The Daily Alaska empire Newspaper, April 20, 1950, Page 1

HE DAILY ALASKA EMPIRE “ALL THE NEWS VOL. LXXIV., NO. 11,483 ALL THE TIME” JUNEAU, ALASKA, THURSDAY, APRIL 20, 1950 SMBER ASSOCIATED PRESS PRICE TEN CENTS - Lattimore Said Active With Sovlet Agents HEAVYVOTE BEING CAST IN ELECTION Today's turnout of voters is the heaviest ever cast in this city for a | single-question ballot, according to city officials. By 3 pm, today 620 voters had cast ballots at the single polling place in the City Hall. At that time 35 more voters were | lined from the entrance of the City Hall to the Council Chambers, wait- ing their turn to vote for or against the adoption of the ordinance pro- viding for granting the Arcnc: Brotherhood Hall property and sell- | ing the City Hall property and the| vacant lot adjoining it on Fourth | Street to the Territory as a site for | a new Territorial Building. Polls will close at 7 o'clock this| evening. Interest in the election today grew after it was pointed out the danger of Anchorage’s trying at the ! next session of Legislature to have the capital moved there. i Some opposition was heard in the city toward the proposed prop- erty transfer, but most of the op- position was thought to come from those people not fully acquainted with the provisions of the ordin- ance. The Territorial Board of Admini- stration has agreed to pay the city { | | Hendricksons fo Big Meet Here are Mayor Waino Hendrickson and Mrs. Hendrickson arriving at Seattle via Pan American on their way to attend the Pacific Northwest Trade Associaticn meeting at Vancouver, Fhoto) (Pan American NOYES RETURNS $60,000 for the City Hall property and the vacant lot adjoining it. The money received for the prop- erty will be used by the ciiy to purchase a site for a new munici- pal building, clear a lease agree- . ment on part of the A.B. Hall, and raze the existing structures. The voting today was above- average from the start, election of-| ficials sald. Voters were forced to form a line to the City Hall ent- rance before noon, and many vot- | ers, turned away by the sight of the long line, were expected to return during the afternoon or evening to| cast their ballots. i Interest in the election was ex-| tended throughout the city by the! “I Voted” lapel tags pinned on each of the voters as they left the poumgt place by Miss Judy Greene. | The tags were part of the Cham- ! ber of Commerce campaign to get out votes to insure the keeping ot | the capital here. An independent “get-out-the- | vote” campaign was also staged by civic-minded Juneau women. Led | by Mrs. Keith G. Wildes, a group of | 18 women spent the day driving voters to and from the polling place and baby-sitting whjle mothers were casting their ballots, If you have not voted and care to do so call Red 297. ' STOCK QUOTATIONS NEW YORK, April 20—Closing quotation of Alaska Juneau mine stock today is 3, American Can) 117%, Anaconda 30%, Curtiss- Wright 8%, International Harvester 26%, Kennecott 52%, New York) Central 14%, Northern Pacific 16%.| US. Steel 32%, Pound $2.80%. Sales today were 2,590,000 shares. Averages today are as follows: in- dustrials 21371, rails 5558, utilities | 4242, The Washingion| Merry - Go- Round fCopyright, 1950, by Bell Syndicate, Inc.) Bv DREW PEARSON ‘ASHINGTON—Louis Budenz, | star witness in the Senator Mc- Carthy charges, was born in In- dianapolis 59 years ago of German Catholic parents, has beeg fried 21 time in labor disputes, acquitted 21 times, and helped plot the murder of Leon Trotsky in Mexico. Educated at St. Xavier's College| and St. Mary’s College, Budenz fof- | sook his religion to become one of the most effective Communists in| the United States, though at flrsl.\ he worked with the right- wing American Federation of Labor. His first job was as editor of| “The Carpenter,” official news- paper of the United Brotherhood of carpenters and joiners. Later he became an executive of the German-American Central in St. Louis, leaving it when World War I broke in Europe. During the period of the first war he worked for the St. Louis Civic League and the Federal -Electric (Continued on Page Four) Verein | Col. John R. Noyes (above), head of the Alaska Road Commissien, who has been south on business, returned this afternson via PAA. (Photo by PAA) 'AERONAUTICS (OM. DISPUTED VOUCHER IS DECLARED LEGAL A hubbub which boiled up with the drawing of a voucher for $5,600 to pay the legal firm' of Nesbit and McCutcheon of Anchorage for serv- ices rendered the Alaska Aeronanu- tics and Communications Commis- sion died today with issuance of an opinion that the commission is en- ticled to hire lawyers in connection with