The Daily Alaska empire Newspaper, May 28, 1951, Page 4

T ————— T S —————— ey, el raGE FOUR THE DAILY ALASKA EMPIRE-JUNEAU, ALASKA ™ Daily Alaska Empire Publisiied every evening except Sunday by the JOMPANY EMPIRE PRINTIN Second and Main DOROTHY TROY LINGO - - ELMER A. FRIEND - - et i Entered In the Post Office in Juneau as SUBSCRIPTION RATES: Delivered by carrler in Juneau and Douglas for $1.35 per month; Six months, §6.00; one year, By mail, postage paid, at the following rates six months, in advance, $7.50. One year, in advance, $16.00 one month, in advance, $1.50 Bubsctibers will confer a favor if they the Bustness Office of any failure or irregularity in the delivery of their papers. Telephones: News Office, 602; Business MEMBER OF ASSOCIATED The Associated Press is exclusively ent republication of all news dispatches credited to it or not other- wise credited in this paper and also the herein. ets, Juneau Alaska HELEN TROY MONSEN - - - - stateside recruitment, transportation to the Territory of newly hired employees and, in many cases, their families and household effects. And at the termina- tion of théir employment after a relatively brief - Virr-}f;::zgfi::: tenure, the added expense of returning these people __ Managing Editor | to the point of hire. BepUa Ol SwtLer Let's have a look at the picture as it affects $17.50 . culture in per will promptly notify oftice, 374. PRESS titied to the use for local news published 4 published | ohoose to remain NATIONAL REPRESENTATIVES — Alaska Newspapers, 1411 Fourth Avenue Bldg., Seattle, Wi program will ser And should tk extended to Territory, virtuall these payrolls. Monday, May 28, 1 DISCRIMINATORY LEGISLATION Section 407 of the Department of Agriculture Appropriation Bill for the fiscal year 1952 would limit payment of the 25 per cent cost of living allowance to persons recruited in continental Un: denying it to resident Alaskans. That this is discriminatory and unjust is apparent 951 - ing that half of amount to ited States while its members and on the subject. at once. It would establish a vicious precedent of tamdem pay rates for identical work—based not upon merit, but upon the geographical origin of the em- ployee. It would aggravate an already serious per- sonnel turnover problem and raise an economic bar- rier w' the recruitment of competent help within the Territory. It is manifestly unfair to contemplate, for ex- ample, two stenographers of like experience and ability, performing identical duties in the same office at dif; ferent salary levels; yet, this is precisely the condi- tion that will obtain if Section 407 part of the bill. As an economy measure, the the outset. The Washingion Mefry-Go-R_oEld (Continued from Page One) 000 of the taxpayers’ money in 1935 with the obligation to pay it back in 1944. Instead, the B. & O. ar- ranged a deal piidibotbe REC. a5 Li collaborator, by which it went into receivership under the McLaughlin act. The Roosevelt cabinet member was Jesse Jones, onetime secretary of Commerce and Federal Loan Administrator. One of the most interesting as-! pects of the B. & O. case is that: forthright GOP Senator Tobey of | New Hampshire, then chairman of | the Banking and Currency Commit- tee, conducted an investigation of the loan in 1947, but for some strange reason a final report was never published—even though the Republicans were then in control of Congress. However, the facts are all on record, both before a Federal Court; in Baltimore and in the files of the Banking and Currency Committee. Jesse Takes a Ride They show that the Baltimore and Ohio took Jesse Jones on al private car to St. Louis while he was returning to Texas for the Christmas holidays in 1943, and on this ‘trip B. & O. vice-president Russell