The Daily Alaska empire Newspaper, August 16, 1950, Page 1

THE DAILY ALASKA EMPIR “ALL THE NEWS ALL THE TIME” VOL. LXXV., NO. 11,582 JUNEAU, ALASKA, WEDN ESDAY, AUGUST 16, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS s ] FRONT LINE B-29 RAID FLATTENS REDS Senate May Investigate Palmer Airport SEN. BUTLER CHARGES | McCUTCHEON BENEFITS BY lAND PUR(HASE Jailed Longshore Leader ANCHORAGE STRIKE SEES | NO CHANGE Federal Medialors Stymied in Plumbers’ Walkout- Defense Work Stopped SEATTLE, Aug. Legislafor Says Gruening| Approved Increase of Land Values INGTON Aug. 16 — & — ILWU REQUESTS NEW TRIAL FOR HARRY BRIDGEY Retfains Control of Union Convention NORTH BEND, Ore., Aug. 16-<-?‘ —CIO Longshore President Harry | Bridges seemed today to have con- v.rol of his union's caucus here — rrom behind federal jail bars in san | ‘Sennmr Butler (R-Neb) today ac- | Francisco. cused Alaskan Territorial officials | {of trying to collect $37,500 in federal ‘ airport funds subter- | fuge.” Butler, who has been leading the | fight in the Senate against state- hood for both Alaska and Hawaii, demanded a Senate investigation of a long series of charges involving the airport at Palmer, Alaska. In a prepared speech, sunported “through a mediators still faced a blank wall|of certain pertinent documents,” here last night at the close of their first-day attempts to settle the crucial Anchorage plumbers’ strike. Federal mediation director Cyrus Ching called the hearing last week after Secretary of Defense Johnson had assailed the strike as endan- gering more than 200 million dol- lars worth of defense projects in the Anchorage area. Sixteen persons representing Al- aska and stateside plumbing con- tractors answered Ching’s call yes- terdy morning, along with two rep- resentatives of Anchorage Local 367, Plumbers and Steamfitters Union. Federal mediators Albin Peterson, Leo Kotin and William G. Hosle met with the negotiators. However, Peterson reported ‘“no significant change” in employers’ or union stands when the sess%n ad- Journed. Harry H. Lewis, regional director of the Federal Mediation and Con- ciliation Service, was scheduled to return to Seattle today after con- ferences with Ching in Washington, D. C. FIRE ALARM The Juneau Volunteer Fire De- partment was called by a thrét- three alarm at 5:20 p.m. yesterday to 115 Gastineau Avenue where aj overheated stove was threatening to 949, do damage. No damage was done, firesmen said. The Washingtonl Merry - Go-Roun By TOM M@NAMARA and JACK ANDERSON (Copyright, 195. vy Bell Syndicate, Inc.) | banker (Ed. Note—While Drew Pear- son is on a brief vacation, his column will be written by mem- bers of his staff). /ASHINGTON — Defense Sec- retary Louis Johnson's sagging pub- lic relations haven’t been helped by the bad manners of some of his military aides, who seem to enjoy getting in people's hair. A classic example occured when baseball commissioner “Happy” Chandler recently called on John- son to offer the services of base- ball to the war effort. He was met in the outer sanctum by Brig. Gen. Louis H. Renfrow. Renfrow was munching on some chewy candy as he greeted Chan- dler. Picking his teeth with a finger, Renfrow mumbled officiou- sly that he had sent for a per- sonnel procurement officer to “sit in on” the conference with John- son. Then, in a painful attempt at humor, the general added: “After all, he’s the fellow whose shoulder you'll have to cry on.” The insinuation that Chandler might be seeking special favors— such as deferments for ball play- ers—burned him to a crisp. Trying to contain his anger, he shot back: “I didn't come over here to cry on anybody’s shoulder. I just want to see Secretary Johnson to offer the services of baseball, including myself, to the government.” Still poking at his teeth, Renfrow .téwmnued on Page Four) | I Butler told the Senate: ‘ 1. That Stanley McCutcheon, speaker of the House in the Alaskan Legislature, collected $5,628 for put- ting through the airport transaction and would benefit also from the| project through his connections ns a bank official. 2. That Gov. Ernest Gruening of ; Alaska had “placed his personal stamp of approval” upon the airport project. 3. That a member of the Alaskan Legislature, Marcus F. Jensen of Douglas, had asked the U.S. District | Attorney in Juneau io make a full investigation of the transaction. 