The Daily Alaska empire Newspaper, May 11, 1951, Page 1

VOL. LXXVIIL, NO. 11,807 Alaska Property Tax Upheld By Circuit Court Ballyhoo "Atomikit” REVEAL NOTE TRUMAN SENT MacARTHUR WASHINGTON, May 11 — B — President Truman told Gen. Douglas MacArthur last Jan. 13 that Korean war policy must be designed to keep the support of Allies whom “we would desperately need” in case of | war with Russia. | This was contained in a message sent by the President as a follow- up to a set of 16 possible courses of action the Joint Chiefs of Staff had dispatched to MaeArthur the previ- ous day. The text of the President’s mes- | shge, in paraphrased form, was read by Secretary of Defense Marshall i to Senate committees inquiring into | MacArthur’s dismissal as Far East- | ern commander. i At the outset, the President said | his telegram “was not to be taken in any sense as a directive.” He £ added that “its purpose is to give | you something of what is in our | ™ minds regarding the political f‘"'l, tors. | Earthq Consolidation UN At one place the Presidential message read: ‘[ their town, flee the scene of destruction. “Our courses of action at this Residents of Jucuapa, El Salvador who survived the series of earthquakes which virtually destroyed t An estimdted 1,000 persons were killed and thousands mere injured by the quakes that rocked southeastern sections of El Salvador (P Wirephoto. < - o JUNEAU, ALASKA, F RIDAY, MAY 11, 1951 uake Survivors Flee Town RENEWAL OF §3| RED ATTACK INDICATED e’ time showld be such as ‘to consoli- j — date the great majority of the United Nations, This majority not merely part of the organiza- tion but is also the nations whom we would desperately need to count on as Allies in the event the Soviet ‘Union moves against us.” Sen. Hickenlooper had suggested the United States was risking: a clash SR B Ak W Fot AR tuan to a western European defense force. He wanted to know why “a similar calculated risk” was refused in the Far East — meaning why not adopt the MacArthur program of step- ping up the war against China? Press for Message Since Marshall first referred earl- jer in the hearings to the Presi- dent’s Jan. 13 message, some mem- bers of the Senate committees had pressed to get the text. " They contended the communica- tion was of major importance in re- lation to the question of how much information was given to MacAr- thur as to the thinking and decisions of Washington policy-makers. The President told MacArthur | COM. OK | LIQUOR TAX - TOBEUPPED; y o WASHINGTON, May 11 —u# — { The House Ways and Means ¢tom- | mittee today tentatively approved ia $250,000,000 increase in Federal ! axes on liquor, beer and wine. The rate on whiskey and other | hard liquor would rise from $9 to | $10.50 per hundred proof gailon. | Beer, now taxed at $8 a barrel, { would pay $9. The increase on wine would vary | from a 2-cent-a-gallon hike on light | wines to a 25-cent increase on those containing more than 22 per cent i alcohol. ! champagne and other naturally that “in the worst case, ‘t_ w.ould | fermented sparkling wines would be be important that if we must With= | e 0y thacants s half pint in- draw from Korea, it is clear to the j oo o ppe brecent 15 cents. world that that course 1S force(; | Ineach case, the rate increase was upon us by military necessity a0 | oo tpan the administration had that we shall not accept the result proposed. The treasury had recom- politically or militarily until the 881, ) 4eq raising the tax ons hard gression has been rectified.” Then Mr. Truman said: “In reaching a final decision about Korea, I shall have to give con- stant thought to the main threat from the Soviet Union and to the need for rapid expansion of our Armed Forces to meet this danger.” Thanks MacArthur In concluding his message, Mr. Truman told MacArthur: “The entire nation is grateful for ! your splendid leadership in the dif- Ticult struggle in Korea and for thef superb performance of your forces under the most difficult circum-| stances.” Mr. Truman’s communication m“, MacArthur also said: «Further, pending the buildup of (Continued on Page Two) The Washington Merry - Go - Round By DREW PEARSON (Copyright, 1961, by Bell Syndicate, Inc., ASHINGTON. — Secretary of the Treasury Snyder has now ap- pointed an A-1 man, J. B. Dunlap, | liquor to $12 a gallon and on beer to $12 a barrel. MORANIS SENTENCED 0 5 YEARS NEW YORK, May 11 —(®—James . Moran, close associate of former | Mayor William O’Dwyer, was sent- enced today to a maximum five years in prison and fined $2,000 on a charge of giving perjured testi- i mony before the U. S. Senate Crime committee. | Moran, a former deputy fire com- missioner, told the crime committee he met Louis Weber, Brooklyn num- bers racketeer, about a half dozen | times over a period of several years. } But witnesses at Moran’s trial in | Federal Court testified that Weber | had visited Moran at least 111 times | at his fire department office. Moran, 49, refused to. testify at 1o peaiL s poccial S8 i:‘;"fetp:r"n'f;{his trial. A jury found him guilty ing underworld income-! DS, | rhursday. Here 1 -dng Sa% ook thih:;‘gl;h The conviction was the first hexe :;l:ie :, sp;‘:;‘im;oc\f]o:n—cwune rowing out of testimony before the b rime committee. brather ab. 4 (_:apom;. nd easy| Moran was appointed to a $15,000- Johor} ;a:k;:lu"':u: h;seein?.