The Daily Alaska empire Newspaper, March 29, 1951, Page 1

I'HE DAILY ALASKA EMPIRE “ALL TIIE NEWS VOL. LXXVI, NO. 11,770 JUNEAU, ALASKA, THU! Korean Reds A ALL THE TIME” RSDAY, MARCH 29, 1951 MEMBER ASSOCIATED PRESS PRICE TEN CENTS =1 re Putting Up Stiff Resi Roden Named; Com.ofFinance For Territory Henry, Roden, treasurer of Alaska, was unanimously elected as the Commissioner of Finance for the Territory, the position set up to head the Territory’s fiscal structure under the Reorganization Act (HB 141) passed by the Twentieth Leg- islature, at the first- meeting of the Board of Administration established | by the Act, held yesterday after- noon in the office of Governor Ern- est Gruening, pursuant to the Act Chapter 122 SLA 1951 Appointment to the position Post-Auditor is yet to be made. Members of the board present at its first meeting were Gov. Gruen- ing, chairman; Senators Gunnard M. Engebreth and R. M. MacKen- | zie and Representatives William Egan and Glen Franklin, The two other members of the board, At- torney General J. Gerald Williams and Tax Commissioner M. P. Mulla- ney are absent from the city. Best Possible Choice In a press release issued by the board today it comments: “The board unanimously elected Henry Roden as the Commissioner of Finance. In selecting him it feels that it made the best possible choice in accordance with the terms of the Act, of a long-time resident of Alaska who has served the Territory conspicuously since the begzinning of Territorial Government. Roden | served in the first Territorial Sen- | ate in 1913. Subsequently he has been active in many public causes | and has served also as President of | the Senate, as Attorney General,| and more recently as Treasurer. For years he has been keenly interested | in the question of fiscal reorganiza- \ tion of the Territory and is there-! fore, in addition to his experience, admirably ‘predisposed to the im-| portant task which has now been’| assigned to him. I Post-Auditor | “The' subject of appointment to . the important’ position of Post- Auditor came up for discussion at | the first meeting of the board, and since under the terms of the Act this appointment due until July 1, the Secretary of the Boarz | was instructed to make a thorough search in the interval so that the best possible incumbent could be | secured. | Measure Not Perfect ! ‘While we feel the measure is not | perfect, it contains many admirable ' features calculated to improve the Territory’s' condition if carried out. | Experiénce and trial of two years | will reveal what changes, if any, are | desirable and recommendations to | that effect will of course be pre-: sented to the Twenty-First Legisla- ture. “The board feels that the Legisla- | ture, in this Reorganization Act, has taken an extremely important and | historic step forward. “The minutaes of the board’s first | meeting are available to the pub- lic.” of | Comments on Act In regard to the Reorganization (Cuczinued on Page Two) The Washington Merry - Go - Round By DREW PEARSON (Copyright, 1951, by Bell Syndicate, Inc., | i I ASHINGTON.—Here are a few | facts not brought out during the | crime committee probe of the glam- | our girl of the underworld, Vir- ginia Hill: f Miss Hill first broke into prom- | inence among the gangsters when | she lived in the Chicago boarding house where Chicago’s Joe Epstein, | then a student in accounta: also lived. Virginia, a restaurant wait- ress at that time, frequently brought cofiee and cakes to the| hungry Epstein. Later, when Epstein | got out of seh be became an accountant for the underworld, also began helping Miss Eill. She became a runner for derworld, carrying money between racketeers in different cities. This was a precarious job. But Virginia was smart enough to keep an in- timate diary locked in a vault with a record of the various financial transactions, and instructions that i the un- (Continued on Page Four) End of Red § uply Rt B AR Two direct hits by napalm turn infernos after strikes by U. S. B Red supply trains into roaring -26 bombers. The Allied airmen spotted the trains on a main line runing between Wonsan and Pyong- yang in North Korea and promptly applied the torch. U. S. Air Force Photo via (P Wirephoto. CRUSADE