The Daily Alaska empire Newspaper, June 29, 1950, Page 1

THE DAILY ALASKA EMPIRE VOL. LXXV., NO. 11,642 “ALL THE.NEWS SKINNER CHARGES ASSESSMENT WORK, (QUEEN CONTEST INDICTMENT IS |MEASURE SIGNED BY| LEADERSHIP 1 "'PERSECUTION*|PRESIDENT TRUMAN| Alaska Steam s Vice-Pres- | ident Blames Governor for Trouble The Vice-President and General Manager of the Alaska Steamship Company, D. E. Skinner, today charged the recent grand jury in- dictment of the company for mo- nopoly and conspiracy was the “cul- mination of Governor Gruening's intense effort to get” the company. Speaking at the noon meeting ot the Chamber of Cemmerce today, he sald the company denies “each and all of the charges made against us in both the civil and criminal indictments.” With Governor Ernest Gruening preseni at the meeting, Skinner termed the grand jury indictment “sheer political persecution.” “The charges in the indictment proved to be the same old chestnuts that Governor Gruening has been poking into the fire for years,” he continued. “The irony of the whole thing is that at the Governor’s insistence these same charges have been brought against us on several oc- casions before the United States Maritime Commission as well as before Committees of the Congress of the United States,” Skinner stated. “On every occasion—after thor- ough and detailed investigation by these groups — the company has been found not guilty and cleared of the various accusations,” he said Skinner also charged that the Justice Department had not foi- lowed its “normal routine” in in- vestigating the charges against the company. He said that the inveati- gations of the company’s operatichs were “shrouded in secrecy.” Bkinner quoted Justice Depart- ment officials as saying that since the Alaska Steamship Company was the largest company under in- vestigation it had to be indicted or “we will be accused of being fixed.” Referring to the merger of the Alaska Steamship Company and the Northland Transportation Company in 1948, he said that “Governor Gruening and others had frequently demanded publicly that Northland and Alaska Steam be combined for reasons of economy.” But.“we find from our indictment that Northland Transportation’s withdrawal from. the trade is now considered to have been an illegal act,” he declared. He said the ‘“co-called merger’ is a major point in the govern- ment’s suit against the company. “But they make no reference to the specific circumstance which forced all of the operators except (Continued on Page Two) The Washington Merry - Go - Round Bv DREW PEARSON Copyright, 1950, by Bell Syndicste, Inc.) 'ASHINGTON Though the State Department has been getting all the brickbats re past Far East- ern failures, the inside story of what happened in Korea makes the diplomats look a lot better than the U. S. military. Though Secretary of Defense Johnson and General Bradley were in Tokyo just a few days before the Korean attack, they received no word from General MacArthur that there was any danger. In fact, MacArthur seemed com- pletely obsessed with trouble in Japan and the idea of -keeping Formosa. The latter island seems to have a sentimental attachment for MacArthur, perhaps because it was the Jap jumping-off spot for the Philippine invasion. Not only is Korea only about 30 miles from Japan and completely in MacArthur's military jurisdic- tion, but millions of dollars are spent annually for counterespionage to see what the prospective enemy is doing. It is exactly for the purpose of preventing surprises such as that which has now oc- curred in Korea that the U. S. Army and central intelligence have been allotted huge budgets since the war—far bigger than that al- lowed the State Department. How badly U. S. military chiefs were caught off base is shown by the fact that Undersecretary of Defense Steve Early left last week end for a three-day trip in the middle west, while several high officials took a pleasure jaunt on a boat off Norfolk. In fact, Sec- retary Johnson and General Brad- ley joined them later. On the other hand, State Depart- (Continued on Page Four) WASHINGTON, June 29 — (B — A bill giving miners on public land three more months to complete their annual ussessment work was signed today by President Truman. Basic mining law requires that the claimants to mining rights on public land perform $100 worth of work on his property each fiscal year. The fiscal year ends to- morrow, June 30. The measure signed today gives the claim owner until Oct. 1 to complete the work for the current fiscal year. It does not apply to other years. The new law does not require the claim owner to give notice of his intention to take advantage ol the extra time. This change in the measure was made by the Hduse and agreed to )y the Senate. REDS REPORT