The Daily Alaska empire Newspaper, July 25, 1950, Page 1

THE DAILY ALASKA EMPIRE VOL. IXXV., NO. 11,563 “ALL THE NEWS ALL THE TIME” : JUNEAU, ALASKA, TUESDA\' R JULY 25; 1950 Mlu\’l ER ASSOCIATED PRESS PRICE TEN CFNTS arrier Planes Hit Reds Flankin PRIMARIES SIZE, ARMED FORCES, IS CHANCE OF GLOBAL WAR MAKES ARMY BOOST 'TOO SHORT" BEINGHELD Higher Taxes MORE POWER Flee Advancmg Reds Indicated; to WANTED FOR"”w ing Pusan ONLY THIRD OF . AREAREMAINS WASHINGTON, July 25 — (® ] Rep. Vinson (D-Ga) said today “a | ‘global war is a real, distinct pas.sx-‘ GIVEN LIFT IN4STATES, HitPaychecksPRESIDENT | TO DEFENDERS “ Al Mllllary Enlisiments, Passed by House The House today passed bills lifting | the ceiling on size of the Armed‘ Forces and freezing all military en- | listments for one year beyond their normal expiration date. | Both bills were passed by \mce‘ vote without opposition. ‘ President Truman asked for| prompt action on the measures in a ! special message to Congress last| week. The enlistment-freeze bill was passed by the Senate last week. It now goes to the White House for | Mr. Truman’s signature to make it; law. | ‘The measure lifting the lid on| military manpower still needs Sen- | ate approval. It removes all Con- gressional limits on size of the| Armed Forces, now fixed by law at| 2,005,882. i Mr’ Truman'’s request for $10,- 500,000,000 of new defense money provides for a manpower increase oI 600,008. This would bring the Armed | Forces to about 100,000 over the pre- | sent authorized ceiling. | Freezing 5ill The House .voted first on thej enlistment freezing bill. | The legislation extends the term | of service for nearly 300,000 men | now in the Armed Services whose enlistments are due to expire in the coming 12 months, Chairman Vinson (D-Ga) of the| House Armed Services Committee, estimates it will affect 145,000 men | in the Army, 62,000 in the Navy,| and 88,000 in the Air Force. { Size of Force } Another bill before the House would lift the lid on the size of the | Armed Forces. Before passage of the enlistments | measure, Republicans sounded em- | bittered demands for an nccoummg, of responsibility for U.S. reversés ' in Korea. They also called for ni “house cleaning” in the State and| Defense Departments. Rep. Short (R-Mo), ranking GOP | member of the House Armed Serv- | ices Committee, bitterly assailed the “dust settling” policy of the State| Department and what he called the impresion of “false security” created by Defense Secretary Johnson. “Who's responsible for all this?” he demanded. “We've appropriated $50,000,000,- | 000 for defense in the last four years. What have we got to show | for it?” Earlier Rep. Vinson (D-Ga) called for the House to “get down to busi- ness,” adding that “the grim and| . unpleasant truth is that a global war is a real and distinct possibility at any time.” CITY T0 CLOSE SATURDAY FOR SALMON DERBY| This weekend, starting with the first day of the Salmon Derby on Friday, July 28, will take on the aspects of a Fourth of July holiday. Saturday, July 29, the business of the city will virtually close up for the big event. Housewives are warned that most stores will be closed and if the family wants to! eat something besides fish, buying should be done on Friday. i Among those closing Saturday all day «will be: Case Lot Grocery, Bert’s, 20th Century, California Market, Home Grocery, Behrend’s Grocery, both bakeries, Thomas and Juneau-Young Hardware stores, all transfer companies. Doubtless others will be added to the list by the end of the week. Reason for closing is to give em- | ployees an opportunity to partake| in the big annual salmon event Ju- neau puts on each year. Their civic- minded cooperation helps to make the big event even bigger. So, Thursday and Friday will be the busy days at the stores, filling orders for housewives and Saturday will find the town practically closed up—with everyone out dangling a herring and hoping to snare that “big one” to get in on the list of awards for his effort. | tated, blln.y at any time” and American forces must be built. up for that | possibility. Also Frozen_Measures | Vinson, chairman of the Armed | are holding primaries today, with | | Services Committee, made the state- | national interest centered primarily | ment in a speech prepared for House | on a Senatorial