The Daily Alaska empire Newspaper, October 26, 1950, Page 4

THE DAILY ALASKA EMPIRE—JUNEAU, ALASKA THURSDAY, OCTOBER 26, 1950 e et e e e 20 YEARS AGO F%" THE EMPIRE SORSIRECUA. T S P ECBE S SARATOONaRE oS OCTOBER 26, 1630 MOUNT JUNEAU LODGE No, 147 SECOND and FOURTH Monday of each month In Scottish Rite T'emple beginning at 7:30 p. m. Carson A. Lawrence, Worshipful Master; JAMES W. LEIVERS, Secrstary, energy in the search Given a find—which is probably a 100-to-1 shot | to 1ose—he is dependent upon the second stage, which | we may call the stage of the “preliminary operator” Prestdent | who puts in some capital for further development and Vice-President e ELMER ENT Mansging Rditor | equipment. He undertakes a probable 20-to-1 shot. BRED SENUER .o Business ""‘“"‘. The third stage is where large capital is required Entered in the Post Office fn Juneau as Second Class Matter. | {or equipment, especially in large deposits of low grade SUBSCRIPTION RATES: i @elivered by carrier in Juneau and Douglas for $1.50 per month; | orc or of difficult metallurgy. Even this stage is prob- 4 six months, §8.98; one vear, §15.00 : i g By mal, postage paid. at the following rates: |ably a 3-to-1 shot to lose. Cve year, in advance $15.00; six months, in advancs, §7.50: 4, The average profitable life of even successful | ventures is definitely limited. The average is prob- | ably not more than ten years happy ¢ #me moath, in advance, $1.50. Bubscribers will confer a favor if they will promptly motify | 5. All along this line, stage by stage, !nnd government reguiations step in to do violence or the Business Office of any fallure or irregularity in the delivery 9 their papers Telephones: News Office, 602: Kusiness Office, MEMBER OF ASSOCIATED PRESS The Associated Prese is exclusively entitled to the use for | -] % N ” republication of Wl news dispatches credited to it or mot other- | to give discouragement. The “preliminary operator’ Fise credited in tis paper and slso the local dews published | ;o {hrottled by the S.E.C. in securing capital which | has usually to be done by selling a stock interest in | [’ n | Weather al Alaska Points Weather conaitions ana temper- | atures at various Alaska points| also on the Pacific Coast, at 4:30 a.m., 120th Meridian Time, and released by the Weather Bureau are as follows: PAGE FOUR Daily Alaska Empire MPIRE PRINTING COMPANY nd Main Streets, Jun: Alasks Nick Bez. canneryman, and James L. Freeburn were in Juneau on‘ able to leave St. Ann’s Hospital. | @ B.P.0. EIKS Meeting every Wednesday at 8 P.M. Visiting brothers welcome, WALLIS S, GEORGE, Exalted Ruler. W. H. BIGGS, Secretary. October 26 Allen Shattuck Mrs. George Messerschimidt Mrs. Bud Nance E. F. Clements Jackie Lee Ann Furness John Floberg Florence Zimmerman Doris mples ° Nick Bez, canneryman, and James L. Freeburn were in Juneac on business stopping at the Gastineau Hotel. Other guests there included | T. Brastad, N. Kaurn and William Fromholtz. " taxation . 36—Snow | 37—Cloudy 20—Snow 29—Cloudy | 22—Partly Cloudy Anchorage Annette Island Barrow Bethel Cordova Miss Miriam McBride, daughter of Mr. and Mrs. J. C. McBride.i went to Seattle starting a visit of several weeks in the States. | Harry Olds returned o.n the Admiral Farragut after a short vaca-| | | | berein NATIONAL REPRESENTATIVES — Alssks Newspapers, 1411 sourth Avenue Blds.. Seattle, Wash. Thursday, October 26, 1950 HERBERT HOOVER EXPLAINS THE STATE OF THE MINING INDUSTRY In a statement prepared for Burt B. Brewster's Mining Review, Herbert Hoover tells the state of the non-ferrous mining industry in the Pacific and Moun- tain States. Because the conditions to which Mr. Hoover points in his statement pertain pertinently to Alaska’s min- ing industry, we reprint it here. Gold production, at one time one of Alaska’s greatest resources, has fallen from about 28 million dollars worth in 1941 to under 8 million dollars in 1949. The difficulties surrounding gold mining in Alaska are similar to those outlined in Mr. Hoover's statement. And no town in Alaska is more aware of the in- jury resulting from the closing of mines than Juneau, with its once great Alaska Juneau mine inoperative since 1944. Here is Herbert Hoover's statement from The Mining Review: The number of non-ferrous metal mines in the Mountain and Pacific States has decreased from about 11,000 in 1935 to 2,300 in 1949. This is an appalling degeneration in a vital part of the national economy. The reasons for this degeneration knowledge to the whole industry. In the main they are: 1. A considerable part of this degeneration has been.the result.of national expenditure, taxation. and | controls which undermine the supply of venture capital and adventure enterprise in the nation as a whole. The effect of these forces is even more violent to the non-ferrrous mining industry than to any other. 