The Daily Alaska empire Newspaper, May 24, 1951, Page 1

- un.bfilUl‘A& JIBRARY WASHINGTON, D THE DAILY ALASKA E WALL THE NEWS ALL THE TIMEY JUNEAU, ALASKA, THURSDAY, MAY 24, 1951 VOL. LXXVIIL, NO. 11,818 PALMER AIRPORT DEAL UP Transaction Denounced by Senator Hoey in Sub- mitting Report WASHINGTON, May 24 — @ — | Senator Hoey (D-N.C.) denounced in the Senate today the Aldska transaction aimed at obtaining add- ed Federal financing of the Palmer Airport, “As a direct result of our in- vestigation, the $145,000 authoriza- tion in Federal aid for the airport has not been paid to the Territory . nor will any part of this sum be paid out of the Federal treasury until the comptroller general has had an opportunity to make a thor- ough study and review all the facts,” \f& the North Carolinan told the'Senate. He made his statement in submit- ting a report of last year’s Senate subcommittee inquiry into the trans- action. He was chairman of the group. “Deceit - Subterfuge” He told the Senate “deceit and subterfuge” were used in an at- tempt to obtain increased Federal matching funds. In the Senate hearing in Wash- ington, Alaskan Aeronautics Com- mission officials and Palmer Airport officials denied such allegations. They testified that the whole pro- cedure was in good faith and with approval of Civil Aeronautics Ad- ministration officials. Senator Hoey declared: “We found that officials of the CAA and Territory of Alaska at- tempted by deceit and subterfuge to obtain indirectly Federal match- ing funds which could not have been obtaineéd directly under exist- ing law. Shift Entire Cost “It is the conclusion of the sub- committee that officials attempted to shift the entire cost of new im- provements on the Palmer Airport! to the Federal Government.” The Senate investigation was asked last summer by Sen. Hugh Butler (R-Neb). The Palmer deal was a controversial issue in the 1950 political campaigns in the Ter- homeles. Mayor J. T. McLaughlin of Fairfield said Birmingham, Ala., firemen “just stood by for thirty minutes” at houses, one block outside Birmingham city limits were destroyed. The Red Cross was caring for the homeless. (P} Wirephoto, FERRY SERVICE | HAS PROBLEMS CHAMBER TOLD The Juneéau’ Chamber of Com- merce considered four important matters at its regular luncheon meeting at the Baranof hotel Thursday noon: (1) continuation of Juneau-Haines ferry service; (2) i protest errors in U. 8. Engineers ; report on Douglas and Juneau small boat harors; (3) protest cut in icost of living allowance for Federal employes hired in the Territery, and (4) the resignation of Secretary Fred Eastaugh. Ferry Service Steve Homer of the motor vessel Chilkoot reported that the present situation for the Juneau-Haines ferry service appeared black and it was doubtful if it could operate un- ritory. The subcommittee asserted it feels Edward G. Fisher, Chris Lample “and possibly other CAA officials in the Alaska Regional office were aware of devious methods . . . (and) failed in their duty to disclose fully these facts to CAA officials in ‘Washington who were handling the case.” Second Application A second project application, the committee report continued, “was handled in a slipshod, careless and incompetent manner by the CAA in ‘Washington.” | The committee report said it was ascertained that the Territory had arranged to receive matching funds to reimburse it for some $53,000 “al- legedly expended” on the Palmer field prior to March 31, 1950, when it entered into a grant agreement with the CAA. It said these funds (Cuatinued un Page Two) The Washington Merry - Go- Round By DREW PEARSON (Copyright, 1951, by Bell Syndicate, Inc.. 'ASHINGTON, — One result of the MacArthur controversy is a field day for the lobbyists. With the country. absorbed with the MacAr- thur dispute, the lobbyists are able to put across all sorts of fancy deals without the public realizing it. One of the latest is a move to reverse the Supreme Court in re- gard to tidelands oil. & In 1936, when President Roose- velp tried to reverse the Supreme Court by an act of Congress, it made headlines for weeks. ut without benefit of headlines, the big oil lobbyists are now trying to reverse the Supreme Court ruling that the submerged oil lands off the coast of the United States be-y long to all the 48 states, not mere- ly to California, Texas and Louis- iana. Last week the lobbyists quietly won out-in their initial move. They finagled the Senate Interior Com- (Continued on Page Four) [clnri[y the present interpretation of less something could be done to Southeast Alaskan waters by the U. 8, Coast Guard. Homer traced the efforts to main- tain the service and the continued obstacles tending to prevent it. He pointed out that transportation companies, with exception of air- lines, were tending to move away from this area and said that one company wads considering limiting its service drastically. Even the small boats that serve communities adjacent to Juneau were discour- aged, he said, although there was a