U.5. BOMBERS HIT CAPITAL i TOKYO, Friday, June 30—®—A North Korean radio broadcast asserted today that 27 U.S. bomb- ers blasted Pyongyang, the Com- munist capital. There was no con- firmation of this report. American warplanes are under orders to con- fine their fighting to the skies over South Korea. The Pyongyang radio as heard here said 300 bombs were dropped ranging in weight from 100 to 1,000 pounds. CHANGED TODAY Nella Jermain jumped into the lead today for Queen of Juneau's July Fourth celebration. Shirley Casperson went into third place. Both candidates turned in many votes when the count was taken yesterday afternoon. There was no change for Roberta Messer- schmidt nor Carmen Mantyla. Judy Greene announces a change in the place tor final tabulation ot votes Friday midnight. As the Ju- neau Drug Store is closed at that hour, votes will be turned in to Miss Greene in the lobby of the |Bnrnnol Hotel. Midnight Friday is the deadline for votes. Here is the vote for queen as 1t stands today: Nella , Jermain Carmen Mantyla Shirley Casperson Roberta Messerschmidt 32,400 Candidates and sponsors are working in vote getting and sur- prises may result when the coun: is taken at 5 o'clock this afternoon TAX CUTTING BILL OKEHED, HOUSE ACTION Measure Turned Over fo Senate Where Anything May Happen fo It WASHINGTON, June 29 — (» — The House today approved the $1,- 61,900 46,700 40,00¢ 010,000,000 excise tax-cutting bill, RUSS CLAIM OF UN ILLEGAL’ ENTRY IN KOREA REJECTED LAKE SUCCESS, June 29—#— The United States has rejected Russia’s contention that the U. N. Security Council intervention in the Kdrean conflict is illegal. Informed sources said today American Ambassador Ernest A. Gross made the U.S. position clear to Soviet Deputy Foreign Minister Jakob A. Malik at a private lunch- eon Tuesday that was just before the Russian-boycotted council voted 7 to 1 to invite use of arms to repel che Communist attack on South Korea. Malik was understood to have raised the question of legality on he then impending act and Gross ~as reported to have told him the US. had no doubt on the com- petency of the council’s action. Gross also was said to -have in- formed the Russian the US. in- tended to act in accordance with ] the council resolutions regardless ol any legal challenge. Neither delegates nor U.N. offi- cials showed any surprise over the Soviet note to Secretary-General Trygve Lie declaring the council action invalid. Lie's office said no answer to the Siet note is required from him. He will pass it along to the Security Council. Ever since the Soviet delegation began its walkout-boycotts last Jan. 10 in protest against the presence of Nationalist China in the U.N., the legal issue has been debated. ALASKAN SCOUTS HAVE BIG TIME ON FALSE RUMOR VALLEY FORGE, Pa., June 29— M—Thirty-seven scouts from Alas- ka returned today to activities of che National Boy Scout Jamboree but they had a whale of a few wours yesterday. Rumor spread about the camping grounds that the Senate and House had passed the Alaska-Ha- waii statehood bill and it was awaiting President Truman's sig- nature. The Alaskan scouts started work immediately on a tremendous scaf- fold to hang Texas in effigy asi the largest state. Then came the truth—the Senate Insular Committee was the only congressional group to act ®n House-passed bills to grant stafe- hood to Alaska and Hawail. Pan American Airlines is gemngl planes ready to help evacuate Kor- ean refugees from Japan to the Pacific coast if it is asked to do so. | I “veto proofing” it with a $433,000,00¢ a year boost in new levies on big corporations. But the ultimate fate of any tax reduction at all may be tied to thc Korean war. The House action tossed the bil over to the Senate, which may take it, revise it, or kill it, depending on developments — whether more money for American fighting equipment will be needed. Just ahead of its final vote the House rejected 238 to 147 a Re- publican move to split the bill in two. Assailing the bill as a “phony’ tax reduction, the Republicans triec to get separate votes on one bil reducing excises, and then on an- other dealing with the tax inc-eas- |ing and loophole plugging provi- sions of the one-package measure. But failing in this éffsrt many Republicans, committed o excise reducticn, joined with Democrats in the final vote for the bill. The House, with this vote and with its work far ahead of the Sen- ate, then made ready to hegin to- morrow a 10-day July Fourth recess The tax bill would slash the ex- i cises, many of them imposed in World War II, on jewelry furs. pocketbooks, movies, baby bottle warmers and scores of other items ‘The Buts might become effective September 1 or October 1. ‘While slashing the excises—some- times called nuisance or sales