Snodgrass suggested a plan to put the railroad into receiver- ship. ! Snodgrass even wrote the draft ‘of a letter which he wanted the RFC to send him—a letter which would be the excuse for put-| ting the railroad into a receiver-| ship. And Jesse Jones, sitting back in the private B. & O. car, clicking over the rails to St. Louis, obvious- ly agreed. For the letter was sent,! signed by one of Joness RFC di-| rectors, and the railroad thereafter was able to postpone payment of} its huge $87,000,000 loan to Uncle Sam. At that time, the B. & O. was making money. In fact, between 1939 and 1944, it cleared $110,000, 000 net profit after taxes Siphoning Off Profits Furthermore, the railroad erately paid off its net profits in 1943-44 to buy up B. & O. bonds that didn't mature until between the years 1948 and 2000. The government loan mean while. matured in 1944. Yet the B. & O. management siphoned off mon indebtedness to Uncle Sam, in or- der to pay private debts not until much later. This diversion of money also was done with consent of Jesse Jones, despite the fact he was then charg- ed with protecting the best interests of the United States government. Putting these private debts ahead of the government loan, commented the Senate Banking and Currency investigation, “tended to minimize the actual and prospective resour- ces of the B. & O. and thus to justify the receivership. “It seems fair to conclude,” the the Senators added, “that without straining, B. & O. could have cut its debt to RFC to about $25,000,000 had 4t chosen to treat first things first, and to meet its 1944 debt to delib- $31,000,000 from due served Much of the saving in would be offset by the heavy expense involved 1n| which could have reduced its \cau>n for ] | “My Lords, I ernment, can have no such understand that they must do it manner, and with is retained as a tions will possible period af of Wellington, House of Lor it had [ proposal fails at salary expense RFC from the resources available.” Par of this inside finagling be- tween Jesse Jones and the B. & O. leaked out when Cassius Clay, a former RFC official, joined the B. & O. as solicitor, then became dis- gusted with what was going on and supplied information to the Senate Committee. 4 Clay's Confidential Memb It was Clay who wrote a con- fidential memo, dated Aug. 15, 1944, telling of the Jesse Jones conver- sation on the private B. & O. car at which the plot was hatched. Clay, then general solicitor of the railroad, wrote to John Cornwell, a director and general counsel, as follows: “When Mr. Jesse H. Jones went to Texas for the Christmas holi- days, Mr. Snodgrass took him out} to St. Louis on one of the B. & O. business cars for the purpose, SO 1 understand, of discussing the mat- ter with Mr. Jones. Not long there- after Mr. Snodgrass asked me to come to his office to confer. He said that in his view it was neces- sary for the company to resort to the McLaughlin act in 1944-45, particularly for the following rea- sons: “(1) The fact that the McLaugh- cent—were hired many of whom have been on the job for years, fa an immediate reduction jn salary of twenty per cer Obviously, many of these people will be forced to seek other employment. employees, plus the low mdrale of those who might the Department of Agriculture, it will necessarily b include In Juneau alone, the Federal year 1950 amounted to more than On “Little” Wars succeed, January thé 101 regular employees of the Department of Agri the Territory. these people—50 These employees, Fifty of in Alaska. The mass exodus of these in order to protect their retirement fously impair the efficiency of the department’s operations in Alaska his arbitrary limitation be applied to Federal employment in ans all y excluding resident