race in Oklahoma. | delivery in support of a bill that Armed Forces. A House vote was expected later |ing to hold off the bid of Rep. in the day. The enlistment “freeze” has passed the Senate. ‘The House also expected to take a vote later on legislation to lift |all limits from the size of the already | Armed Forces. On a speed up schedule, it may | vote next week on giving the Armed Forces the $10,486976,000 in addi- | tional money asked for them by President Truman. Vinson said the United States is “seriously short” at present in | “standing military strength” and he | questioned whether the expansion program the administration has be- gun will be enough. He said he is not satisfied with | the plans for increasing the size of | the Navy and the Air Force “for I | believe there is too much conserva- |tism in the program.” Vinson said Russia out numbers the United States 7 to 1 in tanks, | more than 17 to 1 in military man- power and has almost 300 subma- rines and “a vast air force.” On the U.S. side of the military ledger, he said there are these assets: “Goyernmentally, we are far stronger than our potential enemies ..in any long term effort our sys- tem can outlast and surpass‘the dic- regimented system of the Communists. Our industrial poten- tial is the envy of the world. “Our seapower is vastly greater | than that of Russia and her satel- | lites. Our strategic air power is unmatched anywhere in the world. arms effort and will probably stay ahead for some years in the future.” STOCK QUOTATIONS NEW YORK, July 25 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 90'%, Anaconda 32%, Curtiss- Wright 10%, International Harves- ter 27, Kennecott 58%, New York Central 15%, Northern Pacific 17,| U.S. Steel 35%, Pound $2.80%. Sales today were 2,770,000 shares. Averages today are as follows: in- dustrials 203.83, rails 61.13, utilities 31.74. AT JUNEAU HOTEL Bill Lambert of Hood Bay is a guest at the Juneau Hotel, T'he Washington Merry - Go-Round Bv DREW PEARSON (Copyright, 198a. vy Bell Syndicate, Ine.) 'ASHINGTON — A significant, | off-the-record meeting took place in the office of the Secretary of Defense on the morning President | Truman sent his re-armament pro- Jram to Congress. Secretary Louis Johnson, who had previously hacked billions from the armament estimates of the Joint Chiefs of Staff, called in his most vigorous opponent, Rep. Carl Vin- son of Georgia, and said quietly: “I need your help, Congressman. You were right.” Vinson, the powerful chairman of the House Armed Services Com~ mittee, replied: “We'll let bygones be bygones, Mr. Secretary. The important thing is that we all work together to get the kind of dé- fense we need to win a war.” When Johnson explained the plans for an enlarged Army, Navy, and Air Force, they were virtually identical to the demands Vinson has been making like a modern Jeremiah ever since the end of World War II. A year and a half ago, in de- fending a joint chiefs estimate of $30,000,000,000, Vinson argued that our minimum defense needs were: Army strength of 711,668; pur- chase of 673 new skysweeper anti- aifrcraft guns; modernize 743 med- ium tanks; put 421,314 Army re- serves on drill-pay status; build up the Navy to 555,700 officers and (Continued on Page Four) { would add a year to the service per- | chairman of the Senate Agriculture WASHINGTON, July 25 — ® — ! jod of enlisted men now in the | Committee and a veteran of the | { | We are still far ahead in the atomic |* this morning. (By the Associated Press) Democrats in four Southern states There, Senator Elmer Thomas, Washington scene since 1927 is try- Mike Monroney, who has been in the U.S. House 12 years. i Monroney led Thomas in the Sen- atorial primary July 4 but lacked a | clear majority because the total vote was split by other candidates then in the field. This time it is| strictly Monroney-vs-Thomas. | Monroney has campaigned in the second go-around with the argu- ment that Thomas, as chairman of | the Senate Appropriations subcom- | mittee handling military appropri- | | ations, is partly responsible for the plight of U.S. forces in Korea. The other states, in brief: Arkansas — There is a national angle in the race for the nomina- tion for Governor, between Gov.