The Daily Alaska empire Newspaper, May 8, 1951, Page 1

VOL. LXXVIIL, NO. 11,904 THE DAILY ALASKA EMPIRE "ALL-TUE NEWS ALL THE TIME" DAY, MAY 8, 1951 JUNEAU, ALASKA, TUI MEMBER A PRICE TEN CENTS — | SSOCIATED PRESS | UN Troops Barred From Nearing Russ Border Alaska Steamship Co. Asks For Constructive Suggestions From Governor in Strike Threat Declaring the Alaska Steamship Company staff “ready, willing and able to work” with Governor Gru- ening, and asking him for construc- tive suggestions now that may as- sist in solving an impending strike threat, D. E. Skinner, general man- ager of the Alaska Steamship Com- pany has written an open letter to the governor of Alaska. The letter is dated Seattle, May 4 and in it Mr. Skinner asks what should be done in view of the un- ion's demands. The letter is as fol- lows: 5 Hon. Ernest Gruening, Governor of Alaska, Juneau, Alaska. (a) 1947 wage levels and other operating costs; (b) The benefits of Public Law 12 and the “Interim Contract” in- cluding nominal charter hire on government vessels, and govern- ment assumed hull insurance. 4. Since 1947 and the expiration of the “Interim Contract” we have been required to pay— (a) Increases in labor costs ex- ceeding 75 percent. (b) Charter hire for the use of Government owned vessels exceed- ing $480,000 annually. (¢) Hull insurance exceeding | $550,000 annually. You attacked the 1947 rates | filed by all the carriers under the ¢ " | “Interim Contract” and after long d:l{-avmg L m.mtd 3iur M;len d;'}and expensive hearings the Mari- ed sincere interest in all prob-|¢jme commission found such rates lems vital to the Territory of Al-| o Leasonable and lawful Dear Sir: aska, and particularly those xela»[ ting to water transportation, I am | taking this early opportunity of| advising you of a serious problem | now confronting this company and its possible effect upon the people, businesses and industries, and the National Delense Program of the Territory. The International Longshoremen'’s | and Warehousemen's Union has re-| cently voted to go on strike June| 15 unless its demand for a 30cents | an hour increase in wages, pensions and welfare benefits is met by the Pacific Maritime Association, the authorized maritime labor bargain- ing representatve for all steamship | operators on the Pacific Coast. | As you are aware, we were re- cently compelle.! to file Lariffs reflecting increases in freight rates and passenger fares. Such increases were made necessary largely as a result of just such regular, if not virtually continuous, demands from labor. We point out, however, that the recently filed tariffs do not take into account or make allow- ance for ‘the labor costs involved in the Union’s present demand. In bringing this situation to your attention we are very conscious of the disastrous consequences which would necessarily accompany a dis- ruption of water transportation service to and from the Territory— | especially in these critical times. We also recognize that another | round of wage increases would be detrimental to the Territory's pres- ent important activities well as to its economy generally. Consider these facts— 1. The 10 cents an hour increase in the wage pattern established last year (1950) increased this com- pany’s annual labor costs by ap- proximately $600,000. Accordingly the recent demands which we now face would, if met, further indrease our annual labor costs by an ad- ditional $1,800,000. Simple arith- metic demonstrates that thé 10 cents per hour increase in 1950 plus the 30 cents per hour increase now demanded would produce an aggregate increase in our annual labor costs of $2,400,000 over 1949 labor costs. 2. In common with other bus- inesses, all of our other operating costs (aside from labor) have sub- stantially increased. 3. Except for a decrease in the rate on groceries and increases in the rates on fisheries products which you have continuously and strenuously urged, our present rate structure is based upon: The Washington Merry - Go- Round By DREW PEAESON (Copyright, 1951, by Bell Syndicats, Inc.. ASHINGTON. — It isn't often| that the newspaper denials issued | by high public officials catch up to them so quickly as is now shown | by the MacArthur Senate hearings.