4. That “a washout transaction” between the Alaskan Territorial government and the Palmer Airport Association, was arranged under | which the Territorial government Ppaid $150,000 for the Palmer airport and then received $145,000 of this back. Butler said this ‘“scheme” was used to enable the Territorial gov- ernment to obtain $37,500 of federal funds to which it was not legally entitled. Butler said that $50,000 had been spent building a small airport at Palmer in 1946, before Alaska be- came eligible to receive federal air- port funds on a matching basis in Land Value Increased He contended the “washout tran- saction” was staged by increasing the value of land from $43 an acre last year to $1,172 an acre for the 127.94 acres involved in the $150,000 sale. Butler also told the Senate it is his belief that McCutcheon, an air- !me president as well as attorney, and legislator, actually signed the name of “Roland Snod- grass” to the airport voucher. Contending Alaska and its offi- cials now handle millions of dollars | | annually, Butler saiq there “is a| { grave question here as to the philo- sophy and outlook of the present Territorfal officials in whom has been vested the responsibility for the government of a federal terri- tory.” Butler said questions about the Palmer airport transaction had been raised by Frank A. Boyle, auditor of Alaska, on July 13, and opinions | had been asked from the Alaskan Attorney General. “I believe that the Governor of Alaska and a number of others in- volved here should have the oppor- tunity to explain fully to the Con- gress their activities in connection with the Palmer land deal,” Butler said. The Senator said a former Trea- surer of Alaska, “is now in prison serving a term of 10 years for em- bezzlement of public funds entitled to his care.” Two other former officials, who served under this administration, were dismissed last year after the legislature found they were unfit for public service, he continued. Butler placed in the Senate record documents and data dealing with| his charges and newspaper articles from the Daily News Miner on re- lated subjects. ED INGERSOLL HERE Ed Ingersoll of Cordova is a vis- itor, stopping at the Gaslinenu Hotel, i |a new trial for the man convicted | \VALDEZ MAY GET Some west coast locals had hinted of revolt last week, but this seemed waning here today. Delegates loyal to Bridges twice overwhelmed opposition on policy decisions yesterday involving their long time leader. | They first rallied to elect a chair- | man known to be loyal. They named | James S. Fantz, Portland, over R.| T. Baker, a former Portland local 16—(P—Federal | by what he called “photostatic COpAC\ | president who would like to see the ILWU chief ousted from union lead- ership. Then they rammed through reso- lutions calling on President Tru- man to free Bridges and to demand | of lying when he said he never was a Communist. "VISION” WARNS BLACK CLOUDS TO STRIKE ALASKA NECEDAH, Wisc., Aug. lG——VA’L—«l Thousands of spectators from manj states, who yesterday heard a Wis- consin farm wife relay a message she said she had received from the Virgin Mary, trekked homeward today with mixed reactions, Standing before an improvised shrine in her farmyard, Mrs. Mary Anna Van Hoof told a hushed throng that the blessed Virgin had exhorted them all to “Pray, pray, pray.” Mrs. Van Hoof, 41, claims she has seen the mother of Christ six times before in visionary appear- ances here. The spectators—estimated to number nearly 100,000—had to de- ride for themselves whether to dis- count or believe the claims that had drawn them there, for they saw nothing unusual. She repeatedly urged her listen- ers to “Pray, pray, pray.” “The enemy of* God is all over America.” She told the crowd: “Pope Pius XII is in danger unless we pray. I want to warn of Korea. It won't end unless we pray. Our bishop must remember my warning of Fatima, Black clouds are coming over America. Alaska is the first stepping stone. Remember the Pacific Coast.” SEWER SYSTEM IN 1951, SAYS TONER VALDEZ, Alaska, Aug. 16—®— Construction of a $160,000 sewer sys- tem for Valdez, possibly next year, is being considered by the city coun- cil. Felix Toner of Juneau outlined preliminary engineering details at a council meeting, and said Valdez was next in line for funds under the public works act. He said cost of the proposed system would be amortized over a 20-year period. STOCK QUOTATIONS NEW YORK, Aug. 16 — Closing quotation of Alaska Juneau mine stock today is 2%, Amgrican Can 93, Anaconda 33%, Curtiss-Wright 10%, International Harvester 20%, Kennecott 623%, New York Central 14%, Northern Pacific 17%, US. Steel 36'2, Pound $2.80%, Canadian exchange 90.87%%. Sales today were 1,770,000 shares. Averages today are as follows: in- dustrials 215.78, rails 6261, ulllltles; 139.14, Where Reds Exerl Pressure Dark arrows show main North Bavean threats along Korean battle line. Masan. troops in Pohang. Red artilery (1) was repnrud south of Yongsan on road to Invading troops (2) fought at close quarters with defending Trapped North Koreans were battling American forces in slowed down drive on Chinju in the south. Northwest of Waegan, Red forces were building up west of the river for push on Taegu. On northern part of the battle line, South Koreans hurled back assault north of Uisong. ® Wirephoto Map. SEN. MAGNUSON SAYS OKAY ON | NEW HIGHWAY SPORANE, Aug. 16 — /) — Sen. Magnuson (D-Wash.) said today that a ban on censtruction of a road to Alaska north from Oroville, Wash., has been lifted. He said in a message from Wash-' ington, D. C. that the ban was imposed recently by Presidential | order which limited the start oi' new Federal highway jobs to those related to national defense. “The order halted plans for theI Okanogan River bridge and ap- proaches adjacent to Oroville on which advertisement for bids WX pending,” he said. “The we office of the Public Roads Adminis- tration has mow been told to au- thorize the state to advertise the project.” Magnuson said the bridge will be a “vital part of the shortest road link from the United States to Alaska upon completion t fall of a connecting road from Prince George to Fort Saint John in British Columbia.” The Oroville Chamber of Com- merce had long contended that the highway north of Wenatchee through the Okanogan valley is definitely a military highway. Oroville is located in northeast- ern Washington near the Can- adian border. WEATHER REPORT In Juneau—Maximum, 71; minimum, 48. At Airpert—Maximum, 72; minimum, 37. { FORECAST (Juneau and Vieinity) Continued fair tonight and Thursday. Lowest tempera- ture tonight about 48 degrees. Highest Thursday about 71. | PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau — None; since August 1—1.14 inches; since July 1—11.07 inches. Af Airport None; since August 1—0.85 inches; since July 1—7.89 inches. ® 0 0 0 0 09 90 @0 ecces 0000000000000 RED CHINA MAY THROW IN TROOPS (By the Associated Press) A Communist admission that the North Koreans might even- tually be thrown back to the starting point of their invasion was reported from Formosa, is- land stronghold of the Chinese Nationalists. Reports in Taipel said the Soviet Union and Red China have agreed that the Chinese Communists will throw 150,000 troops into the war if the invad- ers are pushed back to the 38th parallel, dividing line between North and South Korea. Recent arrivals in Taipel from Red China reported that So- viet Vice Premier V. M. Molotov, said to be in full charge of Com- munist expansion in the Orient, visited Peiping to arrange the pact. The reporis were unconfirmed from any other source. U. S. Troops Caplure Newly Manufadured Russ Weapons-Korea, SOUTHEAST KOHEAN' FRONT, Aug. 16—P—A US. Army officer said today that American combat troops have captured Soviet-made | weapons and ammunition manufac- | tured in 1950. The Russians said recently at Lake ] Success that they have not provided arms to the North Koreans since 1948, when their occupation forces withdrew from the area north of the 38th parallel. The captured equipment includes 122 grenades, a submachinegun and { other small arms, all manufactured in 1949 and 1950. The officer said the weapons were | turned over to a team of frontline United Nations observers operating with the American forces. It is ex- | pected the material will be sent to | Lake Success. ' Markings on the guns and shells | are in Russian. S ——— 'HOUSE APPROVES SOCIAL SECURITY INCREASE TODAY WASHINGTON, Aug. 16 — (B — The House gave its final approval toddy to legislation vastly expand- | ing social security coverage and in- creasing benefits. | The roll vote was 374 to omne. The lone opponent was Rep. Byrnes | (R-Wisc.). The House accepted a compromise version of different bills passed by The compromise now goes to the Senate. Major provisions of the House- Senate compromise include: Coverage—the number of workers under old age and survivors in- surance is increased from 35,000,%0 to 45,000,000 The newly covered groups include 5,000,000 self-em- ployed, 1,000,00 domestic servants 1 700,000 regularly employed farm workers and various smaller groups. Benefits—the 3,000,000 aged per- sons and survivors now