The Daily Alaska empire Newspaper, May 18, 1951, Page 1

- - E DAILY VOL. LXXVIIIL, NO. 11,813 JUNEAU, ALASKA, F UN Forces Retreat on Blazing Korean PanAm Visilors Honored MacARTHUR ASTONISHED Early Dismissal Statement Stirs General, Also Republican Leader WASHINGTON, May 18 — @ — President Truman's statement he had considered dismissing Gen. MacArthur off and on for a year “astonished” the deposed general and stirred critics of the adminis- tration to new wrath today. Senator Hickenlooper, Iowa Re- publican dissenter on official Far East policy charged Mry Truman had “deceived the people” with prev- ious declaration of support for Mac- Arthur. General Astonished MacArthur, in a statement issued, in New York, said his astonishment at Mr. Truman’s remarks bordered on incredulity. He added: “It is dif- ficult to reconcile this with my ap-§ pointment by him as commander- in-chief of the United Nations com- mand” in Korea. That was last June. Mr, Truman also told his news conference yesterday the Republi- cans are trying to overthrow the foreign policy of the United States. when _ . Republicans Comeback { " » brought a retort from Sen-1! Brewster, a Foreign Relations committee member. He told a re- porter “We can’t overthrow it when we don’t know what it is.” The President said he decided he [B. .. needed a new general in the Far h;.p?e'fe when MacArthur called on the ! " lese Communists in Korea on March 24, fo negotiate a truce, in advance of a proposed presidential peace proposal. H Cease-fire Agreement MacArthur replied to this, too, in the statement issued by his chief aide, Maj. Gen. Courtney Whitney The deposed general said he had twice previously tried to obtain a cease-fire: agreement, both times “without conferring with higher au- thority and without the slightest exception being taken thereto.” In an expansive mood at his news conference, the President also said | that: Fuss — It Did 1. Secretary of State Acheson cautioned at an April 6 White House conference against MacArthur’s re- moval on grounds it would stir up 8 political fuss. And it did, he was right, the President added with a T g " He is happy the Senate Armed Forces and Foreign Relations com- mittees upheld yesterday a ruling that Gen. Omar Bradley did not have to divulge what was said by whom at the April 6 White House meeting. STEAMER MOVEMENTS Princess Louise from Vancouver due to arrive Saturday afternoon or evening. Baranof scheduled to sail from Seattle late today. Denali scheduled to arrive from westward Sunday southbound. The Washingion Merry - Go - Round By DREW PEARSON s (Copyright, 1951, by Bell Eyndicate, Inc.. 'ASHINGTON.—For some time this column has called attention to the shipmegt of war materials be- hind the Iron Curtain by European nations. It is only fair, however, to point out that some American bus- inessmen also have been guilty of the same practice. Most people don’t realize that a steady trickle of strategic materials has been reaching Commu¥ist countries from the USA. Here are some 'American firms which have been transshipping: 1. Rolfe G. Grote of New York, who sent chemicals to Switzerland, . later transshipped them to Soviet Russia. A . The Pacific Trading Corpora. of Boston which trans$hipped steel plates to Communist China. 3. The Harris Chemical Corpora- tion of New' York which obtained 4 license to ship chemicals to Bel- (Continued on Page rom;) Mayor Waino Hendrickson presented the key to the City of Juneau to J. D. Fessio. sales manager for Pan American World Airways, on the opening day of their sales conference here. Left to right, (front row): are Mayor Hendrickson, Joe Fessio, San Francisco; Fred Dunn, Juneau; Al Polet, Fairbanks. Keith Johnson, Whitehorse; Ketchikan. (Back row): D. E. McCorran, Seattle; John Moller, Portland; Joe Goding, Mifiorily Reporis Against Alaska, Hawaii Stalehood Filed Today by Commitiee 2 FAST Six Persons Are Reported Killed with Over ) .50 Injured BRYN WAWR, Pa., May 18 —(®— Two famed ,Pennsylvania railroad passenger trains crashed near this Philadelphia suburb today, killing six persons and injuring at least 51 others. A spokesman said one of the dead has been identified as C. S. Lauen- stein, a metallurgist, of Indiana- polis. Five bodies were taken from the wreckage of the Pittsburgh-Phila- delphia night express and the Red Arrow, bound from Detroit to New York. Another was reported to have been located in the debris. The Red Arrow plowed into the rear of the stoppéd night express, a short distance west of the station here. A spokesman said the 19-car Philadelphia night express had been halted on a signal indicating that something might be dragging from underneath the train. It was while the crew was trying to detect the drag that the Red Arrow smashed into the rear car— a sleeping car from Cleveland — telescoping it and splitting it in half. Within moments after the acci- dent hundreds of people gathered at the