The Daily Alaska empire Newspaper, December 27, 1950, Page 1

THE DAILY Ay VOL. LXXVI., NO.'11,693 JUNEAU, ALASKA, WEDNESDAY, DECEMBER 27, 1950 MEMBER ASSOCIATED PRESS ALASKA EMPIRE “ALL TLIE NEWS ALL THE TIME” PRICE TEN CENTS .New Security Rules on Maritime Workers / 4 ICY BLASTS STRIKE IN EAST AREAS (By the Associated Press) Cold artic air, left behind by Santa Claus as he sped back to the North Pole, hit wide areas over the eastern half of the nation today. The cold covered all parts of the country east of the Rockies to the Atlantic seaboard — but Florida escaped the chill. The winter-weary midwest reeled under the icy blasts which brought the coldest weather of the season— deep into sub-zero levels—to many areas. Not much warming was in prospect immediately. The frigid weather followed snow- storms over much of the midwest on Christmas and over eastern states yesterday. The forward edge of the cold air s mass pushed southward into the > Gulf states and shoved tempera- tures below freezing over parts of Dixie. The north central states got the real biting cold. It was 30 degrees | below zero in Rochester, Minn., -23 in Mason City, Ia.; -22 at the twin cities of Minneapolis-St. Paul and -18 in Madison, Wis., and -15 at Sault Ste. Marie, Mich. y Ohio got the first sub-zero read- ings Jf the season. Findlay reported a low of -12 and it was -9 in Co- lumbus and, -8 in Toledo. Chicago—digging out of a nine- inch Christmas snowfall—shivered in eight below, the coldest day of the year. It was the lowest reading for the date since 1886 and the coldest December day since 1933. In New England, Caribou, Me., reported a low of -16. New York City’s early morning low was 12 above, but at Massena, in northern New York, it was 11 below. The cold front centered in Geor- Y gia and it was below freezing as far south as central Texas, northern Alabama and Virginia. STOCK QUOTATIONS NEW YORK, Dec. 27 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 94%, American Tel. and Tel. 150%, Anaconda 40, Douglas Aircraft 967, General Electric 48%, General Mo- tors 47, Goodyear 65%, Kennecott 75, Libby McNeill and Libby 8%, Northern Pacific 32%, Standard Oil of California 87%, Twentieth Cen- tury Fox 20%, U.S. Steel 41}, Pound $2.80, Canadian Exchange 94.50. Sales today were 2,930,000 shares. . Averages today are as follows: in- dustrials 23421, rails 77.32, utilities 4051, " The Washingion Merry - Go-Round By DREW PEARSON Copyright, 1999, by Bell Gymdicate, Ine.) , ASHINGTON—President Tru- y man was set to order a freeze on all prices as a part of his emer- gency proclamation, until he had a heart-to-heart talk with economic stabilization Director Alan Valen- tine and price administrator Mike Di Salle. Mr. Truman called in the two men, outlined his plan and asked for comment. Valentine threw up * his hands. “Mr. President,” he said. “I don't know how we could enforce the order. What kind of a staff do you have, Mike?” “A secretary, a telephone and a legal adviser,” replied the usually Jjovial ex-mayor ot Toledo. “The problem is, Mr. President,” added Valentine, “if we can't en- force the freeze, there will be such ~ general disregard that price ceilings will be a jcke. We cannot afford to let price stabilization be destroyed before it is strong enough to be ' effective.” The President then agreed to hold off the price freeze until at least a skeleton staff is organized. Note—The inescapable fact is that the White House has had months to appoint a Price Admin- ., istrator. Three months alone have passed since Congress gave the I$ President power to control all but certain farm prices’ (The farm/ + lobby excluded some of these from the price-control lggislation.) Fur- thermore, three expert ex-price ad- DTR3NS . (Continued on Page Four) New Program On Taxafion (ofling Up WASHINGTON, Dec. 27 — B — The White House said today Presi- dent Truman will recommend at an appropriate time a much broadened tax program to meet increased de- fense costs. Just when the new tax recom- mendations will go to Congress was not announced. Joseph H. Short, press secretary, issued a statement to amplify a re- mark he 'made last night that he doubted very much there would be a request for new taxes in January. The statement said: “The President will make known his views and recommendations on the new taxes necessary for the de- fense program at an appropriate time. “In the meantime, it is