getting ben- efits will receive increases averag- ing 77% per cent beginning about Nov. 1. Benefits to those yet to retire will be about double the present rate. Maximum benefits for a family will be increased from $85 to $150 a month, Taxes—the present 1% per cent payroll tax on employe’s pay and employer’s payroll will go to 2 per cent. on each in 1954, to 2': per cent in 1960, to 3 per cent in 1965 and 3% per cent on each in 1970, MRS. LOWELL TOPS L0CAL TROUT DERBY CUTTHROAT DIVISION Douglas Blanchard Heads Dolly Section at End of Angling Confest Again a woman has shown the men how to fish. Mrs. Leonard Lowell, a Juneau housewife, has won the cutthroat division title in the Juneau Cham- ber of Commerce Trout Derby by a slim three-ounce margin. The derby began June 1 and ended at midnight last night with Mrs. Lowell's 4-pound 12-ounce entry topping the cutthroat divi- sion and Douglas Blanchard’s 6- pound 4-ounce fish heading the Dolly Varden division. Mrs. Lowell caught her winning fish in Turner Lake last weekend pushing Frank Wright to second place. J. S. (Skip) MacKinnon, Jr., who entered a 4-pound 5 and one- half ounce cutthroat Monday, is in third place. No entry fee was charged for the derby. Prizes will be awarded the best three fishermen in each divi- sion at the Chamber of Commerce meeting August 24, aceording to| Pete Warner, who headed the derby committee. The derby began slow, and after a month speeded up. Dr. C. E. Al- brecht led the cutthroat division for more than five weeks, but was pushed back slowly to fifth place, where he stood at the end of the contest. The best fish in the cutthroat di- vision came from Turner Lake, on the south side of Taku Inlet. Best Dollies came from streams running into Taku River. An even pound behind Blanchard in the Dolly division was Luis de- Florin who entered a fish weighing five pounds four ounces. Third place was taken by Royal O'Reilly, who entered a 4-pound Tl-ounce Dolly. Carl Lane was fourth, Pat Gil- more, fifth, and Jack Campbell, sixth. | Leonard Lowell squeezed into| fourth place in the cutthroat divi- sion last weekend, Dr. Albrecht was fifth and Al Bloomquist was sixth. Taku Lodge proprietor Royal| O'Reilly promptly pointed out that the top four cutthroat division win- ners caught their fish in the Taku | valley area as did the high six in the Dolly Varden contest. O'Reilly | also explained that all six of thei Dolly Varden winners were either | SUPERFORTS RAID COMMIE FRONT LINES B-29s Blanket Red Troops in First Direct Strike at Enemy By WILLIAM JORDEN A U. 8. BOMBER BASE, Japan, Aug. 16—(P—B-29 crews came back irom their biggest bombing raid of the Korean war today, saying “we hope, by God, we were able to dc something for the guys on the ground.” They had. The bombers had just smashed a 26-square mile area containing up ‘0 60,000 Red soldiers in a corridor 32 miles wide and 7' miles long just northwest of Waegwan. .The Army wanted to chop ofi the threatened Communist advance toward Taegu and the southeast before it could get started. The Army called on the Air Force fo: a B-29 saturation raid on the sec- tion where the Reds were massing for attack—a, tactical battlefront mission instead of the big bombers customary long-range strategic ei- fort in the Red rear . It was the first time B-29's hac ever been asked to give closeur mass support to ground forces. It was the first time the deady grace- ful silver giants had ever been ordered to go and blanket an area in a direct strike at enemy troops, When it was all over the pilots and bombardiers didn't know whether they had done any good. They had hit the target right on the nose, and knew that. Results were uniformly reported as “excel- lent.” “But that means we dropped ali our bombs and hit the assignecd area,” one Air Force officer said. ‘But it doesn't mean that we killed gooks because we just don't know whether they were there.” Before the operation, Maj. Gen Emmett (Rossie) O'Donnell, chiel of the Far East bomber command, said: “We don’t know whether this is going to do any good. We hope it will. If the North Koreans arc down there we think it will. Any- way we think it worth a try.” FLOODING CREEKS CAUSE WASHOUT ON RICHARDSON ROAD Swollen glacial streams, brought to flood stage by extremely hot weather, have washed out the Rich- ardson Highway at Mile 18, the Alaska Road Commission said today A wire from B. D. Stewart, Jr. district engineer in the Valdez area, said the Lowe River bridge suffered damage and that he was working two