ON CRIME GAINS MOMENTUM By Associated Press The crusade against crime, spear- headed by the Kefauver Committee and other agencies, gained momen- tum today as a National Protestant group urged church action to strengthen the country “moral fibre.” Hailing the official crackdown on organized crime, the National Coun- cil of Churches of Christ in the U.S.A., asked churches everywhere to help halt the “moral delinquency in our society.” The council’s interim policy-mak- ing general board condemned ‘‘so- called ‘innocent forms’ of gambli such as “legalized race track wagers, lotteries, bingo and the like.” Swelling the national crime-bust- ing campaign was an order by New York Gov. Thomas E. Dewey calling for a grand jury investigation 'cf gambling at Saratoga Springs, N. Y., a racetrack spa. Dewey also said he would set up a state-wide crime commission to study the responsibilities of the state and local governments in law enforcement. In Washington, Republican mem- bers of the Senate Crime Probe Committee were working to extend the life of the committee, which ends this Saturday. Senators Wiley (R-Wis) and To- bey (R-NH) said they hope to get committee-extension approval from the Senate. The committee’s chairman, Sen. Kefauver (D-Tenn) says the com- mittee already has dug up enough information on which to base legis- lation aimed at uprooting organ- ized crime. SEATTLE VISITOR D. M. Ward of Seattle is at the Baranof Hotel. STOCK QUOTATIONS NEW YORK, March 29 — Closing | quotation of Alaska Juneau mine stock today is 3, American Can} 11%, American Tel. and Tel. 153, Anaconda 38%, Douglas Aircraft 96, General Electric 54'4, General Motors 51%, Goodyear 71'z, Kenne- cott 73%, Libby McNeill and Libby 9, Northern Pacific 327, Standard Oil "of California 45', Twentieth Century Fox 21%, U. 8. Steel 41%, Pound $2.80%, Canadian nange | 95.18%. Sales today were 1,300,000 Averages today were as Industrials 246.90 rails ties 42.39, sh: follow 79.73, utili-| PRESIDENT OF FRANCE OKEHS NAT. Also Says French People Will Defend Themselves Against Aggression WASHINGTON, March 29 —®— today pledged President Truman “all out support” of the North At- lantic Treaty Organization. He also said the French people are determ- ined “to defend themselves against foreign aggression.” Auriol and Mr. Truman had a | conference in the cabinet room of the White House, Auriol spoke in French and Mr. Truman in English with interpreters translating their remarks. The White House announced, aft- erward: “Remarks of the President of the French Republic included a state- ment that the French people were determined to defend themselves against foreign aggression and that, in this- spirit, they were giving all out support to the North Atlantic Treaty' Organization.” President Auriol pledged his na- tion and its people will “do all within our power not only to resist aggression, should it occur, but to deter it and save the peace.” He asserted any charge that the French will not fight to repel ag- gression is “an insult as cruel as it is unjust.” The French chief of for his country in an pared for a National luncheon. FOREST SERVICE MAKES Changes in personnel were: an- nounced at the U. S. Forest Service { regional office today. Glen Kirkham has been appoint- ed to the post of property and sup- ply clerk in the regional office re- placing Ed Sweeney. Rodger Pegues will replace Kirkham as property and supply clerk for the Admiralty Division. Mrs. Walter Johnson has been appointed to the payroll di- vision of the fiscal department. Ed Sweeney has been appointed procurement officer for the Office of Price Stabilization and said today he will take over his new duties Monday, April 2. CAA MAN HERE Walter Berklund with the CAA at Anchorage 1is stopping at Gastineau Hotel. President Vincent Auriol of France | CHANGES IN PERSONNEL} HUGE VOLUME FOOD PRICES WILL BE CUT New Method of Controls Announced by OPS-De- creases Not Increases WASHINGTON, March 29 —(®— The nation’s retail and wholesale grocers today set about shifting & huge volume of food items — cost- ing the public $20,000,000,000 a year —to a new method of price controls They are under government orders to complete the transfer between April 5 and April 30. The