Calhoun and Main. A lease held by L. A. Sturm for cold storage lockers in the A.B. Hall would also have to be bought up. It has several years to go. The Community Facilities Serv- ces—agency controlling the Gen- sral Services Administration — will furnish half the sum allowed, which ¥ill amount to $630,000. The Ter-| ritory must furnish the other half. Of the sum appropriated by the ‘egislature, $600,000 would remain iter the property is purchased.| For all intents and purposes, this | neans a building worth $1,200,000 may be erected between 3rd and! ith Streets and facing on 4th Street, | diagonally across from the Federal Building. Plans on City Hall If the ordinance is ratified—and all voters are urged to get out Thursday to cast their ballots — plans will go ahead immediately on constructing a new city hall, to face ith Street, directly across from the site of the proposed new structure. The library, originally planned for +his site, would be moved to face jth Street. Both would have side :ntrances on Main Street. ‘The ordinance to be passed upon by the voters provides that con- struction is to begin within two years and six months from date of ordinance and that a contract must be let prior to January 1, 1951. Unless the ordinance is approved, Anchorage will probably seize the opportunity to get the capitol moved to the Hub City, as indications are that the next legislature will press for that community to be the new capitol—unless Junenultes say “sell the property.” BIG DEFICIT SEEN FOR FISCAL YEAR ENDING JUNE 36 WASHINGTON, April 18 — (® — Congressional experts predicted to- day a $6,700,000,000 federal! deficit for the year ending June 30—$1,- 200,000,000 more than President Truman’s January estimate.® The forecast from the staff of the Senate-House Committee on Internal Revenue Taxation was given to, the Senate by Chairman George (D-Ga). . George said the stalf also be- lieves that if the spending rate fixed in the President’s budget is approved by Congress the govern- ment will go into the red $72300,- 000,000 in the year starting July 1. This compares with a $5,100,- 000,000 estimate made by the Presi- jattle officer of the Alaska fisher- ‘lless in assisting the Alaska Fish- MAARTHY REQUESTS SUBPOENAS {To Ask Senglnvesligal-»i ors for Testimony of Former FBI Agents WASHINGTON, April 18 — (B — Senator McCarthy (R-Wis) an- | nounced today that he will ask | Senators 1n\e~tlgabing his charges of Communists in the government | to subpoena two former FBI agents. He said one of the FBI men be- came a member of the Communxst party in order to carry on “under | cover” work. McCarthy told reporters he would | give the names of the two men to }Edwnrd P. Morgen, counsel for the | | Senate Foreign Relations Investi- |t gating subcommittee lnur in the| day. He declined to disclose the iden- Imy of either man. It was under- ! stood that both witnesses would | estify in connection with Mec- i Carthy’s charges that Owen Latti- more is Russia’s top agent in this country. Lattimore, a Johns Hopkins Uni- | versity professor, has “labeled Mc- | Carthy’s charges “pure moonshine” and called the Senator an unmiti- | gated liar. Lattimore told the com- | mittee under oath he is not a Com- munist and never has been one. Louis Budenz, former Commun- 1 committee Thursday at the request of|McCarthy to testify in the Latti- more case. FISHERMEN TO ASK NEW VOTE TO LEAVE C10 SEATTLE, April 18—(P—A Se- men’s 6,000-member union said| last night a new referndum vote| would be demanded on withdraw- al from the CIO International Fishermen and Allied Workers of | America. Oscar Anderson, Secretary of the Seattle local, said the action had been asked by San Francisco ard Portland branches, and under Ar- ticle 4, Section 3 of the Union| Constitution: “Branches shall have the right to demand a referendum vote upon any important question concerning this union.” Joe Jurich, International Presi- dent of the IFAWA, questioned the move, however, and said a resolu- tion on quitting the parent union for independent status already had been voted down in coastwide bal- lotirig by Alaska Fishermen Locals. The defeated resolution said in part that the “International has proved itself ineffective and help- ermen’s Union in any economic struggle.” It also sald that dur- ing the years of affiliation the Alaska Fishermen paid the IFAWA approximately $160,000 per capita tax, including $20,000 for 1949. The Alaska union comprises about one-third of the international ‘membership. The IFAWA is one of several unions being investigated