The Daily Alaska empire Newspaper, July 27, 1951, Page 1

SR ESS 1O AL IBRARY ASHINGTON, D. @. THE DAILY ALASKA EMPIRE VOL. LXXVIIIL, NO. 11,871 ETCHIKAN PULP M “ALL THE NEWS ALL THE TIME JUNEAU, ALASKA, FRIDAY, JUI | Air Search Turns South . To Islands Large Craft Heard Over Craig; 16 Ships In Air Today The search for a Korean airlift transport, day night on a flight from Van- couver to Elmendorf Field, swung south today from Cape Spencer to include Southeast Alaska coastal is- lands. The Canadian Pacific Airliner with 31 passengers and crew of se en, was last heard from when lts pilot made his routine check by radio off Cape Spencer at 11:17 p.m. Friday. It was on the fir leg of a flight to Tokyo. The southward search was inayg- | urated as a result of a report by three -persons at Craig, who said they had heard hat seemed to be a'large plane” flying over Craig at 12:30 o'clock Saturday morning. They, said “they couldn’t under- stand ‘W3 because_Craig is not on a main airlane. The report was re- ceived through Alaska Coastal Air- ways to 17th U. S. Coast Guard headquarters here yesterday. Islands Included A concerted search effort will be made today to include Baranof Chichagof, Kuiu and Prince of Wal- es Islands, Coast Guard headquart- ers said. A Coast Guard plane bas- ed atyAnnette Island will join the semfi:‘ over Prince of Wales Island. Lt. Col. Wallace Walton, com- “manding officer of Flight A, 10th Rescue Squadron from Elmendorf airbase, has arranged to utilize any aircraft flying between McChord Field, Washington and Elmendor{ Field to be routed to constitute an aerial observation dragnet between the two points. Sorties will continue to be flown today from Cape Spencer to Mon- tague Island at the mouth of Prince william Sound. Yesterday four Coast Guard cutters, the Cahoone Citrus, Bittersweet and Storis combed offshore as far as 39 miles into the Gulf of Alaska. All but the Cahoone will be out today. The Cahoone is returning to its home port of Sitka to replenish food, water, and fuel. High Effectiveness Yesterday's aerial operation in- volved 23 sorties which flew 136 hours over the area of “greatest probability” in the Cape Spencer to Prince William Sound region. It was reported that 60 to 90 per cent effectiveness was achieved. Sixteen aircraft, including two Royal Canadian Air Force Lancast- er bombers, were expected to be in the air today. The weather re- port for today continued favorable (Continued on Page Two) TheWashingi—on Merry - Go- Round By DREW PEARSON (Copyright, 1951, by Bell Syndicate, Ine., ASHINGTON. — A grim pro- spect of fuel shortages this win- ter was presented to President Truman in a sober, hour-long meeting by Secretary of Interior Oscar Chapman recently. Chap- man, who is no “wolf” crier, poin- ted out the following chances of gas rationing and heatless days this winter: For oil and gasoline—Iranian oil production, which supplies 5 per cent of the needs outside the Iron Curtain, may be halted for weeks and even months. In addi- tion, Soviet agents are trying to stir up trouble in other Near East oil areas. Since the Near Rast supplies fuel for western European defenses, the difference will have to be made up from the Americas —if Soviet ogitation succeeds. Chapman explained thai the oil industry could mnot increase dom- estic produccion unless it gets more steel. “We need 2,135,000 tons of steel pipe,” he said, “if we are going to meet the increasing demand: of this country.” Some 300,000 barrels of crude- oil production are already backed up in the west Texas-New Mex- jca basin for lack of pipe, the missing since last Fri-| | Sg{_eks;Throge_ L 8 | Prine Tallal, (above), the anti- British eldest son of murdered | King Abdullah of Jordan, was re- ported to be furious because his younger brother Prince Naif, has been named regent and apparent successor to Jordan’s throne. Tallal, 40, is in Switzerland under medical care for a nervous dis- order. (P Wirephoto. lfilo Steel Cuf Another 5Percent WASHINGTON, July —(P— | The government today ordered another five per cent cut in steel for passenger car production, ef- fective Oct. 1 Auto output in the