The Daily Alaska empire Newspaper, September 20, 1950, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXV., NO. 11,611 JUNEAU, ALASKA, WEDNESDAY, SEPTEMBER 20, 1950 MEMBER ASSOCIATED PRESS PRICE TEN CENTS 40,000 ALLIED TROOPERS STORM SEOUL | On the Road fo Seoul TAXBILL SHUFFLE IS MADE Compromis;—R—eached Be-| tween House-Senate Breaking Deadlock WASHINGTON, Sept. 20 — i# — A compromise $4,700,000,000 tax- boosting bill was approved by a Senate-House conference committee. This opened the way for Congress to send the bill to President Truman by Friday night—and for Congress to recess this weekend until after the November elections. The conferees approved the com- promise by breaking a deadlock through this action: 1. They threw out a 10 percent withholding levy on corporation dividends, which they had approved only yesterday. This was intended ! to collect about $190,000,000 a year from persons who fail to pay in-| come taxes on dividends they re- ceive. 2. They eliminated a controversial | provision in the bill, inserted by the Senate, dealing with the taxation | of family business partnerships. ! 3. Did an about-face on another | issue dealing with the taxation of life insurance companies. Today the conferees agreed that the companies should be taxed $122,000,000 on their investment ' income, for the years 1949 and 1950. Yesterday they had said the tax should be $176,000,000 dating back to cover 1948, 1949 and 1950. i : 4. Knocked ouf a Senate bill pro- vision that would have provided capital gains tax treatment, instead of higher personal” fncome tax rates, to income of persons sellmm or leasing oil rights. This had been | one of the principal items in dispute. No change was made in the most important provisions of the measure, providing for increase of almost $3,000,000,000 a year in persenal in- come taxes, and $1,500,000,000 a year additional taxes for corporations. STOCK QUOTATIONS NEW YORK, Sept. 20 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 99, Anaconda 347%, Curtiss-Wright 9%, International Harvester 31, Kenne- cott 64%, New York Central 16%, Northern Pacific 24%, U.S. Steel 38%, Pound $2.80%. Sales today were 2,200,000 shares, Averages today are as follows: in- dustrials 224.33, rails 66.12, utilities 39.59. FROM NEW YORK CITY Mr. and Mrs. D. J, Sargent of New York City are now guests at the Baranof Hotel. The W asiflfgton Men'y Go Round Bell Syndicate, Inc.) By D“w PEARSON ASHINGTON—When George Washington and the founding fath- ers first tried to make a go of this nation against the British, not many of them knew much about Korea. Nor did they dream that some day their descendants would be fighting Communism. all thef way from Indo-China to Italy. However, some of the ideas’ which the founding fathers hatched are directly applicable to Korea, Indo- China, and the rest of the world today. Roy Norr, the publicist who made the American Tobacco Company cry “uncle” in the famous “reach for a Lucky instead of a sweet” campaign, has been doing import- ant research on this point and reminds me that, when the British imported Hessian troops to do their fighting, George Washington decided to undermine them with propaganda. Only Washington used more high-brow words than “pro- paganda,” namely “exciting a spirit of disaffection and desertion.” Anyway, Washington appointed a committee of propaganda experts, including the three top men in the would-be nation—Thomas Jefferson, John Adams, and Benjamin Frank- 1in. And they devised a plan where- by Congress offered every: Hessian who would desert the British 50 acres of free land. Plan to Call Up Bills in Senate Before End 0f Week; ,Slalemenls Made BULLETIN — WASHINGTON, Sept. 20—(P—Senator Lucas (D- 1), the Senate majority leader said today there is no prospect of final action on Hawaii and Alaska Statehood before Congress quits this weekend. Lucas told reporters after a meeting of the Senate Democratic Policy Committee that an effort will be made, however, to make the Alaska statehood bill the “un- finished business” of the Senate { which would bring a Congressional if Congress