The Daily Alaska empire Newspaper, December 14, 1950, Page 1

VOL. LXXVI.,, NO. 11,683 THE DAILY JUNEAU, ALASKA, THUR ALASKA EMPIRE “ALL TLE NEWS ALL THE TIME” — SDAY, DECEMBER 14, 1950 MEMBER AS SOCIATED PRESS PRICE TEN CENTS Critical Allied Korea Beachhead Abandoned $300,000,000 Blda. Program InAlaskain’51 There will be a total Alaska con- struction program of approximately $300,000,000 for next year, Kenneth Kadow, chairman of the Alaska Field Committee, said today upon his return from a meeting in An- chorage last week. The amount will be much larger if certain emer: gency funds now being considered, are released. Military and civilian construction agencies met with Col. L. E. Sea- man, U. S. Army District Engineer, and Kadow to outline the 1951 con- struction program for Alaska. From drastically curtailed and perhaps eliminated completely, Instead a system of special directives will be issued through claimant agencies, of which there are many. These will be used to break specific bot- tle necks as they occur. These directives will not be trans- ferrable but will be available for use on any project that has a di- rect or indirect bearing on the na- tional defense picture. The clar- ant agencies will be for the most part, existing units of government covering specialized fields, Kadow said. ® ® o o o o o o o WEATHER REPORT Temperatures for 24-Hour Period ending 6:20 o'clock tnis iaorning In Juneau—Maximum, 40; minimum, 33. At Airport—Maximum, 38; minimum, 33. FORECAS (Juneau and Vieinity) Foggy tonight with lowest temperature near 32 degrees. Mostly cloudy Friday with snow or rain by Friday after- noon. Highest temperature 33 degrees Friday. PRECIPI1ITATION (Past 24 hours ending 7:30 a.m. today City of Juneau—.32 inches; since Dec. 1 — 240 inches; since July 1 — 35.64 inches. At Airport — .11 inches; since Dec. 1 — 1.56 inches since July — 24.68 inches. e e 0o 0 0 0 0 o STEAMER MOVEMENTS Princess Norah from Vancouver scheduled to arrive Saturday after- noon or evening. Baranof scheduled to sail from Seattle Friday. Denali scheduled to arrive Sunday morning enroute south. The Washington Merry - Go-Round Copyright, 1950, by Bell Synalcate, Ine. By DREW PEARSON i T ASHINGTON The White House chef scored a great victory for a bi-partisan foreign policy at the President’s luncheon for Britain’s Clement Attlee and Con- gressional leaders on the yacht Williamsburg. The atmosphere was somewhat stiff until jolly Senator Alex Wiley, ranking Republican on the Foreign Relations Committee, spied the des- sert. Glowing with a huge smile, he told Attlee: “Mr. Prime Minjster, you are pri- vileged to eat America’s choice des- sert.” It was bleu cheese from Wis- consin, Phony Air Raid The Pentagon Building, home of the Joint Chiefs of Staff, had an- | other bombing scare last week. An unidentified plane was picked up on the radar screen along the Can- adian-Maine border. At the first report some officers at the Pentagon got so excited that they actually called their wives and told them to take their kids - and go down in the basement. However, a jet intercepter flew up and identified the plane as merely an American C-47 coming in from Labrador. Lagging Airplane . Production Sherman’s realistic report had an electrifying effect on the com- (Continued on Page Four) information developed at | the session it appears that the use | of the DO (defense order) will be | Rebuilding | Jap Navy s ~ 'NakedLie’ WASHINGTON, Dec. 14—(P--The State Department denounced as a| “naked lie” today a Moscow claim | that the United States and Japan | have taken the first steps to re- | build the Japanese Army. | The Department, in a bristling tement, said it looks as though he Communist propaganda ma- chine is possibly preparing the way | to put into effect the new alliance Letween Russia and Communist China. Under terms of a Moscow Treaty, | Russia and Red China have pledged | joint military action against aggre- ssion by Japan or any power al- lied with Japan. The Department's statement was aimed at a Soviet Tass news agency dispatch datelined Shang- hai and publ ed in the Moscow newspaper Pravda. Russia also has made the charge that the United States is rearming Japan in formal protests submitted to the 13-nation Far Eastern Commission. | Signs 