by the National CIO for what~it termed pro-Communist domination. Anderson recently resigned as IFAWA vice president, CZECHOSLOVAKIAN NEWS GATHERING BY AP ENDS TODAY LONDON, April 18—M—Direct news gathering by the Associated Press in Czechoslokavia ceased to- day. Government action previously left the AP without -an American correspondent in Prague. Today the 'Czech nationals who were tempo- rarily in charge of the AP’s bureau there advised the AP they were not in a position to continue filing news. FROM HOOD BAY | nolds for five hits in the first in- ist editor, is to appear before '.hvi | hit safely, with Williams’ YANKEES, DODGERS LOSE OUT Championsflajor Base- ball Leagues Start Sea- son with Defeats world champion New York Yankees and the National League pennant winning Brooklyn Dodgers got off on the wrong foot today in the de- fense of their crowns as the major | leagues opened the 1950 season at eight sites. With spring weather general to- and the St. Louis Cardinals were | idle this afternoon. They meet to- night in the first night opener in the 75 years of the National League. The Dodgers, opening in Philadel- phia, where they clinched the flag last October, saw the Phils blast their ace righthander, Don New- combe, off the mound in less than two innings, and go on to a 9-1 triumph. i The Yankees, opposing Bosmni whom they defeated on the last day of the 1949 season for the title, fell behind quickly when Ted Williams |and Company shelled Allie Rey- ning to take a 3-0 lead. The Sox added one in the second to lead | 4-0. The Sox added five more runs in the fourth. At the end of the sixth inning the score read Boston ! | Red Sox 9, Yankees 4. | While the Phillies were making merry at the expense of four Bropk hurlers, Robin Roberts, | Philadelphia righthander, was hold- | ing the Dodgers to three singles and no runs through the first five in- nings. In the meantime the Phils| collected 13 off Newcombe, Carl Er- skine, Ezra McGlothin and Rex! Barney. . Mel Parnell, Boston's 25-game! winner last year, retired the first | three Yankees to face him. The| first four Red Sox to face Reynolds? double the big blow. TRUMAN HURLS BALL | WASHINGTON, April 18 — (# — | President Truman got the 1950 ma- jor league season off to a fine start | here today, with a lefthanded heave | that Washington pit¢her Joe Haynes | grabbed. Then, just for good measure, mex smiling President threw one right- handed. But this was a feeble thing that trickled into a crowd of ball players. Mr. Truman, like any true base- ball fan, got to the game early. | ‘WEATHER REPORT In Juneau—Maximum, 40; minimum, 35. At Mrponr-mxlmum, 41; minimum, 33. FORECAST (Juneau and Vicinity) Cloudy with rain tonight and Wednesday. Southeast- erly winds 15 to 26 miles per hour. Lowest temperature to- night 38, with highest Wed- .nesday 43 degrees. L) . . L] PRECIPITATIONG® (Past 24 hours ending 7:30 &.m. today ® City of Juneau—0.70 inches; ® since April 1 — 2.29 inches; ® since July 1—62.86 inches. At Airport.— 0.15 inches; since April 1 — 1.01 inches; since July 1—41.12 inches. © e 0 0 00 0 00 Liens for Income Tax Slapped on Gangster's Estale KANSAS CITY, April 18 — & — The government slapped income| tax liens of $70,672 today on thel estate of Charles Binaggio, slain Northside political boss. A lien for $24162 which the government claims Binaggio and his wife owe for unpaid taxes, penalty and interest for 1947-1948 was filed this morning. A second lien fer $45509 for the years 1945-1946 was filed this after- noon. The liens tied up the prop- budget message. Roy Debelok, of Hood Bay, is a Jgues'. at the Gastineau Hotel. v erty of both the slain Binaggio and his attractive wife. NEW YORK, April 18 — (# — The | day, only the Pittsburgh Pirates| TRAGEDY S - AVERTED BY 23-year-old | - *Explosion of Time Bomb U.S. Plane President Gabriel Gonzalez Videla (right) of Chile is greeted on his arrival in Key West, Fla., for a state visit to the United States. to bring the Chilean executive here. Videla as Mrs. Videla looks on (cenwr) w Wirephool.o LAST SECOND i Aboard Airliner Staved —Is Love Case LOS ANGELES, April 18 — B — Love for a pretty retired airlines stewardess was advanced today by police as a motive for the action of a young father who sought to | destroy his family by planting a time bomb on an airliner carrying {them and 13 other persons. Police Lt. C. E. Ream said that Miss Betty Suomela of Hermosa Beach told him that she was in love with John Henry Grant, 32, and | that the approximate time yester- i day that he placed the