its work. The voucher, when it showed up in Auditor Frank Boyle's office | here, was thrown in the laps of the Board of Examiners because the | commission’s power to hire its own attorneys was questioned. Attorney General J. Gerald Wil- liams, in his written opinion, drew the conclusion that the 19th Lez lature, which created the body, tended the commission to have its own staff of engineers and lezal advisors.” The aeronautical body has been extremely active in the past fe® months acquiring sites for airports at or near communities throughout Alaska. The Civil Aeronautics Ad- ministration is working and plan- ning with the group, which Is under the direction of George S. (Tony) Schwamm of Anchorage. Stanley McCutcheon of the law firm, and president of Alaska Air- lines, a scheduled service running out of Anchorage, appeared in Ju- neau when his voucher was turned down. McCutcheon was a member of the legislature which passed the act creating the commission. The commission obtains funds for its work from a 2 cents a gallon gasoline tax enacted at the time | the commission was created, with \75 percent cf all costs refunded by | | the federal government through the | CAA. The body was empowered by law to obtain airport sites by “purchase, glft‘ lease, condemnation or other- | wise . . . and including easements in airport hazards.” This section necessitates their having legal advice, Williams held, ! and he believed the law’s language broad enough to “give them power | to contract for such legal advice.” Another section which the attor- | ney general quoted concerns that which allows the group to “make available its engineering and other (Continued on Page Two) | broke GREAT DROP IN MARKET; NEW YORK, April 20—/—Prices sharply on change today with losses ranging ! to more than three points in heavy dealings. The break was the widest of the month with all sections of the list ;Laking part in the liquidating move- { ment. The sell-off wiped out around $500,000,000 in market valuations oft the list. Sell orders hit the market in the last hour of dealings, causing the high geared reporting tickers to fall two minutes behind actual floor transactions. Wall Street quarters were not alarmed over the sharp break and they attributed the decline to| “profit-taking” as a result of the current rise in the market which | carried prices to their best levels nce 1946. Most experts agreed that the “shakeout” was long overdue. Railroad stocks, which have been behind the market, were hit the hardest. They had declines ranging to more than three points. Television shares, which have sparked the market and dominated trading recently, fared better than | other sections of the list. After the break, they recovered somewhat and were down only around a point. Allied Chemical accounted for o good part of the loss in the indus- trial average with a loss of around 3 points. Steel stocks declined only small amounts with the exception of | Youngstown Sheet & Tube which | was off more than a point. Automotive equities managed to hold their own and they registered small declines. Utilities also soft- ened with American Gas & Electric the weak spot with a loss of more than 2 points. Dow Jones closing stock averages: 30 industrials, 213.72, off 1.49; 20| railroads, 55.53, off 1.08; 15 utilities, | 42.44, off 0.30; 65 stocks, 75.87, otf 0.76. Sales today approximated 2,590,000 shares, compared Wwith 2,930,000 traded yesterday. $1,395 CIVIL SUIT FILED IN OLD CAPITAL| Suit to collect $7,395.75 allegedly owing him through a promissary note and through pufchase of the Fishermen's Cafe in Sitka, Roy Grover of that city today filed a complaint against Lon and Bonnie Grover with the clerk of the dis-| trict court. Roy Grover claims that $3,395.75 is still owing him on a note for $4,000 made out in March, 1947 an@ due three years from date. The complaint also alleges that %o March, 1948, the defendants pur- chased the cafe on $5,000 borrowed from the plaintiff, of which $1,000 was pald. The cafe subsequently kurned, with insurance remaining in possession of the defendants, the charge states, He asks the sum plus costs and attorney’s fee, Attorney Joseph A. McLean filed the complaint !m- Roy Grover, FROM MISSISSIPPI SELL-OUTS the stock ex-| NUDES ARE | fire to the car of Radical Sons of STATEHOOD FOES LOAD THEIR GUNS FOR COMING FiGHT WASHINGTON, April 20 — (Spe- cial to The Empire)—Those who favor House Resolution 331, the bill to admit Alaska as a state, as well |ing on Washington, Both sides are busily preparing| their testimonies and arguments to | be heard by the Senate Committec on Interior and Insular Affairs be- ginning