scene — in one of the quietest of Philadelphia’s residential, well- to-do suburbs. Today’s wreck was the second in the history of the New York-Detroit Flyer. On Feb. 18, 1947, the express went off the tracks on a lonely mountain curve near Altoona, Pa., and plunged into a gully, killing 24 and injuring 150. A coroner’s jury found the railroad blameless. STOCK OUCTATIONS NEW ,YORK, May 18 — Closing quotation of Alaska Juneau mine stock today is 212, American Can 107%, American Tel. and Tel. 154%, Anaconda 41%, General Electric 53'%, General Motors 50, Goodyear 782, Kennecott 72%, Libby, McNeill and Libby 9, Northern Pacific 37%, Standard Oil of California 46, Twentieth Century Fox 19%, U. 8 Steel 42!, Pound 2.80%, Canadian Exchange 93.98%. Sales today were 1,110,000 shares. Averages today were as follow: Industrials 250.13, rails 79.48, utili- ties 42.35. ‘WASHINGTON, May 18 — (B — Members of the Senate Insular Af- fairs committee, opposing statehood for Alaska und Hawali filed today | their minority views on the state- | hood bills now awaiting Senate ac- tion. 20 The wmdn PE Ll o W mission of Hawaii because of what | they said was the risk of Communist | influence in the Islands, and urge | against Alaska statehood because of “grave economic ills” in the Terri- | tory. The Hawaii mincrity report was signed by Senators Butler, Malone and Smathers. The three were join- ed by Senators Watkins and Long in signing the Alaska minority res port. The Alaska report says that Ter- ritory “cannot afford statehood at the present time.” Alaska Deficit Asserting tnai Alasxa, despite re- cent tax increases, will end the 1951-52 biennium with a deficit of more than $2,000,000, the report says: ¢ “Federal spending in Alaska, in- cluding the multi-million , dollar project for war and defense, is at a peak. Aside from the 'salmon in- dustry, which is declining, Federal spending constitutes the Territory’s main industry. Economic Hardship “When this bubble bursts, Alas- kans will be faced with extreme ec- onomic hardship.” Statehood, the report said, would increase the peril of “governmental bankruptcy,” adding $10,000,000 a year to the already heavy tax bur- den. “Statehood for Alaska,” the report said, “would benefit a handful of political opportunists who are am- bitious to become the officials of the new state, thus gaining powers and stature on a par with other state officials throughout the nation. These are the same individuals un- der whom governmental abuses have been practiced in the Territory for years.” Should Elect Goverrlor ‘The minority group suggested that instead of statehood, Alaskans be given the right to elect their own gavernor. ‘The three senators opposing Ha- waii statehood said the bill should not be passed “until we are sure we are not adding a red star to the 48 white ones in the American flag.” They said the International Long- shoremen’s and Warehousemen’s Union, which controls shipping and sugar and pineapple production in Hawaii, is “absolutely controlled by known Communists.” . | ’ SILVER WAVE TAKES CARGO TO SEATTLE The Silver Wave of Ketchikan, owned by Lane Brothers, leaves this afternoon Tor Seattle with frozen bulk and boxed fish con- gned to Sebastian Stuart and |liver and viscera consigned to the Washington Laboratory. (ONTEMPT WARNING IS GIVEN Secretary C;mmerce Saw- yer, Others Told Off by U. S. Court Appeals WASHIHGTON. May 18 — (B — The U. S." Court of Appeals today served notice on Secretary of Com- merce Sawyer and nine others that they will be sent to jail for contempt unless they comply with its order in litigation over control of American President Lines, Ltd. The court said it would enter an order giving Sawyer and the others five days in which to comply with its decree. ‘The court said: “If they have not complied as di- rected in the order (they) must sub- mit themselves . . . for commitment as in civil contempt until they do comply.” Sawyer and eight other govern- ment officials and attorneys earlier had been cited by the court on con- tempt charges for failure to deliver “effective possession” of 92 per cent of the voting stock of American President Lines to R. Stanley Dollar and his associates. The tenth person involved in the proceedings is George L. Killion, president of the big steamship com- pany. Killion is former treasurer of the Democratic National Commlwof STATEMENT BY SAWYER WASHINGTON, May 18 — (M.