The Daily Alaska empire Newspaper, June 19, 1950, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXV., NO. 11,533 NO THREAT MADE, BUT TAX INCREASE MAY BE NECESSARY City May Have fo Up Prop- erfy Rate fo Continue Im- provements Says Mayor lMcCarthy Demands Open. Mayor Waino Hendrickson today said he has never threatened a 50 percent increase in property taxes if the sales tax ordinance is not passed, but an increase may be neoessary. He made this statement in answer to what he termed an “inaccuracy” in the anti-sales tax advertisement paid for by the United Brotherhood of Carpenters and Joiners of Amer- ica, Local No. 2247 (AFL). ‘The special municipal election at which Juneau voters will approve or reject a one-percent special-pur- pose sales tax ordinance will be held tomorrow in the City Hall. The polls will remain open from 8 a.m. to 7 pm. All residents of Juneau eligible to vote in the city’s general municipal elections are eligible to cast their ballots in tomorrow’s election. At least 55 percent of the voters casting their ballots must show ap- proval of the ordinance before it becomes law. Mayor Hendrickson said that, although he has never threatened an increase in property taxes, such an increase may be necessary. “My estimate is that it would take a 50 percent increase in property taxes to equal the revenues which would be taken in with a one-per- cent sales tax,” he said. “I have said that an increase in revenues from some source will be necessary if the city is to continue its improvement program,” he con- tinued. Answering the advertisement’s stand against consumer taxes, Mayor Hendrickson said: “I believe the majority of taxes are consumer taxes in the end, whether they are hidden or cut in the open.” The city administration realizes that the present bonds are 20-year general obligation bonds redeem- able seven years from the date they were issued, he stated. “But with revenue from the pro- posed one-percent special-purpose sales tax, the city could pay off its annual installments on the bonds, as well as build up a reserve with which to redeem the bonds when that becomes possible,” he declared. Otherwise the city will have to continue paying installments—plus interest—for 20 years, he said. Yearly interest on the city’s pre- sent $556,000 bonded indebtedness amounts to $20,000. The ordinance states that the rate of taxation under the pro- posed ordinance could not be in- creased; that the revenue from the (Continued on Page Eight) The Washington Merry - Go - Round Bv DREW PEARSON (Copyrieht, 1050, Ty Bell Syndicate, Inc.) WSHINGTON — It looks as if small business was getting the same old run-around from the Army-Navy, and that big business was getting the juicy plums, some of them illegally. During the war, the brass hats contended that the urgency of placing orders forced them to con- centrate on big companies. Result was that six corporations handled 60 per cent of all war contracts. Now, however, with plenty of time and no excuse for favoritism, the Army has recently shown com- pletely unwarranted favoritism to- ward Westinghouse Electric Com- papy in the buying of water coolers. ‘Though Secretary Johnson made some: high-sounding speeches when he took office, announcing that he would give a break to small busi- ness, his office did just the oppos- ite in the water- deal. Her¢ are the unfortunate facts in the ‘When the Chicago Army 'Quar- termaster’s office requested bids on $100,000 worth of water coolers, it recelved sixteen. One Westing- house bid did not come up to specifications, which under procur- ment regulations should have bar- red Westinghouse from that part of the contract. This was protested by the Sunroc Refrigeration Company of Glen Riddle, Pa. However, when Sunroc protested, the Army brazenly turned round and permitted Westinghouse to' change its specifications. This chinge was made even though the bids already had been closed. Army Is Overruled Orville Morrison, president of Sunroc, took his case up to the (Continued on Page Four) Amerasia File [HAWAIISTATE BILL | MayBe Open, | Says McGrath Hearing on Accused Man’s Questioning WASHINGTON, June 19 — ® — Attorney General McGrath said to- day the Justice Department will decide soon whether to make pub- lic a full report on the 1945 Amer- asia case as recommended by a Federal grand jury. McGrath's comment to a reporfer came after