| Sid McMath and former Gov. Ben | Laney. Laney is a leader of anti-| Truman Democrats while McMath | has supported much of the Truman | program. Louisiana—The main race here is for the Senate, between Senator Russell Long, son of the late Huey P. Long, and two opponents. South Carolina — Most statewide races were settled in a first primary July 11 but two Congressional dis- trict nominations are being decided. HOUSE ACTS T0 ENLARGE ARMED FORCES 600,000 (By the Associated Press) s The House of Representatives to- day mapped out a swift schedule toward boosting the size of the U.S. armed forces. The House may vote next week on President Truman's request for $10,500,000,000 extra for the battle against Communism in Korea and elsewheré. Administration forces pushed ahead with the task of obtaining broad emergency controls over busi- ness, industry and consumer credits. In the works is the addition of 600,000 men to the Armed Forces total in the fiscal year, to bring the total in the services to more than 2,000,000. The funds also, in the Pres- ident’s words, will help the U.S. pre- pare to “deter further acts of ag- gression.” Representatives of the 12 alliance nations met in secret session in London, prodded by events in Ko- rea, to study ways of cutting a four- year rearmament schedule to two yeats. The delegates, forming the permanent; civilian high command of the pact, are expected to remain in session four or five days. The United Nations Security Council was called into session to- day to hear the first report from its military commander-in-chief for Korea, U.S. Gen. Douglas MacAr- thur. Informed source$ said the re- port contained no further recom- mendations for the U.N., but con- cerned an accounting of the war thus far. $22 TAKEN IN BURGLARY OF SHOE REPAIR SHOP Burglars entered the Ameérican Shoe Renewing Shop on Seward Street last night and took $22 from the till, city police said today. The burglars apparently entered by forcing a window at the rear of the shop, police said. ‘The burglary was discovered when the store was opened for business Over $4 Million Requested for ACS WASHINGTON, July 26 — @ — President Truman’s request for! $10,486,976,000 for military ‘needs includes $4,393,000 for Alaska com- munications. FROM TENAKEE Mrs. Birdie Gilkison of Tenakee is at the Juneau Hotel. WASHINGTON, July 25 — (A — Secretary of the Treasury Snyder today said higher taxes probably will take a bigger bite out of wage earners’ pay envelopes before the end of the year. Snyder told a news conference he is “sure” President Truman wilt ask Congress this week to raise indivi- | dual and corporation taxes. The money would go to pay costs of de- fense to meet Communist aggression in Korea and elsewhere. Congressional approval would mean bigger withholding taxes from employee paychecks. Snyder said Mr. Truman'’s request would be for an “interim” tax in- crease to go into effect as soon as possible. The Secretary said he is in ae- cord with Congressional leaders that no excess profits tax on corporations should be included in the interim | bill because the measure should be passed quickly. He said excess profits tax proposals are so com- pncav.ed they would mean extended and delaying debate. Snyder also endorsed proposals to hold excise (sales) taxes at thei present levels, close “loopholes” to garner more taxes, and speed up payment of corporation income taxes. TRUMAN’S REQUEST WASHINGTON, July 25 — (A — President Truman asked Congress today for a prompt $5,000,000,00 increase in taxes, to be collected partly from individuals and partly from business. He proposed that the higher taxes on individuals start coming out of paychecks received after Oct. 1. He said the new withholding rate should be 18 percent instead of 15 percent on that part of wages xsub~ ject to withholding. In a letter to Senator George (D- Ga), Mr. Truman propdsed tdat a tax bill already pasSed by the House be used as a peg for immediate ac- tion. That bill 5 now before the Senate Finance Committee, headed by George. Mr. Truman proposed that Con- gress “increase tax collections sub- stantially for the taxable year 1950.” He suggested that rises apply to 1950 corporation income and that the withholding tax on individual earnings be increased for the last three months of this year. The President-asked the ‘ax rise to finance in part the $10.5 billion increase he has proposed. in