The Daily Alaska empire Newspaper, January 12, 1951, Page 1

. THE DAILY ALASKA EMPIRE “ALL TLIE NEWS ALL THE TIME” VOL. LXXVI,, NO. 11,706 * JUNEAU, ALASKA, FRIDAY, JANUARY 12, 1951 Blistering Allied Air Strikes Crump ECONOMIC MESSAGE IS GIVEN Double Tax Boost Request- | ed by Truman for Mili- fary, Foreign Aid WASHINGTON, Jan. 12 — ® — President Truman today called on Congress to boost taxes this ion by “very much more” than the $8,000,000,000 combined total of the last two increases. The President, in his annual eco- nomic message, notified the law makers that the nation’s security will demand lending and spending authority totaling $140,000,000,000 for this fiscal year and next. The present fiscal year runs out next July 1. As he set it out, this total would be for actual military and foreign aid spending plus contracting, lend- ing and loan guaranteeing authority for national security purposes. Other government expenses Wwould be in addition to this. Wage Restraints Mr. Truman said workers must accept wage restraints and business : men must accept lower profits— that no one should seek to hike his income to escape his share of the higher tax burden. He told the legislators, too, that 1,000,000 more men and women may : be gdded to the armed forces within a few months. The military man- power goal has been a force of 3,200,000 by June 30, but only today this figure was raised to 3,462,205. Congress voted a $4,700,000,000 increase in individual and corpora- tion taxes last fall. In December, it passed a bill to get $3,300,000,000 more from corporations through an “excess profits” tax and.an increase in existing taxes. No Specific Figure | Mr. Truman used no specific| figure for his new tax proposals but said the total should exceed | the combined total of these two bills, Mr. Truman said it should be the first principle of policy to “main- tain a balanced budget, and to fi- nance the cost of national defense on a ‘pay-as-we-go' basis.” He added: Tax Upping “Corporations should pay much | higher taxes. Individuals should | pay much higher taxes. Excise taxes should be higher and more exien-; sive.” Mr. Truman said new tax pro- posals soon will be submitted to| Congress carrying these recom- mendations as well as recommenda- tions for closing “many loopholes” in present tax laws. The President also informed Congress that staffs are being rap- idly gathered to apply “proader controls” over prices and wages. ‘To Hold Price Line “In the case of prices,” he said, “the general policy must be tc lmm| (Continued on Page TWwo) The Washington| Merry - Go - Round By DREW PEARSON (Copyright, 1951, by Bell Syndicate, Inc.) ‘ASHINGTON—President Tru- man isn’t likely to move on it, but some of his genuine well-wishers have been dropping discreet hints that the most important thing he can do to bring about national unity is appoint two top Republi- cans to his cabinet—including pos- sibly Governor Dewey as Secretary of State. Most unfortunate difficulty about the current bickering over for- eign policy is the reaction abroad. All over Europe there has been indecision and dismay. The recent foreign-policy controversies came on top of the Korean disaster, al- so on top of the President’s music- critic letter, both of which increas- ed lack of confidence among our allies. Most people don’t realize it, but . the music-critic letter was pub- lished all the way from Africa to Norway. To the man in the street it may have been humorous, but to the prime ministers and for- eign ministers of Europe, it arous- ed fear that the head of the R 3 N A S D R 4 _ (Continued on Page Four) | ;it plain that if Peiping rejects this ‘agreement for a settlement out of | Father Views New-Born Quads New-born qlladrllplvt&—twn boys and two girls—who weighed a total of 15 pounds 12 ounces at birth, are viewed by a happy father, Kenneth Rosebush (center), delivered the quads by Caesarean seven to fil‘u‘ml years. 1 section. 