~ Secretary of imerce Sawyer, ur’ s, Wb Of Jatlod Lo vy tempt of the U. 8. Court of Appeals, said today he will obey an order from that court — unless the su- preme court excuses him from so doing. This statement, made through counsel for the Commerce Depart- ment, implied the supreme court will be asked to take some n in ghe cage which inyolves a legal battle between the government and private interests over control of a big steamship company. Nine others' — eight of them gov- ernment officials or attorneys — are | involved with Sawyer in the threat- | ened jailing. Invesligate Loyalty of 846 = The differential of 25 per cent in, Govl. Workers WASHINGTON, May 18 — (A — The Loyalty Review Board today ordered new inquiries into the loyal- ty of 846 government workers. In addition, government agency heads were given authority to re- open other cases at their diseretion. The 846 cases are to be examined in the light of stricter standards i for determining loyalty. Under rules recently issued by President Truman, any worker may be fired where there is “reason- able doubi as to his loyalty.” Under the previous standard, & worker could not be fired on loyalty grounds unless there was more than “reasonable doubt.” The cases to be reopened fall in two categories: 1. Cases which were reversed by agency head or by the Loyalty Re-~ view Board on appeal from an ad- verse finding by a lower Loyalty| Board. There are 119 such cases. 2. Borderline cases reviewed by a panel of the Loyalty Review Board in its check-up program. —_— VESSEL BURNS The fishing vessel, Mary R, burn- ed at Kelly’s Cove cn Noyes Is- land, according to information re- ceived here by 17th U. 8. Coast Guard headquarters. It belongs to Ed Wick of Seattle. Aboard with Wick were Dust Stenstron and Dunnger Husby. The cutter White Holly went to the scene where the Mary was aground on Gavioti Roéks and the crew decided to re- main there until a tender could take them to Ketchikan tomorrow. Keith B. Snowden of Sitka Is at the Baranof Hotel. ALASKA EMPIRE 'ALLTHENEWS ALL THE TIME® —— ] RIDAY, MAY 18, 1951 MEMBER ASSOCIATED PRESS PRICE TEN CENTS | To Appear af U. of Alaska Commencement Front * RED FORCE OFFENSIVE 15 FIERCE Ene niy Is?p;anding Men Recklessly - Allies Lose Last Toehold, N. Korea By Associated Press United Nations troops retreated along most of the blazing Korean warfront today in the face of what appeared to be the mightiest Com- munist offensive in the 11-month- old war. . The Reds, spending men recklessly for territory, gained as much as 20 miles. The Allies lost their last toe- hold in North Korea. Field dispatches sald one U. 8. division was “in great trouble” on the Central front. A smaller Ameri- can unit was overrun by the on- At the University of Alaska commencement exercises Monday will be the above four: Top. left, Gov. Gruennig; top right, Gen. Nathan F. Twining, Deputy ‘Chief of Staff, U. 8. Air Forces; lower left, Gov. Earl Warren of California, who is scheduled to be in Juneau today; lower right, Bradford Washburn, President Boston Museum of Science. EXTRAPAYIN TERRITORIES WASHINGTON, May 18 — (B — ‘The House voted yesterday to deny pay differential to residents of Ha- wali, Alaska and Puerto Rico. em- yed in those aréns by the Agri- culture Department. v Alaska and Puerfo Rico and 20 per cent in Hawaii will still apply fo embloyes transferred to those areas from Continental United States. An amendment by Delegate Bart- lett (D-Alaska) to eliminate what he termed the “discriminatory” provis- fon of the Agriculture Department Appropriation bill was defeated by a standing vote of 100 to 32. Delegate Farrington (R-Hawaii), supporting the Bartlett amendment, said it would be “colonialism of the worst sort” to have two pay scales in the Territories, the lower one ap- plying to local residents. Chairman Whitten (D-Miss) of the House Agriculture Appropria- tion subcommittee said it is unfair to pay more money to a Federal em- ploye living and working at home in the Territories, than to a Fed- eral employe, living and working at home on the mainland. The House recently voted to elim- inate a similar provision from the Interior Department Appropriation bill. Farrington said there were about 150 Agriculture Department em- ployes among the 25,000 civilian em- ployes of the Federal Government in Hawail. Whitten said he would support legislation to eliminate the differ- ential for all government employes residing permanently outside Con- tinental United States. COUNCIL TONIGHT p A regular meeting of the Juneau City Council will be held tonight at 8 o'clock in the offices at the city dock. FROM SEATTLE Warner Shipper of Seattle ar- rived ‘here yesterday on PNA from Anchorage and is stopping at the Baranof Hotel. HOUSE KILLS Iefrilory Is report on the bill. | Exempledio Maich Funds; Senafe Holds Alaska Taxes Highest Per Capita-De- fense Up fo Govt. WASHINGTON, May 18 — (P — The Senate approved a bill yester- day exempting Alaska from match- ing funds provisions of the Civil Defense Act. The bill now goes tc the House. “By direct taxation the Territory is contributing a substantially larger amount on a per capita basis than any other state or territory for Civil Defense purposes,” the Senate Arm- ed Services committee said in ite Under the present Civil Defense Act, Federal aid which can be given to a territory or state is limited to matching funds. The committee said that because of the immensity