The Daily Alaska empire Newspaper, March 16, 1951, Page 1

- THE DAILY ALASKA EMPIRE “ALL TIIE NEWS VOL. LXXVI, NO. 11,759 JUNEAU, ALASKA, FRIDAY, MARCE ALL THE TIME” 16, .1951 MEMBER ASSOCIATED PRESS PRICE TEN CENTS Desperate FUEL- TAX INCREASE IS TABLED By BOB DE ARMOND The House of Representatives by almost unanimous voice vote this morning tabled the bill increasing the motor fuels tax a cent a gallon The tabling motion, which had failed several times previously, came after two amendments had been of- fered and debated. A Ways and Means Committee amendment would place the addi- tional fuel tax revenues in the gen- eral fund. An amendment by Rep. Carlson would exempt marine sales and sales to stationary engines and off-road vehicles such as tractors from the tax increase. Neither amendment was adopted. Carlson contended that the tax works a hardship on the fishermen, | who are required to pay it whether or not they receive a dime of return for their expenses and efforts. Rep. Kay, on the other hand, claimed an exemption for fishermen would make the tax discriminatory. Rep. McCutcheon compared tax payments/by fishermen with those of the aviation industry. “As an addition to their gross expenses, this tax is unfair to the fishermen,” Rep. Johnson contend- | ed. “If the fishermen make money it will be reflected in enues from the net incu.ne tax.” { The House 21so tabled a bill re-| pealing the law making Indian and Eskimo residents ineligible for cer- tain welfare benefits Bills Passed | unanimously was H. B. the Tax Commis- bond to assure Territorial School | Passed 152, permitting sioner to re collection of iF Tax by employers. Rep. McC eon, author of the bill, said it i aimed particularly against war con- struction contractors. ; House Bill 120, redefining “sea- son wages credits’ in the Empl Y- | ment Security Act, passed the House by a 14-0 vote but was held over! another day when Rep. Miscovich, gave notice of his intention to re- consider, | House memorials seeking the| dredging of the northern portion of | Gastineau Channel and asking the Board of Administration to unfreeze the 1949 appropriation for aid to} community hospitals were approved by the House, as was a joint reso-| lution providing $2,500 to pay the expenses of legislative council on' the reorganization program. Office Building The bill to appropriate $165,000,i in addition to the $650,000 appro-| priated in 1949, for the Territorial office building in Juneau and $100,- 000 for the purchase of building sites at Anchorage and Fairbanks :irred QUTLOOK 600D ,nuh-t” Seaftle looked ja sawmill | ner, "Family’ Greels 61 'Father' Smiling, laughing, Hugh O'Reilly, Bronx member of .- VA_) Japanese orphans vie for the attention of Sgt the fighting Wolfhounds, as he arrives at orphanage in Osaka to spend his seven-day “rest and relaxation” leave with O'Reilly is just s them after seven months in happy as the orphans as he sees what his regiment Korea. And has done to make them happy and healthy thorugh the two years since it “adopted” a ramshackle place and turned it into a modern home for them. » Wirephoto. NEW SAWMILL IN CHANNEL AREA Prospects for the in awmill on Gastinea nel by | the Nettleton Lumber Company of | pright today when | it was disclosed that at least three | locations have been selected as be- | ing suitable for a mill site. M. L. iNeison, mecnanical super- intendent for the company, said this morning that suitable sites for installation have been found on both the Juneau and Douglas sides of the Channel and two sites are available in the nearby area. ation of | Final determination for the loca- tion of a sawmill will be deter- mined by the company after reports on their findings have been turned in by Nelson and Benjamin Gard- company secretary, who has been looking over possible sites in the southern districts. Gardner has returned to Seattle. Nelson plans to leave Juneau today by Pan American World Airways plane. “The cocpe.ation of the residents and city cificials of Juneau and | Thoma NEW PLANT FOR JUNEAU IS POSSIBLE The possibility of a plywood plant for Juneau is more than a rumor, A. Morgan, president of the Columbia Lumber Co., revealed in a let to the Juneau Chamber of Commerce this week. Morgan indicated that plans were fairly well advanced and that with the right cooperation it might easily become a reality in 1952. “For your information, wish to advise that we purchased a con- trolling interest in the Juneau Lum- ber Mill,” the letter read, “with the thought in mind that a part of this property would be used for our pro- posed plywood plant. There is am- ple space for both the sawmill and the plywood plant on this property. “An application has been filed for a