recesses until Nov. 27 as planned. } Ang, WASHINGTON, Sept. 20—(#—The Senate had the asburance of Sen- ator O'Mahoney (D-Wyo) today that the Alaska and Hawaii state- hood bills will be called up for Senate consideration before Sat- urday. O’Mahoney, the chairman of the Senate Interior Committee which recommended Senate passage of the House-passed bills, told the Sen- ate last night that he will make/ a motion to take up the bills if the Senate majority leadership does’ not. Senator McFarland (D-Ariz), act- ing majority leader in the tempor- ary absence of Senator Lucas (D- 1), said the bills are on the program agreed upon by the Demo- cratic Policy Committee. He indicated, however, that ',hel measures will be called up after the Senate acts on the conference re-! ports on the tax bill and the sub-l versive activities bill. Senator = Magnuson (D-Wash agreed with O'Mahoney that the Senate should not adjourn thh- out acting on the statehood bills. He said he favored a Senate recess | until after the November elecuon,l rather than sine die adjournment. Magnuson suggested that “if wej decide to recess it might be a very proper thing to make the Hawai- ian and Alaskan statehood bills; the unfinished business and then, when we return at the end of the recess, pass the bills.” Senator Wherry (R-Neb), the Senate Republican leader said some Republican Senators do not want! Congress to adjourn and want the statehood bills considered. He de- clared “there is no use” trying to finish Senate business by Sat- urday night. Letters Received O’Mahoney also told the Senate of letters he had received from Assistant Secretary of State Jack K. McFall and retiring Secretary of! Defense Louis Johnson. In response to O'’Mahoney’s re-; quest for State Department view5| McFall wrote the Senator: | e .The Department believes that the Korean situation has in- creased the urgency for favorable action on these bills.” McFall said, too, that the situa- tion on Korea has “rendered more compelling the reasons for Alaska and Hawaii statehood set forth by him in a letter to O’'Mahoney last April, Johnson's Views Johnson wrote O'Mahoney: “I have nothing to add to the views I have previously expressed ‘{on this subject, other than to say that recent events in the Pacific seem to me to give added point and emphasis to the sbawmencsl contained in my letter (to O'Ma- honey) of April 18.” With Congress shooting at ad-q Journment or recess by the end of the week, O’'Mahoney said “it would be a tragedy” if the bills were not acted upon before the law- makers go home or later this year in the event of a recess. He said Congress should not even consider adjourning, a move which probably would kill the bills. Time for Action Senator Magnuson, agreeing with O'Mahoney, argued the time has come for action. Magnuson said the bills will be called up demand- ing a “yes or no” answer on the issue, Magnuson said that if the reply of the leaders is “no” then lpeme effort to block statehood for ) standing between Congress and a B F Stafehood ing to consider a compromise recess Saturday, with the Senate to return after the elections and | consider statehood among other issues. Senator Morse (R-Ore), an Al- askan statehood backer, told the Senate: “Our lack of adequate defenses in Alaska and the cansequent threat to security would never have come to pass” if Alaska was a full fledged state, represented in both the Senate and House. Opposing Statehood in another development Delegate Bartlett of Alaska said several telephone calls opposing Alaskan statehood were made yes- terday from Seattle by persons iden- tified as being connected with Al- askan fishing interests. He said he had been told the calls were made to Senators asking them to vote against the statehood | bill, Bartlett told reporters that the « phone calls “seem to be a last des- !the territory. I think that it will help the cause of statehood because | it again brings out that the sal- mon fishing industry is doing every- thing in jts power to block state- | hood.” Bartlett declined to identify the Senators who received the calls from