April 24. Advance information is that pro- | ponents of the measure will ad- ‘lvance the arguments that Alaskans | are entitled to representation in Congress and an opportunity to vote in national elections. These argu- 1menu will be sprinkled with- the plea that statehood will strengthen the national defense. Much is ex- pected to be said about the prox- | imity of Alaska to Soviet territory. Those who oppose H. R. 331 aren’t advertising their punches be- cause they really haven't been heard as often as the other side has. One of the opponents of the mea- sure described his stand this way: “House Resolution 331 would strip the new state of its resources ir the very act of admission. Under the bill, Alaska would be a state in name orly. The federal government would retain and control over 99 percent of the land area with little or no prospect of its release to state control or state taxation. “By this bill Alaska would be relegated to the status of a mendi- cant state, a poor and distant rela- tive.” While proponents of the bill hola it aloft as the measure that will cure every one of the Territory’s ills and solve all its problems, op- ponents point out that H. R. 331 will only add new problems—with- out doing anything for the current ills. “Statehood,” explained one spokesman, “is being advanced as a cure-all. Like the old-fashioned medicine man, the bureaucrats offer a remedy which will cure every- thing—from corns to sciatica. They try to make it appear that the prob- lems of climate, geography, defense, transportation, housing, roads, schools, taxation and tuberculosis will evaporate when statehood com ON RAMPAGE INB.C. TOWN KRESTOVA, B.C. April 20—® —Doukhobor violence flared anew today as police reported a third house and a car set to the torch by nude radicals chanting Russian hymns as flames danced. More than 100 men and women stripped off their clothes and set Freedom Doukhobor Leader John Lebedoff, destroying it about 10:00 a.m. today, police reported. Police said a third house was gutted when radicals set fire to the three room home of Mike Bayc:?. Lebedoff’s car was parked on a Krestova street. Half “the town is nude over there now,” Provincial Police Sergeant Larry Smith said. ® 0 0 0 0 0 0 0 0 . WEATHER REPORT In Juneau—Maximum, 45; minimum, 34. At Ajrport—Maximum, 43; minimum, 32. FORECAST (Juneau and Vicinity) Variable cloudiness tonight with mixed showers of rain and snow. Variable ' cloudi- ness Friday with occasional rain. Lowest temperature to- night about 33, highest Fri- day about 44. louo-oo-oo..ooco.oo OePRECIPITATION ® (Past 24 hours ending 7:30 a.m. today Ctiy of Juneau—0.86 inches; since April 1 — 342 inches; since July 1—63.99 inches. At Airport — 050 inches; since April 1 — 144 inches; William Boyd, of Vicksburg, Miss., is a guest at the Gastineau Hotel. since July 1—41.50 inches. | as those who oppose it are descend-|| SECOND JUDGE IURGED T0 AID I3RD DIVISION ciary Group Told-466 Cases Pending WASHINGTON, April 20 — (P — Alaska officials urged a House Ju- diciary subcommittee yesterday to approve an additional judge for the Third Alaskan Judicial Division, Gov. Ernest Gruening of Alaska, District Judge Anthony J. Dimond and Delegate: Bartlett reminded the subcommittee that District Judges in Alaska have broader duties than do similar judges in the states. They said, therefore, that the growth of population in the di- vision has brought about an excep- tionally large increase in both Fed- eral and Territorial cases. During the 1940 fiscal year in the Third Division, the committee was told, 198 civil cases were started 193 were terminated, and 110 were pending when the year ended. In comparison, the witnesses said, there were 546 such cases started in the 1049 fiscal year, 414 were ter- minated, and 466 left pending. He also expressed the hope that favorable action on the bill wouldn’ be delayed in expectation that Alaska would become a state and thus establish a state judiciary sys- tem of its own. He said that even if the state- hood bill were enacted into law promptly it would be two years at least before the new state govern- ment would begin to function. In the: meantime, he said, the people of tne dlvision are entitled to ade- quate judicial service. TWO BROTHERS PLEAD INNOCENT, KIDNAP, MURDER VANCOUVER, Wash., April 20— (A—Truman Wilson and his broth- er, Utah, today pleaded innocent to charges of kidnapping and mur- dering 18-year-old Joann Dewey and offered to act as their own attorneys if the lawyer of their choice is not available. The Wilsons entered their plea of not guilty to two counts of first degree kidnaping and first degree murder in an