The Daily Alaska empire Newspaper, May 29, 1951, Page 4

raGE FOUR e e e ————— e e e Daily Alaska Empire N Alaska President Vice-President Managing Editor Juneau as Second Class Matter. SUBSCRIPTION RATES Delivered by carrier in Juneau and Douslas for §1 six months, §9.00; one year, $17.5 following rates nths, in advance, $7.50 One yea; one month. Bubscribers ® the Business Off: of their pap Telepho promptly notify ¥ in the delivery, hey w ss Office, 374 MEMBER OF ASSOCIATED PRESS Assoctated Press 1 " The republicatio: wise credited in herein. Tuesday, May 29, 1951 There will be no issue of The Daily Alaska Empire tomorrow, Memorial Day DAY FOR REMEMBRANCE Tomorrow, in Juneau and the Nation, we will go to the resting places of those who have died in defense of American ideals and pay tribute with flowers, { and reverent merories. Tomorrow is Memorial Day and again we are at war and to those who have fallen we pay our deepest respect and send out prayers for safety of those who are battling on the front. Tomorrow is. @' day when all should pause and remember those who ‘are fighting for democracy, for we all have friends or relatives who are now in the line of duty. It is a day of remembrance and for prayer for safe return from victory. IMPROPER DEALS The report of Senator Hoey denouncing the Palmer Airport transaction between the Alaska Aeronautics Commission and the Civil Aeronautics Commission ob- of an RFC manager for what the agency called an “improper” government deal. W. Stuart Symington, RFC administrator said he was not concerned whether the operation was illegal, but added, “I am dead certain it was improper. THE HATCH” “DOV Not long ago was National Maritime Da; between Armed Forces Day and Memorial Day it passes without recognition in Juneau. It is difficult to ob- serve all of the “national days” of the year. However, the “Down the Hatch” column of Charles Regal in the Seattle Post-Intelligencer made this excellent commentary on Maritime Day, and what he ys is of vital interest to people in any port, we believe. Following is Mr. Regal’s column: «Everybody else will be writing editorials and mak- ing speeches in honor of National Maritime Day today. so Down the Hatch would like to climb on the 50apho3 to add a few uncalled for remarks. “Whatever might be said about the present and future of the American merchant marine, the pro- longed period of labor-employer peace on the water- front cuts through the fog of pessimism like a beacon of hope. o “Maybe you haven't noticed, but there have been no major waterfront tie-ups in Seattle or other import- ant West Coast ports since 1948 “That is the most significant single factor in the maritime picture, in the opinion of this department Continued waterfront production is the only hope this coast has to regain its lost tonnage. No matter what caused the labor-management turmoil in the| three years after World War II,-it nearly wrecked he industry on the Pacific Coast. “I remember ‘those bitter days.' I covered them for this newspaper. The attitude of the unions was: Those blankety-blank operators, all they want is to cut | wages and get more work out of the men. ’I‘m-i sperators said: ‘“Those blankety-blank unions, all iht‘)" yant is more wages and less work. “It was a period of readjustment and it cost both ides, and the entire West Coast, millions of dollars.: That perod tapered off in 1948, or thereabouts. Both sides seeemd to realize that the ship was sinking while ; they battled it out on deck. seaman friend observed recently: What good are the best wages and conditions in d, if you have no ships to sail on?’ “He is 100 per cent right. And if this is inter- preted as a subtle slap at maritime labor, all I n say is, brother, read it over again, carefully and you will see that it certainly is not. “When you deal with labor and management day after day, you soon learn that there are good guys in| dungarees and good guys in business sul mey've} all got plenty in common; they talk the same lan-, he W May 29 George A. Parks Angelo F. Ghiglione Katherine Mack Art Hedges Miriam Lowe Marilyn Jackson Esther Martinson John Lowell Lynn Jackson Anna Mae Cousart . . May 30 . David Harman Diana Bost Crystal Jenne Ed Jahoda Mrs, William R. Weir Frank Heinke °© o o o o o COMMUNITY EVENTS TODAY At 8 p.m. — CDA meeting in parish hall. At 8 pm. — Odd Fellows meet in IOOF hall. May 30 { At 10:45 a.m. — Memorial Day parade. At 8 p.m. — Elke lodge. {3 May 31 meets at Baranof. At noon — Chdmber: of ‘Commerce} from THE EMPIRE AGO MAY 29. 1931 John E. Stewart, son of B. D. Stewart, who was to graduate with lass of 1931 from Juneau ‘High School, had won the Phipp’s hip in the Alaska Agricultural College and School of Mines. The rehip was awarded every year ‘to the student making the best showing in competitive exams. mailboat Estebeth was back on the run after being laid up weeks. She broke a crankshaft three weeks before while two out of Juneau and reached port under sail. She left for ‘Sitka following passengers: For Hoonah: Max Peterson, Matthew The several hour with the | Lawrence. For Tenakee: J. F. Buchanan. For Killisnoo: F. A. Boyle. For Sitka: Einar Olson, Calvin McKay. Leaving on the Admiral Rogers for Seattle were: Mrs. J. L. Museth, G. W. Ramsey, Y. Shatanda, Mrs. S. Hellenthal, Mrs. F. B. Smith, Henry Shatanda, Mrs. Laura Burns, W. E. Jacobson. Memorial Services were to be observed in Juneau with practically every place of business closed. A program was to start at 11 am. in front of Elks Hall with Major L. E. Atkinson, USA, making the address. Other parts in the program were to be taken by the Juneau City Band, the Rev. C. C. Saunders, Brice Howard. Muriel Jarman and the Rev. William LeVasseur. A parade was to march to the wharf were flowers Were to be strewn on the water in memory of those lost at sea. From the wharf the march continued to Evergreen Cemetery for graveside services. SR Rl Weather: High, 50; low, 44; showers. . o ——— Daily L in English 3 aily Lessons In Englisn - w. .. GORDON ———l WORDS OFTEN MISUSED: Do not say, “They were'at war with June 1 At 10 am. — Trinity Guild rummage sale in Undercroft of church. At 8:30 p.m. — First series of sum- mer square dances given in parish hall. Juna 4 At noon — Lions club, Baranof. At 8 p.m. — American Legion post meets in Dugout. June 5 At noon — Rotary club, Baranof. Yet Senators Capehart and Me- Carthy ducked and concealed the RFC abuse from the public for four years. Even after | the more recent RFC scandals were l OFTEN o this responsibility fef M 0 D E ject “deceit and subterfuge” used in an attempt to obtail ing the Palmer airport. Seantor Hoey's objection ‘to this much publicized the recent ouster transaction, is echded in the case of The Washinglon Merry-Go-Round A . S w (Continued from Page One) - et e back, conspired with Jesse Jones and RFC officials to go into “fic- and- “synthetic” bankrupt- 18" cy. er a review of the testimony al (he hearings and the documents in the files ‘presented before this committee,” the Senate Banking and Currency report concludes, “It 15 found that the B & O originated the idea of its present reorganiza- tion, persuaded RFC to accept the idea sometime before April, 1944, and thereby involved RFC in a col- lusive proceeding in bankruptey. The suppressed report plus Sen- ate hearings of the Banking and Currency committee is scathing in its criticism of the RFC and the B & O railroad. It tells how Cas- suis Clay, solicitor general of the railroad, denounced the “bankrupt- cy” as