Office of Price Stabilization (OPS) announced three regulations last night, putting about 60 per cent of all foods under fived “mark- up” percentages which the agency said are those in effect before the Korean outbreak. A grocer adds the “mark-up” percentage to his cost in order to determine his ceiling price. What It Means Here is what the new means to the country: First it means a great many up and down movements in food prices, depending on the store, the locality, and the kind of food. Price Director Michael V. DiSalle said “We are sure that there will be more de- creases than increases.” That was cheerful news for the housewife, but DiSalle added that “a large part” of the net reduction in prices may be cancelled out if farm prices continue to move up. Under present law, the wholesale ! and retail prices of most (oodl system products, must be allowed .to. rise when necessary. to reflect higher farm ‘prices. Ceiling Prices Second, the new system means that DiSalle’s OPS now has paved the way for definite dollars-and- cents ceiling prices, figured by the district OPS offices and posted on big charts in the stores. OPS officials said this was single most important aspect™ {last night’s action. g three regulations “the of cover J canned goods, baby foods, flour, co- | could receive the death penalty, are | the outlay needed for defense will coa, coffee, tea, breakfast cereals, shortening, frozen foods, crackers, jams and jellies, syrups, and many other items. They do not cover fresh meats, fresh fruits, fresh vegetables, sugar, | the death penalty, however, during $10,000,000,000 more than had been milk, bread, ice cream, candy, soft drinks, or alcoholic beverages. PULP MILL SITE ROAD, KETCHIKAN IS RECOMMENDED Army Engineers Also Give Approval to Waterway Project at Sitka PORTLAND, Ore., March 29.—(P —Army engineers have recom- mended a $1,1136C0 navigation channel to a pulp mill site near Ketchikan—if and when such a mill is “definitely assured.” O. E. Walsh, North Pacific Divi- sion engineer, announced the ap- proval of this proposed project and two others near Sitka. The Ketchikan project would in- clude dredging a channel 70 feet wide and 12 feet deep through seven }shoal areas between El Capitan Pas- 4 sage and Shakan Strait. The en- gineers' recommendation specified it should not be undertaken unless a pulp mill is assured at Ketchikan or “such other locality in_ that area as will require use of the pro- posal improvement.” One Sitka project calls for dredg- ing and rock removal to provide a; channel 260 feet wide and 24 feet deep through Whitestone Narrows at an estimated cost of $176,000. The other would provide a small boat anchorage by dredging the Forest Service basin and its ap- proaches to 10 feet at a cost of $32,560. The recommendations merely “find justification” for the projects. | are sent to the Board of sineers for Kivers and Harbors in Washington. Actual -construction | | 1 D i Ache;on_ Add;gsss FoaréignA Ministers Secretary of State Dean Acheson (at rostrum) urges foreign ministers of the American republics to take immediate action to meet a menace posed by international communism. His was the keynote speech of the first regular session of minists U. 5. ATOM SPY TRIAL CONVICTS 3 NEW YORK, March 29 —(®—Two men and a womah ‘were convicted today of ' passing wartime atomic secrets to Russia in the first atom spy trial in the United States. ‘The jury returned its verdict at 11 a.m. EST, after seven hours xmclI 18 minutes of deliberation. The convicted defendants, who Julius Rosenberg, 34-year-old elec- trical engineer; his diminutive, dark haired wife, Ethel, 35, and Radar Expert Morton Sobell, 33. The prosecution did not ask for the summation. . ‘The jury had. weighed the fate of the three defendants for one hour ang two minute$ today after] being logked up for the ' night«at| 12:40 this morning. " The frfo was accused’of relaymg atom seérets to “an intetnational Red spy, ring headed by Klaus Fuchy until jhis 'arrest’ in England early last year. The secrets, the govern- ment contended, included drawings | of the atom bomb dropped on Na- gasaki, Japan, in 1945. ‘The govérnment's star witness in the sensational case was David Greenglass, brother of Ethel