1951 Union (entract; Increase Alaska Salmon Industry, Inc., an- | | nounced the signing today of a 1951 contract with the southesat Alaska | Resident Cannery Workers’' Union | j(AFL). It carries a 12'¢ per cent | wage increase from 1950 scales. ! Officials said it covers about 2,000 | Alaska residents. A spokesman said the increase | applies to the season guarantee also. | He said the scale for most of the workers has been $154 an hour, with $1.74 for overtime and $1.94 for so-called “penalty-time.” It is the first of several contracts |currently under negotiations be- | tween packers and various unions. | It was negotiated with Pete Neilsen |of Sitka and Kenneth Bowman of Juneau as union representatives, | BAGGAGE DRILL FOR . AIR PASSENGERS IS - (ONTINUED TODAY | Bad weather continued to cause airline officials and passengers to wring their hands and go through baggage drill today. At press time a Pacific Northern | | Airlines plane was poised for flight |at Yakutat should the fog lift long encugh to continue to Juneau. Pan American’s northbound flight from- Seattle left this morning and will overnight at Annette. It was doubtiul if the Fairbanks- Southbound flight would get out of Whitehorse today, and passeng- ers hoping to fly south today were talking to themselves at the Juneau airport. A non-scheduled Arctic-Pacific plane from Seattle was unable to land at Annette this morning, con- tinued on to Juneau arriving at 7:25 but could not land and finally went on to Fairbanks. This was the plane residents heard roaring over head for nearly half an hour. JUDGES NAMED FOR CHAMBER CHRISTMAS DECORATIONS CONTEST Dr. John Clements, chairman of | the Juneau Chamber of Commerce | Christmas decorations comnrittee | | announced judges today. | | Judges of the downtown window | displays will be Mrs. Helen Monson, | J. P. Christenson and Dr. Clements. | For residences: O. F. Benecke, Dr. 1. J. Montgomery and Willis Booth. Judging will take place December | |22 between 6 and 10 p.m. FROM TACOMA S. R. Kelly of Tacoma is regis- tered at the Baranof Hotel. SKAGWAY VISITOR | | Mrs. Manvil Olason of Skagway | | is stopping at the Gastineau Hotel. FROM SITKA | Don Van Buren of Sitka is stop- | | ping at the Hotel Juneau. $20,105,600 Is Considered For _Alaska WASHINGTON, Dec. 14 — (® — The House Armed Services Com- mittee met in closed session today | to consider authorizations for mil- itary public works projects totalling $1,658,718,000. Many of the items are highly secret and little identification was given in the bill introduced by Chairman Vinson (D-Ga). It is understood that money to start work on the highest priority projects is contained in the $16,844,- 000,000 emergency request for mil- itary funds now before the House Appropriations Committee. Vinson's bill does disclose that authorization is sought for $66,987,- 000 to speed up work on the Air Force's aircraft control and warning system. This is commonly referred to as “the radar screen,” the objective of which is to warn of approaching enemy planes. The Army is seeking a total of $383,396,000 of which $291,760,800 to be spent in the United States and $91,636,100 outside the continental limits. The largest overseas amount, $20,- 105,600, would be used in Alaska. SUCCESOR T0 CHANDLER NOW BEING SOUGHT Baseball Commissioner Refuses fo Take Lump Sum fo Resign By JOE REICHLER ST. PETERSBURG, Fla., Dec. 14 —IP—Major League club owners appointed a four-man committee today to search for a new commis- sioner to replace A. B. (Happy) Chandler, who again vowed that he would not resign. The committee, composed of twa men from the National and two from the American League, was in- structed to begin screening candi- dates immediately and endeavor to bring back a report to the owners at their meeting next February. The committee also has been em- | powered to offer a $75,000 a year salary to Chandler’s successor. That amounts to a $10,000 increase over | the salary paid to the present com- missioner. A club president who asked his name not be used, said the majority of the club owners voiced their preference for a man having no connection with baseball. That man also must be a “universally respect- ed person possessing a judicial mind,” he added. This would tend to