The Daily Alaska empire Newspaper, August 17, 1950, Page 1

THE DAILY ALASKA, EMPIRE VOL. LXXV., NO. 11,583 “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA,-THURSI)»AY, AUGUST 17, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS RED DRIVE BATTER 5 AMERICANS FIFTY-TWO ARE NAMED BENEFICIARIES IN WILL OF AUSTIN E. LATHROP SURVIVE RED MASSACRE Thirty-two Prisoners Slain ~One North Korean Identified By HAL BOYLE WITH U. S. FIRST CAVALRY, Karea, Aug. 17 — (® — Thirty-two | American prisoners with hands tied | behind their backs were shot dead | today by Red Koreans on a hill| west of Waegwan just before a| U. S. patrol reached the spot. The Reds tried to kill 37 prison- | ers in all. But five lived to tell| the story. They said the Commu- | nists also massacred the wounded | as they lay moaning on the ground. This was in the area that was bombed yesterday by 98 B-29's in the heaviest air raid of the war. Killing of prisoners in this fashion | is typical retaliation for such an assault. The execution of the prisoners | was on hill 303, which was cap- tured by the Reds this morning. Their bodies were found on a ridge recaptured by the Fifth Cav- alry this afternoon. The American prisoners were killed only two| hours before troopers re-took the ridge, The Americans seized the ridge at 6:30 pm. (12:30 am. Juneau time.) The hill had been fought over for three days. | The 37 Americans were mowed | down by bursts of gunfire, | ,Three North Korean prisoners were taken after a sharp fire fight nearby. One of them was positively identified by an American survivor —Cpl. James Melvin Rudd of ©:l-| . yersville, Ky.—as a member of the squad of killers, This prisoner denied he had taken any part in the action, Regimental officers said he would | be sent back with recommendatioh | that he be tried as a war criminal, On the way back from the front | we met the prisoner and Corporal Rudd on their trip back for joint questioning. With Rudd was an- other survivor—Corporal Roy L. Day, Jr., El Paso, Tex. Day looked at the two North| Korean prisoners in the back of the | truck and said: “If you ask me, I think they should be shot just as they shot our men, rather than be given a| trial. Or else we ought to string them up right now.” LOGISTICS OF KOREAN WAR ARE REVEALED IN U. 5. NAVY STATEMENT ‘WASHINGTON, Aug. 17—#—The Navy reported today that it has de- livered 40,000 men, 500,000 tons of military cargo and 3,000,000 barrels of petroleum to the Far East since the outbreak of the Korean war. ‘These figures on the transport job done for the United Nations Forces in Korea were given at a Pentagon briefing session for reporters. Spokesmen said 85 percent of the men and supplies moved across the Pacific have been carried by the! Military Sea Transport Service. The remainder has been carried by combat ships and by the air lift operated by the Air Force. The Navy said the air lift has ferried 2,000 men and 200 tons of top priority cargo. ® 0 0 0 0 0 0 0 0 WEATHER REPORT In Juneau—Maximum, 66; minimum, 47. At Airport—Maximum, 74; minimum, 40. FORECAST (Juneau and Vicinity) Continued fair with some cloudiness this afternoon and tonight and Friday. Little change in temperature 'with highest this afternoon near 70 and lowest tonight 50 de- grees. PRECIPITATION (Past 24 hours ending 7:30 s.m. today City of Juneau — None; since August 1—1.14 inches; since July 1—11.07inches. At Airport None; since August 1—0.85 inches; since July 1—7.89 inches. ‘TRUMAN DENOUNCES WHERRY STATEMENT AGAINST ACHESON WASHINGTON, Aug. 17 — B — President Truman denounced today as “contemptible” and “beneath comment” a statement by Republi- can Senate Leader Wherry that the blood of American dead in Korea is on the shoulders of Secretary of State Acheson. Mr. Truman gave reporters at his news conference permission to quote directly these words in his sharp denunciation of the Nebraska Senator. The President declared it was “a contemptible statement and beneath comment.” Wherry laid the responsibility for the shedding of American blood in Korea on Acheson in a Senate speech yesterday. The Senate said Acheson had fol- lowed a policy of equipping the South Koreans with™ only police arms instead of the more powerful military weapons intended under aid programs approved by Congress. ‘Wherry’s speech was only one of several