of the Alaska pro- gram, Federal participation must be increased if there is to be a proper Civil Defense for the,territory. U. 5, CASUALITIES IN KOREA, 65,523 WASHINGTON, May 18, — (B — Announced U. 8. casualties in Ko- rea have reached 65,523, an increase of 1468 since last week. ‘The total covers casualties repor- ted to families through May 11 44,669 wounded and 11,006 missing. Of the wounded, 1,163 later died. Also 101 of the missing are known dead. This raises the total of deaths to 11,112 The missfng total also includes 1,169 who have since returned to U. 8. military control and 115 known prisoners of war. Army casualties increased 1,301 during the week to reach 54,416, KETCHIKAN VISITOR H. L. Paulson of Kelchikan is |GOV. WARREN ARRIVES HERE, ALASKA TRIP| . When the big Douglas DC-4, of Pan American Airways, landed at Juneau airport this afternoon at 1:30, it prought one of the country’s most distinguished and well known national figures, Governor Ear) Warren of California. He was ae- companied by his secretary, Max King. Ly He was greeted by Alaska's Gov- ernor Ernest Gruening, accompan- ied by his aide Comdr. Edward P. Chester, Mayor Waino Hendricksor and other notables of- Juneau. A color guard, from the U. 8. Coas{ Guard vessel Storis and guard of honor formed by members of Head- quarters, Headquarters and Service Company, 208th Infantry Battlion (Sep), stood at attention while Cali- fornia’s first citizen was escorted to Gov. Gruening’s car. In an interview with Gov. Warrer at the airport he was asked hi reaction to an Associated Press dis: patch today reporting that the Buts ler Committee had rejected states hood for Hawaii and Alaska, For Hawaii because of “its Communism®™ (Continued on Page Two) GAMES TODAY NEW YORK, May 18 —#— Out fielder Eddie Stewart poled a home run with the bases full in the eighth inning today to give the Chicago White Sox & 7-4 victory over the league-leading New York Yankees It was the first defeat in Yen Stadium this year for the world| champions, who had won 10 straight | at home. BOSTON, May 18 Stephens’ pinch hit =i bases loaded today gav Dermott, Boston Red a 2-1 victory over the Indians. McDermott, who nine, had a shutout zoin Ver ith the southpaw Cleveland truck out until the }lnd includes 9,848 killed in action, lnz the Baranof Hotel. ninth, coming Reds and another was pene- trated deeply. The Communists died like flies before the withering fire of Allied guns and warplanes. Still they surg- ed forward, despite the ‘ terrible slaughter, Bloody Offensive In Washington the Army esti- mated Communist losses at 904,788 through May 7 — before the present bloody offensive hegan. The heaviest fighting was on the East-Central front but in the West the Reds spearheaded within 10 miles of Seoul. The Chinese, pouring through a break in two South Korean divisions south of Inje, exposed both flanks of the American foroe. | By | #hwt welght of numbers the enemy over- ran one U. 8. unit on the Central front and penetrated another. Al- Hed forces withdrew along the East front and on some sectors of the Central front. Enemy Losses Collossal Enemy losses werg collossal. Com- munist infantrymen were cut down by the thousands. One report said the Reds lost more than 9,000 men before they broke through a heav- ily defended American position near Chunchon on the Central front. Climb Over Dead But on they came, clambering over their ‘'own dead. Dispatches on the Central front action were heavily censored. Allied forces mowed down the oncoming screaming masses of Chi- nese with artillery. UN planes raked the Red waves with rockets, ma- chineguns, fragmentation and fire bombs. The Alr Force claimed’ kifl- ing 5570 unists yesterday. Pressure The Reds evidently were now exerting their greatest pressure in the center. Their “human sea” at- tack overran an American unit at a cogtly price. AP Correspondent Willlam C. Barnard said it was “an amazing storm of men.” The frenzied Reds rushed into a bursting inferno. Hundreds were hung up_on barbed wire entangles, Oblivious to Losses ‘ A front line officer said: “They are entirely oblivious to their losses.” To the Chinese nation and its Communist overlords , men were cheap and expendable. General Ridgeway’s Tokyo headquarters es- (Cuctinued on Page TWwo) \ WEATHER REPORT Temperature for 24-Hour' Perlod ending 6:20 o'clock this morning In Juneau — Maximum, 49; minimum, 43, At Airport — Maximum, 51; minimum, 41. FORECAST Cloudy with rain and south- easterly winds as high 25 miles per hour tonight be- coming cloudy with inter- mittent light rain Saturday. Lowest temperature tonight about 43 degrees. Highest Saturday near 51. 0eccev0csocscccned PRECIPITATION (Past 24 houptending 7:30 a.m. today City of Juneau — .25 inches; Since May 1 — 2,05 inches Since July 1 ~ 7010 inches. At Airport — .27 inches; Since May 1 — 146 inches; Since July 1 — 40.73 inches. e o 0 0 0 0 0 00 IERE L X} .o