definite need for their operations. Outlook Gloomy “After three years operation of the Chilkoot barge between Juneau and Haines, we felt last year the company would have to be liquidat- ed,” Homer told the chamber, “how- ever, R. J. Sommers came in and we decided to carry on. Changes were made and the barge made ready. It was inspected, passed and certificated in Seattle. We left May 15. Interpretation of Coast Guard regulations and classification of these waters, and the addition of an extra crewman, together with re- striction of our operation to only Haines, Skagway and Juneau makes the outlook appear anything but‘ profitable.” An attempt.will be made to oper- ate, he said, and the first trip will be made tororrow. Homer discussed an old law which ! was passed in the early 19005 re- quiring that when a el hits a beach it must be hauled out for inspection. The law was passed long before such craft as the Chilkoot whieh was designed by the Navy during the last war for just such, beach landings. In the past the ship has oper- ated with a crew of five men and| a payroll of $2,000 a month which| is a good deal for the small oper- | ation. The addition’ of another crew | member will necessitate added in- come. S.E. Alaska Justifications He pointed out that different classifications had been made for; other waters but that none had everl i Saved rm Sea Sally Reese, 7-years-old, smiles with relief as her rescue from surf is completed at top of 50-foot cliff near the Point Loma section of San Diego. She was trapped at foot of cliff by rising tide. Life- guards lowered one of their number in bos'uns chair arnd, as he held Sally in his lap, raised them both ovér 'the face of the cliff. ® Wirephoto, been definitely set up for Southeast Alaska and other regulations do not fit the situation here. In a treaty with Canada the waters are desig- nated as “sheltered waters” but that the Coast Guard regards them as “limited coastwise waters” when “inland waters” would more proper- ly fit the area. There was some -discussion and the matter was referred to the transportation committee. It was decided to wire Delegate E. L. Bart- lett for his aid. Sommers was present and he pointed out that the 30 per cent.in- creased cost in operation was un- foreseen. He felt the ferry service was a big asset to the community and he had put in $17,000 because of his interest in seeing it continue buj there Would be no.sense i operating at-a loss. “I do not feel that we're asking for anything un- reasonable,” he concluded. Einployees Pay Cut Alva Blackerby spoke on the be- half of federal employees in Al- aska regarding the elimination of the 25 per cent cost of living al- lowance from Department of Ag- riculture employees who are hired in Alaska but allows it to those hired in the states to work in Al- aska. He said it would be chaotic for employees working side by side, doing the same work and paying the same cost of living to have that differential in their pay checks. The present federal payroll in Juneau amounted to abovt $3,000;- 000 in 1950. This slash would cut that by $600,000, he said. He re- quested that. the Chamber protest this cut which has already passed the House and is now in the Sen- ate. President Herbert Rowland suggested that letters be written to each member of the Senate appro- priations committee and that indi- vidual members write to any sen- ators they know in an effort to stop it. Engineer Report in Error Secretary Fred Eastaugh read a letter sent to the Board of Engin- eers for Rivers and Harbors in Washington, D. C. regarding er- ors in. a report on the improve- nent of Juneau and Douglas har- sors. It was signed by R. W. Cow- ing chairman of the maritime de- selopment committee. A copy of the report was reques- ;ed for detail study together with 30 days for examination and reply. It ‘was stated that “possibly the greatest error was in taking a five | minute sustained wind velocity of 44 miles per hour as an indieation | of the greatest winds encountered at the Douglas site.”” Cowling then pointed out that the Taku wind reaches gusts over 80 miles an hour and that while possibly not sus- tained for as long as five minutes are sufficient to raise and direct PRESIDENT DISCUSSES 2 ISSUES ‘Believes Peace Program Will Avert War-Poli- fical Intentions WASHINGTON, May 24 — (B — President Truman sald today he is confident his program for peace will avert a new World War. He told a news conference that another global war would mean a return to the dark ages. And, he said, he objected to the use of the term cocky in describing his attitude that his program would succeed. He said some columnists have so described him and he thinks it is the wrong word. His attitude, Mr. Truman declared, is one of con-! fidence that the people of the Unit- ed States and of the world believe his domestic and foreign program both are right. Open Season—Politics The President, asked whether he would run for the presidency again next year, said the season is still open. As he has before, he told his news (Continued on l;ige TTvo) i INEW ANGLE FIRING OF | MacARTHUR —_ | Bradley Says Method Could! Have Been Better Handled.