positively certain that a much broader and expanded tax program will be neces- sary to meet the heavy costs of the defense program in the calendar year 1951 and subsequently.” At the Treasury, a high official told reporters Mr. Truman was standing pat on his past position i that large tax increases would be ! necessary to cover “as much as pos- sible” of the big increase in defense costs. FOLTA DECISION FOR EMPLOYERS IN SUIT VS. ESC A decision was Handed down to- day by Judge Geéorge W. Folta in the U.S. District Court in favor of {the plaintiffs in the case of the New England Fish Company and Ward’s Cove Packing Company versus the Employment Security Commission and members of its Board, Anthony Zorick, George IVaara, Ralph G. Rivers and R. E. Sheldon, Executive Director. i Suit was filed about two months ago and has to do with Experience Rating Allowances. The Judge's de- cision will require the permission to issue credits to employers so that employers may apply credits on pay- ments due. According to the Judge's decision it was indicated that the Employ- ment Security Commission had as- sumed legislative powers in con- | struing the act and in cutting off | credits under the act. According to the opinion the amount of $882,311.48 will be avail- able for credits to employers in the territory from July 1, 1950. The plaintiff was represented by H. L. Faulkner, of the local law firm Faulkner, Banfield and Boochever. Territorial Attorney General J. G. Williams and Assist- lant Attorney General John Dimond represented the Employment Secur- ity Commission. MARCUM ON LEAVE Lt. A. G. Marcum, Headquarters, Headquarters and Service Co., 208th National Guard Infantry Battalion (Sep), is on leave until January 8. He will attend the Rose Bowl game. MISS PEIPER EAST Miss Cecaelia Peiper, teacher M the Juneau Public High School left j before Christmas for Seattle en- route to St. Paul, Minn. to spend | the holidays with her family in that city. BETHEL NURSE HERE Miss Wilma Bennington, acting head nurse at the Alaska Native | Service Bethel Hospital, is in Ju- neau ordering supplies for the hos- pital. She leaves January 10 on a month’s annual leave. { NO CC MEET TOMORROW There will be no regular meeting of the Juneau Chamber of Com- merce tomorrow, President Robert Boochever said today. The next meeting will be January 4 when new officers are to be installed: FROM CALIFORNIA Raymond Spencer 'of Whittier, Calif., is stopping at the Baranof Hotel. i FROM SKAGWAY Leonard A. Schiler of Skagway is registered at the Baranof Hotel. UNION HEADS TO CONSIDER PEACEPACT CLEVELAND, Dec. 27—{®—Heads of four railroad operating unions have called in their general chair- man to consider a three-year peace pact with the railroads. Spokesmen for two of the unions expressed dis- satisfaction with the plan, and all four were planning to let the chair- men make their own decisions. James P. Shields, Grand Chief Engineer of the Brotherhood of Locomotive Engineers, said he was “not very well satisfied” and a spokesman for the Order of Railway Conductors declared, “We're not satisfied with the peace pact either.” The settlement, granting wage increases and other benefits to about 300,000 workers, was announ- ced last Friday at the White House. Heads of the four unions initialed the agreement. Shields said it was made plain then to John R. Steelman, Presiden- tial assistant, that final consid- eration of the plan was up to the unjon chairmen of each of the rail- roads. David B. Robertson, President of the Brotherhood of Locomotive Friemen and Enginemen, said “I have no opinions to express on the | subject. When you're under govern- ment control you take what the | government gives you.” For about 180,000 road service workers, the settlement called for a retroactive increase of five cents an hour, and another five cents on Jan. 1. For about 120,000 yardmen, the retroactive increase was 23 cents, with. another two cents on Jan. 1. In each case, an additional provision was for a cost of living adjustment as consumer prices rise or fall. CONTRACT SIGNED ON WORLD SERIES TELEVISION RIGHTS CINCINNATI, Dec. 27—(®—Sign- ing of a six-year, $6,000,000 contract for television rights to World Series and All-Star games has brought cheers from some major league club owners, noncommital grunts from others and one acid-dipped criticism. The contract with the Gillete | Safety Razor Co., was announced