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

THE DAILY ALASKA EMPIRE VOL. LXXV., NO. 11,557 “ALL THE NEWS JUNEAU, ALASKA, TUESDAY, JULY 18, 1950 Red Attack Slows Under Heavy McCARTHY IS gMacAthur Receives U. M Flag PLAIN LIAR, - SAYS REPORT DemocraiicM—a]ority Gives Findings in Commie In- vestigation, State Dept. WASHINGTON, July 18—®@—"A fraud and a hoax"—that's the label slapped on Republican Senator Mc- Carthy’s Communists - in - govern- ment charges by the Democratic majority of a Senate investigating committee. A report signed by all three Dem- ocrats on the committee—Senators Tydings (Md), Green (RI) and Mc- Mahon (Conn)—asserts that: McCarthy used “the totalitarian technique of the big lie” in waging “perhaps the most nefarious cam- paign of half-truths and un-truths in the history of this republic.” McCarthy retorted that the report of the Democrats is “gigantic in its fraud and deep in its deceit.” The Wisconsin Senator added: “It is a signal to the traitors, Communists and fellow travelers in our government that they need have no fear of exposure from this administration. . . . “The most loyal stooges of the Kremlin could not have done a bet- ter job of giving a clean bill of health to Stalin’s fifth column in| this country.” | The Democrats’ report, issued last night, was generally regarded at the | capitol as one of the most scathing condemnations of a Senator ever! made by colleagues. It accused Mc- Carthy of having lied repeatedly. The majority said McCarthy failed | to prove any of his basic allegations, | which were fired at scores of indi- viduals in attacks directed at the| State Department. McCarthy ac-| cused the Department of harboring/ a lot of Communists, Red sympa-| thizers, and people who were secur- | ity risks on other grounds. { Republican = Senator Lodge of Massachusetts got out a minnrity\ report saying the inquiry into Mc-| Carthy’s charges “must be set down as superficial and inconclusive.” He | said there remain “a tangle of loose threads” and “leads which were not | followed up.” | (Continued on Page Eight} The Washingion Merry - Go- Round Bv DREW PEARSON Copyright, 1%30. vy Bell Syndicate, Inc.) WSHINGTON — President Tru- man has received such grim reports ! on the Korean war that he not| only decided on a special message to Congress asking for all-out con- | trols, but also under consideration | is the following drastic action: | 1. A mass retreat, or Dunkerque, | from Korea. 2. The unléashing of the atomic | bomb. | Even early last. week, mnmary‘ advisers warned the White House | of the tragic possibility of a Kur-‘ ean Dunkerque and the evacuation of all American men and materials | back to Japan. If Chinese Com- | munist troops pour into Xorea,| they could force the outnumbered ; Americaris into the sea. There-| fore, a plan for wholesale evacua- tion is already prepared. Simultaneously, an informal pro- | posal has been made to issue an| ultimatum to North Korea, warn- | ing the Communists to pull back to the 38th Parallel or submit to atomic attack. Military advisers to the President | are considering both measures as desperate last resorts. One group | is not anxious to use the atomic | bomb, but they are convinced that | Russia is still far behind the Uni- | ted States in atomic development, | and that the men in the Kremlin | would not risk an atomic war with | us at this time. Therefore, they argue that h would save American lives to make | limited local use of the atomic| bomb against North Korean troop | concentrations and supply depots. Another group of military ad-| wvisers disagree with this. They | believe that any use of the atomic bomb would: 1, provoke outright | lose us the 1 ONE MORE 4 Gen. Douglas MacArthur, commander in chief of the Far East com- mand (right front) receives the United Nations emblem (center) at Tokyo from Gen. J. Lawton Collins (left front) U. S. Army chief of staff. The UN flag flies between the U. Stars and Stripes and Gen. MacArthur's five-star general's flag. (P Wirephoto via Army radio from Tokyo. -iGeneraI in Jeep Leads Relief Force ARREST IN SPY RING \Another Link Discovered No Dents, American Lines, * by FBI-Julius Rosen- | berg Is 4th Suspedt | NEW YORK, July 