Al from Aside from the effect upon the individuals in- volved, Section 407 will ak irreparable damage on the Territory’s economy. The 20 per cent decrease in purchasing power of so large an employee group will be felt immediately by every business in the Territory. roll for the fiscal )00,000. Assum- this was paid to reSidents of the Territory--the loss to the business community would | $300,000. where the population and the Federal pa far greater, the loss to the merchants would be pro- portionately heavier. The Juneau Chamber of Commerce has gone on record as unanimously opposing Section 407 and u Fairbanks roll e and In Anchora are es their friends to express themselves (Chicago Tribune) entrust you, and I entreat the gov- not to forget that a great country like this | thing as a little war. They must if they enter on these operations on such a scale, and in such a such determination as to the f nal object as to make ti quite certain that these op a- | and that at the very rarliest ter the season opens.”—Th 10, 1838, before the Duke British dent Snodgrass felt that the deal he was putting across was so carc- fully camouflaged that it would have a fragrant odor to the pub lic, not the nauseating smell which it deserved if all the facts were pub- lished. This is only a part of the history of the second largest loan ih RFC history, which has been gathering dust in RFC files, and which new “ FRPC director Symington now rmust wrestle with. More on this amazing operation will follow soon. KOREAPEACE FEELERS ARE | FALSE, MALIK UNITED NATIONS, N. Y. May 28 —(P— Russia’s Jacob A. Malik said today through a spokesman that reports of Russian peace feelers to the United States are “completely groundless.” The comment of the chief Soviet lin act expired on November 1,-1945, | delegate to the UN came several and the uncertainty as to whether it would be renewed by Congress. “(2) The second reason which he gave was expressed in this way: “if we wait beyond 1944, we might lose control of the situation. “With regard to point 1, I said that I was not impressed since it | seemed to me that it was likely that the McLaughlin act would be extended regardless of what party was in power after the next elec- tion. . . . with regard to point 2, I said that I did not appreciate | that the control of the B. & O. was involved. In expanding his remarks, Mr. Snodgrass said he meant af- ter the election, Mr. Jesse Jones might leave the RFC and the RFC might’ pass into hands that were less friendly to the B. o.* H Shortly afterward, Clay resigned He charged that the in disgust. petition for receivership was a| “fraud” and a “frame-up.” “Fragrant” Deal Another interesting letter in (he[ B. & O. files was written by Snod- grass exactly four days before the B. & O. filed its second receivership petition in district court in Balti- more in July 1945. The letter was written to Arthur Dean, special the railroad in hand- ling the receivership. It read: “Dear Arthur: I am enclosing a copy of a plant and of the bud which we grafted on it witll a view to producing a flower, lily white in color, bold in design and seduc- tive in fragrance, instead of the burs and beggar lice which the plant was intended to bear.” Though written in parables, the letter apparently referred to the impending petition. It would seem that Snodgrass was describing the fictitious bankruptcy as “bold in design,” yet “producing a flower, lily white in color. . . and seductive in fragrance.” Under testimony, Snodgrass ad- mitted that he was not a botanist and had written the letter in “hy- days after reports were" published here that the Russians wre inter- ested in talking about ending the Korean conflict along the 38th Parallel and had made overtures to American delegates. Asked if the Russian denial of peace moves applied to one part of the reports or to all, the spokes- man said the denial was meant to apply “fully.” 