The Daily Alaska empire Newspaper, June 9, 1950, Page 1

THE DAILY ALASKA EMPIRE VOL. LXXV., NO. 11,525 “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, FRIDAY, JUNE 9, 1950 e SOCIATED PRESS MEMBER AS PRICE TEN CENTS e ———————— 132 INDIVIDUALS INDICTED AT ANCHORAGE Lava Flow A lava flow beiling out ¢f erupting Mauna Loa in t o s R Pours Info Ocea ¥ia he Hawaiian Islands sends steam hundreds of feet into the air as it hits the Pacific Ocean in the vicinity of Kaapuna on the South Kona coast (June 2). This picture was taken by Stf. Sgt. Richard Lee of the Hawaiian Air National Guard from a plane circling the area just as the lava hit the ocean. Two other lava flows reached the ocean at Hookena and Kache. {® Wirephoto via radio from Honolulu. STRIKE AT FAIRBANKS ENDED NOW FAIRBANKS, Alaska, June 9—(® —The three-week strike of Local 1533, International Brotherhood of Electrical Workers (AFL) ended yesterday virtually all local and Federal construction projects in this area. Six Fairbanks electrical contrac- tors signed the agreement. Bill Laughlin, union business agent, said some Seattle contractors have not agreed to the' new contract and jobs handled by them are still shut down. Included in the two-year contract is a no-strike, no walk-out provis- ion ‘The new contract provide® travel time from the contractor’s office to the job site, and a compromise in wage demands from 12%: cents to the 10-cent hike originally proposed by contractors. The new' houfly wage for electricians is $3.10 per hour. Laughlin said the union is “op- timistic” over prospects of reaching an -agreement with the Seattlc contractors soon, FROM CASHMERE E. E. Hiner and E. L. Coffin of Cashmere, Wash., are guests at the Baranof Hotel. The fls—hi—ngton Merry - Go - Round Bv DREW PEARSON (Copyright, 1950, vy Bell Syndicate, Inc.) /ASHINGTON — Last week I wrote a column about my differ- ences with Senator Taft and others who had called me a lar, in the course of which column I promised I would further diagnose the sen- ator’s denials, Since then, one editor has com- plained that I was like the travel- ing. man who dropped one shoe loudly on ‘the floor and left the man below waiting nervously for the other shoe to fall sosHe could go to sleep. Well, the truth is that Senator Taft's staunch admirer in my fam- ily has demanded that I put the other shoe down gently so as not to disturb her hero. In brief, Mrs. P. doesn’t think I ought to write the second column; or at least, that I shouldn’t write it in such a way as to embarrass the man whom she wants to be Presi- dent. “After all,” says Mrs. P, “when| you list all those people like John | Parnell Thomas, Con- SEINERS ARE NORTHBOUND FOR FISHING Leave Seattle Affer Settle- ment Made-Other Dis- putes Nof Solved SEATTLE, June $—uf—Purse seiners began leaving for Alaska today after settlement of some dis- putes that have tied up the Alaska salmon canning industry. But other disagreements remained, with thei effect on operations uncertain. Members of Local 3, Internationa Fishermen and Allied Workers of America (CIO), ratified a new con- tract with the industry yesterday. The agreement led to removal of the last pickets from plants of the Alaska Salmon Industry, employers group. Still to be untangled was a “dis- pute over hiring procedures among three unions seeking to represent non-redident cannery workers. Roy W. Atkinson, regional CIC director, announced that Local 77, United Packinghouse Workers (CIO) would not participate in a hiring plan that has beer® proposed. The other unions involved are Local 7-C, International Longshore- men and Warehousemen’s Union (CIO) and the Alaska Fish Cannery Workers’ Union (AFL). A .petition for an election to de- termine which of the three unions should represent the non-resident workers is pending before the Na- tional Labor Relations Board. An order is expected next week. A contract signed by Local 7-C and the Industry provides for a hir- ing hall. The state has agreed to do the hiring only if all three unions and the industry are agreeable. WEATHER REPORT In Juneau—Maximum, 75; minimum, 50. At Airport—Maximum, 74; minimum, 41. FORECAST (Juneau and Vicinity) Mostly cloudy tonight and Saturday. “Little change In temperature tonight, 46 de- grees and highest Saturday near 65. PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau — None; since June 1 — 0.75 inches; since July 1—71.89 inches. At Airport None; since June 1 — 033 inches; since July 1—46.10 inches. ® o 0 9 0 0 0 00 . ® o000 cee®0 0000000000000 00 NEW ROW CANNING INDUSTRY Labor Dispufigain Start- ed-Charges, Counter Charges Made SEATTLE, June 9—(®—A new labor dispute brought an outburst of charges and counter-charges in the Alaska salmon canning indus- try today, just a day after setti:- ment of one major issue. The latest disagreement resulted from withdrawal of the State Em- ployment Service from a plan to hire non-resident cannery workers through a central office. i A. C. Arnold, manager