taxes —the measure. would make up the revenue loss by the boost on big corporations, loophole plugging and other tax law revisions. This is the ‘“vete prooting” pro- cess, for President Truman warned Congress long ago he would approve no excise cutting hill that cid not offset the revenue loss by higher taxes in other directions. GRIPE SESSION IS SET FOR MONDAY MEETING OF LIONS Roars of pain for the past and surrs of pleasure for the future may be expected Monday noon, when Juneau Lions gather for the °xpress purpose of airing their gripes. Vice President Carl Rusher, who will wield the gavel in the absence of the new president, J. Gerald Williams, asks, requests and urges members to speak up on whatever they do not like about the club. However, there is a constructive aspect to the gripe session, as the Pro Tem Prexy figures that sug- gestions for Lions Club betterment will develop. , New officers will be in charge for the first time sinee their fn- stallation Saturday evening at a banquet in the Gold Room, where the luncheon meetings also were held. | ALL THE TIME” JUNEAU, ALASKA, THURSDAY, JUNE 29, 1950 POWERFUL: PACIFIC UN Orders Naval Units fo Join American Naval Forces NEW YORK, June 29 — @& — A powerful United Nations fleet i building up today in the West Pa- cific to aid Communist-invadec South Korea. British Commonwealth have ral lied behind Britain with offers o1 ships to help the U.S. fleet. Australia announced her nava. units in Japanese waters — a de- stroyer and a frigate—were avail- ible to support American forces. New Zeland also voiced readinest .0 make her navy of one cruiser anc six frigates available. They are now on ' maneuvers near Fifi and ar¢ understood to be in constant touch with their headquarters at Welling- ton. Britain already had placed her Far Eastern Naval forces at the dis- Pposal of the U. S. Commanders. Thé British have 22 or 23 ships in Japs anese waters, including an aircrat. carrier with 40 fighter planes ane n unspecified number of land- based Navy planes. The United States now has if warships in the Far Pacific. Thirs teen of these are in the Seventk Fleet, which President Truman di- rected to protect Formosa. They include an aircraft carrier and ¢ heavy cruiser. In Japanese waters are a light cruiser and four destroyers. ‘The U.S. Navy also was assemb- ling a second large-size Pacific task force to closely support the Seventh Fleet. It is to include the 27,000-tor: carrier Philippine Sea, two cruisers, a squadron of destroyers and & full sea train of supply ships, per- mitting long-range missions if ne- cessary. Navy Orders Anti - Sabofage Precautions NEW YORK, June 29— —The Navy buttoned up on all coasts to- day. By order of the Chief of Nava. Operations, casual visitors were not permitted at shore stations. Air Force bases on the west coast took similar precautions as a re- sult of the Korean situation Civilian defense units formed there and in some west coast communi- ties World War 2 air raid sirens were set up. In San Francisco air, naval and army commanders jointly an- nounced readiness to carry out any orders from. President Truman. The Naval order said that while casual visitors would not be per- mitted, normal visiting would b¢ allowed in installations “where conditions justify such exception. “Until further orders genera visiting will not be permitted on board ships berthed at shore sta- tions,” the order said. “Visiting on board ships at anchorages or at commercial or municipal pier: will be controlled by responsible senjor officers in such a manner a: to eliminate possible damage to ships. “On July 4 visiting will be per- mitted only on board ships not berthed at naval installations, and such visiting shall be carefully con- trolled.” ® 0 0 0 0 00 0 o WEATHER REPORT In Juneau—Maximum, 63; minimum, 53. At Airport—Maximum, 64; minimum, 51. FORECAST (Juneru and Vieinity) Fair tonight and Friday. Low temperature tonight about 50 and high Friday near 70. 'l PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau—0.18 inches; since June 1 — 145 inches; since July 1—7259 inches. At Airport — 0.15 inches; since June 1 — 1.07 inches; since July 1--46.84 inches. R I N R ) PRESIDENT FLEET IN | ASSERTSU.S. MEMBER ASSOCIATED PRESS PRICE TEN CENTS e | NOT AT WAR &5 Just Supporting UN in 'Po- lice Action” in Korea to Maintain Independence High Spols in orean Slluahon B-29S POUND WASHINGTON, June 29 — @ — President Truman said today he has no doubt that Korea's indepen- dence will be maintained. In spite of reverses, he told 2 news conference, he is sure that we will be able to maintain the Re- public of Korea. The President also said that United States was “not at war” and simply is Nations in what he called a “police action” in Korea. » The President declined