18—(®—The (ounh American allegedly linked to North of Taejon, Says Gen. Dean By WILLIAM R. MOORE AN AMERICAN was seized at his home here last, night by the FBL Maj. Gen. William F. Dean pe |sonally led an attack that pulled g g2 e lscme of his front line troops out | g 1o 35yoar:did’ Jutine Rosen-lm the fire in Saturday’s heavy | berg—a balding, bespectacled engi- fighting near the Kum River. neer, married and father of !.wui Back here briefly after four days chitgren, 'in the front lines, the commander Justice,of the U. S, 24th Division told of | charged him with conspiracy to|the incident tonight. He prefaced | commit espionage, and said he had |it by saying the North Korean | recruited’ for a cloak-and-dagger | Communists had not dented new Soviet spy apparatus that pene- American lines north of Taejon,| trated America’s atomic secrets. former American headquarters in i South Korea. He was arraigned and held be- 1lmd not been able to put their| The Department of ‘hmd bars in lieu of $100,000 bail,tanks across the shallow river m‘ terior for a federai court hearing on July | forces, |31. His attorney insisted he was innocent. “Rosenberg is another important link in the Soviet espionage appa-, ratus,” FBI Director J. Edgar Hoo- ver said in Washington, where the arrest was announced. In response to questions, General Dean told of the personally led relief given to Infantrymen at the roadblock in the heavy fighting. ! The general said he put his jeep | ahead of two tanks leading an| Infantry column against the road- block on the American supply road. An Infantry unit in trucks, In the past two months the gov- ernment has arrested three other Americans it says were implicated led |in the spy ring headed by Dr. Klaus | by two armored personnel carriers!' s ot the lowest possible rates con- and two tanks, was being sent to relieve heavil pressed troops on the Kum River line. Fuchs, the German-born Com- munist sympathizer who worked his way to the top of Britain's atomic program. Fuchs confessed and now is serv- ing a long prison term in England. Harry Gold, a Philadelphia bio- chemist; Alfred Dean Slack, a General Dean, who was tempor ary commander of U. 8. troops in Korea before Lt. Gen, Walton H. Walke® of the Eighth Army ar- lontist. of Syracuee, NY. and|iived sad he went forward and| ;)cnendls 1 e “Ne\\ York thas found the Infantryment had left ol peoins $0 the trucks to deploy. Going far | chinist and former U.S. Army Ser- geant. ther he found the armored ca " ¢ Around another corner the two All were charged with wartimej .. o espionage—a charge that can mean thn death penalty. The FBI announcement said the American-born Rosenberg’s part in the ring was the recruiting of Greenglass—then stationed at the atomic bomb laboratories at Lo${,.q put my jeep in front of the Alamos, NM.—to work with Gold. 1™ ang started up toward the | Like a character in a fictional| ..oqpiock. spy drama, Rosenberg gave Green- glass an oddly cut top from a jello | box to be matched with the other who had the wrong information had come down that road telling them that Red tanks were coming against us,” Dean said. SALMON LANDINGS COMMAND | Russia’s Klaus Fuchs atom spy ring POST IN KOREA, July 18— . d 7! - POWER BILL He said the Red<| “Well, T found out that somebody | “T told them this was all wrong TRUMAN NOT T0 SEEK TAX BOOST- YET He'll Ask fgr_fien, Money and Authority, Is Concen- | sus - Talks Tomorrow WASHINGTON, July 18 — (B — President Truman will call for more men, money and authority to deal with the Korea crisis tomorrow but, one Congressional leader said, will | not now seek a tax increase. The President set aside much of today for work on final drafts of his two Wednesday messages—a re- | port to Congress at 11 a.m. EST, jand a broadcast to the people at 9:30 p.m. EST. As pieced together from a dozen sources in the capital, Mr. Truman’s requests to Congress were expected to include: | An additional $5,000,000,000 to $6,- 1000,000,000 in military spending sion to increase by 220,000 |men or more the authorized strength of the armed forces—or, bout 770,000 above today’s actual trength. | Limited powers of priority and | | allocation, to channel steel and other materials