of the| Alaska Salmon Industry, Inc., de- clared “It looks like the officials of the State Employment Service are more interested in politics than public service.” He added the de- velopment “probably will tie up the Seattle waterfront.” Accusations Made The employer group, meantime, was accused by Roy W. Atkinson, regional CIO director of “prefer- ring to play with Harry Bridges” and his International Longshore- men and Warehousemen’s Union than with the National CIO. toA W. Burchill, menager here for the state labor department’s employment office, said the state was compelled to withdraw because all unions involved and the indus- try could not agree on the hiring procedure. Burchill said Federal regulations and state law forbid the state to make employment referrals where a dispute exists between unions nd between unions and manage- ment, State’s Action The state acted after Atkinson had announced that Local 77, Uni- ted Packinghouse Workers (CIO) would not take part in the hiring hall arrangement. Local 177, Local 7-C (CIO) and the Alaska Fish Cannery Workers’ Union (AFL) are competing ior representation of non-resident can- nery workers, who formerly was represented by the Food, Tobacco, Agricultural and Allied Workers, a union expelled from the CIO. Bridge’s Pickets Involved Atkinson criticized the hiring ar- rangement, which was provided for in a contract signed by the indus- try and the longshore sponsored Local 7-C. 3 “The industry and the ILWU in collision, after a deal forced by (Continued on'P“e Two) Harry Bridges’' pickets, signed an| | MARSHALLAID| MUST GO ON, SAYS TRUMAN Must Not End in ‘52, Main- fains Chief Executive in: Graduation Speech .- By ERNEST B. VACCARO COLUMBIA, Mo, June 9-#— President Truman declared today that post-Marshall Plan abanden- ment of aid to Western Europe would be disastrous to peace. In a world “full of dangers,” he declared, the United States must continue its contributions to free nations lest “the Communists move in” He made it clear in an address prepared for graduation exercises of the University of Missouri that he is convinced “our vital national interest in a healthy world eco- nomy” will not end when Marshall | Plan Aid stops in 1952. “You hear a lot of talk these days to the effect that the world is full of dangers, and that our| civilization is heading straight for disaster,” the President asserted. World Full of Dangers “Of course, the world is full of dangers—the world has always been full of dangers, for people in every | country and at every period of his- tory.” *But in spite of these dangers, he said, “our civilization need not wind up in disaster.” “It can go on to greater heights Those who are frightened and dis- mayed do not have faith that men will use scientific advances for good ends. They see only the dan- | gers in the world—not the oppor- tunities.” 1 Presid GOULD, CLARK BUY STUTTE PROPERTY FORMACHINE SHOP One of the largest property transfers here in recent months was announced today. The location of Stutte & Son at Awarded Degree Mr. Truman’s speech was part of | a program including his being| awarded an honorary doctor of! laws degree and a membership key | in Phi Beta Kappa, the scholarship society. He was to return to St. Louis this afternoon for a reunion of the 35th Division in which he served in the First World War. The President’s speech added up to an implied warning to Russia that the emotions stirred up in this address. The machine shop for- country by foreign policy debates do|merly was in the building at South not indicate weakness in a Democ- | Seward Street and Marine way, racy. He explained: |which was destroyed by $ire May Democratic Way {18, “The Democratic process is not| The 12th and E property for- always easy. It involves us in great merly was the Krause Concrete public debates. Emotions are aroused | Works. and feelings run high. | “But when the shouting is ended and the decision is taken, the re-§ sulting choice rests on the solid foundation of the common wisdom of the people. H “Dictators and tyrants, who| thought our political debates indi- HOUSE' To SE“ATE cated indecision and weakness, have | ’ found to their dismay that, instead, | those debates are a source of wl.s-]‘ WASHINGTON, June 9—(®—The dom and a sign of strength.” |Senate passed a bill yesterday to He cited American foreign aid to |allow a three months extension un- chased by the Harri Machine Shop of which Jack Gould and Jack Clark are owners. According to Walter Stutte, the property includes five city lots ar warehouse buildings. Stutte said his firm will be in a new location soon. The Harri firm is at the new ASSESSMENT WORK EXTENSION PASSES measure now goes to the the Democracies after the last war [til Oct 1, for completion of annual when it “became clear that one na- |assessment work on mining ‘claims tion did not. want to help world this year. \recovery.” 