a “fraud” and “frameup.” Mink Coat vs. RR A total of three lawyers resigned in disgust. “For ethical and professional rea- sons,” says the Senate report, “Mr. Clay refused as a'lawyer to sanction a second B & O petition in bank- ruptcy. Two other lawyers question- ed the good faith of B & O's pro- posed bankruptcy proceedings—its veteran general counsel and law department head, John J. Corn- well, and B & O’s special counsel, Henry W. Anderson.” The mystery is why these char- ges against an important govern- ment agency were suppressed. Ob- viously an $87,000,000 loan to a railroad is more important than a $9,000 mink coat worn by a White House secretary. Yet the mink coat has become a symbol of RFC cor- ruption, whereas the loan to the Baltimore & Ohio on which Uncle Sam is still owed $76,300,000 was hushed up. Significantly, the Republicans were in control of Congress during the Senate probe of 1947. If they had acted then, the scandals which have been exposed recently might not have happened. Furthermore, if the Republicans had published their report, instead of suppressing- it, they might even have changed the election results in 1948 Yet the RPC was saved from ex- posure chiefly by two Re; iblican Senators, Capehart of Indiana and McCarthy of Wisconsin, the same Senators who are now demanding that the RFC be abolished. Reason for the ssion - was that Cape ends were mixed up in the 1947 RFC scandal wt as President Truman’s friend his secretary were mixed uj present RFC ndal. and in the Bigger Than Teapot Dome The investigation of the B & O was conducted by Senator Tobey of New Hampshire, Republican, then chairman of the Senate Bank- ing and Currency committee. How- yeased Féderal matching funds for build+ guage and, as they are coming to realize, they have the same objective: in the world! ever, just as the report was fin- ished, he was called to the bedside of his dying wife. Capehart took advantage of Tobey’s absence and dly (ealled a, closed-door meet- | %g to ‘pigeonhole Tobey’s réport’ I More money was involved than in Teapot Dome, yet it took only eighteen minutes for Capehart to order the report locked up. | The meeting convened July 25, 1947, at 2 pam., and adjourned at | 2:18 p.m. Here are excerpts from the secret minutes of that fateful meeting, which if it had voted the | other way, might have changed me; course of political history. | “Senator Capehart, acting chair- man, explained the reason for the meeting, and a general discussion was held regarding the report, an- s of the loan of the Recon- struction Finance Corporation to the Baltimore and Ohio railroad,” the secret minutes state. “Senator Capehart suggested that action on the report be postponed and that chairman Tobey present the report to ‘the Investigating committee when it meets to investigate RFC. Senator McCarthy noted that cer- tain House committees because of the rush of business had decided to do the same thing, and that he!l concurred with Senator Capehart | . Senator Capehart »uggesledl that no_publicity be given to me‘w report’ and 'mo announcement be| made to the press at this time, and ail copies should be returned to| the Banking and Currency com- mittee and put under lock and| key." | 'Jesse Jones’s Henchmen | Thus Capehart kept from the Senator unearthed | until, four years later, Fulbright of Arkansas entirely different scandals. In addition to the revelations in yesterday’s Washington Merry-go- round, here are more shocking | facts on the B & O “Bankruptey”| case, as revealed in the suppressed | report: 1. After Jesse Jones had loaned $87,000,000 to the B & O in 1939, Jones proceeded te put some of his own favored proteges ifto lush Jjobs with the B & O at higher sal- aries. These included Stewart Mc-| Donald, deputy loan administrator who became B & O's chairman;, Russell Snodgrass, assistant general | counsel who became B & O's vice| president in charge of finance; F.