yesterday by baseball Commissioner A. B. Chandler. Baseball officials such as Warren C. Giles of the Cincinnati Reds, Charles Comiskey of the Chicago White Sax, Horace Stoneham of the New York Giants and Roy Mack of the Philadelphia Athletics prais- ed the transaction. All other own- ers except Fred Saigh of the St. Louis Cardinals either were un- reachable or non-commital. Saigh, reportedly the ring-leader of the recent successful attempt to deny Chandler a renewal of his contract in 1952, bitingly termed the signing “in poor taste.” Christmas Bathrobe s Shrotflor Kiddie Long Branch, N. J.,, Dec. 27—® —Three-year-old Virginia Kreto- wicz was very proud of her new bathrobe Christmas Day. He showed it off to her little friends and her family, But it caught fire when she got too near {an open fireplace in her Red Bank home, | Yesterday, Virginia died of her | burns. Chinese Reds May Be Moving Indusiries, WarPlants,Manchuria (By Associated Press) Dispatches from Hong Kong indi- | cate that the Chinese Communists | may be moving their heavy indust- ries and war plants out of Man- churia and into the northwest pro- vince of Shansi. That's nearly 700 miles farther away from American bomber bases. 1 Big War Question; No Answer By ELTON C. FAY (AP Military Affairs Reporter) ‘WASHINGTON, Dec. 27 —.(® — Why don’t U.S. bombers blast the big hydro-electric power dams on the joint Communist border of Manchuria and North Korea? The question has been raised, among others, by Representative- elect Sieminski (D-NJ), just re- turned from duty as an Army Ma- jor in Korea. So far as is known, there has been no formal, official answer to the question. Sieminski said in New York a week ago today that GI's having fought in the area and been forced into retreat by the Chinese Com- munists “are saying that a cartel has a stake in those (power) pro- jects. . . Let’s blow them.” Unofficially and informally (which means they can’t be named) some Pentagon officials offer one explanation: Russia might seize on destruction of the Communist power plants on the Yalu river boundary as a pre- text to take an open hand in the Far East war. On the other hand, she might not, but the gravity of the risk outweighs the military value of destroying the dams. Just who has the responsibility of staying bomb attacks on the dams isn’t quite clear. The Pentagon vaguely refers questions to “a higher level” and to Gen. MacAr- thur’s headquarters in Tokyo. There appears to be no tactical, purely military reason why the bombing couldn’t be done. Unless the Reds displayed unpre- cedented air activity, B-29 bombers which have roamed close to the Yalu river area without serious op- position from the enemy could make such strikes. v Remingfon's Wite Says He Is a Red (By Associated Press) The perjury trial of former gov- ernment official William Reming- ton is going into its second day in New York City. The jury will hear again from Remington’s divorced wife. Yesterday she testified she knew him to be a Red. The government says he lied to a L,grand jury in New York last May when he denied having Communist connections. ‘The divorced wife of Remington testified today that he turned over “a top secret” formula for explosives to an admitted Russian spy ring courier. The formula, which was to be for- warded to Russia, would make ex- plosives from garbage, she said. Mrs. Ann Remington gave the testimony in her second day on the witness stand at the perjury trial of her former husband, a one-time | Commerce Department economist. | Yesterday Mrs. Remington testi- fied they both were members of the party. Continuing her testimony about the explosive, Mrs. Remington de- scribed a series of meetings with 8 courier who she said she learned later was Elizabeth Bentley. “At one meeting he (Remington) had information he was very excited about,” she said. “He called it top- secret and wanted to be sure it 8ot to Russia.” This was the explosive formula, she said. At'one point today, Mrs. Reming- ton remarked, “I would like to say that I am a yery reluctant witness. It is extremely hard to testify against the father of my children, but I hold no malice against him personally.” Yesterday she testified that they both belonged to Communist groups in their college days. OLDROYD HERE Lorin T. Oldroyd arrived yester- day from Seattle on PAA and is enroute to Fairbanks. STEAMER MOVEMENTS Baranof scheduled to sail from Seattle Fridey