2. The whole structure of the industry is ignored by the powers that be. In the long view and in its totals wlustry is a losing business. That is, the total costs of technical staff, labor and supplies put into it is more than the total value of the output. It is kep? going because it is a jackpot in- dustry, where the occasoinal winner keeps people working at it. It js, therefore, an industry of the utmost venture type. 3. The structure of the industry is roughly in three parts. First, is the prospector who makes the original this juipment, is| are common | a corporation. If the “pre ful mine, then he double income and corporation tax, which may take from 30 per cent to 80 per cent of his profits. ‘The e, on the aver- back.. ning operator” develops a success- is confronted with the voracious depletion and depreciation allowances ¢ age, too little to allow the getting his money Moreover, with his limited capital, he is not able to undertake more than one shot at a time. Thus he cannot write off -his 19 bad shots ‘against his one success. Some of the larger companies do deal with against their good ones — but the large companies do not take much initial risk. The sum total is that the market for the prospector’s finds has so diminished that he is becoming a scarce person 6. The answer to all this is that A, the SE.C. should leave the prospector and the “preliminary erator” wholly alone in their seeking venture capital. When people buy their mining stocks they know that they are taking a risk and do not need a guardian. The S.EC. does. The SEC. does not seem interested in Reno and Las Vegas which gambles produce no national wealth, ~ B. The prospector and the “pre- liminary operator” should be allowed to average their losses with their successes over a long retrospective | period—say 10" years. | depletion and depreciation allowance, but a total dom from taxes until they get their capital }Anvr this, they should join. the ranks of taxpayers | free- 7. Even the large companies need more deple- tion and depreciation allowances, as the average life {of a given mine is too short for recovery of develop- ment and rquinmvht within the present allowances | 1 believe if the present level of taxes and controls had been in operation for the past fifty years, there | would scarcely be two dozen large producers in action \'tnda_\'. This risky business is built up largely out of plowing in the profits. But the Government by double taxation takes from 30 per cent to 80 per cent from !n successful enterprise. 8. There are otner wy-products of all this lack of intelligence in taxation and regulatino. The pros- pector and the “preliminary” production is coming | mainly from the large companies. However, they must constantly get mew mines to replace the ex- | hausted ones, and with the crowding out of the Ipmspccwr and the “preliminary operator.” the com- | panies are being starv ed for such new sources of ore. Today we realize the prophecies which many of us in the industry made fifteen years ago. ‘per cent of the number of mines have disa; lin this 15 years. We are being driven to imports for our metals. And parallel, our Government is giving subsidies under the Marshall Plan to develop foreign mines. The national consequence of all this is the min- industry is seeking government subsidies in some | peared ing form. But can government subsidies re-create the prospector and the “preliminary operator?” His is not the sort of spirit that can be created by bu- reauracy. i A wither of 80 per cent in the number of units in a vital industry in 15 years should be some shock the prospector as they can write off their bad shots | C. They should be given not a | Some 80| COMMUNITY EVENTS TODAY i,\t 6 p.m.—~Taku Toastmasters meet in Gold Room, Baranof. At 7 pm.—Jbint Veterans Affairs Committee in CIO Hall. At 8 p.m.—DeMolay Mothers Club meets in Blue Room, Scottish Rite Temple. | At 8 p.m.