eliminate such heretofore outstanding candidates as Ford Frick, President of the Na- tional League; George Trautman, head of the minors, and Warren Giles, President of the Cincinnati Reds. Although neither league has made public its committee, it is believed that Del Webb, Vice President of the New York Yankees, and Billy Evans, general manager of the De- troit Tigers, are the American League pair while Lou Perini, Bos- ton Braves President, and Giles represent the National. It was learned Chandler was of- fered a cash payment of $100,000 at Tuesday's joint session if he would resign. That represents $15,- 000 more than the amount he would make at his $65,000 a year salary if he stayed on the remaining 16 months. His contract expires May 1, 1952. STOCK QUOTATIONS NEW YORK, Dec. 14 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 9314, American Tel. & Tel. 149%, Anaconda 36%, Douglas Aircraft 86, General Electric 47%, General Mo- tors 44%; Goodyear 59%, Kennecott 73'%, Libby, McNeill & Libby 8%, Northern Pacific 28%, Standard Oil of California 81'4, Twentieth Cen- tury Fox 19%, U. S. Steel 39, Pound $2.80, Canadian Exchange 95.18%. Sales today were 2,660,000 shares. Averages today are as follows: industrials 225.89, rails 7278, util- ities 38.95. WAGE-PRICE CONTROLS IS |Congressional Group Is Hopeful for National Emergency Declaring WASHINGTON, Dec. 14 — ® — President Truman discussed home front mobilization with a second Congressional group today and was urged by several of the legislators |to go ahead with wage-price con- trols. There was no word as to whether Mr. Truman has made up his mind | about that, but Senator Maybank | (D-SC) said he was “hopeful” the | President will declare a national | emergency and put into effect | swiftly “whatever wage-price con- trols can be administratively hand- led.” Rep. Walter (D-Pa) said he came |away from a subsequent White House conference with the impres- sion that Mr. Truman will proclaim a national emergency tomorrow but has reached “no firm decision” as | to when and how price controls will be used. | Senator Tobey (R-NH) told re- | porters he had advised “all out” | controls. “This is one of the darkest hours |in the history of this nation and | the world,” Tobey said. Maybank is chairman of the Sen- ate Banking Committee which handles controls legislation. Tobey is the top Republican on the com- mittee. | Attending today's White House conference were the leaders of the Senate and House Banking Com- mittees, the Senate-House Econ- omic Committee, and the Atomic | Committee. Key administration of- ficials concerned with economic | matters also were present. It was the second such meeting that Mr. Truman has held pre- liminary to reporting to the Amer- ican people in a radio address at 17:30 pm. (PST) tomorrow on what steps the government will take to meet the world crisis and the in- creasing threat of world war three. SECURITY BLOCKOUT IS PLACED | | (By Associated Press) A security blackoutr has beem placed by the Allied Military Com- mand on the general situation in northeast Korea, along with a gen- eral tightening up on military in- formation throughout Korea There is still no formal censor- ship, but correspondents have %“een handed a list of “suggestions.” These include the admonition that no information be given concern- ing planned activities or moves in | pregress, and that no reports of activities or locations of friendly forces be made except in terms of dtvisions, units or separate forces, and then only when such forces are in firm contact with the enemy. Headquarters spokesmen have declined to make any further pub- lishable statements on the ground that such explanatory details might jeopardize security. BABY CLOTHING NEEDED FOR CHILD IN ORTHOPEDIC WARD The orthopedic ward at Mt. Edge- request received by Mrs. John Mc- Cormick, Alaska Crippled Child- ren's Association President in Ju- neau. In the orthopedic war at present are 62 children, one elderly man and the small baby for whom the clothing is needed. If whoever may have discard- ed baby clothing available Wil telephone Mrs. McCormick, 547, she will make arrangements W send the garments to Mt Edge- | cumbe. BILL VANCE HERE | William Vance of the Alaska way is at the Gastincau Hotel. URGE,TRUMAN