from Republicans criticiz- ing administration policy in the Far Pacific. Today, Senator Wiley (R-Wis) called for an all-out effort to keep the Chinese Communists out of the Korean fighting. NEW ORDINANCES TO BE READY BY COUNCIL Two new city ordinances will be read for the third and final time by the Juneau City Council when it holds its regular meeting tomorrow at 8 p.m. in the City Hall. One of the new ordinances calis for an increase in the city card table license fee. The fee has been $20 for any number of tables up to four ‘and $5 for each table over four. The new ordinance sets the license fee at $35 per table. Under the provisions of the other new ordinance, collection of city automobile taxes will be made at the beginning of each year when the car is licensed. At present, automobile tax bills are sent out in October. A study of existing defense or- dinances will probably be made at the council meeting, according to Mayor Waino Hendrickson. WAR REVIEW (By the Associated Press) ‘Taegu—North Koreans, undeter- red by B-29 blasting, reported ‘15 miles north of South Korean provi- sional capital, in surprise power push by three divisions. Changnyong bridgehead — Ma- rines, rushed up from southern front, capture part of “Slaughter- house Hill” in bloody battle; 24th Division also attacks. Air war — Headquarters has not yet evaluated results of big B-29 bombing of North Korean power- house area west of Naktong, but Reds snap back with some ground attacks. Southern front—U.S. 25th Divi- sion digs in behind barbed wire and mines in 20-mile pullback on Chinju front after departure of Marines. Northern front—enemy may be swinging main effort to northeast where South - Koreans - hold line; South Koreans evacuated by sea north of Pohang and south, of ‘Yongdok. i With U.S. First Cavalry—32 more American prisoners with hands tied found shot dead by Red Koreans. Hong Kong — British destroyer duels with Chinese Communist is- |land batteries. POWER BARGE REFLOATED An Alaska Housing Authority power-barge, aground in shoal water in Hooper Bay for more than a week, was refloated late yesterday with the help of empty oil drums and a high tide, according to word refich- ing here from the Coast Guard cut- ter Clover which aided in refloat- ing the craft. Hooper Bay is on the Bering Sea 150 miles southwest of St. Michael. FAIRBANKS, Alaska, Aug. 17— (M—Fifty-two relatives, employees, | { business associates and hospital and | educational organizations were named residuary beneficiaries today | of the estate of Captain Austin E.| Lathrop, pioneer Alaska business- man killed in an accident at his | coal mien at Suntrana July 26. | The petition for probate of the| will, filed at Fairbanks today, said | simply that the estate was valued “in excess of $500,000.” Outside sources have estimated, however, that the estate might run from $3,- | 000,000 to $4,000,000. | In addition to the beneficiaries, | which included the Providence Hos- pital at Anchorage, St. Joseph's Hospital at Fairbanks, and the University of Alaska, cash bequests were left to more than 100 em- ployees, friends and churches. The will provided that Captain| Lathrop'’s vast interest, built up in| | the 61 years since he came to ihe Pacific northwest and Alaska, should continue to operate under a trusteeship known as “the Lathrop Trust” for a period of five years after the residue of the estate is distributed to the trustees by the executors. These interests include the Lath- rop Co. of Anchorage, Fairbanks and Cordova, which directed motion picture and other interests; the Tanana Publishing Co. of Fairbanks, which publishes the Fairbanks News- Miner; the Midnight Sun Broad- casting Co. of Fairbanks, which op- erates station KFAR at Fairbanks and KENI at Anchorage, the Healy River Coal Corporation of Sun- trana, the Cordova Commercial Company of Cordova and the First Bank of Cordova. On termination of the trust, the residue’ of the estate will be dis- tributed to the residuary beneficiar- ies. Lathrop, who started with nothing to become one of Alaska's richest men, left two types of bequests— stock in the Lathrop Co. and cash bequests. There was no estimate of the value of the individual shares >f the Lathrop Co. stock which was willed to the 52 residuary bene- ficiaries, which include the two hospitals and the University of