—Legion of Moose meets. | At 8 pm—Yacht Club meeting, Baranof. At 8 p.m1 —Embiem Club meets Ylks Todge rooms. At 8:45 pm.—Juuean Singers re- hearsal, Meth church. October 27 At noon—Soroptimists, race Room, Baranof. meet in Ter: meet in TOOF Hall. At 9 p.m.—Moose Lodge picture un- | veiling, Moose Club. | October 28 At 8 p.m.—Rainbow Girls we'en carnival, Scottish Temple. At 10 p.m.—Fall dance by Douglas Fire Department, Eagles Hall. t 10 p.n.—Ladies night, cabaret dance, informal, in Elks ballroom for Elks and ladies only. October 29 At 8 p.m.—Ship, Shank and Shutter { club meets IOOF Hall. October 30 At noon—Lions Club, Baranof. At 17:30 p.n.—Juneau City practice in Grade School Audi- torium. Hall Rite A At 7:45 p.m.—Civil Defense Coun- | cil meets in City Council Cham- | bers. |At 8 pm—Hq. and Service Co., 208th Inf. Bn. (Sep.) Alaska Na- tional Guard, drill, National Guard Armc At 8 p.m.—American Legion post meets in Dugout. October 31 At noon—Rotary Club, Baranof. At 8:30 p.m. — Community Center Night for Adults at Teen Age Club. November 1 At noon—Kiwanis Club, Baranof. At 8 p.m.—Elks Lodge. | November 2 | At noon—Chamber of Commerc Baranof. BROWNIE TROOP NO. 3 TO PARTY ON SATURDAY Several visitors attended the re- cent meeting of Brownie Troop No. 3. Mrs. Robert Thorne and Mrs, Eric Newbould were present as tion in Seattle. {schools. Her subject was “Airplanes in Alaska.” | | broidery trim—pink, peach or green) for $1. | | Melver; | | Tahoma, | \lhe gasboat Celtic, Capt. Henry Moy. ! Weather: High, 45; low, 39; | Celtic, Capt. B. J. Edward ain. e e | i i | | WORDS OFTEN MISUSED: Do not confuse EXPLICIT (disti | stated; plain in language) with IMPLICIT | though not expressed). OFTEN MISPRONOUNCED: Adept (adjective). | 1able. i OFTEN MISSPELLED: Symmetrical; observe the two M's. | SYNONYMS: Feasible, suitable, practicable, workable. WORD STUDY: “Use a word three times and it is yours.” | INCAPACITY; lack of ability. | handicap to the company.” | MODERN ETIQUETTE | ) L A. Yes, this is quite all right. fxt is perfectly proper for the girl to make the request. Frances Orsen, eighth grade student, was one of nine national first- prize winners in the “Our States Project” contest conducted by Current |Events, a publication in general use among all United States public | | Gordon’s advertised dance sets (panties and bloomers in lace em- | Halibut prices dropped to 6.20 cents and 3 cents a pound. Among | vessels unloading fish were the schooners Coolidge, Capt. Benjamin Bonanza, Capt. R. A. Stead;| Capt. W. Pierce, and Norland, Capt. Thomas Sandvik; also | ,f Daily Lessons in English % L. corpon At 8 pm.— Pioneers and aUXIHATY | | e oama oot sttt} nctly (fairly to be understood, Accent second syl-|ed a new general manager for the Let us| increase our vocabulary by mastering one word each day. Today's Word: | yent of the hydrogen bomb, He will | “The leader’s incapacity proved a big|succeed Carroll Wilson, who resign- ROBERTA LEE Q, Is it good manners for a girl to ask her escort for a cigarette? An attentive escort should, of course, | | make such a request unnecessary, but should he be forgetful enough, | Q. When invited to a friend’s home for a weekend visit, is it all right for a guest to take his dog along? A. Most certainly not, unless, of course, the dog also has ; invited. | should she invite the family of her first husband? A. Yes indeed, if the relationship has always been pleasant. Ifurthermure, these people should make every effort to attend. Pttt 3. chemical compound substances? | seals? 3. Who was the first Engli Duke of Windsor? 4. What is the fluid the liver secretes called? 5. What orchestral instrument in ‘small”? ANSWERS: L e | been Q. At a widow's second marriage, her first husband being deceased. | And e . e i} What is the most important, as well as the most practical, of all 2. On what islands are there found the largest number of fur!| its literal translation means 22—Snow 39—Cloudy | 16—Cloudy | 30—Cloudy 49—Cloudy | 32—Cloudy . 