1 Existing law provides that not |less than $100 of assessment work 22 Ishall be done on or before July 1 STEAMER MOVEMENTS 5" ‘5o i1 “un o Princess Norah from Vancouver| Th¢ scheduled to arrive Saturday after- | 10USe: noon. | y Prince George from Vancouver,| [ with Los Angeles Chamber of Comvi merce tour party, scheduled to ar-| o a y s ory rive 2:30 p.m. Saturday. Alaska from Seattle, due Sunday. ] Chilcotin from Vancouver sched- | Aboul Anlmals uled to arrive 6 p.m. Sunday. | Freighter Square Knot from Seattle due sometime Monday. AT Baranof scheduled to sail from (By Associated Press) Seattle Saturday. ¥ In Los Angeles—the underdog Princess Louise scheduled to sail Wins happily in today’s story from from Vancouver Saturday. ‘thc animal corner. In this case Aleutian from west scheduled the underdog is a baby seal. The southbound Sunday. little fellow had been wounded by U la fish-hook, And as a result he . . was pursued into shallow water by Defiant Prisoners =, b b oo As the hunted and hunter ap- :proached the beach, swimmers jofn- Re'use S“"ender led together and put up a barrage A lof rocks. And they got results. A“er RIO'O“S “lgh |The seal escaped on the beach, and the shark actually was Kkilled NEW DELHI, India, June 9—4— by the stoning. Then the baby Defiant prisoners locked themselves |seal took off again and disappeared. in their cells at Patiala prison to-| b day and' refused to surrender atter FROM PETERSBURG a night of wild rioting in which six prisoners were killed and 14 injured. Twelve guards also were hurt. Mrs. Ragner Stokke oOf Peters- ‘burg is staying at the Baranof. 12th and E Streets has been pur-; ni Signs orei' o 1 With a smile on his face, President Truman signs the three billion dcllar foreign aid bill at the White House, Washington, D. C. Officials who guided the measure through Congress watch during ceremony. Standing front row (left to right) are: Sen. Tom Connally (D.-Tex.), Rep. John Kee (D.-W.Va.), Rep. Frances Boldton (R.-Ohio), Rep. Charles F. Eaton’ (R.-N.J.) and Secretary of Stae Dean Acheson. row (left to right) are: Rep. James Richards (D.-8.C.), C. Tyler Wood of ECA, and ]’Mllp Cloxton of the State Department. (® Wirephoto. Back GRAND JURY PROBE, FIRST OF ITS KIND ANCHORAGE, Alaska, June 9—#& —The trust inquiry, first of its kind in Alaska, came virtually as a sur- prise although months of investi- gation preceded the call of the grand jury. The jury convened March 27 and began its delibera- tions two days later. The original subpoena list in- cluded 163 individuals, firms and officials. They were called to testity on conduct of the coal industry,| motion picture distribution, fish- eries, meat, grocery supply, taxicab operation, liquor and shipping. Another 100 subpoenas were issued after the investigation got under- way. Charles L. Whittinghill, Chiet ot the Northwest Office, Anti-Trust Division, Department of Justice, headed the investigations. Assisting him were Thomas Kerr, economist from Washington, D.C.; Gerald G Galassi and Isidore Cohen, attor- lneys from the Seattle bureau; anc | Garreth M. Neville, Washington, |D,C.‘ attorney. Volumes of testimony were com- piled during the 10 weeks in which the jury has been hearing witnesses The subpoenas issued went all over Alaska. Dozens of witnesses were called from Seattle. At the start of proceedings, at- torneys for two major firms, the Lathrop Company and Healy River Coal Corporation were successtul in quashing on a technicality sub- poenas that they appear before the grand jury with complete business records dating back to 1919. New subpoenas were issued immediately. Officials of the Alaska Steamship Company, the Alaska Salmon In- dustry Inc., Libby, McNeill and Libby, Alaska Freight Lines, and Swift and Company were among those summoned. Retail grocers, meat and fruit distributors in Seattle were called as well as many from Alaska cities. Thirteen Alaska cab firms also were callec. JUNEAU HIKING (LUB TRIPS OUT SATURDAY; LEAVING TIME 7 A.M. Members of the Juneau Hiking Club—"“Shank, Ship and Shutter"— will leave at 7 o'clock Saturday morning for Herbert Glacier. Cars will take the hikers to the begin- ning of the trall which f6llows the Herbert River to the Glacier flats. The trail is four miles long, mostly level, except just before reaching the face of the glacier. Any persons who can furnish cars are urged to provide theim. i DENIAL IS ISSUED BY ALASKASS President Skinner Says Trial Will Clear Com- pany of Charges SEATTLE, June 9 — (@ — The Alaska Steamship Company, namec in an indictment announced at An- chorage today, issued an imme- diate denial and said a trial woulc clear the company. “We are determined to fight these charges and to bring into plain view the motives of those who have in- stigated and sponsored them,” saic a statement by President G. W Skinner. “We are satisfied that a full trial of this matter betore a fair and impartial tribunal will vin- dicate the company and its per- sonnel.” “The government from the outset of this investigation has refused tc advise the company