p.m. Princess Norah scheduled to sail from Vancouver December 30. Denali scheduled to arrive from West Sunday southbound. BIG COMMIE PUSH IS EXPECTED IN KOREA; REDS REINFORCED Soft Spots in UN Lines Are Sought - Ridgeway Makes Statement (By the Associated Press) Elements of a vast Communist army probed restlessly for soft spots in the United Nations defense lines just south of the Korean 38th paral- lel today in the prelude to an ex- pected big push. Gen. MacArthur's headquarters said the front line Red troops poised near the north-south bound- ary numbered 444,406. It said 277,173 of those troops are Chinese and the rest are North Koreans. The Allied headquarters said these numbers were being bolstered by nearly a million new men, either en route to the front or in reserve in what MacArthur calls the “priv- ileged sanctuary” of Manchuria. Dispatches from Hong Kong, Brit- ish colonial window on China, said the Chinese Reds may have a fight- ing force of 12,000,000 men by the end of 1951. These dispatches said China now has an army of 5,000,000 but is fast shaping an additional force of “irregulars” into fighting form and has the call out for an- other 2,000,000 soldiers. Eighth Army Braced The U.S. Eighth Army was braced for the expected onslaught. Bol- stered by South Koreans, British, and other units it is strung along ithe mountainous defensive terrain fringing the 38th parallel. The Army’s new commander, Lt.: Gen, /Matthew B. Ridgeway, set the motto for his men when he met President Syngman Rhee of the Republic of Korea. He told Rhee: “I aim to stay.” Ridgeway commands the two corps of the Eighth Army and in addition the U.S. 10th Corps of 105,000 men now landed in south- east Korea after being evacuated 1from the Hungnam beachhead. The 10th Corps troops are being rede- ployed in an undisclosed strategy jof U.N. defenses. G. L. Morale High Associated Press - correspondent Relman Morin, back in New York after four months in the theater of operations, said the morale of the American Army is high. He said if the GI “has to fall back again—and that seems inevitable—he will car- pet Korea with Chinese dead.” Morin said that “at the moment, the United Nations cannot furnish the necessary divisions to counter- balance Chinese and Korean num- bers.” He added that if the United Nations forces pulled out of Korea it would not mean the end of the campaign against the Communists. Another phase of war would call for a naval blockade, intensive bomb- ing and effective guerrilla warfare. Lie Makes Statement i In Oslo, Norway, U.N. Secretary-| General Trygve Lie said that a NAT.GUARD OFFICERS CALLED UP New Army Order Dips Info Reserve Units for First Time ‘WASHINGTON, Dec. 27—(®—The Army has dipped into National Guard and organized reserve units for the first time to order 7,500 individual junior officers to duty in March, And the Navy has stowed away plans for releasing reservists next summer, Those two actions are announced as the Army also disclosed: 1. It will call up (it didn't say when) 100 women's army cOrps lieutenants and captains. 2. It is ordering to active service 890 additional medical officers; and 415 medical service corps of- ficers. These will report in two groups, February 5 and March 15. In addition, the Army expects to issue shortly its draft call for the month of March, The new call probably will not be less than the quotas for January and Febru- ary—=80,000 each month. Draft calls through February now total about 370,000. The Army said the 7,500 guard and reserve lieutenants and cap- tains will report between March 1 and March 22, The Navy announced last Nov- ember 1 that enlisted reservists recalled involuntarily would be re- leased at the rate of 5,000 a month and reserve officers at the rate of 1,500 a month beginning next July. A Navy spokesman said yesterday that plan has been abandoned. He told a reporter the Navy does not know when or how many reservists will be released. Naval reserve call-up plans have not changed, he said. DEPORTATION CASE OF MANGAOANG IS NEARLY COMPLETE SEATTLE, Dec. 27—(®—The gov- ernment’s deportation hearing against Ernesto Mangaoang was virtually complete today. With the exception of final briefs to be filed by both sides, it was ready to be sent to Washington, D. C, trial examiner John Keane said. Mangaoang, a Seattle cannery union official, was arrested last October in a nation-wide roundup of what