a weekend bristling with new developments involving the charges of Senator McCarthy (R- Wis.) that the State Department harbors Communists and Commu- nist sympathizers. A key part of those charges, Mc- Carthy has said, concerns the five- year-old episode in which six per- sons were arrested after the FBI had found hundreds of secret gov- ernment documents in the offices of the now-defunct magazine Am- erasia. These were the developments: y 1. An official transcript of testi- tmony taken by the Senate com- mittee investigating McCarthy's charges showed that Amerasia de- fendant Emmanuel S. Larsen spoke of former Navy Lieut. Andrew Roth as a “real Communist” and “the principal conspirator” in the case. Both men were among the six persons arrested in the case. Lar- lsen and Amerasia editor Philip WASHINGTON, June 19 — (& — ‘The House Ways and Means Com- mittee threw out of its new tax bill today a proposal—once approved— to cut the federal tax on “economy brands” of cigarettes. The action cleared the way for a vote next on whether to boost cor- poration taxes about $500,000,000 a year. Some members contended a rise in corporation taxes would put a ‘“veto proof” tag on their bill cut- ting wartime excise taxes by $1,100 - 000,000. STEAMER MOVEMENTS Prince, George from Vancouver in port and sails at 11 o’clock for Skagway. Aleutian from Seattle scheduled to arrive at 10 a.m. Tuesday and sails westward at 3:30 p.m. Princess Norah from Vancouver scheduled to arrive Tuesday after- noon or evening. Chilcotin scheduled to sail from Vancouver . tonight. Princess Louise scheduled to sail from Vanccuver Wedneésday, June 21, Alaska scheduled to sail from Seattle June 22. Baranof scheduled to sail from Seattle Saturday. * STOCK QUOTATIONS NEW YORK, June 19 — Closing quotation of American Can today is 115%, Anaconda 31%, Curtiss- Wright 8%, International Harvester 28%, Kennecott 56%, New York Central 13%, Northern Pacific 15%, US. Steel 35%, Pound $2.80. Sales today were 1,290,000 shares. Averages today are as follows: in- trial. 2. McCarthy demanded that the Senate inquiry group open its doors to the public when it takes tesli- mony Thursday from State De- partment consular official John S. Service—another of the six &c- cused in the Amerasia episode five years ago, The committee plans to hear Service, as it has . other Amerasia witnesses, behind closed doors, 3. The State Department accused McCarthy of “deliberate distortion of the ‘public record” in saying that Dean Acheson—now Secretary ot State—had helped create a Red Poland by approving a $90,000,000 loan to that country in 1946. 4. Officials disclosed that Cardi- nal Spellman had sought the meet- ing he had Friday with Deputy Undersecretary of State John E. Peurifoy—possibly to discuss U. S. representation at the Vatican. Peurifoy denied speculation that e 2ad initiated the meeting so he could ask the Cardinal to “call off” McCarthy. | 43.35. ALMOST READY; T0 GET ALASKA NEXT WASHINGTON, June 19 — & — The Senate Insular Committee com- pleted work today on a tentative | draft of legislation to grant state- l hood to Hawaii and is expected to get busy later this week on the Alaska statehood bill. Chairman O’'Mahoney (D-Wyo) told reporters agreement had been reached on the Hawali bill atter technical amendments were ap- proved. He said, however, that commit- tee members asked that a com- mittee print of the bill be prepared before taking final action. O’'Mahoney said he hoped to start work on the Alaska bill in time to send both bills to the Senate betore this weekend. ‘The House has passed both bills. PLANE MISSING 7" MONTHS LOCATED NEAR FAIRBANKS FAIRBANKS, Alaska, June 19— (A—Wreckage of a light plane ir which Lt. Alexander N. Murphy of Kansas City, Mo., vanished 7% months ago has been located about 40 miles from here. Ladd Air Force base said today Murphy’s C-26 five-place Cessna was spotted by 10th Rescue Squad- ron search planes in a heavily wooded section 15 miles southeast of nearby Eielson field. Positive identification was reported. Ladd authorities said the missing Jaffe were fined; Roth and the!phne was sighted Friday and a other three never were brought t0) parg-rescue team was dropped into the wilderness area that night to clear ‘a space large enough to land a helicopter. Word still was awaited whether Murphy’s body was in the wrecked craft. ‘The 20-year-old flier