Seattle. Anti-Commie Bill Is Pased, Lower House iProvides for Peacetime Registation, Wartime Internment of Reds WASHINGTON, Sept. 20 — (B — Disregarding the chance of a Presi- dential veto, the House today passed a subversives control bill calling for peacetime registration of Com- munists and wartime internment of | potential spies and saboteurs. Agreeing to a Senate-House com- promise on conflicting versions of the bill, the House sent it back to the Senate for expected speedy concurrence. By completing Congressional ac- tion at once, the Senate could send the bill to the White House in time for President Truman to act on it before Congress begins a hoped-for adjournment or recess this week- end. Should President Truman decide to veto it, today’s top-heavy vote made it almost certain that the House would over-ride it by the necessary two-thirds vote. The bill is one of three measures vacation. "SEATTLE IRON CURTAIN Now PLANE ISSUE (Portland Makes Protest Regarding No Airline from There fo Alaska PORTLAND, Ore. Sept. 20—(®— the city’s grip on trade with Al- aska, Commission was The commission agreed there was a “Seattle kron Curtain.” resisting Portland’s efforts' to ge! a direct air route to the Territory airlines running from Portland '.o Seattle oppose it—“Dog in Ihe manger,” he called it; and the cAB is delaying decision. Dana and other speakers uid ing by air to Alaska from Portland trip from the Seattle-Tacoma aiv- port to Boeing Field. The direct route has been asked ! by Alaska and Pacific Northern Airlines, A CAB examiner reported | upfavorably on it early this yenr The board itself has not acted. The commission decided to wire the CAB, urging a favorable de- cision *“ending the Seattle Iron Curtain.” MATTHEWS T0 RESIGN, REPORT NOW, there was inconvenience in travel- | } | | Seattle is using the Civil Aeron- | autics Board as a stooge to hold: the Portland City Aviation | told yesterday. | Marshall N. Dana, Journal edit- | orial page editor, said Seattle was‘ | | Fi B: lion, 5th Re; t of First Marine Division, roll through the streets of because of the plane-change and | Amtracs of the First Battalion, h Regiment of the Firs al v g Inchon, Korea, as a building burns in the background, the result of a pre-landing bombardment and air attack. ® Wirephoto by Army Radio. PLAN TO DEFEAT "~ AGGRESSION PUT ~UP BY ACHESON {Secrefary of State Wants Police Pafrol, Also Military Forces | “ i I | i NEW YORK, Sept. 20—(P—Sec- ‘ra.ary of State Acheson laid before !the U.N. Assembly today an Ameri- Acnn program to combat aggression +anywhere in the world, including a ported to Be in Line for Secrefary of Navy SPOKANE, Wash., Sept. 20—(P— ‘The Spokesman-Review says Navy Secretary Francis Matthews “is ex- pected to resign shortly” and that the job has already been offered to Harold Stassen, the Presidential aspirant. Stassen is reported to be con- Truman, the paper said. The Review quoted an unnamed “prominent figure in the business world” who it said has just returned here from meetings in Washington, D.C., and New York. In Washington, Presidential Sec- retary Charles G. Ross was asked whether Stassen was coming into the government and told reporters: “To the best of my knowledge and belief he is not.” THIRD PARTY (LAIM IS CONTINUED INDEFINITELY A case involving ownership of 85 FROM SEATTLE Jerry Noonan of Seattle is a guest at the Baranof Hotel. G. A. Griffin of Seattle, is also registered !at the Baranof. WEATHER REPORT ' Temperatures for 24-Hour Period ending 6:20 o'clock this morning In Juneau—Maximum, 57; minimum, 49. At Airport—Maximum, 57; minimum, 49. FOREOCAST (Juneau and Vieinity) Variable cloudiness with light rain showers tonight and Thursday. Lowest tem- perature tonight near 50 de- grees. Highest Thursday near 57. O'Mahoney would be justified in|e moving to call up both measures. |e “If it is necessary for me tol®e PRECIPITATION make the motion, then I will make | ® (Past 24 hours ending 7:30 a.m. today it,” O’Mahoney commented. L Senator Wherry, emphasizing|e that “I'm not saying we should|e or shouldn’t” bring up the state-)e hood