Certificate of Necessity, in or- der to assure us of obtaining the machinery and equipment necessary for this plant. It will also give us adequate funds for the financing of up some warm debate in the HO\?SEfDuugms and Forest Service officials yesterday afternoon but the bill it-|in assi_ting me to find a sawmill | the project. ‘Some plywood construction ex- 1 i (Continued on Page Two) Merry - Go- Round By DREW PEARSON (Copyright, 1951, by Bell Syndicate. Inc.. (Ed. Note: Drew Pearson is on a flying tour of Europe and the Middle East, surveying the world situation.) ROME, — The most important thing that every American is en- titled to know about Marshal Plan Aid to Europe is whether it is a temporary shot-in-arm which will have to be repeated every so often to keep the patient alive or whether it will really put Europe back on its feet. In brief, the question is, will Communism take over shortly after we pull the Marshall Plan props out from under Europe? Italy mav a good laboratory in which o answer this question, partly because we have poured American money into Italy ever since the end of World War II, partly because the Italian people are reasonably well disposed toward ; the United States and partly be- cause Communism is taking a lick- ing here for which the Marshall Plan is to a considerable degree responsible. Basically the question of whether Italy or any other Marshall Plan country can carry on after we leave ! to whether they can successfully institute internal re forms sufficient to combat Com- munism, balance their budgets and boils down muster the courage to tax. In Italy, this entire gquestion has been the " (Continued on Page Four) jéite in this Jocality Lias been highly | | Pleasing,” son said today. | He said his company will make‘ limmodmte announcement of the {location for the sawmill installation | as scon as it has been determined. | | Engineers will be sent out to make | the preliminary surveys and con- | i struction work will start as early as | iarrangemems can be made. | | STEAMER MOVEMENTS | Princess Norah from Vancouver | | scheduled to arrive Saturday after- noon or evening. Denali scheduled to sail | Seattle 4 p.m. today. Baranof scheduled to arrive Sun- day noon, southbound. | from | | i © 6 o c o 2 0 0 o WEATHER REFORT Temperature for 24-Hour Period endinz 6:20 o'cluck this morning In Juneau Maximum, 36; minimum, 15. At Airport 33; minimum, 11. | I | 1 i | Maximurn, FORECAST Cloudy with intermiitent snow tonight and Saturday. Slowly rising temperature. Low tonight near 26 and high Saturday near 32. | PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau — Trace; Since March 1 — 1.06 inches; Since July 1 — 51.95 inches. At Airport — None; Since March 1 —81 inches; e Since July 1 — 33.19 inches ® 0 0 0 0.0 0 0 0 o e cesecoroeocrcons®ennoec00 0 e perts are working on a layout at the present time, and will soon have these figures available for us, giving complete data as to machinery, equipment, and the cost of the com- plete installation. Seeks Block of Timber “I might also add that we have filed an application with the U. 8. Forest Service for the purchase of the Kosiusko block of timber, lo- cated adjacent to Edna Bay. This is the best stand of high grade tim- ‘bex' in Southesct Alaska, and one that wil' prov a supply of veneer quality Iogs which will be needed for the Juneau plant. “This application has been pend- ing since early last summer, and was renewed again recently, with a request that the installation of this plywood project would depend upon the Kosiusko timber. Therefore, the of our efforts to establish plant will depend largely upon the action of the Forest Service in handling this block of timber. If they elect to withhold it from sale, we would very likely cancel out our plans for the plymood plant, as it is unlikely that an adequate supply of high quality veneer logs could be obtained from present sources. “Mr. Frank Heintzleman, of the thi | Forest Service, is now in Washing- ton and it may be that he will have . the authority to proceed with this project upon his return., At any | rate, we are hoping that this will be true, and that no further delay in the planning for the plywood | mill will be encountered.” FROM MISSOURI Myrtle E. Ronsson of Kirkwood, Mo., is a guest at the Baranof hotel. SEN. SNIDER COMES BACK; CHALLENGED Sen. Heinie Snider returned from his “walk” yesterday afternoon. The “Wandering Wasillan” rc-l turned for the afternoon session after his morning walkout in protest against a enatesapproved bill granting a general pay increase to Territorial officials and employes. His case was not forgotten though. Sen. R. M. MacKenzie (D-Ketchi- kan) challenged Snider’s right to a Senate seat on the