was the ob- ject of one of the most intensive searches ever conducted in this re- gion. He disappearéd last Nov.. 3 after taking off alone from Ladd field on a “local” flight. He carried arctic equipment, emergency gear and a three-day supply of food. A week later the hunt was spurred when weak, undecipherable radio signals were picked up at several points in Alaska and one operator made contact long enough for the sender to identify himself as Murphy. Atmospheric conditions then blacked out the signals and prevented pin-pointing of the sources by radio directional finders. Murphy's wife, Bernadine, and their daughter, Sharyl Ann, 3, were living here when he became lost. His mother, Mrs, Geraldine Putnam. lives at Kansas City. 0...;'... WEATHER REPORT In Juneau—Maximum, 78; minimum, 60. At Airport—Maximum, 81; minimum, 60. FORECAST (Juneau and Vicinity) Variable cloudiness and not so warm tonight and Tues- day with some light rain by Tuesday night. Lowest tem- perature tonight about 55 de- grees. Highest Tuesday near 65. PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau — Trace; 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. AEC MEMBERS RENAMED T0 POST WASHINGTON, June 19 — & — President Truman today renomi- nated the four present members of the atomic energy commission. Sumner T. Pike, Maine Republi- can, was nominated for a new term of four years beginning July 1. Returning to the old staggered system, the President named Gor- doh Dean of California for a new three-year term; Thomas Murray of New York, two years; and Henry DeWolff Smyth of New Jersey for a one year term. | gories should be §j wxtf JUNEAU, ALASKA, MONDAY, JUNE 19, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS Navy Destroyers Comingfo Juneau 2 j McCARTHY | MILK STRIKE DIVIDES GOP | CLEARS, ONE GOVERNORS| HIT SECTION Warren and Duff Condemn "Random Charges”’- Dewey "Mixed” * WHITE SULPHUR SPRINGS, W. Va. June 19—M—Top flight Re- publican Governors appeared di- vided today over the affect on their party’s political fortunes of what some of them called “McCarthyism.” Gov. Thomas E. Dewey of New York told reporters he has a “mixed” reaction to broadside charges by Senator McCarthy (R-Wis) that the State Department is harboring Communists. /He didn't elaborate publicly. Gov. Earl Warren ot Calitornia running ' for another term, lined himself up solidly against what he called the' “blanket accusations” made by the Wisconsin Senator. Warren said he thinks McCarthy speaks only for himself — and not the Republican party — in making charges for which the Calitornia Governor said not enough sup- porting evidence had been produced. Gov. James H. Duff of Pennsyl- vania, running for the Sendte, used almost the same words in con- demning what he labelled McCar- thy's ‘“random, blanket charges without specific data to back them up.” All three GOP Governors aired their views at meetings with re- porters at the annual Governors’ conference, swinging into business sessions here today. Dewey, who announced last week that he won't run again for Gov- (emor with the fact that McCarthy With 300 reserve enlisted men and more than 50 officer reserves aboard, the 2100-ton destroyer Shields and destroyer Nickel will arrive here this week. DEFENSE IN ASIA GIVEN HIGHERUPS Mas.ArlhurTutfines Pro-|. posals fo Sec. Johnson and Gen. Bradley TOKYO, June 19—M—General MacArthur . today - outlined Amer- ica’s defense position in Red- menaced Asia for Defense Secretary Johnson and General Bradléy. He reportedly cdlled it serious but not hopeless. The Commander of United State: forces in the Far East, it was under- stood, also urged prompt American materiel assistance to Formosa, last-stand bastion of the Chircse Nationalists, and for Soutneast Asia. Military aspects of a Japanese peace treaty also were believed under discussion in the secrecy- shrouded momentous three-hour conference with the Secretary .and the Chairman of ~the U.S. Joint Chiefs of Staff. This would in- volve the vital matter of American bases in Japan. It was taken for. granted, how- ever, that MacArthur elaborated on these points reportedly, made by his top officers to Johnson and Brad- ley in a “briefing” yesterday: That Formosa's fall to the Chi- nese Communists would be a seri- jous threat to the U.S. Pacific’s de- fense line which runs from the Aleutians through Japan and Oki- nawa to