arraignment hearing before Judge Charles W. Hall Judge Hall set the trial date for Monday, June 19. The brothers were accused of ab- ducting Miss Dewey from a Van- couver street March 19 and slay- ing her. The girl's body was found a week after the kidnaping in the Wind River near Stevenson, Wash. The coroner’s office said cause of death was asphyxiation. | g TrumanSigns | Housing Bill WABH!NGTON. April 20—P— President Truman today signed the multi-billion dollar housing bill. The measure which he approved without comment, provides incent- ives for home building by families of low and moderate incomes but lacks the controversial co-operative plan which he proposed. Both the Senate and the House rejected the co-op provision. It| would have set up a $2,000,000,000 program of home building through | cooperatives and other non-profit groups. ‘The measure provides for an ex- pansion of almost $4,000,000,000 in| the federal housing program| through loans and mortgage guar»! Dimond Overloaded, Judi- Johnny Antons, wearing a sign and their ‘son, Jimmy, follows her said she told him she wanted a Husband Pickets Wife saying his wife is unfair to him across a Portland, Ore., street. He divorce. That, he said is unfair. She refused to comment. (7 Wirephoto. JUNEAU MARINE SUPPLY GIVES $100 T0 LIBRARY DRIVE The Juneau Marine Supply Com- pany today went “hook, line and sinker” for the Memorial Library fund, as proprietor I. Goldstein ‘urned over a check for $100 to B D. Stewart, acting chairman of the drive. The oldest business house in the community—soon to go out of ex- istance—made the contribution vol- untarily, without solicitation. This latest and large donation brings the sum needed to bring the drive to a conclusion to $1,765.19, Stewart said. is being sought to erect the struc- ture, the money to be matched by federal funds as soon as the drive is completed. Mr. and Mrs. Goldstein, despite the fact the store’s stock is being sold out at a great reduction in prices, plan on continuing to make their home here, where they have been many years, Goldstein took over operation of the company shortly after the turn of the cent- ury. It had been founded by his father, M. Goldstein, long before Jthe Klondike was ever heard of. The store today sits on the same site as the original shop. “This sort of donaticn makes the | drive drop faster than one of Mr. Goldsteln's sinkers he now has on sale,” said Stewart. “Of course, we don't want to look like we're call- ing his sinkers pikers, but his gen: lercus contribution does just thal With the week drawing to a clese, the acting chairman was in to bring the sum down to the leval mark of around $1,500—which |can be done if you'll just dig down! It won't be much digging ecither. EXCISE TAXES CUT APPROVED BY HOUSE COM. WASHINGTON, April 20 — (71 — The House Ways and Means Com- mittee today voted a $75,000,000 re- antees. STEAMER MOVEMENTS Princess Louise from Vancouver due Saturday afternoon or evening.| Denali scheduled to sail from 3Seattle Saturday. 4 Baranof from west lcheduled‘ southbound 5 p.m. Sunday. ! Anne C. Simons, a field nurse for the Alaska Native Service, arrived here from Yakutat yesterday and is registered at the Gestineau Ho- 0 0 0 0 0 9 0 00 tel, duction in manufacturers’ excise taxes. It would repeal completely the excise levies on household conkstoves and waterheaters, light | bulbs and several other items. The group refused to reduce the excises on automobiles, motorcycles, trucks, buses, truck tractors, parts and accessories, and tires and tubes. These taxes collect over $500,000,000 annually. This wa< the first direct action the committee has taken in the three months it has been studying President Truman’s proposal for an overall excise cut of $655,000,000. A total of $70.000( hoping to see mere donations come } 'CAMPAIGN OF TRUTH' PLANS ASKEDFORU.S. Truman Ur:_:g Editors to Present Nation “As Is” fo Offset Russ "Lies” By ERNEST B. VACCARO WASHINGTON, April 20 — (B — President Truman disclosed plans today for a “great campaign of truth” to convince the world the United States has “no purpose ot going to war except in defense of freedor He told the American Soctety ot Newspaper Editors he has directed Secretary of State Acheson to de- velop a strengthened national in- formation program to overcome Soviet ‘Russian “deceit, distortion and lies.” He invited the continued co-op- eration” of American newspapers in spreading the fact that this country is “wholly dedicated to the cause lof peace” Mr.' Truman declared: “As We Are” #“We must make ourselves known as we really are—not as Communist propaganda gpictures us. We must pool our efforts with