‘ome-té\i‘ a-year lifetime post as a water com- :’efltfim S0 rreeg and easy that the missioner by O’Dwyer shortly before £ y ! signed last year to be- average businessman would be the mayor resig ast y ot # come ambassador to Mexico. i same l;;::ed up if he operated the | after testifying before the crime i ittee he resigned under pres- n 1949, for instance, Capone re- | COmmi polrr.ed a igtal income OID 523,135,‘5“"" from Mayor Vincent Impel- which he said came from “miscel- | litterl. laneous” sources. In 1948 his in-| come was $20,150, also from “mis- | cellaneous.” 1In 1946 he reported | e e (Continued on Page Four) E. D. KNOLL HERE Everett D. Knoll of the Seattle Packing Co. of Seattle, is staying at the Baranof Hotel. 0minous~S_iEns of Com- munist Chinese Forces Is Now Reported By Associated Press ‘There were ominous signs today that Communist Chinese forces are about ready for a renewal of their spring offensive in Korea. ~ AP Corr¢$pondent Robert Eunson, in a report from 8th Army head- quarters, said: “The buildups by the Reds north of Seoul and east of Kapyong con- firmed field commanders’ beliefs that the Reds' next drive would come in two moves: a headon smash on Seoul and encirling moves east of the city.” [ Another field dispatch from the East Central front quoted Allied of- ficers as saying the Reds might launch a diversionary attack at a third point, on the Hwachon-Chun- chon axis. UN Forces Dig In While the UN forces dug in on *{ the West front to meet the expect- ed Red offensive, South Koreans MIDWESI IS "pushed ahead three miles on the g j East front behind withdrawing Com- j munists. One infantry company | marched into Inje, north of the 38th Parallel without firing a shot, Al- lied officers said there was evidence of-a general Red withdrawal on’the’ extreme East front between Yangsu and Inje. 8 " Red Patrols Prowl E Elsewhere, Communist patrols . were on the prowl, feeling out Al- CHICAGO, May 11 —P—Adm. lied strength while Allied outposts William H. P. Blandy, retired, says | got set to meet an assault. They the Midwest would be an easier atom |isandbagged their positions, built homb target for Russian pilots than | booby traps and strung barbed wire. eastern cities. Chinese moved down from the He Said in a talk prepared for the | 38th Parallel on the Central front executives’ club that east coast cities ¥into the no-man’s land separating are better protected by potential|the main forces of both warring fighter interception from out-lying| sides. They joined 1500 of their bases than Midwest cities. He said: | comrades sighted near Kapyong, “The middle west could be reach-) about 32 miles northeast of Seoul. ed over the North Polar regions and |} North Koreans were slipping be- Canada, vast portions of which are| tween the mountains north of Seoul | unprotected wasteland. By such afin a considerable movement. It was ! route, Murmansk is only 3,600 miles| part of a 6,000-man force routed Maj. Gen. Arthur Riehl Wilson, retired, of Qroville, Calif., and his bride, the former Ellen Kormann Arends of Frankfurt, Germany, leaves Christ. Church chapel in Frankfurt following their wed- ding. They will reside in Cali- fornia where Wilson owns the'Mt. Ida olive orchards at Oroville, Stars and Stripes photo via (P ‘Wirephoto. 5 Flood Waers, Alaska Rivers, Threatening FAIRBANKS, Alaska, May 11 —® Flood waters from the Yukon and Kuskokwim rivers were reported threatening river bank communi- ties late yesterday despite repeated air force bombings of icejams block- ing the streams. An Air Force B-17 bomber and jet fighter planes dropped 500-pound bompbs on the Yukon river in shuttle runs from the Ladd Air Force base here and at Galena 250 miles west of here. A “Midnight Sun” bombing of the Kuskokwim relieved the community of Bethel, near the mouth of the river, of immediate danger but later reports said flood waters were rising again. The Air Force also received a re- port of a new jam in the Kusko- kwim at the mouth of Johnson river 10 miles downstream from Bethel. The report said all native villages n the area were threatened. KETCHIKAN VISITORS Mr. and Mrs. John E. Ross of Ketchikan, are stopping at the Gas- ineau Hotel. from Chicago, whereas a souped up | earlier by UN action or an entire- B-29, such as the