of the nature of any charges against it,” Skinner said., “However, .the moment the com- pany learned that an investigation of its services was in progress we promptly made available to the De- partment of Justice all of the re- cords and files of the Alaska Steam- ship Company. We are confident that the Department of Justice’s extensive ~examination of these voluminous records and files, as well as the examination of witnesses before the Grand Jury, could dis- close no basis whatever on which this indictment can be legally justi- fied.” Skinner said the “various ‘'matters which the Department of Justice inquired about in its recent investi- gation have repeatedly been the subject of exhaustive inquiry both by the Maritime Commission and committees of Congre: The steamship company president said that in the previous inquiries “these same charges and com- plaints” were asserted by Governor Gruening of Alaska and “have been found to be utterly without founda- tion.” STOCK QUOTATIONS NEW YORK, June 9 -+ Ulosing quotation of Alaska Juneau mine stock today is 27, American Can 117'%, Anaconda 32%, Curtiss- Wright 8%, International Harvester 28%, Kennecott 58%, New York Central 14%, Northern Pacific 15, U.S. Steel 35%, Pound $2.80%. Sales today were 2,130,000 shares. Averages today are as follows' in- dustrials 22686, rails 56.65, utilities 43.84. MANYBIG CONCERNS INDICTED Indictments Also Cover Distribution of Meats, Li- quor, Fuel, Food, Others WASHINGTON, June 9 — # — Attorney General McGrath today announced a grand jury in Alaska has returned indictments charging anti-trust law violations in a halt dozen important business fields. He said 10 such indictments were returned, sealed, at Anchorage last Monday. Opened today before U.S. Judge Anthony J. Dimond, thc_y charged price-fixing and restraints of trade in shipping, the distribution ot meats, food sales; fuel supplies, the liquor business, dry cleaning and taxicab services. The indictments named 23 cor- porations, 138 individuals and two retail liquor dealers associations, all doing business in Alaska. The list of defendants ranged from the big Alaska Steamship Company of Seattle, Wash., to Last Chance, Inc., a retail liquor outlet at Anchorage. Nine Indictments Attorney General McGrath made it clear that more indictments are to come as a result of a year’s in- vestigation into whgt he described as ‘“coliusive ements among business - groups* % structed the development and ex- pansion of the Alaska economy.” Ins nfimgms .she Justice De- partment sal mc"’\“mn Steam- ship Company “virtually controls the economy of Alaska, since it is the only steamship company serving the entire territory.” Civil Anti-Trust Suit McGrath said that in addition to the indictment against this com- pany, he is also filing a civil anti- trust suit against it at Anchorage. He said the civil suic will ask for a broad injunction against prac- tices which McGrath said had ex- cluded suhstantially all competition in the transportation of freight and passengers to and from Alaska. Skinner Indicted - Gilbert W. Skinner of Seattle, President of Alaska Steamship, was indicted along with the company. Another of the indictments charged that Healy River Coal Cor- poration of Suntrana and An- chorage, Evan Jones Coal Co., of Anchorage, and Usibelli Coal Mine, Inc, of Fairbanks, maintained agreements (1) to divide the Alaskan fuel market, and (2) to fix prices at which they sell some $2,500,000 worth of coal to the United States for military establishments each year. The companies were described as doing more than 95 percent of the fuel business in the Territory. Lathrop 'Indicted The Healy River. Coal Corpora- tion is headed by A. E. Lathrop of Fairbanks who, the Department said, has a wide variety of interests in Alaska, where he has lived for some 40 years. Lathrop was also named in the indictment. An alleged conspiracy to fix liquor prices throughout Alaska was charged to a large group of wholesale and retail dealers in An- chorage, Fairbanks, Ketchikan and Seward. Other Indictments One indictment alleged that meat dealers in Ketchikan had conspired to prevent others from entering into competition with them. Taxi- cab operators at Anchorage were ac- cused of a similar alleged conspir- acy in their line of business. Anchorage dry cleaners were charged with raising and fixing the prices for their services. The actions in Alaska are with- out precedent. A Department offi- cial asserted that “this is the first time we have made an all-out drive {to clean up restraints in an entire fTemwry at one time. We are not | through up there. This is just the | first group of cases.” | Other Indictments 1; One retail liquor indictment | namedKetchikan, the Retail Liquor Dealers Association and these Ket- chikan residents: M. Bellanrich, Anton Budinick, Thomas Chandler, R. H. Copeland, Reubeyc Crossett, |Gus Cruse, Charles Graham, Jo- sephine Hill, Oscar Holland, Law- Bdgise s o AR (Continued on Page Eight)