to com- ment when asked whether United States might move ground forces into Korea to support the embattled republic, or whether the atomic bomb might be brought into play. He also gave reporters permission to quote him directly as calling the North Korean Communist roops “bandits.” In a general discussion of hi aew Far Eastern policy, the Presi dent said he considers it a move in favor of peace, as he said on Tu day when he ordered American planes and warships to aid the South Koreans and declared a pol- ey of standing firm against Com- munist aggression. Mr. Truman said, too, that there never has been any difference what- soever within his cabinet over the new policy. Some Republicans in Congress have contended the new policy was in effect a reversal of what Sec- retary of State Acheson has fol- lowed. Senator Taft (R-Ohio) made that argument in a Senate speech supporting the United! * (South Ching St . oy " REDS; DEFENSE STIFFENING Hogul Arnbase . S Poxmawa FORMOSA o NORIN » President Truman has announced that U. would be sent to aid of forces in munist inva: that the U. S. S. planes and warships South Korea (1), object of Com- Seventh Fleet' was being directed to prevent any Communist attack on Formosa (2); that arms aid would be speded to the Philippines (3), and Indochina (4). Map also locates Itazuke Airbase in southern Japan to which Americans in South Korea are being flown. Communist control. () erc]lholo ‘yesterday calling for Acheson’s re- | signation, Giving permission for direct quote of his words, the President said ot he Taft speech: “I think the political statement o1 Mr. Taft at this time is entirely un- calledfor.” Today’s more optimistic reports from the Korean fighting appar-| éntly had eased the pressure on mel administration to decide now the question of sending land troops fc Korea. FIRE DESTROYS HOME ON GLACIER HIGHWAY A five room house located seven miles cut on the Glacier highway, was totally destroyed by fire early this afternoon. The Juneau Fire Department re- sponded to a 2-9 alarm at one o'clock and volunteers speeded tc the home of Mr. and Mrs. Mel Swanson. The fire, of undetermined origin. is thought to have started in the attic. Some of the furnishings were saved py those who went to the scene. No estimate of the loss i given. Mr. Swanson is a driver for tht Yellow Cab Company while his wife is employed at the Triangle Clean- ers. The all-clear was sounded at 1:5(¢ p.m. CONCESSIONAIRES T0 INSPECT BOOTHS Civic groups which will have con- cessions at the Army Wharf for the Fourth of July concessions will nspect their booths at the wharf setween 8 and 9 o'clock tonight, Mayor Waino Hendrickson said to- lay. He ‘said the Fourth of*July cai will be on display at the corner o+ Front” and Seward Streets to- aight, and queen contestants will ilso appear there. STEAMER MOVEMENTS Prince George from~ Vancouver scheduled to arrive 3 p.m. Friday. Princess Norah from Vancouver scheduled to arrive Saturday atter- noon or évening. Chilcotin scheduled to sail from Vancouver tonight. | Aleutian scheduled to sail from! Seattle Saturday. Princess Louise scheduled to sail from Vancouver Saturday. Alaska from west scheduled southbound 11 p.m. Friday. Baranof from west scheduled southbound Sunday. s) Yellow Sea o 100 —_— STATUTE MILES Shaded areas are those under Map) Spearhead of the Communist North Korean army (center arrow) swept within nine miles of Seoul, capital of the South Korean Re- public, as resistance to the invaders collapsed at Uijongbu, only 12 miles north of Seoul. Seoul finally fell to the Reds. Another North Korean force (arrow right) was headed down the east coast, men- acing resisting troops near Kangmung. South Koreans still were holding the North Korean city of Haeju in only advance (black arrow) above the 38th parallel. P wlre‘;hm. STOCK QUOTATIONS NEW YORK, June 29 — Closing | quotation of Alaska Juneau minz stock today is 2%, American Can 106, Anaconda 29, Cuntiss-Wright 31, International Harvester 25% Kennecott 54, New York Cent ral 11%, Northern Pacific 13%, U. 8. Steel 32, Pound $2.80%. Sales today were 3,040,000 shares. Averages today are as follows: In- dustrials 206.72, rails 51.24, uuhnes 40.38. THREE SELLING WAVES NEW YORK, June 29—M—Three waves of selling battered the stock market today. Prices were knocked down $1 to an extreme of around $10 a share. Closing prices were lows for the| session. Once in the morning and again ; in early afternoon the market was hit by short but intense selling at- tacks. Each time there was a feeble try at a comeback but the buying power was to0 meager. Just before the close another flood of selling hit the market. Prices were on the way down at | the final bell. Brokerage quarters continued to link the heavy liquidation with de- | velopments in Korea. As usual, a flock of rumors added to the ner- vousness of traders. B.P.O.E. OFFICIAL HERE F. D. Meizger and party are registered at the Baranof Hotel Metzger is a past exalted ruler of Tacoma (Wash.) Lodge No. 174, BPOE. Mrs. Anne Scott of Pelican is a guest at the Baranof Hotel. 