Russians are known to have, can do 4,400 miles.” JAPAN OCCUPATION HEADQUARTERS NOT MOVING T0 OKINAWA TOKYO, May 11 —(®— Rumors that the occupation woyld end im- mediately ahd] erleral . headquar- ters would ‘be” moved to Okinawa circulated in Tokyo tonight but a high officer said they were without foundation. Brig. Gen. G. V. Keyser, execu- tive for administrative affairs, said: “I can only issue a general de- niel that anything unusual is going on. There is and has been a grad- ual reduction of personnel.” Brown Purchases Controlling Stock in Anchorage News SEATTLE, May 11 —®—Editor Norman Brown’s purchase of con- trolling interest in the Anchorage Daily News, is reported in.the cur- rent ‘issue ofEditor and Publisher, \the newspaper trade magazine. ly new force filtering in from the north, ! Planes Smash On ! ‘Allied planes smashed at’ Red buildup ‘areas and supply routes. Superforts blasted air strips at Safl- woh' and Sinmgk on the supply route leading from _Pyongyang, North ' Korean. capital. It was the seventh consecutive day of raids de- signed to thwart a possible Red air offensive. SIX RED HUKS. SENTENCED T0 DEATH, MANILA MANILA, May 11 —(P— Five leaders of the Philippines Commun- ist party and a field commander of the Communist-led Hukbalahap Guerrilla Army today were sent- enced to: death. They were con- victed of plotting rebellion. Judge Olcll" Castelo sentenced the six after a six-month trial. In all, 20 persons ‘were tried on charges of rebellion, murder and arson. Castelo issued life sentences for nine defendants. Eleven got lesser penalties, Three were acquitted. RITA HAYWORTH IN FALASKA" EMPIRE 7S ALL THE TIME® MEMBER ASSOCIATED PRESS PRICE TEN CENTS —3 Models Pat McGowan (left) and Carlene Taliaferro lend a hand, in Washingten, to publicize -the “Atomikit;’ a collection of first aid articles intended for use in case of an atomic bomb attack. ) Wire- BIG PLANE IS MISSING:; IS MYSTERY SPOKANE, Wash,, May 11 —f— An Air Force C-47 transport plane, only six miles from a landing, sud- denly lost radio contact with the field today. Two hours later it still hadn’t been located. A pilot and co-pilot were aboard. A search plane from Fairchild Air Force base here fook off to investi- gate. Sheriff’s officers and - the state patrol started a search. The transport was six miles north- northwest of Fairchild and was about to start a ground control ap- proach (radar) landing. At 9:45 a.m. PST it broke off radio contact. The search plane took off at 11:256 am. The ceiling was 800 feet visibility 10 miles, McChord Air Force base at Ta- coma said the plane was on a flight. from there to Fairchild. STOCK OUGIATIONS NEW YORK, May 11 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 111%%, American Tel. and Tel. 155%, Anaconda 43%, Douglas Aircraft 101, General Electric 55%, General | resented the dismissal of General Motors 51%, Goodyear 76';, Kenne- cott 76%, Libby, McNeill and Libby 9%, Northern Pacific- 38%, Stand- ard Oil of California 48%, Twentieth Century Fox 20%, U. 8. Steel 44, Pound $2.80's, Canadian Exchange 94.31%. Sales today were 1,640,000 shares. Averages today were as follows: Industrials 258.52, rails 83.20, utili- ties 42.36. WEATHER REPORT Temperature for 24-Hour Perlod * DECISION OF | JUDGE PRATT | 1S REVERSED ' Levy of One Per Cent Sus- tained-May Be Taken fo High Court SAN FRANCISCO, May 11 —(®— A decision of the District Court of the Territory of Alaska, holding the Alaska Property Tax of 1949 invalid, was reversed by the Ninth U. S. Cir- cuit Court of Appeals yesterday. The act calls for levy of a 1 per cent tax on all property, real and personal, in the Territory. Federal District Judge Harry E. Pratt ruled at Fairbanks August 1, 1950, that the act was invalid under Territorial-law, except for,a section relating to tax on boats. On petition of Luther C. Hess, Fairbanks properfy owrfer, and the Alaska-Juneau Gold Mining Co., Judge Pratt jssued an injunction against collection of the tax. Yesterday’s opinion by the higher court followed the filing of appeal by Territory Tax Commissioner M. P. Mullaney. The appeals court directed Judge Pratt to dismiss the action. Their | opinion implied that relief for Hess !and the gold company would lie in a suit of protest rather than a re- Iquest for injunction. After the General Property Tax was enacted “by the 1049 Alaska Legislature, the Territory’s Senate Finance committee estimated it would rafse about $2,500,000 for the biennium, The main legal points on which it was challenged were that it lacks uniformity in assessment and valua- tion, that taxpayers living outside towns under the act must indirectly 1 % T A l K o U I"nhm'e municipal tax burden and that ‘Lhe law is “vague and self-contra- 1dxcwry." A main point of challenge was a provision that collections in cities