35—Drizzle | 21—Cloudy | 12—Cloudy | - 22—Snowi 33—Cloudy | 42—Cloudy | 33—Cloudy | 41—Rain 34—Cloudy 18—Cloudy 33—Cloudy Dawson | Edmonton Fairbanks Haines Havre & Juneau Airport Kodiak Kctzebue McGrath Northway Petersburg Portland Prince George Seattle Sitka Whitehorse Yakutat | 1 | Beyer, Slandaid OiI; Exec, Appointed Head ' Atomic Energy Com. | (By Associated Press) | President Truman has nominat- Atomic Energy Commission. Subject to Senate confirmation, Standard jon Company executive Marion W. | Boyer will take over November 1 in that includes develop- | the huge job !ed last August after a dispute with | {AEC Chairman Gordon Dean. i ‘DemosFD;;I;re Philly GOP Using Strong-Arm Tadics (By Associated Press) { Senate investigators are looking into complaints that the Republican Party is using “strong-arm” tactics | in Philadelphia. The charges have| been brought by a group of four Democrats. A Senate subcommittee on' privileges may hold open hear- | ings on the charges. | FROM KETCHIKAN B. R. Aikins of Ketchikan | registered at the Baranof Hotel. is{ FROM SEATTLE Mr. and Mrs. R. Tralle of Seattle are registered at the Baranof Hotel. OWENS HERE A. E. Owens of Barge is at the Baranof Hotel. V.F. W. | Moose Lodge No. 700 Regular Meetings Each Friday Governor— , ARNOLD L .FRANCIS Secretary— WALTER R. HERMANSEN Brownie's Liquor Store Phene 103 139 Be. Frankiis P 0. Box 250 "The Rexall Store” Your Reliable Pharmxoists BUTLER-MAURO DRUG CO. Alaska Music Supply Arthur M. Uggen, Manager Pianos—Mausical Instruments and Supplies .JFhone 206 _Second and Seward GENERAL PAINTS and WALLPAPER Ideal Paint Store Phone 549 PFred W. Wenat Card Beverage Co. Wholesale 805 10th 8. PHONE 216—DAY eor NIGHT for MIXERS er BODA POP The Alaskan Hotel Newly Renovated Reome at Reasonable Rates PHONE SINGLE O PHONE 668 Thomas Hardware Co. PAINTS — OILS Builders’ and Shel¢ HARDWARE Remington Typewriters SOLD and SERVICED by Taku Post No. 5559 find. He must spend infinite hardship, time and |to the nation. SRR < W N ol e e————— ——— ———— s . S members of the Soroptimist Club which is the sponsor of this troop. J. B. Burford Co. 1. Water. The Washingfon Merry-Go-Round (Continued from Page One) under a new court decree, now pays | nothing. Yet the man who now aspires to | sit in the halls of Congress plays | himself up in his campaign literat- | ure as a great famliy man, and quotes his stepchildren who have been with him only since May | as saying: “We live with Jack and the eve of the Inchon landing A gasoline shipment arrived in the nick of time, but the supply drop- ped dangerously low again while our troops were storming Seoul. | Meanwhile, the producers hastily | adjusted their production gears and stepped up the flow of aviation gas. Big Producer’s Have Board's Ear The Munitions Board also per- mitted the nation’s wool supply to dwindle so low that the Army short of wool to clothe its troops | a model for efficiency. That's why President Truman gave Stuart Sym= ington over-all mobilization powers and, later, demanded Howard's re- signation At the time he ordered Howard’s resignation, the President remarked to White House aides: “That, right after I appointed him, he went to Europe for four months.’ TWO FROM SEATTLE Eugene V. krwin and E. Z. How- ard, both of Seattle are in Juneau on business. They are staying at the Baranof Hotel. Other guests were Mrs. Sterling Sears and Mrs. Richard Irby. They are members of the troop commit- tee and assisted with the Christmas sewing project. The Brownies spent the first part of the hour sewing on their dolls’| wardrobes. During the remainder of | the meeting they planned the com- bined Hallowe'en-Anniversary Party for Saturday. SAN FRANCISCANS HERE Germain Buiche and J. R. Rob- ertson of San Francisco are at the | Baranof Hotel. 2. The Pribilof Islands, off the coast of Alaska. 3. Edward VIII, when he abdicated his throne, became the first Duke of Windsor. 4. Bile. 5. Piccolo. Chrisimas (ar.d”s 0 al The Empire ——reeq Meeting every Thursday in the C.LO. Hall at 8:00 p.m. ¥he Erwin Feed Co. Ottice in Case Tot Grocery Phone T84 HAY, GRAIN, COAL and STORAGFE STEVENS’® “Our Doorstep Is Worn by Batisfied Custoiners” FORD AGENCY (Authorized Dealers) GRFARES — GAS - OIL Juneau Motor Ce. Foot of Main Street MAKE JUNEAU DAIRIES DELICIOUS ICE CREAM for the severe Korean winter. As a result, the gpvernment is now frantically bidding for wool on the Australian market, The irony is that the Agriculture Department had plenty of wool last year but couldn’t get the Munitions Board to t it over for stockpiling. Anxious not to get caught short of cotton, for uniforms, the Ag- riculture Department asked the Mu- nitions Board in August what its needs would be, No answer was received for