military spending. “We embark on these enlarged ex- penditures at a time when the fed- eral budget is already out of bal- ance,” he wrote. “This makes it im- perative that we increase tax reve- nues promptly lest a growing defi- cit create new inflationary forces| detrimental to our defense effort.” Income Taxes On individual income taxes, Mr. Truman proposed a return to the rates of 1945. This was at the peak of World War II rates and would mean a| sharp boost in taxes for all the 52,- 000,000 taxpayers. As to corporations, Mr. Truman proposed to increase the normal corporate rate from 21 to 25 per- cent. Mr. Truman said this would result in a 25 percent tax on the first $25,000 of the corporation’s in- come and a 45 percent tax on the rest. Nothing to be Cut The tax bill now before George's committee proposes to cut some of the wartime excise taxes—the levies such as those on telephone bills, railroad tickets, furs and luggage. Mr. Truman asked that these pro- posed cuts and other revenue-losing provisions be dropped, but that Con- gress keep those parts that close loopholes, applying taxes to corporate dividends and change taxes of life insurance com- panies. Although asking a return to 1945 individual income tax rates, Mr. Truman said the present personal exemptions of $600 a person and the privilege of income splitting between husband and wife would be left un- changed. In 1945 the personal exemption was $500. It was raised to $600 by | a 1948 bill which cut taxes all along | the line for individuals. One effect of the increase in the exemption to $600 was to drop some 7,400,000 persons with small in- comes from the tax rolls. withholding | Even Critics_mge Higher Taxes - Sawyer Says We Can Stand It WASHINGTON, July 25 — (B —| Secretary of Commerce Sawyer said | today the economic control powers| g the administration is asking may not be enough. He declared greater | powers will be needed if military | spending is increased further. Sawyer was before the Senate Banking Committee to urge that.; Congress quickly give President; Truman the controls he has asked. Ihese include powers to parcel out | scarce materials to industries, to| say how these materials shall be| used, to stop production of any item, and to fix the terms of credit sales. Some members of Congress al-! ready are balking at such a grant of power. At the same time there has oeen growing sentiment for a sharp increase in taxes with the idea that | chis would (1) put defense costs on a pay as you go basis, and (2) hold | down the inflationary pressures,| lessening the need for controls. | A rise in taxes appears certam! since the administration—as well as! some critics of its controls program\ —is urging higher taxes. There also is some sentiment for an even bigger military expnnslon ¢han the $10,000,000,000-plus asked 2y President Truman. Sawyer said he is “convinced the American people will willingly give up whatever is necessary to guar- “tee our natfonal security, in spite st inconvenience and some sacrince of the very high levels of consum-! ption which they now enjoy.” {MANPOWER RESERVE S BEING RECRUITED | SEATTLE, July 25—(®—A man- igement-union report said today a manpower reserve was being re- cruited for work on the Seattle | waterfront to meet any possible shortage created by movement of military cargo to Korea. Art Olsen, secretary of the CIO International Longshoremen Warehousemen’s Union, Local 19, and D. W. Cornell, area manager of the Pacific Maritime Association, said a reserve of 150 men is being enlisted as a start. Olsen said the local union nor- nally has about 1,600 members. He sald the program has been ap- | proved by the union membership. : Cornell said the heavy demand | for ‘longshoremen to handle mil-| |itary cargo has come at a time | when commercial shipping 15 reach- | ng its annual peak. Qualified men seeking work on | the waterfront through regular hir- \mg channels are being accepted | | also, Olsen said. “From now on we will be having | large cargoes of salmon arriving al- most daily from Alaska,” Cornell sald, “and we must have the men available to move them.” { TRANSOCEAN LINE CREW { Weathered in after arriving on |a charter flight, the crew of a Transocean Airlines plane stayed overnight at the Juneau Hotel. In |the group are William L. Word, |F. V. Kennedy