| You attacked the subsequent in- creases in rates on fisheries traffic, despite your constant protests that such rates were too low. Within the past few days you have filed a petition with the Mar- itime Board requesting suspension of all rate increases and asking for extensive public hearings. While we welcome public hear- ings since they afford an oppor- tunity of getting at the facts un- der oath, we do object to the heavy expense which such hearings en- tail and which must ultimately be borne by our customers. We are vitally interested in any reasonable suggestions and con- structive criticism that will contri- bute fo an !ntelligent solution Alaska water transportation prob- lems, but such suggestions and criticism cannot be helpful when the basic facts and problems of the arade are ignored. Our mest immediate problem is— shall we resist the Union’s present demand to the point where a strike results, or shall we give in to those demands? If we resist, we presume that you will charge us with being “inefficient” and if we give in, we presume you will charge us with with being “wasteful.” The opportunity is now at hand for you to lend your assistance in solving this difficult problem, and | we earnestly request that you give it your attention in the hope that an intelligent solution will prevent increased costs and therefore, fur- ther increased rates. We would welcome and appreci- ate constfuctive suggestions now rather than criticism later, and our staff is ready, willing and able to work with you. Very truly- yours, Alaska Steamship Company D. E. Skinner, Generdl Manager GAMES TODAY Chicago —(#— Bobby Shantz reg- istered his first 1951 victory here today as the Philadelphia Athletics trounced the Chicago White Sox, 9 to 4, to salvage the final of a three- game series. ’rhe Athletics pounded out 13 blows, topped by the homers of Eddie Joost and Ferris Fain. Brooklyn —(P— Hank Sauer’s two-run homer in the first inning and Rookie Bon Schultz’s nine-hit pitching gave the Chicago Cubs a 2-1 victory over the Brooklyn Dodg- ers today. It was Sauer’s fifth homer of the year. Three night National games. HANFORD RETURNS Fred Hanford, Territorial direc- tor of the Office of Price Stabiliza- tion, returned yesterday from Fair- banks where he had been setting up an OPS branch office. He an- nounced that Charles W. Preston, Jr. had «been named branch man- ager for the Fairbanks offite. Usually a newspaperman’s word counts for little compared with that| of a cabinet officer, the President| or a general—especially a general| as high as Douglas MacArthur. | However, the Senate hearings have| now shed interesting light on some of these denials. Here are a few illustrations: | 1. Home By Christmas — When | the Associated Press cabled from | Korea that MacArthur had made| a statement promising to bring | American troops home by Christ- | T (Continued on Page Four) lcity. GOVERNOR DUE Governor Ernest Gruening was due to return to Juneau today from Washington, D. C. where he has been for several weeks on defense matters for the Territory. SUSAN HELGESEN BACK After three years in the states, Susan Helgesen, daughter of~Mrs. Gertrude Boggan, returned home Sunday. She has recently been do- ing secretarial work in Salt Lake FAVORABLE REPORT ON STATEHOOD WASHINGTON, May 8 — Chairman O'Mahoney (D-Wyo) of the Senate Insular Affairs com mittee filed favorable reports today on the Alaska and Hawaii state- hood bills The reports, authorized by the committee a month ago, said state- hood for Hawaii would be in the “best interest of the nation as a whole as well as the half-million American citizens of the Territo Statehood for Alaska, it said, is advisable from the standpoint of national defense, foreign relations and economic development. Bills to grant statehood to the two Territories were passed by the House last year but not by the Sen- ate. This year, statehood proponents are seeking Senate action first. Report on Alaska The report said Alaska has been a Territory for 83 years — “longer than any other area under Ameri- can flag that has not attained statehood.” It listed three major reasons why the committee believes statehood should be granted at this time: Na- tional Defense. 2. Foreign Rela- tions; 3. Economic Development. Although recognizing that ad- mission to the Union would not off-! set such military problems as vast, distances and the weather, the re-} port said that military advantage would accrue through the stabiliza- tion of government and increased growth which would result. Testimony Cited I. cited esumony by State De- partment witnesses that statehood for Alaska “would be an act in ful- fillment of obligations assumed by ! the United States under the charter of the United Nations.” Granting of equal status through statehood to Alaska would enhance ¢ our position with peoples of other countries, it said. While Alaska 1§ well known for its gold and furs, the committee said it has even (Cuctinued on Page Two) JUNEAU AIRPORT | MAY GET FUNDS | FOR IMPROVEMENT! WASHINGTON, May 8 — (# — The Federal Government will con- tribute $991,037 toward development or improvement of 22 airports in the Pacific Northwest and Alaska in the 12 months beginning July 1 il Wélcp Koreafleilsj . Girls, high brass, felow serviceemnt and streaming fireboats all combine to welcome the first shipload Soldiers crowd rails of tranport Gen. of Army veterans of Korean combat home on new rotation plan. e —————— med Home ORDERS ARE STRICT ON WAR MOVE Marshall Gives More In- formation on Conduct in Korean Fighting 'DEATH BLOW" TALK IS MADE BY PRESIDENT Truman Discusses Propos-| als Made by MacArthur ~Atomic War Feared WASHINGTON, May 8 — (M — President Truman sought to con- vince his countrymen last night that Gen. Douglas MacArthur's Korean war proposals might provoke an-{ other World. War and “Death Blow” atomic attacks on America’s great cities. Today he observed his 67th birth- day and the sixth anniversary nLl his proclamation of victory over WASHINGTON, May 8 — (A — Secretary of Defense Marshall testi- fied today that UN troops in Korea are barred from approaching within 15 miles of the Russian border. In his second day of testimony on the ouster of Gen. Douglas Mac- Arthur, Marshall said also that MacArthur had been ordered to confine his operations to Korea “and | under no circumstances to carry out Nazi Germany, awaiting reaction to | his declaration that victory can be won in Korea. The first comment from Republican senators was to the Le Roy Eltinge as it pulls into pier at Seattle. » Wirephoto. The Windup Handshake ALLIES IN PUSHNORTH, LONG LINE Patrols Huan;r Vanishing Reds-Commie Build- up Is Reported By Associated Press Allied troops today pushed cau- tiously north at both ends of the 100 mile Korean front for the sec- ond consecutive day. Patrols hunted in the vacuum be- tween these points for vanishing Red troops. Far north of the the- oretical battle line, pilots reported new Communist build-ups in Red Korea. The current limited offensive is in the hands of UN troops. For the second successive day an armored colymn rumbled unopposed into the hub city of Chunchon, 45 miles northeast of Seoul. Patrols jabbed north into Red defenses but elsewhere found no Communists. Build-up Reported South Koreans fighting above the 38th Parallel battled a Communist battalion east of Inje. Northwest of this Red-held city airmen reported a “considerable bufld-up” of Red Gen. Douglas MacArthur (right) and Sen. Richard Russell (D.-Ga.), chairman of the Senate inquiry into Far East policies, shake hands after the five-star general wound up three consecutive days of tes- |, tifying before Senators on his foreign affairs views. (P Wirephoto. Lt. Gen. Van Fleet, 8th Army N commander, visited the western if Congress will provide the money, the Commerce Department reports. The department submitted to Con- gress its list of the projects, includ- ing 21 in Washington, Oregon and Idaho and one at Juneau, Alaska. Local sponsors’ matching shares would total $641,973, the department said. The projects include only those which the Civil Aeronautics Admin. istration rates Class Four or larger. Airport expansions, new buildings, runway improvement installations of lights and other work are pro- posed. The department said the projects should be undertaken during the 1951-52 fiscal year. However, if this is not possible, they will be pro- posed for the following year. The list, with local sponsors’ matching share and the proposed Federal contribution, includes: Alaska — Juneau, $100,000 and $300,000. e o 0o 0 0 0 0 0 0 WEATHER REPORT Temperature for 24-Hour Period ending 6:20 o'clock this morning In Juneau — Maximum, 54; minimum, 38. At Airport — Maximum, 58; minimum, 37. FORECAST Cloudy tonight and Wed- nesday. Lowest temperature tonight about 44 degrees. Highest Wednesday about 54. PRECIPITATION (Past 24 hours ending 7:30 a.m. today City of Juneau — .09 inches; Since May 1 — .34 inches; Since July 1 — 68.39 inches. At Airport — Trace; Since May 1 — .16 inches; Since July 1 — 39.43 inches. e e 0 0 00 0 00 { front to award the U. S. Presiden- effect they’ll have to be shown. H Mr. Truman took a personal hand in the administration drive to rally public support for his course with | a Foreign Policy speech to some | 800 civilian defense workers here | last night. | Possible ‘“Death Blow” He declared that to expand the| Korean war, as the general he ousted | proposes, would bring the “real pos- sibility” of Russia launching “death blow” atomic attacks on New York, Cleveland, ,Chicago, Seattle, Los Angeles and Washington and other cities. On the other hand, he said, the; free nations have stopped the march | of Communism in Asia and “dealt | a heavy blow to the