grounds the Wasilla Republican was ineligible to election as a Federal employe of the Alaska Road Commission. Dr. MacKenzie said if Snider had not been elected former Senator Vic Rivers would have been and the Democrats would have had a working majority in the Senate. He suggested the Senate should accept Snider’s “resignation” and seat Rlv-l ers for the 1953 session, if not x\extl week. Snider retorted that he worked for the Road Commission only dur- ¢ ing the summer months, never after election, and was only a day laborer. He insisted the law did not apply to him, One Sport Licensed The Senate voted to license one sport yesterday but failed to outlaw another. The Senate voted 13-1 to impose a i license on sports fishing, but the vote on a House-approved bill out-; lawing the private use of fireworks in the Territory was 8-7, one shy of the necessary majority. The Senate also passed a compre- hensive new Alaska. banking code but returned it to the House with numerous banker-sponsored amend- ments, The upper chamber’s 13-0 completed legislative action bill to remove the governor from | the Fisheries Experimental Com- mission. Among the eight Eouse 'bills pass- ed by the Senate was one to allow teachers to continue to teach in the; States after forced retirement on, vote | One Big Reason An eight-inch gun, manned by First Calvary Division troopers, has just fired a round against the enemy This big gun fires a 200-pound projectile 10 miles and has on the west central front in Korea (Mar. 8). been very effective. ( Wirephoto. Air rpp Ai ds U; N.Oflensve on a; Alaska retirement pay at the age| 3 of 60. The Sena joint mexn:orial by Rep. J. S. Mac- Kinnon (R-Juneau) asking Con- gress to settle Alaska’s aboriginal claims to end uncertainty and open WANTS REC ABOLISHED; USCC PLEA i WASHINGTON, March 16 —@—| Directors of the U. S. Chamber of Commerce called tnday for abolition of the RFC. The 45-member board of the busi- ness organization adopted a resolu- tion saying: “Facts disclosed by the Fulbright Subcommittee have created uncer- tainty and distrust concerning RFC procedure. Engaged as we are in a national mobilization effort, we can not afford to have the integrity or general moral level of the Gov- ernment or any of its agencies sub- ject to question.” Senator Fulbright (D-Ark) heads a Senate Banking Subcommittee which has been investigating RFC lending. The group has charged that some directors of the RFC have yielded to influence in mak- ing loans. a result of the committee’s disclosures, considerable sentiment has built up in Congress for killing the RFC. Fulbright himself has taken the stand that the agency should be continued but reorganized and “cleaned” up. Some Congress members also ar- gue the RFC is a big help to small business and ought to be continued for that reason. There is & dispute in the Senate also as to whether the Fulbright Committee should continue its RFC investigation, Fulbright has said he wants to bring the inquiry to an early end, but Republicans in par- ticular are calling for its conunu-‘ ation, Reds Overwhelmed, Art:llery Duel UN orcs Advancing REDS BEATEN FIFTY T0 ONE SHELL BATTLE By Associated Press | American troops overwhelmed | desperate Reds in a roaring artillery { duel on the Korean war front to- day and then crasheu ahead for new } gains, The Reds threw their heaviest ar- | tillery fire of the war. Americans answered with a bar- rage that out-thundered the Reds, 50 shells to one. The drive carried an American ‘dlvlslon onto high ground north of Hongchon, an important road hub 20 miles south of Parallel 38. { Reds Halt Retreat Earlier Friday the Reds abruptly i halted their eight-day retreat on | the Central front. They turned on the Allies with their heaviest ar- ]tlllery barrage yet. \ Rl | Then came the roaring American | echo. UN warplanes joined in the blast- |ing with rockets, fire-bombs and | machine guns, | headquarters at Chunchon, | Just before the Reds turned to i stand before the advancing Allied i forces, they gave up the road junc- i tion of Hongchon, 20 miles south [} 'ing tanks, drove into the town un- 1der only small arms fire. The town that held 40,000 Red troops a week floating cold i to 1 apgproval Ds;,o ::: ;e‘::;tneq t‘:::y,“?e :{&‘f&fi‘mhc Af:go h:dq"‘:;e’:: " 2 at 1 ommi The bill proposes a 4 per cent raw | {yoops were killed or wounded storage operators are now subject | pegan to push north. 181 ‘phe. Ghnt 16k on raw, fiah| The Communist defense line was value. The 1 i by . per oent levy. wauld under attuck from the U. 8. 