and Ronald M. Backues. | NSRRI R A ® o o 0o 0 0 0 0 o WEATHER REPORT In Juneau—Maximum, 55; minimum, 51. - At Airport—Maximum, 57; minimum, 49. FORECAST (Juneau and Vicinity) Decreasing cloudiness with lowest temperature near 50 degrees tonight becoming | ® partly cloudy with highest | ® temperature near 62 degrees | ® Wednesday. e PRECIPITATION ® (Past 24 hours ending 7:30 a.m. today City of Juneau—0.33 inches; since July 1—7.28 inches. ®+* At Afrport — 020 inches; |® sinea July 1—496 inches. ION SEATTLE FRONT and | ® 0000°%°0 0000000000000 00 Carrying only a handful of their possessions—and the little fellow has less than that—these South Koreans arrive in Taegu, Korea, after fleeing from Taejon ,80 miles to the north. Railroad station in back- | ground. @ “lr(‘pholo hy Staff Photographer Frank Noel. ‘SIAIE BILL "DENIAL' OF RIGHTS, SCREAMS 'INDIAN OFFICE- WIRE | WASHINGTON, July 25 — ) — | The Interior Department’s advisory | committee on Indian affairs has |urged that the so-called anti-res- ervation section be cut out of the sending Alaska statehood bill. ! The section would provide that; | pending a vote of the people of IAlaska and approval by Congress | no reservations should be set aside or natives. In a telegram signed by nine of | the committee’s 11 members, chair- man Oliver La Farge told Intelior Sccretary Chapman: | “This section is grossly unfair to natives and its enactment in or- ganic law would set a most vicious precedent for denial of native rights.” FISHERMAN HELD | AFTER ASSAULT IN ' ~ PETERSBURG HOME { | Arthur Paul; 44-year-old Peters- \burg fisherman, was in Federal jail here today, held for the grand jury. on three charges of assault with in- tent to kill, robbery by force, and for breakmg and entering. Victim of the assault, which wuk place at 4 am, July 21, was John | Hendricksen of Petersburg. He was | arrested later that day by Deputy Marshal Ralph E. Smith. In a hearing before U.S. Com- missioner Dale H. Hirt, Paul waived his right to have a lawyer. The com- missioner ordered him held to an- swer to the grand jury. Bail was set at $3,000. The charges against Paul, all | signed 'by ‘Hendricksen, read that | the fisherman entered Hendricksen’s home ‘and assaulted him with intent to kill; entered his home, commit- ted a robbery by force and putting |in fear, stealing $46 from the vic- tim; and breaking and entering, breaking down a door by force while Hendrickson was in the house. | STEAMER MOVEMENTS Princess Louise from Vancouver |in port at 3:30 this afternoon and sails for Skagway at 11:30 o'clock | tonight. Baranof from Seattle scheduled to arrive at 8:30 tonight. 4 Princess Kathleen scheduled to sail from Vancouver Wednesday. | Prince George scheduled to sail !rrom Vancouver Friday. | Aleutian scheduled to sail from Seattle Saturaay. | Princess Norah scheduled to sail ! from Vancouver Saturday. Alaska _from west scheduled southbound Friday. SCHOOL DISTRICTS SHY 59 OF FUNDS "FOR COMING YEAR Rising Costs, Increased En- rollment, New Districts | | Throw Estimates Off Alaska's 26 incorporated school dlstricLs- will be deprived of at least 5 percent of their funds this com- mg year unless the coming legis- lature passes a deficiency appro- priation of more than $104,000, it iwas announced today by Dr. James C. Ryan, commissioner of educa- tion. The shortage is in the refund granted each district by the Ter- ritory for operation of its schools, ranging from 75 to 85 percent of the total cost, depending on the number of pupils enrolled, Juneau itself will be shy $8,522.26, Dr. Ryan estimated. If the legislature turns down kis request for more money to keep the schools operating as they were planned to operate when the bi- enniel budget was made out, each district must pare expenses by approximately 5 percent or dig up the extra money themselves. The . education . commissioner pointed out the shortage is by no means the fault of the 1949 as- sembly, because it granted every cent Dr. Ryan asked for—and Dr. | | | ;Ryan in turn had presented every cent each district had asked him for. Three the deficiency: | reasons were given for 1. Costs have risen pectation, l 2. Great increase in enrollment has been reported almost every- where, 3. Several communities have in- eorporated since the legislature met, and were not included in the