-Beliefs WASHINGTON, May 24 — (B — Gen. Omar Bradley told sennwrsf today he thinks President Truman' was right in firing Douglas Mac- Arthur but the “method” of doing it “probably could have been handled better.” This implied criticism of the sum- | mary fashion in which MacArthur: Wwas dismissed came at a meeting with Senate investigators in which Bradley also: U. 8. Casualties 1. Disclosed that total U. S. cas- ualties in Korea — both battle and non-battle — total 141,955, 'This includes 72,679 non-battle casual- ties, and 69,276 combat casualties with 10,680 listed as killed in action and 612 dead of non-combat causes. No-battle casualties are those re- sulting from such things as acci- dents and illness. In this case, it includes also the frost-bite victiins of last winter’s cold. ' 2. Testified " the North Atlantic Treaty nations “do not have the capability, right now, of stopping an aggression by Russia.” Iran Danger Spot 8. Sald that while Iran is a danger point he s “not too sure the ‘Runhm are going to start some- thing in Iran before they start it somewhere else.” 4. Declared that in his opinion the issue of whether to admit Red China to the UN should have no place in negotiating a settlement of the Korean war. MacArthur’s Firing Senator Wiley asked Bradley: “Doyou think that General Mac- Arthur was treated in the way he should have been treated in hand- ling this matter?” Bradley replied: “From a military point of view, I agree that he should have been relieved. “As to the method of relief, I agree that it probably could have been handled better.” | MacArthur, when testifying at | the beginning of the Senate inquiry |into his dismissal, indicated some bitterness over the way he was dis- missed. He noted he was relieved f 1 Heavy palls of smoke blanket an area in the Communist marshalling 4 i SSOCIATED PRESS , Bold » yards at Masan, North Korea, after B-26 ligh{ bombers of ‘the U. S. Air 'Force unleashed batteries of rockets during ‘n attack. After the rockets had delivered this pmwh.‘t-he area was thoroughly worked over with numerous strafing passe, and napalm fire bombs which set high stockpiles of Red supplies ablaze, U. 8. Air Force photo via (P Wirephoto. Girl's Body Is Found in (alifornia SANTA' ANA, Calif., May 24, —(® —In a shallow grave, barely cover- ed with dirt and leaf mold, search- ers today found the body of 10- year-old Patricia Jean Hull. The pig-tailed girl vanished from movie matinee last Saturday. Near the body was a bloodstained yellow bedspread. A yellow bed- spread was missing, Sheriff’s offi- cers said, from the motel cabin of Henry Ford McCracken, who is held on suspicion of kidnaping in e case. Undersheriff ' Steve Duhart sdld two forest rangers found the girl, buried beneath a barbed wire fence, after following footprints from the highway. Deputies said they will intensify questioning of McCracken 34-year- old guitar player with a record of sex offenses. He has steadily de- nied any knowledge of Patricia Jean's disappearance but -has ac- knowledged attending from which she vanished. 16 ARRIVE ON ELLIS AIRLINES: Sixteen passengers arrived on El. lis Airlines flights Thursday. Arriving from Ketchikan: R. E Hawkes, J. Johnson, D. F. Chis- holm, G. Chisholm, C.. Madeire, L. Morrison, L. C. Alcala, H. Wingen, F. C. Guylett, R. McPhetrick, J. Hoper, K. Scofield. From Petersburg: Camille Tor- wick, Roy Torwick, Lt. Taylor, C. Hirschy. ® 0 o 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 Afrport — Maximum, ® 54; minimum, 36. L4 . . FORECAST . Partly cloudy tonight and e Friday with a few scattered e rain showers. Low tonight e about 40, high Friday, near e 55 swells of at least 2% feet directly | on receipt of his orders and so could|® PRECIPITATION into the proposed Douglas boat basin. ’ Another error, the letter said, was the ' assumption that the proposed Juneau- boat' basin “requirés pro- tection by a costly rock breakwater. It pointed out that members of the (Continued on Page Eght) | not make a farewell statement to® (Past.24 hours ending 7:30 a.m. today @ his troops. MacArthur also declared he felt the national interest was jeopardiz- (ed by his having to turn over his | command immediately to Lt. Gen. | Matthew Ridgway who was at that jm'na several hundred miles away. ® City of Juneau — .17 inches; e Sinc eMay 1 — 3.69 inches; e Since July 1 — 7174 inches, e At Airport — .05 inches; e Since May 1 — 2.11 inches; e Since July 1 — 4138 inches. 