24th The bill was introduced by three gongchon west. First Divislon senators — Anita| gagt of the battle-wrecked South Garnick, Dr. R. M. MacKenzie and | gorean capitol of Seoul, the U. S. for the increasing number of float- South Korean troops withdrew after ing operators is justified because of meeting Red patrols. the advantages they have over' Meanwhile, General MacArthur The big bugaboo that was raised, | against returning immediately to however, is whether courts might|Seoul with his government. The UN hold that the one-to-four differ- commander messaged Rhee that the be uniform on the same class of sub- | jects” | Attorney General Gerald Williams | KEPNER MAY on the question until he could study | it further, Williams did disclose, however, Cargo parachutes carrying ammunition and supplies drop toward UN lines in the Wonju-Koksu areas where muddy roads made it impos- sible to supply the troops by motor transport. It was disclosed (Feb, 24) that air force flying box cars have dropped 735 tons of supplies to keep the Allied offensive rolling in central Korea. U. S. Air Force photo via radio from Tokyo and (P Wirephoto. 7 * FRENCH GUARD U. S. PLANES — French agmored car crew keeps on alert as U. S. escort carrier Windham Bay (background) arrives at Saigon, Indochina, with U, S. planes and military supplies for French forces fighting Vietminh. i ¥ e | New Defense Line | The new Communist defense line Ip | stretches across Korea for 30 miles, i Just below the Chinese Reds’ field |of the Parallel that divides North |and South Korea. UN troops, rid- A bill to quadruple the tax an| < i freezer ships and other types n‘[ago e all.::tcd m.; fish value tax on such floating oper- | rhyrsday — making the total 172, ations in Alaska waters. All cold (0o since Jan. 25, when the Allies continue for E i v shore storage plants. | g g5en Infantry Divisions from Elton Engstrom. | Third Division pushed forward. The senators said the higher tax Northwest of the Republican capitol, shore plants from the standpoint of has cautioned President Syngman property taxes and other angles. |Rhee of the Republic of Korea ential is invalid under the organic’ Reds had not suffered a decisive act provision that “all taxes shauideteat in their withdrawal. demurred from issuing an opinion i . that he is pessimfStic about the ex- | ] ! pected finding of the circuit court i of appeals on the non-resident fish- | ermen’s license issue. | Steve McCutcheon suggested tha!“ the proposed new tax should stand | up in court on the basis of past de-| Lt. Gen. William Kepner has cisions on the resident and non- |notified both Houses of the Alaska resident license issue; that it is|Legislature he would “gladly accept” mainly a matter of degree. | an invitation to appear to speak on Williams replied that in view of | Civillan Defense problems, if, the recent court decisions, and In view | Defense Department approves. of the circuit court judges' com- | Kepner, commanding general of ments from the bench, the point on | the Alaska command, declared how- which the case hinges appears to be | €Ver, “I cannot appear in any de- the differential in the cost of col- | 6rée as lobbying for or against any lecting the non-resident tax. Wil- | Pending bills of the Legislature.” liams said the judges indicated a | TWo senators who opposed invit- tolerance of a non-resident differ- | in§ the general expressed the opin- entlal “but only so much more as is | o0 he would actually be lobbying represented in collecting from | for the $1100,000 Civilian Defense e, m'lll‘i-ne Senate decided to go ahead M ec 0 pas. iy ?:“‘;‘;;fhm""’kf‘ in: lon the bill, without waiting for the wob :{Zr‘ln'{:'\we fwltcr g;"'m:;ymw general’s arrival, but to ask him to nadks ré(\lnds?" 2 . come if he can by March 20, at the SWillianis: siniting, axaded: the: di- | /50085 rect question with the reply: { “I might say I'm not too happy | SIO(K ouolA"o“s about the situation.” | 2 Engstrom ventured an opinion | NEW YORK, March 16 — Closing that “we have a different type of | quotatiw1 of Alaska Juneau mine operation here than the non-resi- | stock today is 3%, American Can dent fishermen, and I think it 1071 American Tel. and Tel. 154%, should go through all right. T don’t | Anaconda 41, Douglas Aircraft 96, think we would be sticking our neck ]Gflleral Electric 54%, General Mot~ out too far.” | ors52%, Goodyear 72!, Kennecott So the Senate voted 14 to 1 to 73, Libby, McNeil and Libby 9%. stick 1. — with McCutcheon the | Northern Pacific 34%, Twentieth lone zenator voting to hold it in. | Century Fox 22'%, U. S. Steel 43, The Senate spent most of the | Pound §280%, Canadian Exchange rest of the morning in discussions | 95.56%. on whether to receive a number of | Sales today were 1,660,000 shares. House bills under suspension of the | Averages today were as follows: rules, ! Industrials 248.69, rails 8268. utili-