those of the | other free peoples in a sustained, in- | tensified program to promote the cause of freedom against the propa- ganda of slavery. “We must make ourselves heard round the world in a great cam- 1 paign of truth.” | The President’s address, preparea !Ior @elivery at a luncheon in the | Hotel Statler, stressed the vital role newspapers can play in this phase of the cold war. “There is too much nonsense about striped trousers in foreign affairs,” he said. Baggy Pants (Amen!) , “Far more influence is exerted by the baggy pants of the managing editor.” Mr. Truman chose this gathering of the nation’s editors to outline a program for strengthening the gov- ernment’s own informational pro- gram abroad. He said most of the editors are meeting well their responsibility as a link “between the American people and world affairs” by in- forming them “well and completely.” But, he added, “I am sorry to say a few are meeting it badly.” He did not name any names, but went od to ‘say: “Foreign policy is not a matter (Continued on Page Two) I LATTIMORE "CELL" MEMBER SAYS BUDENZ McCathy's_T;rgei Asso- ciated with Red Agents, Says Former Commie WASHINGTON, April 20 — (® — Louis F. Budenz, former Communist, testified today that Owen Latti- more was a member of a “Com- munist cell” in the ZInstitute of Pacific Relations. Budenz told a Senate Foreign Relations subcommittee that he knows Lattimore, Far Eastern ex- pert, was associated with two men who were “Soviet agents.” Budenz named these men as Fred- erick Vanderbilt Field, an official of the institute, and Philip Jatfe, former editor of the magazing Amerasia. The witness, testifying under oath in the Senate investigation of charges by Senator McCarthy, said the Institute of Pacific Relation1 was not a Communist organization. He said however, that it contained 1 Communist cell, which had been ible at one time to gain control of the organization. Lattimore, a Johns Hopkins Uni- versity professor, has denied that he ever has been a Communist or that he helped the Communist cduse in any way, Sit Close By Lattimore was close by as Budenz ‘estiffed. With him were Mrs. Lai- timore and his lawyers, Abe Fortas: and Thurmond Arneld. They sat directly behind Budenz, o close could haye reached cut and Budenz told the committee that evidence can be obtained to sub- stantiate his testimony. McCarthy (R-Wis) had sald he would be willing to “stand or fall” on the Lattimore case in his gen- eral contention that the State De- partment has been infiltrated by Communists and their sympathizers. Lattimore is not a department em- ployee, but has been an occasional adviser to it. He has a general repu- tation as one of this country’s best informed men on.Far Eastern af- fairs. Placed Writers Budenz said that Lattimore was “commended” by Field and Earl J. Browder, former head of the Com- munist party in this country, for having been responsible for placing a number of “Communist writers” in the Institute of Pacific Affairs. He named as one of the writers, 2 James 8. Allen, whom he identified as a representative of the Com- munist Internationale in the Phil- ippines and a foreign editor of the Daily Worker. The 58-year-old Budenz related to the committee details of his association with the Communist party during the period of 1935-45. He constantly referred to the party as “conspiratorial.” As managing editor of the New York Daily Worker, official Com- munist newspaper in this country, Budenz said he attended meetings of the U.S. “Politburo” and was constantly kept informed by it. He identified the “politburo” as the heart of the Communist move- ment in this country and said it now is known as the “National Board of the Communist Party.” ‘Conspiratorial Basis | ‘The “politburo”, he said, received its instructions from a represen- tative of the Communist Interna- tionale who in turn got his orders from Moscow. “The Communist party is set up not on a Democratic but a conspir- atorial basis,” he said, adding that it dealt in esplonage as well as con- spiracy. He said a liaison representative from the “politburo” kept in touch with him “almost hourly.” As managing editor of the Daily Worker, he explained he received instructions what to do. Part of his job, Budenz said, was virtually to memorize a list of some 1000 names of persons identified with the party. The hearing was held in the big Senate office building caucus room. Long before the hearing started, the place was jammed. The room seats 500. Police said 700 were on hand 20 minutes before it opened. The spectators lined the walls and filled the-aisles. NOT AT TOP While Budenz, former Commun- (Continued on Page Two)