20 YEARS AGO S from THE EMPIRE s e MAY 28, 1931 L ‘e ® May 28 b mes K. Wheeler, druggist and jewelry store operator from Peters- . . o lburc was in town on business. He reported that while business con- . g Jerry Hill ® | dit were somewhat quiet in Petersburg, everything was on a sound : Ed’l‘mr:lyCEhHi‘st @ | basi- and people of the town were not unduly depressed. He purchased Edwar ester ° r ill shi rsburg . BPrp il T : a un from the Arcade Cafe and will ship it to Petersburg. . Sandy Holden . : ° Joanne Erwin . Twenty-five of Mrs. Charles Sey's friends surprised her with a 3 Marie Nelson . at her home in Juneau. Five tables of bridge were ° Frank Weiberg L during the afternoon. Mrs. Charles Sey won high prize and : : : : : : : : : : :i:hl ‘:\n":» \,:‘;n consolation. Her friends presented the honor guest COMMUNITY EVENTS potluck dinner at Northern Presbyterian church. From 7 to 9 p.m. — Pan American Light !A( noon — Chamber of Commerce meets at Baranof. June 1 At 9:30 p.m. — First series of sum- mer square dances given in parish hall. Junce At noon — Lions club, Baranof. AMERICAN MOTHER OF 1950 VISITOR " AT TERR. MUSEUM The American Mother for 1950, Mrs. Henry Roe-Cloud ' of West Linn. Oregon, was a visitor at the | Territorial Museum Saturday. Mrs. Roe-Cloud has just arrived (in Juneau from sitka where she | delivered the Commencement ad- dress to the graduating class of Mt. E ral high scheol May from Honston; !Tvx:\a_ was a delegate 18. she where she {to the National Convention of the | General Federation of Women e to keep the Commeéncement engagement at Mt Edgecumbe. M Roe-Cloud is national chair- man of GFWC on Indian affairs While in Sitka ghe was guest speaker at the Sitka Women'’s CIi Chamber of Commerce, Alum: sociation of Sheldon™ Jackson school and at many other functions. She cts to return south on the next rip of the Princess Louise. e GEORGE WOODS DIES Word was received at U. S. Coast Guard headquarters here last night that George Woods has passed away ' tudents were graduating from St. Ann’s high school thi ter v were Leonard E. Forrest, Lucille Norton and Mabel Ritter. TODAY All ind communion for the entire study body, the graduatcs At 8 pm.—Rebekah Drill Team {Wer sts at breakfast at St. Ann’s Hospital. practice, IOOF hall, T At 8 p.m. — American Legion post{ é 2 meets in Dugout. Dec ; that it is the Babbitts of the world who make such thin At 7 pm. — WCTU meeting and|@ hool and education possible on a wide scale, R. E. Robertson wel- of Juneau High School and the Parochial School as the Chamber of Commerce luncheon. Graduating from the school were: Dorothy Bakke, Alice Merritt, Mary VanderLee \duates W ‘lrlrl Air; ys trz‘.e.v showing | ¢ « Mary Simpkins, Muriel Jarman, Masie Rogers, Edn Wings of Scandinavia” Baranof | p, au, ard Powers, Arnold Hildre, Edward Rodenberg, Billy May 20 }Spaks, William Rodenberg, Robert Hurley, and Edwin Lauri Fron At 9 to 12 n;mn — AWVS warm the Parochial School: Lucille Norton, Mabel Ritter and Leonard Forrest. clothing drive. Make deliveries to P Yo }““1 (c:v”y“ ii’)‘;’:‘:fl:l;’:’:};'c“f butid- With a large attendance from Juneau and Douglas, Perseverance ng today throv ride: 3 6 p Fai oh ey i gt Lodge of ! Reebkahs initiated 12 members at Odd Fellows Hall. They IM 8 pm. — CDA meeting in parish were: Gilbert Vos, Joe Rizzardo, Olaf Eikland, M. J. Metcalf, Oscar hall Jensen, Ji Turkovich, John Green, Harry Kinney, Albert Norman At 8 pm. — Odd Fellows meet in Donald Skuse, John Meyers and Benedick Lowell. . IOOF hall. May 30 " P e Ml Weather: High, 54; low, 48; rain. parade. ISUSUUSSTUSUIESS A 1 