bomb on an | United Air Lines DC-3, she thought he was appearing in court getting a | divorce from his wife. The stewardess, who is not em- ployed by United, told Ream that Grant led her to believe that he would marry her after the divorce. Ream questioned the stewardess after Grant drove her car to the airport. Ream said he was convinced that the stewardess was in no way implicated in the case and that she would be released. Loses Nerve Grant lost his nerve at the last moment and no one was injured. Just as the blue and silver Unitec Airlines DC-3 was about to leave Los Angeles International Airport for San Diego yesterday, Grant ran to the ticket counter and screamed: “Don’t let that plane take off! I just put a bag on it full of gaso- line!” At the same moment a baggage handler loading the plane out on the field dropped a heavy suit- case. It exploded and flames flared up, singeing the man's eyebrows and hair. ‘The baggageman, Harold Mayer, quickly extinguished the flames and tossed the suitcase out 6n the ground. He opened it and found an alarm clock wired to ignite a box of matches, which in turn would explode several gallons of gasoline contained in sections of an innertube. Only a small portion ~f the gasoline was ignited, however, and no one else was injured. Arrest Is Made Detective Ned C. Logdson, who ar- rested Grant, said the onetime top- flight aviation engineer told him he was $6,000 in debt. He quoted | Grant as saying he planned to col- lect $25,000 in insurance taken out at the airport on his wife and two children. Det. R. B. McCreadie said Mrs. (Continued on Page age Sx) Devaluahon Greal Boost Says Cripps 'British Chancellor of Ex- chequer Says Recov- ery Satisfactory President Truman sent his perosnal airplane “The Independence” to Santiago | Emilio Bello (left), Chilean Ambassador to Cuba welcomes President INVADERS OF HAINAN REPULSED Nationalists Claim More; than 2,000 Reds Killed on Beachheads LONDON, April 18 — (A — Last; autumn’s drastic devaluation of the| pound sterling has turried out bet- ter than expected, Sir Stafford Cripps told the House of Commons today. Since devaluation — which took place exactly seven months ago to- day—Britain has “made a satisfac- tory beginning to the recovery ot our gold and dollar reserves, Chancellor of the Exchequer Cripps said in his annual budget message. “Since September our exports have recovered sharply,” he said, vith indications that in the first shree months of this year the vol- ime of foreign sales was 10 per- rent above the same period of 1949. Britain’s reserves of gold and dol- ars rose by $296,000,000 in the first juarter of this year to a total ot 31,984,000,000—almost to the saie ninimum of $2,000,000,000. $IGHT DAYS ADRIFT FINDS TUGBOATMEN IN FINE FETTLE SAN FRANCISCO, April 18— The Coast Guard said today all six men aboard the tug Omar appar- 2ntly have survived in good shape ‘heir eight days adrift in the Pa- cific. ‘The crewmen on Lhe tug signaled “no emergency” in answer to a message dropped from a Coast Guard PBM plane. The Coast Guard rescue center ;aid the plane dropped messages onto the Omar at 10 am., (PST), requesting the crew to hold their arms horizontally if they needed medicine and food. “The crew stood with their arms at their sides, indicating no emer- gency,” the center reported. It was not possible to count the crewmen from the air. The Omar was sighted at 8:45 am., (PST) about 525 miles south- west of San Francisco, by a Coast Guard B-17. A 10-plane air search | had started this morning. All planes except the PBM and the B-17 were ordered back to their | stations. ELFIN COVITES Mr. and Mrs. Roy B. Elliott, of Elfin Cove, are guests at the Bara- nof, TAPIEI, Formosa, April 18—#— Chinese Nationalists said today; their planes killed more than 2,000} Red invaders of Hainan island on| invasion craft and beaches. Air headquarters said the toll was | counted only until evening of yes- terday’s fighting. Nationalist defenders of the’ vital South China island, fighting back on the ground, sea and in the air, continued the battle today against more than 7,000 Red invaders who have established two beachheads. Nationalist grourfd forces claimed they have contained the Red in- vaders who stormed ashore early | yesterday. The Nationalists asserted the Communists succeeded in land- ing only about half of a 15,000-man | force hurled in the greatest am- phibious operation against the big stronghold off South China. (A Hong Kong dispatch said the| Chinese Col ists have attacked and prgsumably occupied tiny Lin-| tin island five miles west of Hong Kong and only three miles outside British territorial waters. (A British Royal Navy spokesman said the Reds began shelling the Nationalist blockade base yesterday.