36, a Pontiac, Mich., stonemason. Dectors The Rosebushes already have four other girls ranging from Harold F. Stahl (left) Edward Christie at right. (# Wirephoto. » PEACE BID TO Two Engmeers Summoned RED CHINA IS For Testimony in Palmer Airport Hearing Jan. 18 NEARING VOTE .UN Offering Political Con-| ference for Cease- | Fire in Korea : LAKE SUCCESS, Jan. 12—(®— The United Nations drove toward a vote today on a final peace bid to Communist China, offering a political conference on Far-East- ern problems in retwn for a cease-fire in Korea. The United States accepted the plan. Russia, in what seemed to be a stall for time, expressed cool- ness toward it. Non-Communist spokesmen made ofier, the Reds can expect no fur- ther overtures and the war will go on. Diplomats here held little hope that China Communists would agree to the proposals, They felt, however, the effort was worth while if only as a demonstration that the UN had explored the last possible avenue of peace. The five-point plan, drafted by cease-fire commission members Nasrollah Entezan, Iran; Sir Bene- gal N. Rau of India and Canada’s Lester B, Pearson, will be put be- | fore the 60-nation political com- mittee in a resolution this after- noon. Sponsors hoped for a vote (about 2 pm. PST) before today’s session ends. Announcement of the plan yes- terday brought from Soviet dele- gat,e Jacob A. Malik the charge that it was an ultimatum.’ Malik, howver, did not completely close the door. Explaining U. S. approval, Amer- jcan delegate Warren R. Austin said the proposals restated the principle that a cease-fire must precede negotiations. He added the U. S. wanted to maintain the unity of the United Nations. JENSEN - TALKINGTON CASE T0 BE SETILED OUT OF COURT TODAY The case of Oscar Jensen Versus Mr. and Mrs. Paul Talkington in- volving boundary line and title to property claimed by both plain- tiff and defendant on the Fritz Cove road, was concluded this morning in the S. District Court when attorneys for both] parties in dispute announced an court. It was expected final settle- ment would be made this after- noon. Motions were made before the| Court today. U. S. District Attorney P. J. Gil- more, Jr., was to bring three cases Lefore Judge George W. Folta in. court this afternoon. | ANCHORAGE, Alaska, Jan. 12— (M—A wire received yesterday from Senator Hoey (D-NC) said Army Engineer Corps employees who sur- | veyed the Palmer airport sites and assertedly set prices of $120,000 and $125,000 will be asked to appear at a Jan. 18 hearing in Washington. Hoey is chairman of the Senate Investigations subcommittee that has scheduled the hearing into the controversial Alaska airport deal. Earlier, Rep. Stanley McCutcheon had charged that the hearing was being “rigged” with an eye toward damaging the Alaska statehood movement, McCutcheon, who is speaker of the Alaska House of Representa- | tives, was one of three persons originally listed as under summons to testify. He was summoned as counsel for the Alaska Aeronautics Commission in the Palmer transac- tion. The others were Tony Schwamm, Territorial Aviation Director, and Roland Snodgrass, secretary of the Palmer aeronautic committee. They protested against the failure of the committee to summon others who participated in the airport project and who they said would be key witnesses in supporting actions of territorial officials. McCutcheon's Explanation McCutcheon gave this explana- tion yesterday of the transaction: “Three men residing at Palmer were first to appraise the land for the territory. The lowest value any of these three set was $160,000. The territory placed it at $150,000 and proceeded on that basis. “When Senator Butler (R-Neb) came up with his charges the CAA (Civil Aeronautics Administration) enlisted the aid of the district en- gineer to make a new appraisal. Surveys were made and all facts on land values compiled. “The engineer came to the con— clusion the value was $120,000. “Subsequently, the Portland of- fice of the Corps of Engineers chal- lenged the appraisal and ordered a new one. Engineers Are Called “Another engineer, a federal em- ployee, and a crew man spent many days resurveying the airport, com- | puting land values and the work performed. They came up with a value of $125,000 which was an in- crease of $5,000 over the first ap- praisal.” These two engineers are the latest to be called to appear at the Wash- ington hearing. “Again the appraisal was chal- lenged in the Portland office,” Mc- { Cutcheon continued. “An official from there was sent here to make a third appraisal. “He made a quick trip, without use of surveys or instruments, and decided the land was worth only $31,985." McCutcheon said that