Alaska. The bequests varied from five shares to 200 shares. Scholarship Fund The University of Alaska was willed 100 shares of stock, with the request that the board of regents set up a fund to be known as, the “Lathrop Scholarship Fund.” The principal is to be kept intact and the income to be used to provide free schelarships to residents of the Territory. Among the larger bequests in stock were 200 shares®to Mr. and Mrs. Austin G. Cooley, of New York, a nephew; 175 shares to Zoe Cooley Green, Kent, Wash., a niece; 150 shares to Mrs. Cleo Boyce, Seattle, a stepdaughter; 150 shares to Mr. and Mrs. Frank' Eugene Richards, Klamath Falls, Ore., a nephew, and 150 shares each to Miss Miriam: Dickey, secretary of the Lathrop | Co. and for many years Lathrop’s | personal secretary, Sydney C. Ray- nor, Anchorage and Harry J. Hill, Anchorage. Twenty shares were willed each to St. Joseph’s Hospital of Fairbanks and the Providence Hospital of An- chorage, operated by the Sisters of Charity of the House of Providence. Among the cash bequests were $5,000 to be divided among the or-| ganized churches, religious orsani—i zations and congregations in Fair- banks, and $5000 to organized churches, religious organizations and congregations in Anchorage. Lathrop also bequeathed sx,ooo, each to the Roman Catholic Church, SET R (Convinued on Page Six) STOCK QUOTATIONS NEW YORK, Aug. 17 — Closing quotation of Alaska Juneau mine| stock today is 2%, American Can 93%, Anaconda 33%, Curtiss- | Wright 10%, International Harves- | ter 30%, Kennecott 62%, New York | Central 14%, Northern Pacific 17%, | US. Steel 37%, Pound $2.80%, Ca- nadian exchange 90.87%. Sales today were 2,170,000 shares. Averages today were: industrials | 217.76, rails 63.18, utilities 39.70. ! | CLOSE TO TAEGU 'DALMER AIRPORT " CHARGES TERMED Alaska officials who through the Palmer airport trans- action deserve praise for their act- ivities but find themselves victims of slander, Gov. Ernest Gruening sa.d this morning in answering | charges by Senator Hugh Butler that federal funds were obtained “dishonestly.” “It is no secret,” he said, “that this is an election year, and some 'SMEAR' BY GOV. carried SCHWAMM SAYS (AA APPROVED PALMER LAND TRANSACTION ANCHORAGE, Alaska, Aug. 17— (M—Four points raised in Congress yesterday by Sen. Butler (R-Neb.) in'connection with the Palmer Air- port transaction were answered to- | day by George S. (Tony) Schwamm. Schwamm, director of the Terri-| torial Aeronautical Commission, de- | nied there was an scheme or “sub- | terfuge” in connection with Palmer | airport land negotiations. | Saying he was speaking for At- torney Stanley McCutcheon, now in Seattle, Schwamm said the $5,628.42 paid him constituted legitimate at- torney’s fees for work on seven air- ports at remote locations, including travel. He said McCutcheon actually Three Enemy Divisions Hit South Koreans "Saturation” B-29 Raid Either Sidestepped or They Snap Back (By Assoclated Press) Between 25,000 and 30,000 North Koreans—three divisions—drove lo within 15 miles of Taegu, South Korean provisional capital, with a | surprise show of power today, front |line dispatches reported. The enemy either had sidestepped | the massive B-29 “saturation” raid jon his 25 mile concentration area {west of the Naktong River Wed- | nesday, or had snapped back from BOMB-GUTTED PASTORALE _— A shephera watches his flock amid tlie grass-grown ruins of the old city of Frankfurt, Germany, The Frankfurt Cathedral is in background. people are so blinded by partisan | consideration that they are less | concerned with the truth than with | an opportunity to smear.” | Butler charged on the Sendte 1 } MAN LOST, BOATS DRIVE ASHORE IN SAVAGE .C. STORM VICTORIA, B.C, Aug. 17—®— Reports received today from remote Vancouver Island points indicated that one man drowned and several fishing boats were driven aground in a savage gale striking at the is- iand’s west coast. The R.CMP. detachment at Port Alice, on the northerly west coast, reported that James Watt, a Na- naimo fisherman, was lost iy tlik AIRLINE FILES NEW COMPLAINT AGAINST | FA'RBA"KS p A P E R l m?