cumbe Hospital is in need of cloth- | ing for a small baby, according to & | About half a dozen applications | have been made locally under the new Defense Minerals Administra- tion, according to S. H. Lorain, Regional Director of the Brueau -of Mines. Lorain and William S. Twenhofel, of the U. 8. Geological Survey Of- fice, were appointed as the Alaska field team of the new DMA. They recently attended a staff meeting of the Defense Minerals Adminis- tration in Washington, D. C. “Financing of mining operations for strategic defense minerals may be obtained through capital loans McCARTHY, PEARSONIN PUNCHBOUT Incident Between Senator, Columnist Reported- At Private Parly WASHINGTON, Dec. 14 — ® — Physical violence erupted between Senator Joe McCarthy and colum- nist Drew Pearson the other night. 7@an two had different versions and the only acknowledged witness wasn’t talking. McCarthy, the Republican sen- ator from Wisconsin, promised to tell his colleagues something about Pearson today. But he said he wouldn't talk about their encounter. The two are not buddies. Mc- carthy has been conducting a months-long campaign what he calls Communist influences in the State Department and else- where. Pearson has written and broadcast critically of the senator. The incident occurred—the ac- i counts jibed in this, at least—at the | swank Sulgrave Club on Tuesday | night. Another columnist and ra- | dio commentator, Fulton Lewis, Jr., broadcast the first public account of it last night. The pertinent post-fight quotes: McCarthy: I smacked him with my open hand and knocked him down on his hips. I didn’t punch him.” Pearson: twice in the groin, as usual he hit below the belt. But his pugilistic powers are about as ineffective as his Senate speeches, I was not hurt.” Pearson said the encounter ended when Senator Richard M. Nixon, California Republican, intervened. McCarthy said Nixon saw the fracas but didn’t separate them. Said Nixon: “I have no comment except that this incident occurred at a private party.” Physically, the two aren’t badly matehed although McCarthy has the edge in age, weight and—if ap- pearances aren’t deceiving — in strength. Pearson is tall and rangy. He observed his“53rd birthday vester- day. A Marine in World War II, McCarthy is several inches shorter but stockier. He is 41. WAR PLANT BUILD-UP DEMANDED WASHINGTON, Dec. 14—(P—A rapid build-up of the nation’s war |plants is essential to meet the serious threat®of a global conflict, Secretary of Defense Marshall has tpld Congress. Whether an all-out shooting war might erupt within the next few | months was described by Marshall as “very hard to answer.” v He said this country is doing all {it can to avoid full-scale hostilities, | buf, he added, “We realize that ai | Communications System at Skag-|all-out war can be initiated by a|with the reg single word from the other side” against | “The senator kicked me | New DM Administrafion Is Set Up in Alaska for Local Aid; Oullilje Plans guaranteed by the Federal Gov- ernment, It is preferred that the. money be. obtained from private sources. but, in case of necessity, may be obtained through the Re- construction Finance Corporation,” said Lorain, The Defense Minerals Adminis- tration cannot make loans or con- clude purchase contracts itself. The function of the DMA in regard to loans is to certify to the RFC as to their necessity for national de- fense. For Alaska Producers Another way for production to be made possible for Alaskan produc- ers is through purchase contracts with government subsidized prices over and above current quotations, according to Lorain, As for pur- chase contracts, these will be cef- tified to the General Services Ad- ministration after the Defense Min- erals Administration has carried out the preliminary negotiation. “It is to be emphasized that RFC loans will not be granted indis- criminately but will be given con- sideration at Washington, D. G., levels,” said Lorain, “Granting of the loan will be governed by the national need for the particular metal or mineral under considera- tion and by the relative cost in manpower and materials per unit of mineral expected to be recover- ed.” Government subsidles may tend to offset the cost differential which in many cases have been