figure )seemed to be what officials in Wash- ington wanted and no further ap- praisals were ordered. “There is great evidence that heavy political pressure was brought from Washington to overrule any findings tending to substantiate Alaska’s claim,” McCutcheon told Senator Hoey by telegram. BRIBERY CHARGES HURLED, WASHINGTON, Jan. 12 — (B — Rep. Sutton (R-Tenn) said in the House today that Reconstruction Finance Corporation officials have accepted bribes of “several thou- sand dollars” to make loans. He told his colleagues his charges would be “borne out” when a Sen- ate committee reports on its inves- | tigation of the RFC. A Senate Banking subcommittee headed by Senator Fulbright (D-Ark) has been. looking into the RFC’s ad- ministration for several months. Sutton hurled ‘the charge of brib- ery in criticizing the RFC for fore- closing last fall on a $37,500,000 loan it had made to the Lustron Corpo- ration of Columbus, Ohio. The firm makes prefabricated housing. Sutton said “the Lustron Corpo- ration should be reopened for busi- ness immediately.” HARJUS HEAR FROM SON STATIONED IN KOREA WITH NAVY Mr, and Mrs. George Harju recently had a letter from their son, Radar Third Class, Leonard Harju, presently stationed in Kor- ean waters with the navy. He stat. ed that he helped deliver a Christ- mas present to ground forces in Korea when he aided in the evac- nation of the Hungnam beach. To quote from his letter: “I have eight months more to do. I know that President Truman did declare a national emergency, but I think it will be over by when my time is up. I hope that I never have to spend another Christmas like this again, I know that all the soldiers and marines we took off that beach are happy.” Harju was stationed on the Mc- Kinley until recently but is now aboard the LST 974. His letter was written enroute to Pusan. RICHTERS FROM SKAGWAY Mr. and Mrs. C. E. Richter, old- time residents and store operators of Skagway, arrived in Juneau on the Alaska Coastal Airlines plane yesterday. MEMBER ASSOCIATED PRESS —— | PRICE TEN CENTQ TRUMAN REPLIES T0 TAFT President TJk? Plainly on Aid Abroad-Senator Comes Right Back WASHINGTON, Jan. 12 — B — President Truman's assertion he will consult Congress in sending U.S. troops to Europe — but won't be bound by it—was labelled by Sena- tor Taft (R-Ohio) today as “the end of the bipartisan foreign pol- fey.” At the same time, Senator Wherry (R-Neb) challenged Mr. Truman’s indirect claim that the American people will back substantial use of U.S. troops to bolster Western Europe's defenses against attack. The President told his news con- ference yesterday he has authority to send more foot soldiers to Europe and intends to use it. But he will consult with Congressional foreign relations and armed services leaders as a matter of politeness before he does it, he added. He said that, as Commander in Chief, he isn’t bound by any deci- sion Congress makes unless it re- stricts the number of troops hy| limiting appropriations. And if the lawmakers want ml go to the country with that kind i or a resmmon he declared, he is He hcked ‘em once before, the President said in an obvious refer- ence to his attacks on the Republi- | can 80th Congress in the 1948 Presi- | <ential campaign. Taft told a reporter he thinks the only practical limitation on the President’s authority may be in such appropriations restrictions. But Taft said the President's in- sistence on his right to send troops Iw Europe without prior Congres- isional approval of the policy and; what Taft called Mr. Truman’s by- | passing of elected Republican lead- ers in his consultations “brings an end to the bipartisan foreign policy.” l Mr. Truman also told his news \conference that Gen. Douglas Mac- | Arthur, contrary to some publlshed reports, has not recommended that | United Nations forces be withdrawn from Korea. And he denied a Tokyo report that the U.N. commander has been “muzzled” by Washington to prevent his speaking publicly about Korea. CLAIMS PEARSON COLUMN DID HAVE SECRET MESSAGE WASHINGTON, Jan. 12 — A — |1‘he Army said today the Drew Pearson column of Dec. 30 contained “quoted excerpts from classified (secret) messages,” and an investi- gation is being made. In a letter to Senator MeCarthy (R-Wis), Secretary of the Army Pace also said the matter is being submitted