| L. Baukhages, an RFC counsel, who started as executive financial as- sistant and moved up to become B & O’s general solicitor; and Cas- sius Clay, head of the RFC's rail- road section, who became B & O's solicitor. | “RFS’s failure to protect its own interests,” the Senate report com- ments, “appears on the basis of evidence before this committee to have been the result of RFC’s carelessness and extraordinary | complacence in dealing with a B O management which included o many former RFC officals.” 2. As the due date of the loan ached, Jones's proteges feared might lose control of the B public the story of RFC corruption - “To give Uncle Sam the finest merchant marine { & O in case the RFC loan should | be paid off in 1944 and = Jones should be ousted from the RFC as a result of the 1944 elections, SO they hit upon a daring scheme to plunge ‘the B &0 into. a fickitious pankruptcy, and thus lock “up fin- ancial control of the B & O until 1965. This strategy was carried out following a conference between Jesse Jones and - vice president Snodgrass on a private B & O car en route to St. Louis in December, 1943. In this connection, the Senate report observes: ‘The RFC was formed to save railroads and other financial institutions from bank- ruptcy, not to plunge them into it.” Record Profits 3. At ame time that the B & O filed for bankruptey, its net profits were higher than any other period during its 120-year history, and the railroad industry was booming with war business. Yet the B & O deliberately used these profits to buy bonds that didn’t mature until well after the RFC loan was due. The Senate report pointed out that the “administrators of the RFC have had concentrated in their hands the greatest financial power held by any group, private or pub- lic, in American history. It'is the responsibility of Congress to learn from actual study how this power has been exercised and, if there has ‘been abuse, to legislate to in- sure against repetition of such abuse.” ACROSS 32, Unwilling 1, Part of a circle 34. Hostile 4. Horse feed feeling 8. Jagged 36. Confine protuberance 87. Pitcher |12. Sign of the " 3. Edges zodiac 13. Boisterous 40. satiated festivity 42. Fruit of & 14. Heap trailing plant 15. Herd of whales 44. Urn 16. Highly 46. Edible bulb | estimable _ 49, Bond-like 1 18, Terrify instrument 20, Dry 3. Palm leaf: 21. Put out varfant forcibly 64. English river 23. Foot lever 5. Shoshonean 7. Genus of Indians the Tue §6. Born b 29, Meaningless -§7. Warm | repetition 68. Resting places 81. Valuable rock 69 Turf T AEEuE P Crossword Puzzle EEYAEREE 7r i/l ladad exposed, Capehart and McCarthy joined in publicly denouncing the RFC, but continued to suppress the RFC scandal that affected their friends. Meanwhile, the taxpayers are stuck with a $76,300,000 unpaid B & O balance until 1965. TWO APPOINTED 10 FISHERY BOARD ' KET. LABORATORY Gov. Ernest Gruening today an- rounced _appointment of twp new member$ to the board of the Fish-| eries Experimental Labgratory in Ketchikan, One of theé men is Andrew Gund- ersen, widely known herring fisher- man of Southeast Alaska and for- mer Territorial senator. For over 30 years Gundersen has been ac- tively engaged in fishing operations of the Ketchikan area and is well informed on fisheries matters The other appointment is Jackj Mendenhall, also of Ketchikan. He is director of the National Fisher-| ies Institute and has been manager of the Ketchikan Cold Storage since | 1934. He was also recently appointed |}/ | da 310 S. Franklin — Open 10:00 a. m. to 10:00 p. m. a member of the Emergency In~ dustry Advisory Commission for the Defense - Fisheries ‘Administration by Secretary of Agriculture Charles F. Brannan and Price Admini tor Mike DiSalle. The third man on the board"is John Dagsow, dis rector of, the laboratory for the| Fish and Wildlife Service. —EMPIRE WANT ADS PAY— . Sbolution of Yesterday's Puzzle s BOWN 5. Help 1. Seawee oW 2. Harvest BuLove anple 3. Qualifie 7. Arouse 4. Papal i, #8 Garden fm. plement 7 9. Beak . 