6 o 0 0 0 0 0 0 0 0 the movie (CONNORS RESIGNS - JUNE 30 | WASHINGTON, May 24 — (B — The White House announced yes- ‘iterday President Truman’s accept- ance of the resignation of James J. Connors as-collector of customs for Alaska, effective June 30. i Connors, who has held the office cause of ill health. i Connors came to Alaska in 1902 and served on the Juneau city coun- cil in 1918 and three terms there- | after. He was elected mayor of Jun- eau in 1925 and 1926 and was ap- pointed U. S. Collector of Customs of the 31st District in 1933 by Pres- |ident Franklin D. Roosevelt. He was , re-appointed in 1937, 1941 and 1945. | For the past several years he has sbeen in ill health, the latter sev- | eral months being confined to St. 1 Ann’s hospital. Mrs. Connofs is in Juneau and a | son, James J. Jr., resides in the | states. For many years, in the '20s, when the Territory was overwhelmingly Republican in politics, Connors and the late John W. Troy were cred- iited with keeping the Democratic { party alive in Alaska. RANGER TO SITKA FOR ROAD WORK U.'S. Forest Service vessel Ran- ger 10, with Willlam Fromholz in charge, has gone to Sitka, towing a scow, which is carrying material for improvement work on the lower portion of the Harbor Mountain road. Chief work will involve im- provement of culverts and putting in drains, according to Alva Black- erby, Administrative Assistant. B. Martinsen of Seattle is reg- istered at the Baranof hotel. STOCK OUGTATIONS NEW YORK, May 24 — Closing quotation of Alaska Juneau mine stock today is 2%, American Can 106%, American Tel. and Tel. 153%, Anaconda 40%, Douglas Aircraft 94, General Electric 51%, General Mot- tors 48, Goodyear 78, Kennecott 72%, Libby, McNeill and Libby 8%, Northern Pacific 37%, Standard Oil of California 45, Twentieth Century Fox 19, U. S. Steel 40%, Pound $2.80%, Canadian Exchange 93.81%. Sales today were 2,680,000 shares. Averages today were as follows: Industrials 245.78, rails 76.86, utilities e[ 4173. | since July 12, 1933, is retiring be-l PRICE TEN CENTS Move ALLIES IN BIG DRIVE, NO. KOREA Cut EscapeRTute in Red- Killing UN Counter “Offensive By Associated Press An Allled tank-task force smashed across Korea's 38th Parallel today in a'daripg 13-mile drive that split the retreating Chinese armies. This bold move in a Red-killing UN counter offensive cut the escape route for the Communists still south of the Parallel on the East-Central front. The task force, a self-sustaining column of tanks, artillery, infan- trymen and engineers, battled thru Red screening troops and seized Choyang river crossings in North Korea. It had air support. The operation was planned and directed by Lt. Gen. Edward M. Almond, who said the enemy is like “a boxer reeling to the edge of the ring, and we want to clip him _| before he bounces off the ropes.” “We expect great things of this effort,” he said. Chunghon Recaptured Smaller American forces recapt- ured Chunghon, most important rail and road hub in Central Korea, 50 miles northeast of Seoul. The Amer- icans lunged within five miles of the border in the west. Lt. Gen. James A. Van Fleet said nis forces' were attacking all along the 125-mile frant and thére “is no limitation” on objectives. He said his 8th Army severly defeated five Chinese armies and three North Korean corps, transforming the Reds’ May 16 offensive into a com~ plete failure. No Buffer Zone Van Fleet's statement indicated that the UN forces would not re- frain from any general advance across the border in order to hurt the enemy as much as possible. There has been talk of trying to establish a 20-mile buffer zone north of the Parallel as part of the at- tempts to end the shooting in Korea. Reds Have Power Van Fleet warned, however, that | the Communists have the power to strike again, Today the enemy mounted only small delaying actions against the advancing UN troops. On the Western front, where the UN counter offensive started, South Korean tanks clanked to within a mile and a half of the 38th Parallel. Reds Pull Back On the Eastern sector Red units which had swept 25 miles below the bordgr around Socsa had pulled back before attacking the Amer- icans. In the air war, American cargo planes supplying ground forces in the mountains encountered heavy anti-aireraft fire. Three planes were hit, but the crews escaped injury, the Alr Force said. The Red radio at Pyongyang claimed 23 U. S. planes had been shot down in Eastern Korea in four days. The Far East Air Forces had no such report. 1In the naval warfare, U. S. rocket ships opened up again on blockaded Wonsan in what was described &s 8 “deadly display of fire-power.” L. R. WAGNERS ARE HERE ENROUTE TO FAIRBANKS Back in Alaska for the first time in neady ten years are Mr. and Mrs. L. R. Wagner, in Juneau on their way to Fairbanks. Mrs, Wagner, the former Ebba Erickson, lived in Juneau for sev- eral years prior to 1940 and has many friends in town. She was housekeeper at the Governor's House and later was housekeeper for Col. Otto F. Ohlsen in Anchor- age. 4 ‘The Wagners now have a home in Sacramento. Mrs, Wagner came north by Pan American and Mr. Wagner brought the family car north and traveled by steamer. They will take the first ferry from Tee Harbor to Haines and drive over the highway to Fairbanks. STEAMER MOVEMENTS Denali scheduled to sail from Seattle Friday. Princess Louise scheduled to sail from Vancouver 8 p.n. Saturday. Baranof from westward scheduled southbound Sunday.