A{'8 p.m. — Elks lodge. : May 31 Daily Lessons in Enghsh I\)Cl L. CORDON lrrrrrrrrrrrrrrrrrcres WORDS OFTEN MISUSED: Do not say, “He is ambitious for ap- plause.” “ambitious OF applause.” OFTEN MISPRONOUNCED: Influence and influenza. Accent IN- CIE on first syllable, and INFLUENZA on the third syllable. SYNONYMS: S Al, specific, particular, individual, concrete. WORD STUDY Jse a word three times and it is yours.” Let us nerease our vocabulary by mastering one word each day. Today's word: in du (Pronounce der- ik-shun, he soldier was guilty of total derelictio DERELICTIO! failure third syllable). accent i MODERN ETIQUETTE Rprrra Lom ; P Q. When playing golf and there is a foursome ahead of you, are you | | supposed to wait until they take their second shots before you drive off? {" A. In the case of experts who have driven down the fairway, it is @rover for you to drive after they have executed their second shots. But 'In ‘any event, you should always wait until you are certain: your drive | won't interfere with their play. i Q. What should the father of the bride do after he has performed itho rite of giving her away? A. He takes his place next to his wife, at the end of the first pew on the left of the church. Q. Is it improper for a girl to use perfume, or even cologne and | toilet water, in an office? A. If it is strong enough to “shout” itself at others, it should be avoided. LOOK and LEARN % ¢. corbox -? S e ) i | i | Who have been the only two Presidents of the U. S. to be elected 1 1. :'x)\ his fishing vessel, Igo, at 9 p. ‘~-lh‘om states west of the Mississippi River? he information came from Bill 2. What city was the capital of the American C Woods, skipper of the Harry Jr, al .~ B PO, o e o ontederaby. aliiiy time of Le€’s surrender? son of George Woods. The Coast Guard transmitted the information to the U. S. Marshal's office and to U. S. Commissioner’ Gordon | Gray. Authority was requested to }trnnsporb the body to Klawock PETERSBURG VISITORS Roxanne L. Swenson and Norma Tengjord of Petersburg are stop- ping at the Baranof Hotel. SEATTLE VISITOR | W. A. Rasmussen of registered at the Baranof Hc Steadfast Atmosphere B5. Attempt 66, Celtic | i 1 ¢ perbole” Presumably vice-presi- AP Newsfeatures Crossword Puzzle . ACROSS 31. Apodal fish 1 Extent of - 32. Relating to volume measurement 6. Food fish 26. Pertaining to 8. Public vehicles humanity 12, Encourage 39, Macaw { 13. Commotion 40. Fish 14, To_the 41, Machine for sheltered forming d 44. Hunting 1 expedition 48. Sacred Buddhist . language 21. Destructive 49. Limpid rodent b1. Otherwise 22. Correlative of 52 Per! neither 53. River duck 23, Fastenings b4. Portal DOWN 1. Voleanic crater . 2. Competent 3. Who is author of Proverbs in the Eible? 4. When are one’s “salad days”? 5. Fqr what, in English. money, is a “bob” the slang term? ANSWERS: 1. Herbert Hoover and Harry Truman. 2. Richmond, Va. 3. Solomon. 4 5. . Days of youthful inexperience. . Shilling. P i MRS. J. BURNETT a8 a paid-ap subscriver 10 THE VAILY ALASKA EMPIRE is invited to be our guest THIS EVENING Present this coupon to the box office of the CAPITOL THEATRE and recelve TWO TICKETS to see: “BORN YESTERDAY" Federal Tax—12c Paid by the Theatre Phone 14—YELLOW CAB CO.—Phone 22 and an insured cab WILL CALL FOR YOU and RETURN YOU t2 your home with our compXmenta, WATCH THIS SPACE—Your Name May Appear! Y Oldest Bank in Alaska 1891—0ver Half a Century of Banking—1951 The B. M. Behrends Bamnk Safety Deposit Boxes for Rent COMMERCIAL _SAVINGS P e 1 MONDAY, MAY 28, 1951 Weather af Alaska Poinis Weather conditions and temper- atures at various ~ Alaska points also on the Pacific Coast, at 4:30 am, 120‘h Meridian Time, and released by the Weather Bureau are as follows: Anchorage .. Annette Island Barrow .. Bethel Cordo Dawson Edmonton anks 40—Partly Cloudy 45—Partly Cloudy . 