gangs at top speed to get the road back in shape so traffic could resume at its normal space. Most damage was done directly north of the bridge, Stewart’s wire said. Mile 16 is northeast of Valdez. STEAMER MOVEMENTS Princess Louise scheduled to ar- rive from Skagway at 8 a.m., Friday, sailing for Vancouver at 9 a.m. Princess Kathleen scheduled to leave Vancouver today and will ar- rive Saturday. Alaska scheduled to sail from Seattle tomorrow, and due here Sun- day. Aleutian due here Sunday from Seward. Baranof scheduled to sail from Seattle Saturday and due here Tuesday. Princess Norah scheduled to sail from Vancouver Saturday and due here Tuesday. Freighter Chena scheduled to sail| from Seattle Aug. 24. FROM CHATHAM Mrs. John Likness and Clarice of Chatham are at the Baranof Hotel, guests or employees at Taku Lodge. | 875 TONS OF BOMBSPANIC ENEMY LINES Reds “Running in All Di- rections’” - May Be Turn of War (By the Associated Press) Panicky Communist troops reeled in retreat on the Naktong river front in Korea today after a glant smash by 98 B-29 Superforts un- loaded 1,750,000 pounds of explo- sives on their offensive buildup. The massive blow, inaugurating a new role for the giant bombers, was almed at breaking the back of v 60,000-man Communist buildup .cross the Naktong where a Kickoff 1ad been expected against Taegu, he main American forward position A South Korea. Large-scale U.S. reinforcements aave arrived on the battlefront in ‘he southwest sector, where Negro inits of the U.S. 25th Division have »een fighting some of the fiercest sattles of the war in the area of hinju, main Communist southern yase. The replacement units were iot identified as to size or outfit. President Truman spent 20 min- ites today with his Joint Chiefs of staff, reviewing the Korean war, ~hile the nation wondered if the nassive Superfortress strike meant 1 turning of the tide which might ead to victory. Destroying Bridges? There were some indications on ‘he ‘minin front ‘riorthwest of Taegi hat the enemy might be blowing up _he very underwater bridges he laid lown for his big push. If this was jo, it appeared the Reds expected a ,round attack in the wake of the 3-29 smash, which reportedly spread error in Red ranks. Observer pilots seported enemy units stunned and iemoralized by the blow. Some of the enemy troops were running in all directions” from the {laming, smoking target area after 'he Superfortesses, in the first strike >t this kind in their history, sat- irated 26 square miles of the Red suildup area with 875 tons of bombs. Observer pilots reported some Reds jeserting positions east of the Nak- ong and racing back across it. The saturation blow was the squivalent of 30,000 rounds of heavy artillery fire. It was perhaps the sreatest concentrated strike that sould be made on a front line posi- Jion short of an atomic attack. ..., Saturation Raid P The Superfortresses took off' lt lawn in waves of eight, each 3 ng about 10 tons of bombs. The Jew a mile west of the Naktong, seginning on a strip three miles 10rth of Waegwan, and systematic- ally dropped one 500-pound bomb’ svery 150 feet. The area is about 15 miles northwest of Taegu, US. for- vard base where the bulk of North Korea's attack force was believed centered. “It is hard to see how it can take 1 battering such as it is getting now and mount an offensive soon,” wrote AP Correspondent Hal Boyle, who flew along with the raiders in a transport-observer plane. The bombing was made in clear weather, ‘The attack apparently spread con- fusion through Red ranks on the northern flank of their attack on the Naktong defense line, while a 1ull fell over the rest of the battle- front. No sooner had the B-29s glided off from their merciless strike than Allied fighters and bombers roared in, strafing and tombing any targets they could find. ‘While the B-29s roared in to drop their 3,500 bombs, each weighing £00 pounds, American Infantrymen stood up in their foxholes and cheered. Like Normandy Raids Never before had B-29s been used in mass support of ground troops. { The attack was similar, however, to the massive blows of B-17s and B-24s on German lines on Normandy | before the St, Lo breakthrough of Americans in World War II. The air blows then paralyzed German lines so that they could not effectively resist the ground attack. A lull fell over the other sectors. | This was the situation: two Red bridgeheads have been established across the Naktong below Taegu, | the provisional South Korean elpl- (Continued on Page Two)