10, Whole 11. Teamster's command Become mature Pa y open Gang Countri sharpl Dark portion for eight of Container Type of itomobile 3 N(‘l.xly 38. Mutinous outbreak . Occurrence . Deposit of loam Short piece standing ouf Bute e O substitute Want Burmese knifeno Night before (‘ that country.” Say, “They were at war AGAINST that country.” MISPRONOUNCED: Stolid. Pronounce the O as in DOLL, not as in STOLE. OFTEN MISSPELLED: ELL. , SYNONYMS: Controversy, dispute, disputation, discussion, debate, disagreement. WORD' STUDY: “Use a word three times and it is yours.” Let us increase our vocabulary by mastering one word each day. Today's word: PENITEN feeling pain or sorrow for sins or offenses. “We should be penitent, but we should also try to make amends for offenses.” Nonpareil; EIL, although pronounced as N ETIQUETTE by ROBERTA LEE Q. When a relative wishes to send a girl, who is to _be married, a check as a wedding present, should the check be made out to the girl in her maiden name or her future name? A. It would be better to make the check out to the girl in her maiden name, so that she will be able to' cash it before the wedding. Q. Is it all right for a child to address a young aunt as “Helen,” instead of “Aunt Helen”? ¢ = A. ,¥es, if the aunt prefers it or requests it. Q. Should a woman take her partner’s arm: when ‘entering the nihg room at an informal dinner? T 'A. ‘No; she should merely walk at his side. ¥ ¢ % PG SR LOOK and LEARN % c.corox \Weather at Alaska Poinfs Weather conditions and temper- atures at various Alaska points also on the Pacific Coast, at 4:30 a.m., 120th Meridian Time, and released by the Weather Bureau are as follows: Anchorage . Annette Island Barrow Bethel .. Cordova Dawson .. Edmonton Fairbanks Haines Havre Juneau Kodiak Kotzebue .. McGrath .. Nome .. Northway . Petersburg Portland i Prince George .... Seattle 48—Cloudy 19—Snow 44—Partly Cloudy g 42—Cloudy 44— Partly Cloudy . 36—Partly Cloudy 47—Partly Cloudy . 456—Clear SEE—- > 2 o) ) .. 40—Partly Cloudy | 43—Fog and Rain <. 38—Cloudy 39—Partly Cloudy . 37—Partly Cloudy 39—Partly Cloudy .. 40—Cloudy 43—Partly Cloudy 33—Parlly Cloudy 37—Partly Cloudy Sitka ... 47—Cloudy Whitehorse . 37—Partly Cloudy Yakutat . 43—Cloudy COMMUNICATION Juneau, May 29 Elmer Friend, Alaska Daily Empire: The word is “RESIGNED"—not | “RETIRED!” I refer to the article| in last might's paper relative to me and my leaving the bank. After all.j Elmer, I taught school for 30 years on salaries you could not brag about; I oniy work in the bank — I don’t own it; the value of the dollar has| shrunk a wee bit in purchasing | power so any income I had a few| years ago is not of the same value today; and besides this, I now have a small daughter about two years of age who sort of looks upon me for food, lodging and education. | No, Elmer, it is true that I resigned from the bank but certainly not true that I have retired. What I am going to do after I come back from California about the middle of July, I do not know for certain as yet. 1t is my hope that I can stay here in Juneau— {that something will show up along my line and that I can do or be of service. But if not, then I will have to go elsewhere. I hope that you will correct the slight error in last night's paper so that my friends won’t get the wrong impression about what I am going to