esti- mate. beyond ex- Transport Funds At the same time, the same thing as happened in regard to school | transportation, he . :d A great | influx of families adjacent to towns, Iplus added costs in comtracts, ™us piled up a large deficit, approxi- mating some $58,000 for the coming year, X This too was no fault of the| legislature, Dr. Ryan said, because | they gave him what he asked— | $300,000 for the biennium. The first year alone, however, saw $178,- 035.16 spent in contracts, leaving | only $121,964.84 for the coming year. He estimates it will take $180,000 | to see the children transporteg next year, making the shortage| |about $58,000. ° Again, if the assembly turns down his request for a deticiency appro- priation, districts must cancel out certain routes, or shorten them, in order to keep within their allot- 'Communisls_S—eize Town Near Taejon-Surround- ing Our Key Port (By the Associated Press) Yongdong fell to North Koreans today. On the other side of the ledger, US. and Britisb carrier planes streaked across Korea's southwest tip and struck hard at advancing Communist columns threatening to flank United Nations forces in a push toward Pusan. The war was a month old, and the MacArthur command was fight- ing to keep the one-third of South Korea it still holds. On the central front, U.S. First Cavalry division elements, “fighting like hell,” retreated from Yongdong before a sustained Communist frontal attack supported by stabs in { both flanks and sneak attacks from -he rear. Fighting to protect the American flanks, the 25th Division hrew back two Communist infantry ittacks with heavy casualties. Yong- long is 20 miles southeast of aban- ioned Taejon. The carrier plane attack was part of Gen. MacArthur’s planned mea- sures against the burgeoning threat n the southwest front, where Red columns have been driving against token resistance from South Ko- reans and menacing vitally import- ant U.8. supply lines in the broad flank mavement. Navy Planes Strike ‘ront line targets “of opportunity” in the area of Kwangju, where the Communists have been spearing east in what looked like the be- zinning of a drive on Pusan. This main American supply port is on the southeast coast. The Reds al- ready have seized all the western and southwestern part of Korea, driving ‘the Americans and South Koreans into a corner making up only about a third of the peninsula. U.S. Army field officers were re- ported to have asked the air strike, in which British planes supplied cover for U.S. Naval fliers. The at- tack was under the direction of Vice Adm. Arthur D. Struble, who had just returned with his ships from recent strikes at targets north of the 38th parallel. For the first time in the campaign a rearming ship came alongside the task force as it proceeded to its new operation. A dispatch from U.S. Eighth Army headquarters in Central Ko- rea quoted North Korean prisoners as saying 20,000 Korean veterans of the Chinese Communist army were used for the invasion of South Ko- rea. The prisoners also said Russian advisers were working with Com- munist army units, and that Russia, a month before the invasion, sup- plied the North Korea army with huge quantities of equipment. Roadblocks Cut Us Off Front dispatches from the central sector said the Yongdong with- drawal was orderly after the Ameri- cans stood their ground since Sun- day before waves of attacking Reds. First Cavalry elements on the flanks had been cut off from time to time by roadblocks set up in their rear by Red infiltrators. " (Continued on Page Two) TRAVELS 4,000 MILES T0 (OMPETE, GOLDEN NORTH SALMON DERBY After traveling some 4000 miles to compete in the Golden North Salmon Derby, Mr. and Mrs. Ben C. Salmon and daughter Janis of he Igloo Munitions Depot in South Dakota arrived in Juneau Sunday via the Alaska, While here they will be house juests in the Gold Belt home of :Mr. Salmon’s sister and brother-in- law, Mr. and Mrs. Marvin G. Ripke. ;ln Seattle they were joined by the two young Ripke's, Bob and Greg who were on their return trip from the Valley Forge Boy Scout En- campment. Mr. Salmon and his brother, both engineers, are the nucleus of the Salmon Construction Company, wellknown in the Middle West. While in Alaska, Mr. Salmon plans to look over the possibilities of (Continue¢ on Pag; Two) expansion.