34—Partly Cloud 54—Partly Cloudy 43—Cloudy 3 33—Partly Clou 44—Cloudy 47—Rain Show 39—Rain le i 1y Partly Cloudy 46—Cloudy 38--Rain 45—Drizzle MEMORIAL DAY TALK GIVEN BY DRUXMAN A Memorial Day talk was giver by active Legionnaire Robert D: man gt a regular mecting of Lions “elub the Baranof - hotel Monday noon, Druxman stressed the power$§ of education and proper ex- ample in overcoming the evil forces in the world caus Ed Chester, retiring the swimming pool co! ommended that the Li pool fund be t to buy a chlorinator the ter ist in raisin the pool. The fund 2 020, tallation to ti another $2,000. discl send postear utors and the money in th funds. The origin stall a heating unit whic to be too expensive to of President y: Wil to Che in the J s his last After those farewell tribu active ter for work eau C he will Guard Chester club at the Ii vent; 7pn June 11. The game spotli the opening of the tion Army fund drive and a silver offering will be taken up durin: e fund. The game officials. Joe Werner will run the game. Stan Grummett will b2/ in charge of equipment. Peter W: will handle pu Dr. Willi Whitehead will h stunt com mittee. Guests were George Opostol, as- sistant attorney gener: Greeny and C. W. Peter: ad & LES BONA HERE Lester M. Bona of the Coast Grocery Co. of Tacoma is at the Baranof Hotel. FROM CRAIG Gil Reese of Craig is at the Bar- anof Hotel. STEVENS® LADIES’—MISSES’ READY-TO-WEAR Seward Street Near Third B e The Charles W. Carter Mortuary Fourth and Franklin Sts. PHONE 136 Caslers Men's Wear McGregor Sportswear Stetson and Mallory Hats Arrow Shirts and Underwear Allen Edmonds Shoes Skyway Luggage BOTANY "500" CLOTHES NUNN-BUSH SHOES STETSON HATS Quality’ Work Clothing FRED HENNING Complete Outfitter for Men SHAFFER'S SANITARY MEAT FOR BETTER MEATS 13—PHONES—49 Free Delivery 39—Partly Cloudy Rotary | , John| West' 147 ZMOUNT JUNEAU LODGE N ,SECOND and FOURTH | Monday of each month in Scottish Rite Temple ;begfinning at 7:30 p. m. {Wm. A. Chipperfield, ‘Worshipful Master; JAMES W. LEIVERS, Secretary. . €) B.P.0.ELKS ’ Meeting every Wednesday at 8 j P.M. Visiting brothers welcome, | LE ROY WEST, Exalted Ruler. | W. H. BIGGS, Secretary. Moose Lodge No. 700 Regular Meetings Every Friday Governor— LOREN CARD, Secretary— WALTER R. HERMANSEN 1 V.F. W. | Talku Post No. 5559 Meeting every Thursday in | the C.LO. Hall at 8:00 p.m. Brownie’s Liguor Store Phene 103 139 So. Franklin P. 0. Box 2508 | J. A. Durgin Company, Ine. Accounting Auditing Tax Work { { Room 3, Valentine Building | ! JUNEAU, ALASKA ‘\ P. O. Box 642 Telephone 919 it —EMPIRE WANT ADS PAY— st st} "“The Rexall Store” Your Reliable Pharmacists i BUTLER-MAURO ! DRUG CO. Arthur M. Uggen, Manager Pianos—Mausical Instrumente and Supplies Phone 206 Second and Seward Card Beverage Co. Wholesale 805 10th Bt. PHONE 216-DAY or NIGHT for MIXERS or SODA POP || The Alaskan Hotel Newly Renovated Rooms at Reasonable Rates PHONE SINGLE O | THOMAS HARDWARE || “and FURNITURE coO. } PHONE 555 PAINTS OILS Builders’ and Shelf ¥ HARDWARE { Remington Typewriters SOLD and SERVICED by J. B. Burford Co. “Qur Doorstep Is Worn by Satisfied Customers” i | FORD AGENCY (Authorized Dealers) GREASES — GAS — OIL | Juneau Motor Co. Foot of Main Street MAKE JUNEAU DAIRIES || DELICIOUS ICE CREAM || a daily habit—ask for it by name || Juneau Dairies, Inc. | HOME GROCERY Phones 146 and 342 Home Liquor Store—Tel. 699 American Meat — Phone 38 '| To Banish “Blue Monday” To give you more freedom f from work — TRY Alaska Laundry - H. S. GRAVES The Clothing Man LEVI'S OVERALLS 7 for Boys BLACKWELL’S CABINET SHOP 117 Main'St. Phone 772 High Quality Cabinet Work for Home, Office or Store