more ‘1h;m 30 days, then a note came kack from the Munitions Board, advising that the man in charge |of the cotton problem was out of town. Desperately, the Agriculture | Department made its own estimate a daily habit—ask for it by name Juneau Daries, Inc. LADIES’'—MISSES’ READY-TO-WEAR Beward Street Near Third know what kind of a pen at home. We know he is a | sional man, not a profession: tician.” Query—When you bring man's children into politics, how political can you ge H. WINTHER as a paid-up subscriber o THE UVAILY ALASKA EMPIRE is invited to be our guest THIS EVENING Present this coupon to the box office of the CAPITOL THEATRE and receive TWO TICKETS to see: “FREE FOR ALL" Federal Tax—12c Pai¢ by the Theatre Phone 14—YELLOW CAB C0.—Phone 22 and an insured cab-WILL CALL FOR YOU and tal to production planning as the | by going over the Board's head g RETURN YOU to your home with our compliments. Alies Edmends Shess joint chiefs of staff are to mili- | and getting figures direct from the | j 1. Side of a [ b. Baking i o Ly Skyway Luggage fary planning, The board is res- |armed services ; triangle chamber EOvCrOment WATCH THIS SPACE—Your Name May Appear! : | e Yo Banish “Blue Monday” ponsible for charting the nation’s One trouble with the Munitions ed BOTANY To give you more freedom " another just Crossword Puzzle f Chrysler Marine Engines MACHINE SHOP Marine ware Chas. G. Warner Co. HOME GROCERY Phones 146 and 342 Home Liquor Store—Tel 639 American Meat — Phone 38 The Charles W. Carter Mortuary Pourth and Prankin Sta. PHONE 136 . Bovine animal 33. Article . Measures of | capacity 5. Abrading tool 5. Sandy wastes | Provide food . Exist . Mohammedan Jjudge Pertaining to moving conveyances . The letter Z . Turkish name . Movement . Age L3 ¥ ACROSS Ingredient ot varnish . Small engine . Trunk of & felled tree 2. Self 3. Escape artfully Brazilian parrot No Wartime Production Plan The inside told of the story has never been shocking inefficiency and neglect that forced Hubert Howard out as chairman of the Munitions Board. Meanwhile, Presi- dent Truman has let six weeks go by without appointing a new chair- man to clean up the mess. The public doesn't realize it, but the Munitions Board is just as vi- s Casler’s Men's Wear MoGregor Sportswear Stetson and Mallory Hats Arrow Shirts and Underwear penalties . Fastens firmly . Turkish com- mander 3. Inferior crown . Small lakes Clap 3uilding lots 1 DOWN industrial needs and stockpiling Board is that it listens to the big form fluld from work — TRY rubber, tin quinine, manganese and preducers, which want to use raw D candn other materials regarding which we materials in normal civilian pro- o oldesl B i Al k a ! ank in Alaska Alaska Laundry 1891—0ver Half a Century of Banking—1950 The B. M. Behrends Bank Safety Deposit duction, and not have them stock- piled for emergencies instead. For example, the Munitions Board has been lulled by the giant Aluminum Company of America and, as a re- sult, has done virtually nothing about stockpiling precious alumin- um. Yet in_case of total war, 90 percent of our aluminum output would be used up by the military, leaving civilians almost none. One reason for the Board’s in-| efficiency is that it has inherited | were caught short at Pearl Harbor. Yet the tragic fact is that Korea found our stockpiles dangerously low and with no production blue- print at all for the future. Even to this day, the Munitions Board hasn't come up with a single plan or estimate to guide wartime pro- duction. This nearly resulted in disaster a week before the Inchon land- ing, when the Air Force almost’ran out of aviation gasoline. The manu- CLOTHES NUNN-BUSH SHOES STETSON HATS Quality Work Clothing FRED HENNING Cemplete Ontfitter for Men —— H. S. GRAVES The Clothing Man LEVIS OVERALLS for Boys facturers were supposed to keep a 30-day supply on hand in the Far East, but had no production goal L guide them. As a result, the sup- ply ran dry on September 6, and our jlanes were nearly grounded on b 2 too many castaways from the three ! military services. When the Board ! called upon the armed forces for ! perscnnel, it didn’t get any top men, | But Chairman Hubert Howard, as coal company executive didn't set i canton bird AP Newsfeatures Boxes for Rent COMMERCIAL SAVINGS SHAFFER'S SANITARY MEAT 13—PHONES—49 Pree Delivery It = S i s ] BLACKWELL'S CABINET SHOP Main 17 8t.