‘:texf:t),:)(;wsl;uner has apparently | | accepted unquestionably the mis- | representations which have been| made to him concerning the airport | by individuals who appear to he! activated sclely by political motives: | “The transaction concerning the j | airport. was approved by the Cl‘ul‘ | Aeronautics Administration after i being carefully studied by its at- torneys, and was approved by all five members of the Alaska Aero- nautics and Communications Com- missioh. | floor that a “washout transaction” | was put through to gain federal | funds. He made no charge herore‘ | the Senate investigating committee. | The governor's complete state-| FAIRBANKS, Alaska, Aug. 17—® ~Golden North Airways has filed an amended complaint in its $50,000 libel suit against the Tanana Pub- lishing Co., publisher of the Daily News-Miner. 4 District Judge Harry E. Pratt dis- missed the suit earlier this month of technical grounds. Yesterday’s amended complaint was made after the airways complied with the tech- nicalities. received $1,500 for the Palmer tran- 1t saction. He termed Butler’s implication o(' personal profit through McCutch- eon’s banking connections as “horse- feathers.” Schwamm noted that -an investi- | {gation sought by Territorial Rep.| erjcans attempted a surprise of Marcus Jensen had no Jurlsdicuon; at Juneau, and pointed out Jensen did not extend the “smear” to An- chorage, where the U.S. Attorney does have jurisdiction to hold an| investigation. ‘The airport program director de- clared Butler was in error in quot- ing a price of $43 per acre by refer- ring to documents purportedly show- ing Schwamm quoted $1,000 per | acre by a Miss Hill late last April, and $500 for the first six acres, plus an additional constantly accelerat- ing price of $250 per acre by Harold Thuma in August, 1949, Schwamm produced letters from| manding & 1 ounces. ‘The complaint is aimed at an storm; which stuck late Monday or | g gy printed in the News-Miner early Tuesday. The grounded vessels, possibly nine, apparently were caught off Sea Otter Cove, only a short dis- tance from Cape Scott on the ex- treme tip of Vancouver Island. The fish boats were heading for the Canadian Fishing Co., camp at the Cove when the storm struck. There were unsubstantiated re- ports that a “tidal wave” also hit the ships. A heavy earthquake was recorded during the general period of the storm. | scheduled air carriers in Alaska. | The News-Miner says the editorial first appeared in the Daily Alaska‘ Empire at Juneau and later was re- {printed in Fairbanks. {MRS. BOYD DIES HERE YESTERDAY; SICK FOR MONTH MRS. CURRY, SUBJECT} »eroias or OF SEARCH, DIDN'T KNOW SHE WAS M|SSED HER afternoon in St. Ann's Hospital Mrs. Betty Curry, 27, and her two | Reverend Willis R. Booth will con- young children returned to Juneau|duct the services. The family re- from Skagway yesterday. They had | quests that instead of sending{ been the subject of a search by po- | flowers, friends send their gifts to lice, deputy marshals, and highway | the PTA Scholarship Fund. Checks patrolmen here early in June. may be sent to Mrs. Stan Grum- “I didn't realize I caused any|mett, Box 1013, Juneau. worry around here,” she said today.! Mrs. Boyd has been an active “The first I heard about it was in|civic worker; she was treasurer of Whitehorse. They asked me, ‘Arelthe Girl Scout Council for seven you the one they’re looking for'?” |years, past president of the Mar-‘ She said she left Juneau on the|]tha Society of the Presbyterian Aleutian June 27. Church, and a member of the “I went aboard to visit and de- | World Service Circle. She was also| cided to stay,” she recalled. “I got|past president of the Juneau Gar- in a stateroom and the stewards|den Club and Past Worthy Matron‘ helped me out—brought me and the of Acacia Chapter, Order of East- children sandwiches, enough to keep | ern Star. us alive.” Mrs. Boyd was born in Michigan The U.S. Marshall's office he%elin 1877; she moved with her fam- said Monday that her story was notfily to North Dakota at an early logical because police had been fage. After she and Alexander waiting for Mrs. Curry when the|Boyd were married in 1898, they ship docked at Seattle. became residents of Steilacoom, Mrs. Curry said there were po-| Washington. Mrs, Boyd made sev- licemen standing at the end of the |eral trips to Alaska, and settled in wharf in Seattle, “but I didn’t know JJuneau in 1941 at the home of her they were looking for me.” daughter and son-in-law, Mr. and| She hitch-hiked across the border { Mrs, Glenn