the Philippines. ‘That Formosa could be outflanked if the R.ed;s were to sweep over all Southeast . That reinforcements in all cate- to the Far The President acted after a top!East Command. ‘White House source said that Pike will continue as acting chairman pending appointment of a perma- nent chairman. FROM CORDOVA ing at the Baranof Hotel. SEATTLEITES HERE Among Seattleites newly regis- tered at the Baranof Hotel are Mrs. M. Chiovitte, R. Blenkinsop. dustrials 322,09, rails 55.53, utilities' Don Miller of Cordova is luy-!suwnn Krieger and John O, Mar- Itin. ! l | (OMING HERE o | p 4 S Commander James L. Foley, USN (above) is overall tactical com- mand of the training force due in Juneau this week. FOREIGN ARMS AID BILL APPROVED; T0 LIMIT PRESIDENT WASHINGTON, June 19 — (® — Two Senate committees formally approved a $1,222,500,000 foreign arms program today but refused to dip into European Recovery funds for part of the cost. The Foreign Relations and Armed Services Committee voted 12 to 0 to continue the program to re-arm non-Communist nations. Chairman Conpally (D-Tex) of the Foreign Relations group said he would try to get a Senate vote on the measure next Thursday it possible. The Senators agreed to limit President Truman's power to give arms aid,to nations outside the North Atlantic Pact. As the measure was originally drafted, Mr. Truman would have had authority to' re-arm any na- tion if he deemed it in the interest of American security. IF0G BLANKETS ALEUTIAN AREA; HATE SEEX HERE CORDOVA, Alaska, June 19—# —Alaskans are wondering if a miky pall of fog and haze, blanketing the Gulf of Alaska and the Aleu- tian Islands, is a northern cousin to a mid-Pacific haze which hung near the Hawaiian Islands earlier this week. Fog is common to western Alaska but for the past week the “soup” * has been stubbornly immovable. A Coast Guard plane in Cordova has been unable to return to its Kodiak Navy base, which has been ! fogged in since Tuesday. The fog blanket has not seriously interfered with plane service to the states as coast line routes have remained fairly clear. HAZE REPORTED HERE A stubborn haze, blotting out the view of the mountains along Lynn Canal, has been reported locally. But weather bureau spokesmen at the Juneau airport say it is no kin to the Kodiak fog. The local haze is due to an inversion—the tempera- ture of an upper layer of air is higher than that of the layers below it. Smoke hangs in the warm layer, unabl2 to rise higher. The spokesmen said the local haze may be caused by industrial smoke from Juneau and smoke from for- est fires in the interior. Roy Nolan of Juneau said that he sighted the haze Friday evening from Tee Harbor and that it was “gtrange-looking.” He thought it might be related to the mid-Pacific haze which was re- ported near the Hawglian Islands last week. BERLIN, June 19—®—The entire sports staff of a Communist con- trolled East Berlin newspaper—three editors and a secretary—resigned today in protest against what they termed “orders to write sports from the political viewpoint.” The newspaper is the National Zeitung, organ of the National Democratic party. This is a party ‘ formed under Communist auspices —despite his methods—may have taken hold of a man-sized issue for the November Congressional elec- tions. Dewey's friends said the New York Goyernor has had no, political, Jov for McCarthy since the latter worked for former Gov. Harold E. Stassen of Minnesota in the critical Oregon primary in 1948. Dewey beat Stassen in that primary and went on to win the GOP Presiden- tial nomination. Boss Gambler Pleads Guilty NEW YORK, Juntc 19—#—Frank Erickson, boss of a nationwide, multi - million - dollar bookmaking empire, pleaded guilty today to gambling charges that could send him to prison for 60 years. The pudgy gambling czar, who never spent a day in jail before entered the plea as he was brought into special sessions court for trial. Reports circulated that Erickson made the guilty plea to protect wealthy, big-money bettors. District Attorney Frank Hogan said he would demand “the stiftest sentence” possible when Erickson is returned to court Monday for sent- encing. The 54-year-old gambler, who ad- mittedly netted $100,000 profits an- nually from his coast-to-coast Igambling operations, is subject to a maximum penalty of ones year in Jail and a $500 fine on each count of a 60-count