the Justice Department called key Communist aliens. Conclusion of the hearing was ac- United Nations failure to fight the|companied by a blast against “dilly LONGSHOREMEN | WILL NOT APPLY SECURITY CARDS Spokesman for West Coast Workers Makes Announce- ment on Coast Guard Order,| SAN FRANCISCO, Dec. 27—®— A spokesman said today that West Coast longshoremen are not going to apply for new waterfront secur- ity cards required by the Coast Guard until at least January 11, when their union will discuss the screening regulations ordered into immediate effect today. Morris Watson, editor of publica- tions for Harry Bridges' Interna- tional Longshoremen’s and Ware- housemen’s Union, sald locals of the 70,000-member organizaMon had agreed to formulate policy on the new security regulations at an emer- gency conference that day in Long- view, Wash. It was not immediately known whether applications for the re- quired cards was necessary, or whether they would be issued n\ut,o-I matically to those meeting accept- able security qualifications. Meanwhile, said Watson, “Long- shoremen aren’t going to commit any sabotage.” Hugh Bryson, Jr., president of the 10,000-member Marine Cooks’ and Stewards’ Union, in a statement denied as absolutely incorrect re- ports that his group would strike if the new regulations were found unacceptable. He sald he wanted to analyze the regulations before issuing a formal statement. ¥ Daughter of Rich Oilman Elopes, Weds Son of SIE Cobbler HOUSTON, Dec. 27—(®—Glenna Lee McCarthy, pretty 17-year-old daughter of, multi-millionaire oil- man Glenn McCarthy, eloped Dec. 2 with the son of a Houston shoe cobbler. . The slender, lissome girl and Georg Pontikes, Rice Institute foot- i ball player, were married by Jus- tice of Peace Oliver Nash at Waco following the Baylor-Rice football game that day. McCarthy, once a poor boy, could | not be reached in recent days about ‘rumou of the marriage, which fam- {ly spokesmen would not confirm. But today a persistent reporter won | this statement from the rich father: “They are married.” McCarthy would not elaborate. Friends of the family said Me- Carthy might formally announce Glenna Lee’s marriage after the society wedding tonight of an older daughter, Miss Mary Margaret Mc- Carthy. Pontikes indirectly confirmed the marriage today. Asked by a reporter SUBVERSIVES AREGOINGTO BE SCREENED Coast Guard Takes Action in View of Threatened West Coast Strike WASHINGTON, Dec. 27 — (® — ‘The Coast Guard today laid down new port and ship security rules designed to screen subversives from the ranks of the nation’s maritime workers. The security regulations were ordered into immediate effect by Coast Guard Commandant Merlin O'Neill. He acted in the face of a strike threat at west coast ports, the embarkation point for men and supplies to Korea. Heads of two unions—both ex- pelled from the CIO this year on charges of following the Communist party program—threatened a strike at Coast Guard hearings here a month ago unless the then-proposed regulations were changed to suit them. The final regulations put out by Admiral O'Neill differ in many re- spects from the initial proposals, but whether the changes go far enough to kill the danger of a strike could not be determined im- mediately. West Coast Threat The strike-threatening union heads were Harry Bridges of the 70,000-member International Long- shoremen” and"" “Warehousemen's Union (ILWU) and Hugh Bryson, Jr., of the 10,000-member Marine Cooks and Stewards Union (MCSU). Both unions are chiefly active on the west coast. Bridges and Bryson centered much of their fire on a proposal to empower the Coast Guard to deny any worker the “security card” to be reyuired for employment on U.S. vessels or waterfront facilities. This would have allowed denial of a card to a worker: “When reasonable grounds are found to warrant the belief that such person is affiliated with, or sympathetic to, any organization, group or combination of persons subversive or disloyal to the gov~ ernment of the United States.” New Provisions ‘That provision was rewritten ex- tensively in the wake of arguments by the two union chiefs that such charges are too vague and no man could defend himself against them. They contended that security card denials should apply only to persons convicted of or proved to be trained for spying or sabotage. As put into effect by O’Neill, the provision now reads that