Oakes. and through Canada to the Alaska| Interment will be held next Highway. She reached Whitehorse Thursday in Mountain View Mem- | July 14, “and we were all feeling |Orial Park, Tacoma, beside the re- fine. We'd stopped at farmhouses|mains of Mr. Boyd, who died in on the way, and I worked in restaur- 1936. Mrs. Oakes will accompany | ants for our meals,” she said. her mother’s body south tomorrow. | In Whitehorse she and the child-| Besides Mr. and Mrs. Oakes, sur- ren were detained by immigration vivors include: her grandchildren, authorities for three weeks before | Patricia, a sophomore at Washing- being sent on to Skagway. ton State College, and Gordon, a Mrs. Curry said today the Red|Juneau High School student; a Cross is trying to arrange to have|Sister and a brother in the States; returned to her mother’s home inla son, Robert Boyd, of Mantaska Chicago, TIL, with her two children, | Lake; and numerous nieces ahd Richard Allan, 7, and Diana Lynn, | BePhews. 3. She said she was divorced fromg her husband a number of years ago. vices will be held this evening at 8 p.m. in the Charles W. Carter Mortuary for Mrs. Jo- sephine Boyd, who died yesterday MAX BOWMAN HERE Max M. Bowman of Skagway Is in town, registered at the Juneau| DAUGHTER FOR BLACKS Mr. and Mrs. Donald Black of | Hotel. Douglas beecame the parents of a —_— daughter early this morning at St HERE FROM FUNTER Ann's Hospital. The child, born at} Mrs, N. B: Sorrels and daughter, 2:46 am., weighed five pounds 12| Charlotte, are here from Funter Bay, stopping at the Juneau Hotel. “These include, besides myself, | Jack E. Mizé of the Matandska Val- Sheldon Simmons, for the Firsg}ley Bank; M. D. Snodgrass, major dealing with operation of non-|piuision: Neil Foster, the Second |landholder, and James Hurley, man- | Division; Jack Carr, the Third Div- ision, ahd Frank Barr, the Fourth Division. Mr, Barr is the author of the Aeronautics Act passed by the 1949 legislature which permits the Territory to take advantage of ! federal matching funds, and to go |ahead with construction of numer- ous airfields. “This transaction represented a wholly legitimate method of making the best possible use of both federal and territorial funds. Officials who carried it through deserve praise rather than the slander current which was brought up since an effort has been made to make the thing a political issue.” SOCIAL SECURITY INCREASE BILL T0 WHITE HOUSE NOW WASHINGTON, Aug. 17 — (B — The Senate today approved .and sent to the White House a bill bringing 10,000,000 additional per- sons under social security coverage |and boosting benefits for 3,000,000 retired workers, Approval was by voice vote, . The comrromise measure, worked out in a Senate-House conference was adopted by the House yester- day, 374 to 1. ELDERLY MAN, LOST TEN DAYS IN WOODS, FOUND IN GODD HEALTH COLVILLE, Wash., Aug. 17—®— Alive and in apparent good health, 65-year-old Gunnar Peterson was found yesterday by his daughter after wandering for 10 days in a wooded area of northern Stevens county. The elderly man was found by his daughter and her husband, Mr. and Mrs. W. A. Graves of Tacoma, a few hours after they went into the | Woods in search of him. Mrs. Graves said her father ap- peared in good health. She said he had lived on berries and had taken refuge in abandoned shacks during the nights. He could account for only eight of the 10 days he had been missing. He became lost 10 days ago while picking huckleperries. FROM CLEVELAND Mrs, Paul Erskine of Cleveland. Ohio, is staying at the Baranof | Hotel, [ager of the Alaska Rural Rehabili- | ;s tation Corp., all of which, he sald,i listed estimates at above the price | paid, ranging from $160,000 to $171,- 000 for the entire area. “It was a good, clean bugjnesslike | but did nothing off-color, and as| a result will be able to dedicate the | Tuesday. Princess Norah scheduled to sail | from Vancouver Saturday and due | here Tuesday. Palmer airport on Sept. 2." Signature Permission Regardling a Butler charge thntj McCutcheon signed a voucher for Roland Snodgrass, Secretary of the | Palmer Airport Association, Schwamm said McCutcheon ob- tained permission by long distance telephone and a documented trans- cript, properly witnessed, will prove the act was only one to get the; papers in time to secure funds. “Everything