prohib- itive to development of Alaska mining operations, DMA Intentions It is the intent of the DMA that expansion of production shall be facilitated as much as possible through ordinary business chan- nels. Government guarantee of loans or direct government loans can be resorted to if regular busi- ness loans are not obtainable. The government will negotiate ;purchasing contracts or make loans only if these methods appear to | be necessary to place into industrial channels additional quantities of | critical metals and minerals. The lack of risk capital has been |one of the chief detriments to the development of Alaskan mining, ac- cording to Lorain, “It t.ms ‘been especially difficult to obtain risk capital. Through | the provisions of this act, there |is the guaranteed return of risk capital,” he said. “This is made possible by ' obtaining government guarantee of a private loan for mining work.” Chief Attention Chief consideration will be given to those metals and minerals that are critical and strategic. Falling in this list for primary considera- tion are: antimony, asbestos (spin- ning grade), berylllum, chromite, cobalt, columbium-tantalum, copper, corundum, fluorspar, graphite (cru- cible flake), manganese; mica, talc (steatite), tin, tungsten, and zinc. This list will be expanded, cur- tailed or modified in accordance with changing national defense re- quirements. Copper deposits on tide level on the Gulf of Alaska and in south- east Alaska may receive special consideration. The most promising tin deposits on the North American continent are on the Seward Pen- insula in the vicinity of Tin City. Yielding Promise Projects to be approved by the Defense Minerals Admfnistration must, in its judgment, show definite promise of yielding material of ac- ceptable grade, physical character, and specifications in amounts that will significantly improve the min- eral supply position for national defense. Also, commitments for assistance ih developing and mining mineral deposits will be made only when the necessary processing plants, water supply, and access roads ex- ist, or when simultaneous commit- ments are made to assure they will be provided if necessary. Altiough policies and final de- cisions of the Defense Minerals Administration will be made in Washington, D. C., the organization will use personnel and facilities of the Bureau of Mines and Geologi- | cal Survey for field examinations. | Pield teams have been established Ton a regional basis corresponding jonal organization of the Bureau of Mines. ALL-OUT AIR BATILE NOW LOOMS, KOREA | Indications Are Communist Forces Planning Big Assault WASHINGTON, Dec. 14—M—An Air Force spokesman said today there are indications the Commu- nist air force is starting to wage all- out air war in Korea. He said that increased enemy jet fighter activities during the last few days suggests “the enemy may | now intend to exploit fully his air potential concommitantly with his ground successes.” ‘““Fhe pattern now unfolded,” he added, “may reveal a steady in- creasing tempo of air activity as additional aircraft become avail- able from Communist China or the Soviet Union.” Air Fire Exchanged { A dispatch from Korea today said 24 Russian-made Mig-15 jet fight- ers and four American jet Shooting Stars exchanged fire near Sinuiju in Northwest Korea. None of the American planes was reported dam- aged. The U. 8. pilots said one Communist plane was hit. The United Nations forces in Ko- rea might be particularly vulner- able to air attack in their present positions—concentrated in relatively sméll areas, especially in the north- east where they have only a small beachhead around the port of Hungnam. i The Air Force spokesman’s sug- gestion that the Communists are planning all-out air war was made at the Pentagon’s regular briefing for reporters. Reds Stepping Up He noted that from the begin- ning of the Korean fighting, until about Nov. 1, the enemy air strength did little. Until the step-up in Red air force !action, there was almost no com- | parison between United Nations and Communist air activity. The spokesman said that from June 25 through Dec. 8 only 506 sorties were known to have been flown by the Communists. A sortie is one flight by one plane. During the same time the