issue now. urged a swift de-{e In short, the Hessians were in- s LG T LA ey AContinued on Page Four) ciston. . Magnuson said he would be will-| o City of Juneau—1.49 inches; since Sept: 1 — 6.22 inches; since.July 1—17.28 inches. At Airport — 0.85 inches; since Sept. 1 — 3.66 inches; since July 1—15.66 inches. e o 000 0 0 0 0 cases of canned salmon was brought before Judge George W. Folta this morning in District Court. Originally, James Cole had brought suit against Sam and Maud Asp, co-partners doing business as the Salt Sea Fisheries of Tenakee. The property was attached after & Pprevious hearing several months ago and a re-delivery bond filed. Meantime, the Asps defaulted and | Sigmund Einstoss entered a third- party claim. He was called to tes- tify this morning, subpoenaed by Cole's attorney, M. E. Monagle, as an adverse witness. William L. Paul, Jr., who had rep= resented Sam and Maud Asp, and withdrawn, was in court as Ein- stoss’ attorney. The case was continued indef- initely. At press time, nothing was sched- uled in District Court for tomorrow. Motion calendar is set for 10 am., Friday. STEAMER MOVEMENTS Denall scheduled to’ sail from Se= attle Saturday. Princess Louise scheduled to sail from Vancouver, September 27 Alaska from west scheduled south= bound sometime Monday. Harold Slassen Also Re-| Republican | sidering the offer from President provision for a peace patrol and . military forces to back up United | Nations decisions. He also suggested that the Assem- 1bly organize itself so it can meet “upon 24 hours notice” to act on jany breach of the peace on which | the veto-bound Security Council | cannot act. This would apply in any | subsequent case similar to the pre- sent Korean war. Giving a major outline of United States policy in the U.N., Acheson said a world organization with teeth !to back up its decisions might deter jthe realists in the Kremlin from |seeking the piece-meal dismember- Iment of the non-Soviet world. | “If this does not occur, the in- |crease in our defensive strength {shall be the means of ensuring our Isurvlval and protecting the essentia. | values of our societies,” he declared. Acheson proposed that the For- | mosa questionshould be placed on the Assembly agenda as a mattel “of special and urgent importance.’ Formosa now is the last strongholc of the Chinese Nationalists. It waters now are being patrolled by American Naval units on orders of President Truman to prevent thc spread of the Korean conflici throughout the Orient. The Secre- j tary of State said the United States government believes the “problem of Formosa and the nearly 8,000,000 people who inhabit it should not be settled by force.” LAST RITES TOMORROW FOR MR. NORMAN KELLY Elks ritualistic funeral services will be held tomorrow at 2 p.m. in ‘,the chapel of the Charles W. Carter ;Mort,uary for Norman Kelly, well- known Elks Lodge lounge attendant {Who died in Vancouver, B.C., re- cently. Pallbearers will be R. A. Hollings- worth, Frank D. McGill, Kenneth Junge, James DeMers, Clifford Nor- denson and Gene Lockridge. Ernest Ehler will sing. Mr. Kelly’s remains will be in- terred in the Elks' Rest at Ever- green Cemetery. Mrs. Kelly has suggested that friends who wish may send contri- Marmes Advance Inchon First Division Leathernecks advance single file through a street in Inchon. Korea, as they expand bridgehead established by landing on west coast near Seoul. Men ate members of the First Battalion, 5th Regiment of the First Marine Division. U. S. Army Radiophoto via ” Wirephoto. MARSHALLIS SECY. DEFENSE WASHINGTON, Sept. 20 — B — The Senate today confirmed Gen- eral George C. Marshall's appoint- ment as Secretary of Defense. The vote on confirmation was 57 to 11. Marshall, a five-star General who was the Army’s Chief of Staff dur- ing World War II and later served as Secretary of State, succeeds Louis Johnson. There remains for Marshall only ‘he formal oath-taking. 