Kremlin con-| spiracy” all over the world by their | fight in Korea. Atomic War Next “Remember this,” Mr. Truman | said, “If we do have another World | | War, it will be an atomic war. We could expect many atomic bombs to be dropped on American cities, “And a single one of them could | cause many times more casualties | than we have suffered in all the | fighting in Korea. “I do not want to be responsible | for bringing that about.” i Mr. Truman did not refer by name to MacArthur, who has advocated | air action against Manchuria, a Naval blockade and use of Chinese | Nationalist troops on Formosa against the Chinese Reds. Hits at Republicans ! Supporters of MacArthur — most- | Ily Republicans — plainly were the | targets of this assertion: “We are right in the midst of a big debate on Foreign Policy. A lot of people are looking at this debate | as if it were just a political fight. | | But the stakes are a lot more im- | portant than the outcome of an/ E “modification” “in the event that our forces were | tions about operatior near operations beyond the border of Korea into Manchuria.” There is every indication these orders have not been changed and still restrict the operations of Lt. Gen. Matthew B. Ridgway, MacAr- thur's successor as Pacific com- mander, Bombing Retaliation However, Marshall said there was in the restrictions ' attacked outside of Korea—to the effect that he (MacArthur) was au- thorized to retaliate in bombing against such operations.” Marshall, who like MacArthur is a five-star general, testified before the Senate Foreign Relations and Armed Bervices committees. They are making a general inquiry into MacArthur’s dismissal from his Far Eastern commands and the policy differences which led to it. The caution against giving the Russians any reason to raise ques- their border was touched on earlier in the hearings. Border Restrictions MacArthur, in the witness chair last week, complained he was never allowed to bomb a North Korean supply center because of its proxi- mity to the Russian border. This was the town of Rashin (Na- jin on some maps) in northeast Korea. Most of Korea borders on Manchuria, but an area in the northeast joins Russian border. Marshall sald MacArthur was “cautioned against having units within, T think it was, about 15 miles of the border in northeast Korea where it touched the perimeter of Siberia, the Soviet government.” Manchurian Coast Protected He added: “The restrictions did not apply to operations by the Navy on the water along off the coast of Korea, but | those were restricted, in other words, forbidden, in relation to the Man- churian coast, the China coast, and Adiress Mary A;ior Atiempls Suicide HOLLYWOOD, May 8, — ® — Actress Mary Astor attempted sui- cide early today but her condition was described as good after hospital | treatment, police reported. Police officers R. O. Ernst and D. R. Gardner said they were called to her suburban Encino home and found her unconscious on the floor of a bedroom. The officers said sleeping pills were strewn about. They listed the case as “attempted suicide.” Body, Missing Woman, Found The body of Mary Adams, missing from the steamer Denali, was found near here today by two trolling | boats, the Edrie, skippered by Ken Millard and the Wild Bill, skippered by Cliff Mason. The fishermen con- tacted Juneau by radiophone and sent a message to U. S. Commis- sioner Gordon Gray. Gray and Acting U. Marshal Walter Hellan went to Auk Bay to meet the boats taking the body here Identification of the body as that of Mary Adams was determined by a steamship ticket and marriage cer-| tificate found in a small overnight bag which was strapped to her waist. The bag contained about 35 pounds of toilet articles. She was dressed in black peddle pushers. Millard and Mason found the body floating close to Outer Point on north Douglas Island. An inquest was to be held today at 3:30 p.m. The body is at the Carter mortuary. The woman was reported missing from the Denali upon arrival here early last Sunday morning. The woman had purchased a ticket in| Seward for Juneau. The woman was about 40, small, light complexion and with light hair. She weighed | Century Fox 20%, U. S. Steel 45%, about 135 pounds. Pound $2.80%, Canadian Exchange The Juneau police was active in|94. tracing the whereabouts. 