Ameri- can Far Eastern Air Force flew ap- proximately 72,000 sorties, not in- cluding sorties flown by Navy and Marine planes based on aircraft carriers. The grand total of sorties by the United Nations forces prob- ably was well over 100,000 the spokesman said. LETTER ON STATEHOOD BY TRUMAN HONOLULU, Dec, 14—(P—Presi- dent Truman has written_a letter saying “I can’t for the life of me see why the southerners would take the attitude they do” in op- posing” the Hawaii and Alaska statehood bills. The letter was written Nov. 20 to Edward Burke, legal counsel for the Hawail statehood commission and former Nebraska Senator. It was released by the statehood commission. The President’s letter, in reply to one from Burke, said in part: “I am glad you liked the message on statehood from Hawaii and Al- aska, 1 can’t for the life of me see why the southerners would take the attitude they do when these two territories are of such vital importance to the national defense. If Alaska is properly de- veloped, it will support seven or eight million people in luxury.” VACATION IN CHICAGO Miss Rosemary Doogan is on va- cation from her position with the Territorial Department of Tax- ation and plans to visit in Chicago for two weeks with Mr. and Mrs. Harold Kling. Mrs. Kling is the | former Marilyn McAlister of Ju- !neau and a schoolmate of Miss | Doogan., I PULL BACK FROM ORO UNDERWAY Ten Chines;e_Divisions Ex- pected fo Make Aftack, Drive Allies Into Sea (By Associated Press) Allied forces in the shrinking Hungnam beachhead — last UN tlons toehold in northeast Korea— today abandoned the town of Oro and began big demolitions on the outskirts of thelr menaced perim- iter, Oro, six miles from Hamhung, caught fire during pre-dawn fight- ing with elements of an estimat- ed 100,00 Communist troops ordered by North Korean Premier Kim Il Sung to drive United Nations forceg into the sea. Field officers expected a sharp fight soon. ‘A security blackout settled over the general picture in the critical perimeter wherein 60,000 men of the UN 10th Corps have been as- sembled ailter withdrawing from wideiy scattered sezfors of north- east Korea. Pressure by Reds A corps spokesman said an es- timated 10 Chinese divisions were puiting pressure on the slender beachhead from three directions. A Chinese division numbers between 8,000 to 10,000 men. The heaviest force was, reported moving through the Suchong Val- ley north of Hamhung. This is evi- dently the force that attacked at Oro. Associated Press photographer Max Desfor, with frontline Puerto Rican troops, sald engineers blast- ed three spans of a 500-foot con- crete bridge south of Oro before leaving. They also demolished a railroad bridge. Reds ' Riddled * Tanks and planes riddled the attacking Reds in the early morn- ing action, An estimated 200 Com- munist dead were left behind. Other Chinese troops were mov=- ing on the beachhead from west of Hamhung-Koto road, the bloody retreat trail from Chungjin Res- ervolr blazed by the U, S. Marines and Doughboys. A third enemy force was reported swinging down from the Northeastern coastal road, still well to the right flank of the defense perimeter. Reds Wear Parkas Chinese dressed in captured Am- erican parka uniforms yesterday made a preliminary probing attack in company strength on the shrink- ing beachhead. The attack was re- pulsed. The perimeter is keing defended by elements of three American and two Korean divisions plus British and Puerto Rican elements. Car- rier-based Marine and Naval fight- er-bombers and long range Naval guns held back the attacking Chin- ese. Air Fight In northwest Korea, near Sinu- iji, four American jet planes at- tacked 24 Soviet built jets in the biggest aerial battle of the war. The American Shooting Stars were escorting an unarmed recon- naissance plane near the Man- churian border when they sighted the enemy jets taking off from the Antung airstrip in Manchuria. The Americans saw the unarmed plane safely on its way and then turned back to have a pop at the enemy. No American planes were damaged but their pilots said a hit was scor- ed on one enemy plane, There were only small engag- ments on the west front north of Seoul where the Eighth' Army is holding a d:fense line. ? SHOPPING DAYS TILL CHRISTMAS, 8