into arms produc- | tion, by voluntary means if possible and compulsory means- if necessary. Anti-inflation measures including | curbs on consumer credit but not including the price, wage or ration | powers of World War II. | Along with his call for more men. | money and authority, officials said | Mr. Truman would take this line: | The Korean conflict and the-in- wternntlonnl situation generally will| I require effort and sacrifice by the | | American people, but the economy is | strong and can take it without im- ‘pnrtant dislocation—if businessmen |and consumers keep their heads. Billions will be needed to carry on | the Korean fight, but those costs | must be considered in the light of ‘the national output now well above $270,000,000,000. Higher taxes have been preaicted | freely by officials as the Korean | | “police action” mushroomed into iwar proportions. Senator Lucas ot | Illinois, Democratic leader in the | Senate, told a reporter, howaver, he | does not expect that Mr. fruman will ask higher rates at this time. 'FOR EXLUTNA 10 TRUMAN WASHINGTON, July 18 — (@ - Legislation to authorize the lu.\ USSR BEHIND ALL THE TIME” . MEMBER ASSOCIATED PRESS PRICE TEN CENTS — ] 'World's Largest Square Dance” l.}-g‘hl th‘ousand costumed “do-si-do” fans participate in the “world’s largest square dance” at Santa Monica, Calif., a feature of Santa Monica's 75th Diamond Jpbilee Celebration that required five blocks of Wilshire Boulevard pavement for a dance floor. Thirty-six callers directed the dancers while 50,000 sperlntors looked on. P Wircphulo. Thirty Wounded Yanks Slain AlASKA HAS GIANT SLICE OF NEW FUNDS AN - AMERICAN COMMAND BIII Before Senate Con- Totety wounded Amoroan sors| 10108 Largest Yearly Bud- getEver GivenNorthland were reported tonight to have been shot to death on their litters by the By CHARLES D. WATKINS WASHINGTON, July 18 — (® — North Koreans who swarmed across The one-package appropriation bill the Kum river Sunday night. Two of those reported slain were | now before the Senate contains more money for Alaska than ever | mortar men who had held their morm tubes in place by hand vntil v.heir haads wer. burned and heir i arms broken. has been appropriated for the Ter- ritory in a.single year. Delegate Bartlett of Alaska stid today the funds now earmarked for This story was told tonight (Moore's dispatch was filed at 11:20 the Territory total $215,089,304. He told a reporter he had ob- p.m., Tuesday—5 a.m., Tuesday, Ju- tained the tentative allocations neau time) by some of the men of the Nineteenth Regiment who were from the budget officers of tfx various government agencies. The in the thickest of Sunday's battle. measure itself does not list all of The Reds’ Sunday thrust forced the Americans back to new defense the Alaskan items as such, as many of the appropriations are lump lines north of Taejon, which they sums which are allocated by gov- still hold tonight. ernment departments. On Litters by Reds; Chaplain ’ Giving Benediclion Murdered NO. KOREANS IS DISCLOSED. WASHINGTON, July 18 — B — Definite information was given to- day that the : are Russian ad- visers with certain unit” of the North Xorean Army. Reporters were told at a Penta- gon briefing that between 10 and 20 Russian officers are with the “certain unit.” Its identity was not disclosed. This gives the first confirmation the American Army has had of the rresonce of Russian advisers with the North Koreans, the briefing officer sald. Asked_whether the Army’s infor- mation is that the Russians are advisers rather than combatants the spokesman replied: “As far as' we know. STEAMER MOVEMENTS Sgt. Arnold McKenny, 28, of New- port, Vt., relating the slaying of the wounded, said those killed in- cluded a Catholic Chaplain “while he was giving the benediction.” McKenney said, “I did not see it but I know it's true.” Capt. D. E. Sandstrom, 32, of Chadron, Nebr,, who also told the story, did not mention the Chap- lain, but said he got his account first-hand from an American med- ical administrative officer who was shot in the leg. Bartlett said the largest appro- priation in the bill for Alaska is that for the Defense Department. It totals $88,560,765. Of that, $69,- 707,845 is