among other things, the basis of card de- nials shall be “reasonable grounds for the belief that the individual: 1. Has committed acts of treason Communist attack on South Korea would doom U.N, hopes for achiev- ing its aims there or elsewhere. He said United Nations forces must not give up in Korea, even though it might mean war with Red China. The Communists were pushing their buildup of power in central North Korea. Their supply lines and troop concentrations were receiving a terrific pounding from Allied planes. The Far East Air Forces bomber command sent, B-29s against enemy forces near the 38th parallel. US. Fifth Air Force and British carrier-based warplanes joined the air attack. WEATHER REPORT ‘Temperatures for 24-Hour Perlod ending 6:20 o'clock this morning In Juneau—Maximum, 39; minimum, 35. At Afrport—Maximum, 38; minimum, 35. FORECAST (Junesu and Vicinity) Cloudy 'with light rain to- night and Thursday. Lowest temperature tonight about z. highest Thursday about PRECIPITATION (Past 24 hours ending 7:30 a m. today City of Juneau—0.43 inches; since Dec. 1 — 392 inches since July 1—37.17 inches. At Alrport — 0.10 inch: since Dec. 1 — 291 inches; since July 1—26.02 inches. L 2 ® 0 0 00 9000000000000 0000000000 000 dallying” the prosecution of such cases. “We're not going to let them drag these cases out indefinitely,” said Regional Immigration Direc- tor John P. Boyd. We're going to insist on completion of this case and other Communist-suspect cases as fast as possible.” Inferned Nafionalist Soldiers Used in Mines,Sgy_s Pro-Red (By Assotiated Press) A pro-Communist newspaper in Hong Kong (Wen Wel Pao) claims the United States, France and Na- tionalist China have agreed to use 30,000 interned Chinese Nationalist soldiers as mine workers in Indo- china. The newspaper says this repre- sents a compromise bétween Na- tionalist China’s desire to use the troops on the Indochina front and a French refusal said to be based on public opinion. Thousands of Chinese Nationalist troops fled into Indochina as their armies disintegrated before the Chi- nese Communist drive. The Na-|meet tionalists were interned by French|Council Chambers at 8 o'clock to forces now battling the Communist- | discuss a new approach to the led Viet Minh guerrillas. PETERSBURG VISITOR if he would confirm the marriage |Or sedition, or has engaged in acts tomorrow, the 19-year-old gridiron of espionage or sabotage; has ac- artist said “Yes.” He added: tively advocated or aided the com- “Mary Margaret is getting mar- mission of such acts by others; or ried tonight and I don't want to|has knowingly associated with per- say anything yet.” Mary Margaret. is the oldest of five McCarthy child- ren, The Justice of Peace who married Glenna Lee and Pontikes said he didn't know she was a daughter of McCarthy. WESTERN GERMANY SMOTHEDED, SNOW FRANKFURT, Germany, Dec. 27 —(P—The heaviest snow in 61 years smothered the southern two- thirds of western Germany today. The snowfall, which began 'ch Christmas night, ranged from 13 inches on the plains around Frank- furt to 68 inches in the Alps. ‘Weather records, showed nothing to match it since 1889. Trains and planes, however, con- tinued to run almost on schedule. COUNCIL MEETING | The Juneau City Council will tomorrow evening in the small boat harbor with the trollers and vessel owners. The matter of choosing a new council member to sons committing such acts; or “2. Is employed by, or subject to the influence of, a foreign govern- ment under circumstances which may jeopardize the security in- terests of the United States; or “3. Has actively advocated or sup- ported the overthrow of the govern- ment of the United States by the use of force or violence; or “4, Has intentionally disclosed military information classified con- fidential or higher without author- | AL Would-Be Robber Quickly Turned Info "Milk Icicle” . DETROIT, Dec. 27—(#--A would- be robber turned into a “milk ic- icle” last night. He tried to rob Mrs. Dorothy Kozol while she was returning from a grocery. But Mrs. Kozol slammed a half-gallon milk car- ton over his head. The carton broke and milk streamed over his face. In the 2 above zero temperature the milk froze almost instantly. He fled—without any money. FROM HAINES F. C. Anderson of Petersburg is|replace Al Zenger may also come| Marvin Smith of Haines is stop- a guest at the Baranof Hotel. up. ping at the Gastineau Hotel ;‘