to the Judge Advocate General of the Army. The Judge Advocate General is the Army's top legal officer. Pace made the letter public. It was in response to a demand from McCarthy to know whether ma- terial in the Pearson column was in fact quoted from secret messages as Pearson said. McCarthy said in a Senate speech last week that if Pearson had quoted secret messages he had given aid to foreign coun- tries in efforts to break U.S. codes. Pearson replied in a statement at the time that he had been told by “the Pentagon” that it was all right for him to use the messages if he changed dates and altered a few words. Pace told the Senate committee the whole matter is being “actively investigated.” He said the Army had not given Pearson “secret messages” or any messages at all from Gen. Douglas MacArthur’s headquarters. FRED DAHL HERE Fred Dahl of the Dahl Trans- portation Co., owners of the vessel Robert Eugene, is in Juneau until tomorrow or Sunday. He reports that repairs are being made on the Robert Eugene in Seattle and ilhlt it is hoped to be put back ‘into service soon. He is staying at 'thz Baranof Hotel. le Hits Appeasement President Truman says “we will not engage in appeasement” as he delivers his “state of the union” speech before a joint session of Con;re- in Washington. (» Wirephoto. INCREASED AIR FORCE NOW ASKED WASHINGTON, Jan. 12 — (# — The armed forces, with Presidential sanction, aimed today for an Army, Navy and Air Force of 3462205 men by June 30, instead of their previous 3,200,000 man goal. The announcement came from Mrs. Anna M. Rosenberg, Assistant Secretary of Defense, at a Senate Preparedness subcommittee hearing. Her testimony came amid talk of lowering the minimum draft age from 19 years to take in youths of 18 years and six months, instead of the 18 year minimum the Defense Department has proposed. Also today, President Truman said in his economic message to Congress that “our present defense targets will require an increase of nearly one million men and women in the armed forces within a few months.” Late last month the forces num- bered an estimated 2,266,000. Senator Lyndon B. Johnson (D-Tex), the Preparedness subcom- mittee chairman, commented in the hearing that “there is some senti- ment in Congress, and I understand in the Pentagon” to require 30 months ‘of military service and training. The Defense Department has re- commended the period be extended from 21 to 27 months, under a pro- posed universal military service and training law on which the sub- committee is holding hearings. Mrs. Rosenberg had told the com- mittee the armed forces would have to start drafting husbands, fathers and veterans unless the age limit is cut. BLM OFFICIAL LEAVING MONDAY FOR ANCHORAGE | M. H. Lightwood, Land Econo- mist with the Bureau of Land Management, plans to leave Juneau Monday for his headquqarters at Anchorage. Lightwood has been here since last Wednesday investi- gating homesites in the National Forests in order to expedite issu- ance of patents. He is conferring with officials of the U. S, Forest Service regarding hofnesites elim- inated from the National Forests. e o e DEPUTY MARSHAL RETURNS Deputy U. S. Marjhal sid Thompson returned to his Juneau headquarters yesterday on the Pan American Airways clipper from the states. He went south to ac- cormpany federal prisoners from Juneau and Ketchikan to federal institutions in the states. i Gerald Overman of the Polaris- Taku Mine at Tulsequah, B.C., is in Juneau for medical attention. He is stopping at the Hotel Juneau. MANPOWER GOAL NOW INCREASED Mrs.Rosenberg Announces Plan Has Been Given Approval by Truman WASHINGTON, Jan. 12 — (® — Senators were told today that President Truman had increased the June 30 manpower goal for the nation’s fighting forces by about 260,000. Assistant Secretary of Defense Mrs. Rosenberg testified that Mr. Truman had approved raising the armed forces strength to 3,462,205 by that date or “at the earliest pos~ sible moment.” The previous June 30 target was 3,200,000 men, although Mr. Truman has talked of having 3,500,000 in the next year or two. Mrs. Rosenberg made her an- nouncement as she and top ranking Army, Navy, Air Force and Marine officers appeared before the Senate Armed Services subcommittee to urge drafting of 18-year-olds. Mrs. Rosenberg said