would revert to the cities in lieu of the municipal property tax. That was enacted into the law to prevent residents having to pay the Territor- ial property tax on top of a local property tax. The tax was one of the features Tell Colleagues Just What' fo Be Done to Win Next Election TYULSA, Okla., May 11 —(#—Re- | publican governors told their party colleagues today not to count on what they labeled as “corruption” in the Truman administration to win the 1952 presidential race. Instead, Gov. Edward F. Arn of of the “Basic Tax Program” long !udvocutud by Governor Gruening ‘prmr to enactment by the 1949 Leg= islature, Controversial Issue It was a controversial issue dur- Kansas asserted that to win the presidency for the first time since ing the 1951 Legislative, too. 3 Critics of the property tax have 1628 the, Republicans must. DegIf | contended, that 16 would: be too leas now to eghablish. their ewn, “gl pensiye to collect in Alaska; that cut_diplomatic “and mulitary PolcY | 1,0 oreqs are too vast, many proper- in Korea and elsewhere around the | .o o0 jco1ated i property rees world." ords too sketchy. At the same time, Rep. Page{ proponents argued in the Legis- Belcher (R-Okla) told a GOP Na-{ja¢ure that it would be readily col- tional committee session, expected |jected from such big properties as to pick Chicago and the week of | sanneries and big mining proper- July 21, 1952, as the site and timel o which have not been subject to for the party presidential nominat- | ,.,nerty taxes. ing convention, that Gen. Douglas} ™ cyjtics have contended that it MacArthur's dismissal had aroused | .. 14 cost as high as 50 per cent or the country. 50 of the tax revenues to get assess- “Much as the American ments and make collections from the vast areas of the Territory. Opposition to the tax has been especially strong in the second and fourth divisions — the mining di- visions. Legislators’ from those divisions succeeded in getting a bill through the 1951 House for repeal of the Property Pax Law. Parliamentary people MacArthur,” Belcher said, “I think it was but the final wtraw that caused a blow-off of steam that has been generating in their minds for months.” SOME MEAT PRICES CUT maneuvering delayed its transmis- sion to the Senate, however, and the Senate refused to consider it be- cause the deadline for receiving Hous bills had passed. Some 1951 legislators expressed the opinion that if the property tax law were upheld the additional The story, under an Anchorage dateline, said Brown has purchased 25,000 shares of stock from Harry Hill, president of the Northern.: Publishing Co. Hill is one of the directors of the Lathrop Co. The News has been a daily since 1948. NEVADA PREPARING HER DIVORCE CASE GLENBROOK, Nev. May 11 —® —Glamorous Rita Hayworth has taken up Nevada residence on Lake HUNTERS HERE Tahoe to prepare for legal separa- J. E. McDonald and H. D. Mc-|tion from Prince Aly Khan. Donald of Seattle, bear huntersy She arrived quietly last evening from Seattle are staying at the|to join her two children, Rebecca, Gastineau Hotel. 6,'and Yasmin, who have been here a week with servants. FROM TULSEQUAH The actress’ Reno attorney, Wil- Thomas G. Emery and Ray C.|liam Woodburg, Jt., said she would Brown of Tulsequah are registered | seek' a divorce or a separate main- at the Baranof Hotel. _ tenance order. ending 6:20 o'clock this morning In Juneau — Maximum, 63; minimum, 43. At - Afrport — Maximum, 61; minimum, 39. FORECAST Partly cloudy tonight and Saturday. Lowest tempera- ture tonight near 44. High- est Saturday near 65. PRECIPITATION (Past 84 hours ending 7:30 a.m. today @ City of Juneau — None; Since May 1 — .39 inches; Since July 1 — 68.40 inches. At Airport — Trace; 12 CENTS WASHINGTON, May 11 — (# — The government today cut the re- tail ceiling prices of some chuck steaks and pot roasts by about 12 cents a pound and of unboned rump roast by 5 to 6 cents a pound. The Office of Price Stabilization took the action in a series of amend- ments to the beef price orders. An addition to the retail orders puts a ceiling price of 50 to 57 cents a pound on beef tongues, depending on the type and location of a store. Since May 1 — .23 inches; These changes will be effective Since July 1 — 39.50 inches. next Monday along with all of the e © 0 o ® o o o o.0)other ceiling prices on retail cuts. amount of revenue it would produce Attorney H. L. Faulkner said to- day he must await a full report of the circuit court before deciding whether to carry the case to the United States supreme court. STEAMER MOVEMENTS Denali from Seattle scheduled to ‘nrrive sometime Monday morning. Princess Louise scheduled to sail from Vancouver May 16. Baranof from westward scheduled southbound Sunday morning. H. F. Keeler of Seattle is stop= ,‘ping at the Gastineau Hotel