85 NEW FIGHTERS LAND IN GERMANY FRANKFURT, Germany, Sept. 20 The U. S. Air Force in Germany was bolstered today by the arrival ‘l guest at the Baranof Hotel. butions to the Cancer Society, post of 85 new F-84 jet fighter planes office box 422, Juneau, for research | from the United States. Four more work, are en route, flying the great| ———— s Iclrv;le route via England. FROM SALEM, ORE. 1 These are the newest and fastest | Russell E. Pratt of Salem, Ore., is'jet fighters now in use by the| {U. S. Alr Force. i Pretty Girl Takes Life HOOKSATT, N. H. Sept. 20—(#— County authorities expressed the belief today that pretty Helen Mac- iolek, 25, secretary of Dr. Her- mann N. Sander, was a suicide. The body of the young woman, who was a key character witness for Dr. Sander in his world famous murder trial last March, was found yesterday in a deeply wooded ra- vine near her Hooksatt home—24 hours after she disappeared, County Solicitor Raymond K. | Perkins said the young woman's death had “all the ear-marks of a suicide.” SOROPTIMIST CLUB TO MEET FRIDAY The Soroptimist Club will have their weekly luncheon at the Bara- nof on Friday at which time Alice Schnee and Laura MacMillan will present their reports of the Sorop- timist Convention held in Seattle in July. MARINES IN BIG ACTION: CROSS HAN {Fall of Commie Held Capi- fal Expected-Warships | andPlanesBomb Reds (By the Associated Press) The capture of Seoul by forcey of a tank-led 40,000-man Allied lib~ eration army appeared imminent today. U.S. Marines spearheading the attack, stormed across the Han river in thousands. One Marine column was stabbed toward the heart of Seoul after swarming across the river barrier eight miles downstream. They made the crossing at dawn after being re- pulsed once in darkness. Another column was preparing to cross at the suburbs of Yanghwa and Youngdungpo, just a mile away from the capital city of 1,000,000 the Communists took from the South Koreans nearly three months ago. Red Reinforcements But the Reds were pouring fresh reinforcements of men and equip- ment into the city and there were signs a major battle was in progress. Observers said Allled forces suf- fered their. heaviest casualties of the Inchon invasion in the ap- proaches to Seoul. Allled airmen using Superforts {and fighter planes gave support to attack by tering communi- emunm‘ 1ies ‘o 108-mile radius of Seoul. Their aim was to prevent the Communists from bringing in reinforcements from any direction. Allied planes swooped in to attack enemy vehicles disguised as hay- stacks medr SuWon, 20 miles south of Seoul. ‘Warships In Action U.8. warships, including the bat- tleship Missouri, poured a thunder- ous fire at Communist positions on | the northeast bank of the Han. The Mighty Mo had steamed around from the east coast after laying down fire to enable South Koreans to capture Pohang. In Washington the Army an- nounced that South Korean Marines stormed ashore at Samchok on the east cost opposite Seoul and estab- lished a beachhead. The landing was made several days ago. Samchok is the eastern terminus of a railway connecting that city with Seoul. It lies 105 airlines miles from Pohang. The landing appar- ently is to cut off Communist re- inforcements to both Seoul and the Allied-held southeast perimeter. 400-Yard Beachhead Reaching the Seoul side of the river the Marines quickly extended their 400-yard beachhead. They Pt i (Continued on Page Two) 26 NAVY MEN DIE IN CRASH Transport Plane Plunges Info Pacific-Explo- sion Follows PEARL HARBOR, Sept. 20— Twenty-six Navy men were killed yesterday in the crash of a four- engine transport plane bound for the Korean airlift—it was one of the worst such Navy disastérs in the Pacific. Debris-strewn waters outside Kwajalein lagoon were searched for the bodies today. Four have been recovered. The Navy RSD transport, carrying 19 passengers and seven crewmen, was enroute from Hawail to join the aerial supply operation for the new Allied beachhead near Seoul. It plunged into the water and ex- ploded at 7:18 a.m., a few moments after taking off. Most of the men probably were still fastened in their seats with safety belts. The RSD is the Navy version of the C-54. “We have no hope of finding any survivors,” said a Navy spokesman here. i