she had just received a telephone call from Sec- retary of Defense Marshall inform- ing her of the higher total for the armed services. “The Joint Chiefs of Staff re- quested it yesterday,” Mrs. Rosen- berg said. “The Secretary of De- fense and the President approved it this morning.” The proposal for drafting 18- year-olds was running into some op- position in the Senate group. Sena- tor Saltonstall (R-Mass) demanded that Defense officials “prove their case” for such a step. WEATHER REPORT Temperatures for 24-Hour Period ending 6:20 o'clock this morning In Juneau—Maximum, 35; minimum, 30. At Airport—Maximum, 33; minimum, 30. FORECAST (Juneau ana Vieinity) Cloudy with mixed rain and snow tonight becoming mostly cloudy with snow showers Saturday. Colder Saturday with high tem- perature near 28. PRECIPITATION (Past 24 hours ending 7:30 a.m. todsy City of Juneau—0.08 inches; since Jan. 1 — 326 inches; since July 1—41.25 inches. At Airport — 0.02 inches; since Jan. 1 — 185 inches; since July 1—29.85 inches. e e 0 0 00 0 000 Reds ENTIRE UN FRONT HAS NEW THREAT Red Columns Mass in Sev- eral Sectors-Artillery Barrages Laid Down (By the Associated Press) Blistering Allied air strikes and | artillery barrages crumpled a Red Korean attack near Wonju today. But another Communist force strik- ing 30 miles behind this Allied posi- tion threatened the entire United Nations stand in central Korea. The deep-striking Red column skirted the American-French-Dutch line in the Wonju area. It fought several sharp clashes with Allied patrols on the approaches to Tan- yang, 37 miles southeast of Wonju. The flanking Reds set up a road- block, mined a vital supply highway and poured a hail of small arms fire into an Allied force sent out to clear the route. Ram Deep Wedge Two North Korean divisions—the Sixth and 10th—were ramming a deep wedge into the U.N. positions in central Korea. Possibly 20,000 Communist troops were in this force which was threatening the supply and withdrawal routes of the U.S. Second Division and its French and Dutch supporting units making a fighting stand just south of Wonju. ‘The immediate peril in the Wonju |area eased as daylong Allied air strikes and artillery barrages routed two Rod Korean regiments which a commanding height Thursdny nlth Withering Fire Slammed This force, striking from the northeast, had cat across the Won- ju-Chechon road, occupied the dominant hill and slammed a with- ering fire into the Allies’ horseshoe- shaped defense perimeter just south of Wonju. The fighting raged in foot-deep snow and bitter cold. Allied planes, including the big B-29 Superforts rarely used on tactical missions, sowed heavy ex- plosives and fragmentation bombs, machinegun fire and jellied gasoline into the Red positions. Navy pilots from the carrier Phil- ippine Sea seared the half-mile ridge with napalm firebombs. They ! killed an estimated 450 Reds. “They were trying to make an advance and we caught them,” said Lt. (jg) Don Loranger, Hanford, Calif. Rain of Steel Second Division artillery slammed a rain of steel at the Reds. Field dispatches said the air- artillery pounding wiped out part of Wonju. Allied cargo planes Thursday dropped 215 tons of food, ammuni- tion, medical supplies and clothing to the central Korea defenders. Other Red forces were dug in south of Wonju. But brisk fighting swirled in the Tanyang area, far behind this ex- posed Allied position. Tanyang is a rail and road center south of the Han river at its southernmost bend. It is astride one withdrawal route for the Second Division leading toward the old Pusan beachhead. STEAMER MOVEMENTS Baranof scheduled to sail from Seattle, 5 p.m., today. Princess Norah scheduled to sail from Vancouver January 17. Denali from west scheduled to ar- rive southbound Sunday morning. STOCK QUOTATIONS NEW YORK, Jan. 12 — Closing quotation of Alaska Juneau mine stock is 3%, American Can 98, American Tel. and Tel. 150%, Ana- conda 417%, Douglas Aircraft 101%, General Electric 517%, General Mo- tors 48%, Goodyear 69%, Kenne- cott 77%, Libby McNeill and Libby 9%, Northern Pacific 32%, Standard Oil of California 92%, Twentieth Century Fox 21%, US. Steel 45%, Pound $2.80, Canadian Exchange 95.18%. Sales today were 2,950,000 shares. Averages today are as follows: in- dustrials 243.75, rails 81.63, utilities 42.15.