for Army and Air Force construction. This was added after the measure reached the Senate. These projects had not been auth- orized by Congress when th’, Houge acted uron the money bill. Department to build the 1$20,365,400 Eklutna power plant ir | Alaska is before President Truman | for action. | The House yesterday accepted the | | Senate version of the bill and sent | it to the White House. | | The measure provides the depart i ment may construct a 30,000-kilo- [ watt plant at Lake Eklunta, near| Anchorage, Y | Other provisions: 1 | 1. The power shall be dispose sistent with sound business to en- courage its widest use, J The rates must be approved IJ\\ the Federal Power Commission 2. Preference in sale of the power shall be given to public bodies, ¢o- operatives and Federal agencies. 3. The government must be re- paid the cost over “a reasonable |number of years,” plus 2% per | cent interests. 4. Receipts from sale of power shall go into the Treasury. 5. After the government is re-| | paid, the department must report to Congress on feasibility of trans- fering the plant to public owner- i ship in Alaska. Eliminated was authority for the 1‘(h‘pnrlment to make plans for other | power projects in Alaska, as pro-| | posed in the House bill, and auth- | orify to establish a recreation area around the lake. | | cover in port, sailing for Skagway | Seattle Saturday. war with Russia; 2, e : e : moral support of the world and half as a recognition signal with! i HAINES BUSINESSMEN even Oi many people in our m\n‘Go](l the FBI said. The trolling boat Mabel K. landed| Two businessmen from Haine. country. ‘ As a result, Greenglass turned]600 pounds of troll-caught salmon W. H. Scriver and Crawford D. over bomb data to both Gold and|at the Juneau Cold Storage Com- | Smith, are spending several day | Roseberg in 1945, the agency said. | pany wharf today. here, guests at the Juneau Hotel Taonl;xlucd on Page lTnur; Princess Kathleen from Van- Bartlett gase this breakdown of Army funds of $58,769,645: $8,741,000 for Eielson Air Force Base; $11,352,300 for Ladd Air Force Base; $35,205345 for Fort Richard- son; $3,131,000 for Whittier were killed,” Sandstrom said. He said this officer and the Chap- lain had elected to stay with the stretcher cases to see if they could get them out. “I don't know whether he saw it or went back after the North Ko-| He said he was told Air Force reans left,” Sandstrom explained. |funds of $10,938,200 would be split “He did say the North Koreans |Pe‘ween $5,635200 for Eielson and made gleeful noises while they were $5,303,000 for Ladd. killing our wounded.” Bartlett listed other proposed ex- penditures by the Defense Depart- “The officer told me all the menl at 11:30 p.m. Prince George scheduled to sail from Vancouver tonight. Princess Norah scheduled to sail from Vancouver Wednesday, July 19. Alaska scheduled to sail from Seattle, Thursday, July 20. Chilcotin scheduled to sail from Vancouver Thursday. Baranof scheduled to sail from Princess Louise scheduled to sail ment: | from Vancouver Saturday. o 80N SN 98 8 | Alaska Communications $5,877,920; Aleutian from westward due Nome Harbor $800000; Wrangell southbound Sunday. WEATHER REPORT Narrows, $750,000; maintenante | In Juneau—Maximum, 56; minimum, 50. At Airport—Maximum, 56; ! burg $5,000 and at Wrangell Nar- rows $20,000; Naval Petroleum Re- serve No. 4, $11,000000 and for STOCK QUOTATIONS NEW YORK, July 18 — Closing minimum, 48. Navy navigation aids, Arctic test quotation of Alaska Juneau mine stations and scientific studies, $355,~ stock today is 2%, American Can FORECAST 1 000. 921, Anaconda 307%, Curtiss- (Juneau and Vieinity) | The second largest appropriation | Wright 914, International Harvester Mostly cloudy with occa- |for Alaska is in Interior Depart- | 27, Kennecott 56%, New York Cen- sional light rain and little ment funds. This, Bartlett sa™, tral 127, Northern Pacific 15%, U.S, change of temperature to- amounts to $70,544,251 plus $9,000,- Steel 332, Pound $2.80'%. night and Wednesday. Low 000 in contract authority. Sales today were 1,820,000 shares. tonight about $2; high Wed- e | The third largest item, he said.