70-GROUP AIR COMBAT FORCE OK'D, SENATE WASHINGTON, June 29 — ® — 'I‘he Senate approved today a com- promise bill authorizing a combat Air Force of 70 groups. The legislation, which now goes to the House, fixes top limits for | manpower and aircratt in the Air | Force, the Army and their reserve units. Actual strength, of course, will be determined later by Congress through its annual appropriations within these limits. For more than two years air- | minded House members have been | demanding legislation authorizing a | 70-group Air Force in so many words. At present, the Air Force has 48 groups. The term “group” is vari- | able. It may include as many as 75 planes, if fighters; a smaller num- ber in the case of bombers. President Truman has said the present government budget would not permit a 70-group Air Force HAGAN HERE A. Dallas Hagan of Seattle 1s at the Baranof Hotel. He is with | the United States Gypsum Qom- pany. Billie Lois Miller of Taku Lodge | |is registered at the Baranof Hotel. i :Gen. MacArthur Spends 15 i Hours on Front-Jap Base | Blacked Out 45 Minutes (By the Associated Press) Behind the pounding of seven American Superfortresses, Soutn Korean forces stormed back to the offensive today and reoccupied strategic Kimpo airport, 16 miles west northwest of falfen Seoul. While American bombers were blasting, Communist North Korean invaders out of the field, US. and Korean strategists drew their main battle line along the Han River and ordered it held at all costs. About 25,000 troops on each side face each sther along the line which extends from a point just southeast of Seoul westward to the Yellow Sea and Communist-held Inchon. The Com- munist drive southward has not yet crossed the river. ‘The 75-mile battle line protects the American air beachhead in Korea and field headquarters ot Gen. MacArthur's officers. Mac- Arthur’s officers said they believe he South Koreans can hold it now. Forces Recovering MacArthur, back in Tokyo after 1 15-hour flying visit to the front, appeared heartened by the stiffen- ng resistance he saw and the morale of the Koreans, who cheered him. The Southerners apparently were recovering. from the initial shock of the Communist invasion. [nfantry units once cut off by the Red tank attack which enveloped 3eoul were being regrouped swiftly 0 join the counter-offensive. U. S. varships hit North Korean naval wnd ground units near Inchon, the ,)on of Seoul, to aid the Southern ‘The “Botitn 'Koreans movéd in—ét b !Conunued on Plge Two) GOVERNOR OFF FOR TALK WITH TWINING ON CIVIL DEFENSE ‘With a shooting war right on Alaska’s “back porch,” Gov. Ernest Gruening took off this afternoon to confer with Lieut. Gen. Nathan F. Twining in Anchorage on mat- cers of civilian defense for the Ter- ‘itory. With the governor went Dr. C. Earl Albrecht, commissioner of aealth, and Cel. Joseph Alexander, iwting - adjytant- genersl qf fi! Alaska National Guard. Governor Oruenlng. without m&j ing any comment on what might aappen in Korea, pointed out that civillan defense in Alaska ‘“‘must be c¢lose to the military” ard’ shat reason wishes to conter she Alaska Command chief on what should be done here. After this conference, plans -nu 30 ahead for each community cen-, ter in Alaska to formulate some sort of civil defense, the governor said, “Civilian plans here,” said Gruen- ng, “are much closer to military ac- Avities than similar plans in any e of the states.” i Col. Alexander has been. placed in charge of defense measures per- taining to the civil population, the 3ovérdor said. Dr. Albrecht is in the front lines Decause, as commissioner of health, it would fall upon his shoulders to see- that each Alaskan community; does not suffer from epidemic di- sease or malnutrition in event the shooting gets close. Other agencies with which the governor will confer are the High- way Patrol, the Algska Railroad, and similar groups which could move civilians from dangerous areas if the need arose. No funds are available for any program to be set up, the governor said, but preliminary plans must be laid without cost, and each com- munity then could go ahead with a voluntary plan to be put into effect if the need should arise. JOLLY IN TOWN W. J. Jolly of Seattle is a guest !nt the Baranof Hotel. He repfe- sents Libby, McNeil and Libby. FRED HANFORD HERE Fred Hanford of Wrangell is in { Juneau to attend meetings of the Territorial Tax Commission. He lls stopping at the Baranof Hotel.