Rosen- berg. Greenglass, who pleaded guilty to the espionage indictment, is awaiting sentence for his part in the plot. Only Mrs. Rosenberg showed any sign of emotion as the verdicts were announced. She shook her head slightly, then stared grimly at_the floor of the couriroom. Sobell and Rosenberg sat calmly in their chairs,” staring intently at the jurors. Federal Judge Irving R. Kauf- man, after congratulating ‘the jur- ors and extending “deep gratitude” for their services, said: “I must say as an individual that I cannot be happy because it is a sad day for America.” Turning to the defendants, jurist said: “That citizens should'lend them- selves to the destruction of their own country by the most destructive weapon known-is so shocking that the I can’t find words to describe the; loathsome offense.” He then fived April 5 for im- position of sentences. STEAMER MOVEMENTS Denali scheduled to sail from Seattle 4 p.m. Friday. Princess Norah scheduled to ar- rive from Skagway at 8 a.m. Friday sailing south ‘one hour later at 9. Baranof scheduled to arrive from the | would await authorization by COn-jWestward Sunday morning south- bound, ers’ conference in Washington, D. C, # Wirephoto, 2udael May |SKINNER TELLS Budgef May WHY RATES ARE Increase by | 60iNG T0-RIE Ten Bi"mn Steamship Official Gives Rl Cost Figures af Chamber WASHINGTON, March 29 —(@— of Commerce Meet Price increases and program re- visions may add $10,000,000,000 to the defense ' budget for the next D. E. Skinner, vice president and S - {ance OFFENSIVE INDICATED, RED FORCES {Hardest Action in Weeks Takes Place Western Front-Push to 38th By Associated Press Chinese Communist troops clung tenaciously to a foothold south of the 38th Parallel today while Red China spurned General MacArthur's offer to talk peace for Korea. The Red Chinese made stiff de- fensive stands just south of the border along the Western and Cen- tral fronts, The signs mounted that the Communists were preparing a spring offensive timed to coincide with seasonal rains hampering Al- lied heavy equipment. On the Western front Thursday, the Chinese Communists fought their hardest action in several weeks. Firing from dug in posi- tions, they all but stopped the Al- lied advance, Grenade Tossing During the night, grenade tossing | Reds drove American troops off & ‘l.ooo-root crest north of Uljongbu. But the Reds mysteriously withdrew and American troops reoccupled the crest at dawn. A strong Red stand in Central Korea repulsed American patrols on a seven mile-long front. The Com- munists are fighting haifway be- tween the border and Chunchon, which is eight miles south of the 38th Parallel, i ) Push Made On the east coast, South Korean troops have pushed six miles north of the Parallel. Anticipation of a possible Com~ munist drive on the Central front was heightened by MacArthur’s Thursday communique , which said, fiscal year, Rep, Mahon (D-Texas) said today. Instead of the $60,000,000,000 mil- | itary budget foreseen by President | Truman in January, Mahon said, manager of the Alaska Steamship| the pattern of vehicular movement Company, effectively justified the|in enemy areas indicates a contin- need for increased freight rates to|ued effort to support a strong con- Alaska in a talk to members of | centration behind the Central the Juneau Chamber of Commerce | front.” Pyongyang Bombed at a regular meeting in the Baranof Hotel this noon. He gave a detailed report of what has happened since December, 1948, when the company announced its objective of maintaining freight rates without an increase. He cited economy measures that have been instituted and said: “Despite our endeavor to hold the line, rising costs have defeated our plans. Dur- ing 1949 our net result was $60,000 in the red, Last year, 1950, resulted in a $17,000 profit. Considering the approximate $14,000,000 gross rev- enue each year it is obwious that the operation cannot be considered financially sound. In short, it will | be necessary for us to ask for in- i creased freight rates to BSoutheast { Alaska which will increase revenues akout 20 per cent. Look At Cost “Let's look at the cost of govern- |ment in the Territory of Alaska. . I. has increased about 95 per cent blackeodding are