information, or a total of 60 years and $300,000. His ‘attorney, Sol Gelb, told Jus- tice Nathan B. Perlman that the defendant wished to withdraw his innocent plea, and plead guilty tc the one count of conspiracy and 59 counts of bookmaking. TUNA "GOLD RUSH' NOW ON IN SOUTH CALIFORNIA SEAS SAN DIEGO, June 19—#—The annual fishermen’s “gold rush” for high-priced tuna is getting under- way today. The prized, top-grade tuna was| reported running northward from the Mexico coastal waters. Catches were made onlv 60 miles south of here. Opening price offered by can- neries this year is $400 a ton. Boats from as far north as Alaska came south to join the rush. The ohe owned by Fred Holmes of Sitka delivered a 1l4-pounder Saturday and refueled to resume the hunt. ‘The schooner High Seas of New- The revised bill limits this aid to.with the announced purpose of en-!port Beach, Calif., brought in 15 | Western Europe. ‘ rolling former Nazis. albacore. Bakers Halt Work in Paci- fic Coast Cities-Los An- geles Still Tied Up (By the Associated Press) ‘The milk famine in the nation’s capital was near an end today with settlement of the eight-day strike of milk drivers and dairy employees. But there was only scant hope for the end of a similar ten-day strike in Western Pennsylvania where deliveries have been virtu- ally shut off from 2,300,000 residents in seven counties of the Pittsburgh area. A new strike occurred in the food industry Saturday night, however, with the walkout of wholesale bak- ery workers in Los Angeles. They left their jobs in support of a 35+ hour week. The striking bakers make gbout 90 percent of the bread sold in Southern California stores. Bakery workers also struck in the wholesale plants of Portland, Ore., Seattle, Bremerton and Ev- erett, Wash,, The strikers brought runs on grocery stores which strip- ped most bakery goods shelves. It was the second major blow to Los Angeles where bus and street car service have been tied up since Friday by a strike of 4,000 AFL transit workers who are demanding a wage.boost of 20 cents an hour to $1.67. The city is host this week to about 200,000 Shriners at their na- tional convention. ‘The settlement in Washington gave the dairy workers an average 5%-day week at the same rate of pay they had received for six days and the dairies withdrew their pro- posal to close their plants on Sun- days. The drivers resisted the Sun- day closing with the contention that it would cause them to lose cus- The new terms become effective Sept. 1 and the approximately 1,650 strikers were expected to be back on normal deliveries tomorrow or Wed- nesday. A strike of longshoremen at four Lake Erfe ports in Ohio brought coal and ore shipping there to a standstill, and a walkout of 600 open hearth men in Bethlenem Steel Company's Johnstown, Pa., plant ‘hreatened a shutdown which would throw 16,000 other workers out of their jobs. ALLIES MINE ROADS 10 AVERT * RUSSIAN ATTA FRANKFURT, Germany, June; 18 —(M—THe Western allies ‘are re- ported mining key roads and bridges throughout West Gérmany ~ and other parts of Europ te stall any possible Soviet attack. 3 ‘These preparations ¢ame to Mght sesterday ' when 'a Gérman magé- zine published pictures of & wind- ing highway around famed 'Lorele} mountain on the Rhine River in the French zone. The pictures showed a row of holes being drilled in the rosd and then covered with concrete caps. Explosive charges droppeéd into the holes'would tumble the highway into the Rhine at one of its narrowest points. American headquarters declined to comment, But a French source in the Koblenz area said: “It is not only on this route en which such measures are taken and not only the French who are making such preparations. It is the allied high command which ordered this.” PLANEPLUNGES INTO KUSKOKWIM; PILOT IS KILLED FAIRBANKS, Alaska, June 19— (M—A plane piloted by Patrick J. Carroll, a CAA employee, plunged into the Kuskokwim river today near McGrath, 275 miles southwest of here. Carroll is believed to have died in the crash. A fragmentary report was re- layed here by Charles J! Pierson, Deputy Marshal at McGrath where Carroll was a communicator at the radio beam station operated by the Civil* Aeronautics Administration. Pierson telegraphed that wreck- age of the light plane had . been pulled onto a sand bar in the river but no trace of Carroll's body had been found.