| The bombardment ceased abruptly in early afternoon. A destroyer es- cort, transports and ten troopladen junks were seen moving south from the island today. (The Lintin action is believed to be the start of an all-out campaign | against the Mansan group of about 30 islands between Hong Kong and Macao, Portuguese colony. Na-| tionalist launches and gunboats | based on these islands have block- aded tightly the Pearl river ap- proach to Canton and slowed junk trade between Hong Kong and! Macao. Lintin, largest of the group, | is nearest Hong Kong and was the | chief Nationalist blockade base.) STOCK QUOTATIONS NEW YORK, April 18—Closing quotation of Alaska Juneau mine | stock today is 3, American Can 1186, Anaconda 30%, Curtiss-Wright 8%, ! International Harvester 267%, Ken- necott 53, New York Central 14%, Northern Pacific 16%, U.S. Steel 1 32%, Pound $2.80%. Bales today were 3,320,000 shares. Averages today are as follows: in- dustrials 215.05, rails 56.04, utilities | 4287, PLANE OVER_ BALTIC WHEN RUSS SHOTIT Protest Answer Charges Reds with Fight Over Open ' Sea-Indemnity Demanded WASHINGTON, April 18 — (# — The United States charged today that Russian fighters shot down the missing American Navy patrol plane i over open waters of the Baltic Sea. It demanded that Russia punish | those responsible and pay appro- priate indemnity for the lives of the ten men lost in the plane. The charge and the demand were made in a formal reply to Russia’s protest of April 11 that an Ameri- can plane had flown over ILatvia |and exchanged gunfire with Soviet aircraft on April 8. Note Delivered The American note, delivered in Moscow by Ambassador Alan G. Kirk, demanded also that “the most strict and categorical instructions” be issued to the Soviet Air Force to prevent any new incident “so clearly calculated to magnify the difficul- ties of maintaining peaceful and correct international relationship.” A US. Navy Privateeer enroute | from Weisbaden, Germany to Cop- enhagen, Denmark, has been miss- ing with ten men aboard since April 8. US. military officials say it was the only American plane in the Baltic area on that date’ It orders to avold “Soviet territory, American officials Plane Search Abandoned A wide spread search for the missing plane was abandoned yes- | terday. Vishinsky said Russian fighters jumped the American plane 13 miles inside the boundary of Latvia, the (ormcr independent Baltic state | which Russia occupied in 1940. The point he named was nearly 300 miles off the direct course between Weisbaden and Copenhagen. In the delivery of its reply to the Soviet charges the State De- partment chided the Russians with failing to match American “calm- {ness and restraint” in dealing with an incident which put heavy stress on American-Soviet relations. Impressive Crust After approving this statement yesterday, the Secretary of State went to Middletown, Conn. — his ‘birthplace—to deliver a speech in which he sald that the United States draws its strength for its recognition of human dignity and |of individual responsibility to the community, and added: “Therc are other parts of the world where the centralized power of the state is an impressive crust, concealing a vast pulp of human misery and helplessness. We spurn that type of impressiveness.” Injundtion Is Asked ToPrevent Cannery Union’s C10 Claim SEATTLE, April 18—(P—A Su- perior Court suit was brought today to prevent an expelled cannery workers union from claiming to be- long to the Congress for Industrial Organizations (CTO). The action was brought by Roy W. Atkinson, regional CIO direc- tor, against Local 7, Cannery Work- ers’ Union, which is affiliated with the International Food, Tobacco, Agricultiral and Allied Workers' Union. This organization was ex- pelled from the CIO on March 1 on charges of following the Com- | munist party line. Joining with Atkinson in the ac- tion are officers of Local 77, United | Packinghouse Workers' (C10). Local 77 is currently engaged in a struggle with the ousted union for jurisdic- tion over 3,000 Alaska cannery workers. The suit charges the expelled member with continuing to claim CIO membership despite the ex- | pulsion. A permanent injunction is | asked. SURVEY MAN IN John C. Reed, a US. Geological Survey representative, is registered at the Baranof from Washington, DC. was _unarmed..and..under sries <