was done with federal | McCuteheon bill is eyen now being turther_ itemized to. pledse the pub- lic,” Schwamm said. “I repeat it’s political ‘digger-uppers’ who are fighting the work. The airport is aow 90 percent complete, and the CAA is pleased with our progress.” Meanwhile it was disclosed that Walter Plett, CAA Administrator | for the eighth region, not only ap- proved the airport program step by' step in his official capacity, but spe- :ifically approved the land transac- Jdon at Palmer in a letter to| Schwamm and Governor Gruemnzi July 18, 1950. “Such an arrangement is clearly permissable under the Federal Air- port Act as long as the municipality assumes the existing obligations of .he Territory,” Plett’s letter stated. This disclosure was aimed at Sen. Butler’s “Point Four” charge of i (Continued on Page Two) | STEAMER MOVEMENTS - | Princess Louise scheduled .to ar- rive from Skagway at 8 a.m., Friday, sailing for Vancouver at 9 a.m. i Princess Kathleen scheduled to| arrive from Vancouver Saturday. . Alaska scheduled to sail from| Seattle today, and due here Sunday. | Prince George scheduled to leave | Vancouver tomorrow and will ar-/ rive Monday. | Aleutian due here Sunday from Seward. Baranof scheduled to sail from| Seattle SAturday and due here| approval and supervision, and thelWest o The center of the attack was be- tween Waegwan and Kunwi, north- east of the bombed area, and poured through two South Korean divisions holding mountain passes. The Red push be{an as the Am- their own—a renewed offensive ag- ainst the bulging Changnyong bridgehead southwest of Taegu with the aid of Marines drawn up from the southern front. ‘The Devil Dogs, beginning their attack at dawn, stormed and held part of “slaughterhouse hill,” 26 miles southwest of Taegu. It was | thelr bloodiest battle of the war. The Marines, with U. 8. 24th Infantry Division on their right flank, charged to the steep rocky crest with the support of heavy artillery, tanks and rocket-firing planes in a° bid for ground com- and seven mile bridgehead held by 12,000 Communists. Worst Threat But the new Red thrust from the north replaced the Changnyong bridgehead as the “most serious™ threat to the United Nations in Korea, Eighth Army headquarters said. No river barrier stood in the way of the three divisions bearing dovh. However, there was a high ridge of mountains, The North Koreans snapped back from the terrific pounding they received from 98 superfortresses Wednesday when their 25-square milé concentration area west of Waegwan was hit with more than 850 tons of bombs. The Reds lashed out and cap- of but U. 8. First fnvnlr{. vision troopers fought halfway" ! up the, ridge, . about, 14 miles north- Taegu, emergency s capital of South Korea. ‘Thirty-two more Amierican pris- oners, presumably from thé U, 8. First Cavalry Division, were found shot dead by Red Koreans' in the Widegwan {front. Their hands had been tied behind their backs.' U. 8. Eighth Army headquarters in Korea said the Communists were massing anew to the north and northeast of the bombed area and might be shifting their main thrust to between Waegwan and Kunwi, where they would meét South Korean divisions. Kunwi 1s 25 miles north of Taegu. Allies Lose 27 Miles Swinging the Marines into the renewed offensive against the Changnyong bridgehead involved a 27-mile fallback from hard-won territory east of Chinju on the south coast. The U. S. 25th In- fantry Division, left to hold that sector, set up shop behind a deep new defense line of barbed wire and mines and awaited a men- acing Red concentration. On the east coast the allles also shortened their line. The bal- tered South Korean Third Division was evacuated by U. S. landing craft from below Yongdok. The division had been fighting an &l- most isolated battle since the Reds staged a surprise push behind it and captured Pohang, 63 miles north of Pusan. The British destroyer Concord and Chinese Communist shore bat- teries fought a 30-minute duel on the approaches to Hong Kong. This was disclosed to have been | the second such exchange of fire in the tense Far East. The British frigate Whitesand Bay shot at Communist - gun -emplacements in Schwamm said. “We made shortcuts from Seattle Aug. 24. deal and there is nothing to hide,” l Freighter Chena scheduled to sail (Continued on Page Two)