do. There is a vast difference be- ' | | | | | have it is | tween RETIRED and RESIGNED! Sincerely, (Signed) A. B PHILLIPS. MRS. JENNE IS T0 ; OBSERVE BIRTHDAY ‘What are the five climate zones on the earth’s surface? ‘What is a shako? What one word means both to separate and to cling closely? What does the prefix “Mac” or “Mc” in proper names mean? ‘What is the Viking name that corresponds to heaven? ANSWERS: North and South Frigid, North and South Temperate, and Torrid. A high military head-dress, stiff hat, originally of fur. Cleave. Son. Valhalla. ob e ERENSE The MAMZELLE SHOP o WASHABLE RAYON PRINT DRESSES ... Sizes 12 to 48 GABARDINE SLACKS, Sizes 10 to 40 i Gre; Brown — Navy — Black A 15 MRS. ROBERT SIMPSON as a paid-aup subscriver 10 THE VAILY ALASKA EMPIRE is invited tp be our guest THIS EVENING Present this coupon to the box office of the CAPITOL THEATRE and recetve TWO TICKETS to see: “THE HAPPY YEARS" Federal Tax—12c Pai@ by the Theatre Phoné 14—YELLOW CAB C0.—Phene 22 . and an insured cab WILL CALL FOR YOU and RETURN YOU to your home with our compliments. WATCH THIS SPACE—Your Name May Appear! -...$2.98 * Oldest Back in Alaska 1891—0ver Half a Century of Banking—1951 The B. M. Behrends Bank Safety Deposit RBoxes for Rent COMMERCIAL SAVINGS | | e e Tomorrow Wwill be Postmaster Crystal Snow Jenne's 64th birthday. She came to Juneau in 1887 and grew up here, going through the Juneau schools gradupating in the | second whole high school class in 1905. She later attended the Uni- versity of California. She is a grad- uate of the Spencerian Business College in Cleveland, Ohio, and re- turned .to Juneau to teach in the schools here, SEATTLE VISITOR John Partros of Seattle arrived here yesterday from Anchorage on| PNA and is stopping at the Bar- anof Hotel. FROM SITKA Eugene Williams of Sitka is at the Baranof Hotel. STEVENS® LADIES’—MISSES’ READY-TO-WEAR _ Seward Street Near Third The Charles W. Carter Mortuary Fourth and Franklin Sts. PHONE 136 McGregor Sportswear Stetson and Mallory Hats Arrow Shirts and Underwear Allen Edmonds Shoes Skyway Luggage BOTANY l'mll CLOTHES NUNN-BUSH SHOES STETSON HATS Quality Work Clothing FRED HENNING Complete Outfitter for Men s&gpnv MEAT 13—PHONES—49 Free Delivery AN P D S B 2 TUESDAY, MAY 29, 1951 MOUNT JUNEAU LODGE NO. 147 SECOND and FOURTH Monday of each month in Scottish Rite Temple beginning at 7:30 p. m. Wm. A. Chipperfield, ‘Worshipful Master; JAMES W. LEIVERS, Secretary. € B.P.0.ELKS Meeting every Wednesday at 8 P.M. Visiting brothers welcome, LE ROY WEST, Exalted Ruler, 44—Cloudy | w, H. BIGGS, Secretary. Moose Lodge No. 700 Regular Meetings Every Friday Governor— LOREN CARD Secretary— WALTER R. VFEW Taku Post No. 5559 Meeting every Thursday in the C.1O. Hall at 8:00 1y>.m. Brownie’s Liquor Store Phone 103 139 So. Franklin s P. O. Box 2508 —_— —) J. A. Durgin Company, Ine. Accounting Auditing Tax Work Room 3, Valentine Building JUNEAU, ALASKA ,P. O. Box 642 Telephone 919 R TSIOTR S S SR R e —EMPIRE WANT ADS PAY— "The Rexall Store"” Your Reliable Pharmacists BUTLER-MAURO DRUG CO. Alaska Music Supply Arthur M. Uggen, Manager Pianos—Musical Instruments and Supplies Phone 206 Second and Seward Card Beverage Co. Wholesale 05 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 CO. PHONE 555 PAINTS —— OILS Builders’ and Shelf HARDWARE Remington Typewriters SOLD and SERVICED by 3. B. Burlord Ce. “Qur Doorstep Is Worn by Satisfied Customers” FORD AGENCY (Authorized Dealers) GREASES — GAS — OIL Juneau Motor Co. Foot of Main Street 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 from work — TRY Alaska Laundry H. S. GRAVES . The Clothing Man LEVI'S OVERALLS for Boys BLACKWELL’S CABINET SHOP 117 Main St. Phone 772 High Quality Cabinet Werk for .Home, Office or I‘-