Dan Twiet onthe iy the period since 1947, excluding Solar, Norman DeRoux on - the|special appropriations of an emer- Ocean Cape, Orin Addelman on the [ gency nature.” Dolores J., and Jack Crowley on| The steamship man pointed out the Lassie. that cargo-working costs had risen [ Tom Ness of the Emma and Ole|to the point where they consume | Westby of the Pelican are both ill (7773 per cent of the revenue dollar in a Seattle hospital and may not|in &. E. Alaska trade and 59.58 per be able to fish this season as|cent in' S. W. Alaska trade. These planned. |include all charges pertinent io {loading and unloading cargo, he ® | said. ® | “Freighter crew costs, which com- '!pnw about 25 per cent of our ex- ® | pense, have increased approximately ® |76 per cent since 1947. During this ®|time where there was no rate in ® | creases in the general Alaska trade, ® | rates advanced about 22 per cent ® | in the Hawaiian Island trade. West- ® | ern railroads received a 37.5 per ® | cent incre with a further in- ® crease of 2 per cent in the west ® and 4 per cent in the east effec- ® tive April 1. e Rates to S, E. Alaska | lbe closer to $70,000,000,000. Mahon is chairman of the House Appropriations Subcommittee which handles the defense budget. . But while the 1952 budget may be expected, he told newsmen, Con- gress may bo able to get by the lance of this fiscal year on $3,- ,000,000 les: than had bec: indi- cated. The present fiscal year ©nds on June 30 and indications have been that an extra $10,000,000,000 would be requested for ‘military purposes before then, FITZPATRICK BACK Larry Fitzpatrick, master of the halibuter Ruby has returned from Seattle and plans to leave soon to igo blackcod fishing in outside waters. Other fishermen leaving to g¢ WEATHER REPORT Temperature for 2d-Hour Perlod ending 6:20 o'cluck this morning In Juneau Maximum, 38; minimum, At Airport 37; minimum, 29. Maximum, 27 FORECAST Increasing cloudiness to- night becoming mostly cloudy with occasional light rain Friday. Lowest temperature tonight near 34 deg. Highest Friday near 40. ® | The rate increases filed for will ® [ apply only to points in 8. E. Alaska, ® | skinner said. “It is our intention ® | to make our operations self-sustain- ® |ing by areas. No area should sub- ® | sidize another area just as no pro- ® | Guct should subsidize another pro- ® ! duect. It may be claimed by our critics, and we have them, that we | are ignoring 8. W. Alaska because PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau—24 inches; Since March 1—6:99 inches; Since July 1 — 57.89 inches. At Airport — .17 inches; Since March 1 — 3.78 inches; Since July 1-36.26 inches ® 0 0 00 0 0 0 0 . . s ik - . (Continued on Page kizht) i AR AR <Rt st S. B-50s bombed airfields around the Red capitol of Pyong- yang for the second day. On the international scene, west- ern sources were encouraged today by Russia’s new proposals at Paris for a Big Four foreign ministers meeting. A scheduled meeting of the dep- uty foreign ministers was delayed until tomorrow while the west studied the latest move by Soviet Deputy Foreign Minister Andrei Gromyko. Gromyko's latest proposal agreed for the first time to include “the level of armaments” of the Big Four on the agenda. At the same time, Russia continued to demand a discussion of arms reduction by the four powers. TOPROBE FIRING ON TOURISTS BERLIN, March 29 —»—U. 8. and Russian authorities arranged tentatively to meet late today to discuss the firing by East German Communist police yesterday on a sightseeing convoy of 73 Americans in Berlin’s Potsdamer Platz. Maj. Gen. Lemuel Mathewson, U. S. commandant, asked for the meet- ing with Sergei Dengin, head of the Soviet Control Commission for East Berlin, to register a formal protest. American officials said the issue at stake is she right of AllieG per- sonnel to travel with safety in four- power Berlin, including the Russian sector. The East police opened fire on a convoy of American Army busses carrying tourists, including women and children, on a regularly sched- uled sightseeing tour of the city. ‘Three shots punctured one of the busses but no one was hit. MARGARET COLLINS HERE Margaret Collins, trader from Yakutat, is stopping at the Gastineau Hotel,