2 Sales today were 1,600,000 shares. Ralph Martinson received the| Averages today were as follows: radio call and immediately notified | Industrials 261.10, rails 85.03, utili- 8. PUCKETT HERE L. M. Puckett of the Bureau of Land Management from Anchorage, is stopping at the Baranof Hotel. FROM KODIAK Mr. and Mrs. Vic Ellis of Kodiak are registered at the Baranof Hotel. STOCK OUG:ATIONS NEW YORK, May 8 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 113, American Tel. and Tel. 1557, Anaconda 43%, Douglas Aircraft 103%, General Electric 56, General Motors 556%, Goodyear 78, Kenne- cott 77%, Libby, McNeill and Libby 9%, Northern Pacific 39, Standard Oil of California 49%, Twentieth tial unit citation to the heroic British Gloucestershire regiment. Ground Regained United Nations trooops already have regained about half the ground lost in the Communists’ spring of- fensive that fizzled. Allied officers on the western front reported the Chinese and North Korean Communists are bit- terly disappointed in ot having had sufficient tanks and planes to make their spring drive successful. Associated Press Correspondent John Randolph quoted one officer as saying: Two Solutions “If they aren’t deliberately hoard- ing their heavy stuff up north (in Manchuria) there are only two so lutions — either they couldn’t cros the Yalu river, or else the Russians welched on their promises.” Alljed officers sald that Red of- fensive preparations indicated they had expected both armored support and air cover. Roads were widened. Air fields were put in condition. But the support did not develop. The infantry carried the full burden of the attack. More than 80,000 Com- munists were killed or wounded in | the offensive which began April 22. PRINTER TO ARMY Murlin Everson, of Wrangell, was through Juneau today, leaving on the afternoon flight of Pacific Northern Airlines for Fort Rich- ardson where he will be inducted into the Army. Everson was mechanical superin- tendent for the Wrangell Sentinel. VOLNEY RICHMOND HERE Volney Richmond of the Northern | Commercial Co. of Seattle is reg- Commissioner Gray. ties 42,52, istered at the Baranof Hotel. i election. 'the thing that is at stake | |in this debate may be atomic war. U. 8. Foreign Policy “Our Foreign Policy is not a po- | litical issue. It is a matter of hre: and death, It is a matter of the fu- | | ture of mankind.” ! | For the United States to “go it | ( alone” in Asia, he said, could wreck | the whole free world security sys- | tem, including the UN and the most specifically the northeastern tip of Korea in close proximity to the Soviet border.” Senator Russell (D-Ga) chairman of the joint committee, asked whe- ther the restrictions originated with the Joint Chiefs of Staff or with the United Nations. Restrictions’ Discussed Marshall sald the restrictions grew out of the views of the Chiefs North Atlantic Pact. of Staff and were discussed in the MacArthur, in his Senate testi- | National Security Council. monye last week, called for an ulti- | g said those taking part in the matum to Red China—either to talk | 4;c0\sions as members of the coun- - peace or suffer military action With- | o1 wepe President Truman, Vice in her own borders. He said the| p.ogqent Barkley, Secretary of United States should be WIlling t0 | giate Acheson, W. Stuart Syming- “go it alone” if the other UNs held | o “then chairman of the Natjonal back. Security Resources board and him- Against MacArthur’s Views self as secretary of defense. «We cannot go it alone in Asia and | uppere was an intermingling there go it in company in Europe” Mr. | of political necessities along with Truman declared. | military directions,” Marshall said. i He sald if the United States is Feared Retaliation separated from its Allies, “thali .ppere wasan agreement that not would be a tremendous Soviet vic only were these restrictions neces- tory.” sary in order to avoid a break with “We do not intend to fall into| or Ajlies and a complete confusion that trap,” Mr. Truman said. ! in our relations tq the UN and spec- “I do not propose to strip this|sica)y the Security Council (of the country of its Allies in the face of | yN), but they also felt it would be Soviet danger.” | riecessary in regard to the retalia- On point affer point, the Presi-|yon tnat could be carried out by dent took issue with MacArthur's | heavy force if they developed on A the Communist side.” | The committees are holding all STEAMER Momms their hearings behind closed doors. A stenographic report of the testi- Princess Loulse from Vancouver due at 4 this afternoon and sails | { mony is given to news reporters but first goes through a military and a State Department censor for dele- for Skagway at 11 tonight. South-| ¢io of statements they believe bound sometime Friday. | might injure the national interests Denali scheduled to sail rrom‘ if made public. Seattle Friday. | The censors deleted 12 lines from Baranof from westward scheduled s lAnut.hhmmd Sunday morning. (Continued on Page Two)