| Averages toda re as follows: in- nesday about 55. K is' $18,532,750 in Commerce Depart- “i dustrials 201.88, rails 5636, utilities ment funds. This includes $14,-| 38.20. PRECIPITATION 982750 for salaries and expenses (Past 24 hours ending 7:30 a.m. today City of Juneau—151 inches; since July 1—4.41 inches, At Airport — 113 inches; since July 1—2.76 inches. of the Civil Aeronautics Admifis- tration, the Anchorage and Fair- banks airports and Federal aid for the airport program, It also In- cludes funds for the Coast and MARRIAGE APPLICATION SEATTLE, July 18—®—A mA\r-; riage license application was filed | yesterday by Morton S. Wood of Berkeley, Calif., and Virginia Hill,| g o aie o 8.0 078 8 Geodetic Survey and the Bureau 9! Fairbanks, Alaska. Public Roads. | WES PRICE HERE | Other funds for Alaska are in FROM PETERSBURG Wesley C. Price of the District the appropriations for the agri¢ul- Richard Hofstad of Petersburg is|Engineer’s office, Anchorage, ii|ture, postoffice and (reasury - ' stopping at the Baranof Hotel {stuupmu at the Baranof Hotel. partments, and | $250,000 for classified field activity. | work at Nome $45,000, at Petefs- | asualties YANKS HOLD ABOVE TAEJON AGAINST 0DDS Communists Move Tanks by Night in Face of Terri- fic Air Bombardment (By the Associated Press) North Korean Communisty, with ranks dented by “terrific” casualties, have slackened their attack in South Korea and American forces are holding all along the front, U.S. officials announced today. ¥ Heroic U.S. 24th division troops battling against overwhelming odds still hold positions above Taejon. ‘That rail center, once considered the key to South Korea's defense, remains in American hands, a U.S. Yighth Army spokesman reported. To the west, South Korean troops attacked on the central sector Tues- day night (Korea time) and then withdrew to defense positions after inflicting heavy casualties, an Eighth Army spokesman said. The Reds were taking a battering from the air by U.S. jet fighters, Mustangs and light bombers. Heavy bombers struck behind the lines in strategic attacks which soorfer or later would show up in a slackening of Communist supplies at the front. So terrific. was the air beating that fighter pilots reported the Reds were moving their armor and motor columns only by night and lying ‘ow in daylight. Pressure Lets Up U.S. Far East headquarters in- formed the Defense Department that the defenders.were holding el Along the Tne”"BHd that enemy pressure slackened. The Washington spokesman warned against consid- ering this a decisive turning point. A Red force to the east posed a serious threat. Gen. MacArthur's headquarters reported the Reds moving reinforcements to their Fifth Division driving south from Tanyang, 60 miles northeast of Taejon, striking for American sup- ply lines. The South Korean First Corps had blunted this drive Sun- day. A lull fell over the main battle sector and over the central sector just to the east, where South Ko- rean troops dug in at defensive posi- tions. Gen. MacArthur's headquarters estimated Red casualties to date at 11,000, but said accurate figures were impossible. The airmen bagged 321 tanks and 143 trucks Monday. They struck hard again today, Light bombers strafed Communist supply lines all the way back to Bmul B-29 Superforts blasted railyards® (Conuinued on Page Six) "WE ARE HOLDING" IN KOREA Report Includes All Forces at Fronf - Enemy Pressure Slackens WASHINGTON, July 18 — (P — Far Eastern headquarters has in formed the Pentagon that “we ar i | holding all along the line, includ~ |ing all forces, and the enemy pressure has slackened.” | A briefing officer told reporters | the message had arrived here this | morning, apparently about 6 a.m (EST). | However, he cautioned against | interpreting these developments as a decisive turning point. He was asked if this meant the urning point has been reached?” “I think that is premature,” the officer said. | “I don’t think any evidence we [have now shows that to be a fact.” | The officer went on to say there has been a definite stiffening oa | the front, that there is more tact- ‘anl fire by artillery, more air sup- |port and that the * playl are click- ing better.” “But it takes time,” ‘uddlng that “we are blunting the attacks.” he said,