October- through-December quarter will be cut to 60 per cent of the level of | the six months preceding the Ko- rean invasion. This will mean a production of slightly “over 1,100,- 000 cars. If the auto makers need it, they'll be permitted to use some foreign steel, too, so that they can make the 1,100,000 quota, de- fense production administrator Manly Fleischmann said. The announcement came as DPA issued steel, copper and al- uminum allocations for the final quarter of the year Except for consumer goods, production levels will be about the same as in this quarter, it was stated Such consumer items as refrig- leruton, washing machines and household electrical appliances will get akout 65 per cent of their pre-Korea tonnage. They get 70 per cent now. Fleischmann said there’s no rea- son for the censumer to worry. Elk Official 217, Wilfred C. Stump, Ketchikan at- forney, appointed as district grand exalted ruler for the Elks Alaska east district. FROM BOSTON Mr, and Mrs. R. E. Everest of Boston, Mass. are registered at the .|show “good faith” in i officially | Ordinarily, briefings of this nature | i|are held to give reporters back- Allies Held 0ff ‘KO’ in "Good Faith’ WASHINGTON, July — | The Army claimed today the Al- 'lies had the Communists in Ko- !rea “hanging on the ropes” last| | month but held off trying to deal | a knockout punch in order to peace talks. same time, the Army | accused the enemy ot carrying out a "(remendou‘sbulld-’ up” of troops, supplies and weap- | ons at the front since the origln--‘ al peace proposal was made June 23 In contrast, the Army said, one | United Nations combat unit was pulled out of the battle area and sent to Japan. The unit was not identified. The Army's report was given in an unusual on-the-record brief- ing for newsmen at the Pentagon.| on 217 At the ground information only but this time the spokesman read a state- ment for publication. Late in May, it said, the Allies| had just beaten off a major Chi- nese Communist drive in the “most distastrous defeat” since the Chinese entered the war last November. The Chinese were “driven back in confusion,” the Army said, with losses of more than 100,000 men. The Allies were in a good pos- ition to follow through, the state- ment continued, but heid up the drive after agreeing to enter into peace talks. Cease_-Fire Line Drawn; Reds Ask Adjournment UN. ADVANCE HEADQUAR- TERS, Korea, July 27 —(®— The Allies told the Communists today where they want to draw the cease-fire line in Korea—and why. Vice Adm. C. Turner Joy, chief United Nations delegate, explained the Allied position in detail as negotiators got down to the meat of armistice talks in their elev- enth meeting at Kaesong. Admiral Joy talked 52 minutes. He gave the Reds two' marked military maps to picture his po- sition. The five made no comment. asked for and got, {ment until 10 am. Saturday pm. Juneau time today). The general understanding is the United Nations is pressing for demilitarized zone roughly Communist generals Instead they an adjourn- “4 Members of the newly constituted U.S. Court of Military Justice, law, meet in Washington for their first session. justice of the Supreme Court of Utak; Chief Judge Robert E. and Paul W. Brosman, dean of Tulane Law School, '6.]. Supreme b e R Y 27, 1951 MEMBER A SSOCIATED PRESS E CENTS — | ILL CONTRACT SIGNED _(ourl: Mggls Th>y are (left #) Wirephoto. highest court of appeal under military to right) George W. Latimer, former Quinn, former Rhode Island governor, Aldska .Slumld Settle | \Dowwn, Thinks Trade |Association g Meeting Tonight May Bring Earlier Fishing Season Southeast Alaska's pink salmon season may be opened earlier than the regular August 6 date. A meeting and Wildlife Service office, room 430 of the Federal building tonight , to which packers, trol- seiners and anyone interest- ed in the fishing industry and general public are invited. Surveys of various districts show an _encouraging escapement of pink salmon.. already. in the streams. Port Frederick and Ten- akee have had an excellent es- capement of both pinks and chums. Many “jumpers” in Ten- akee Inlet indicate mbore fish coming in, along the present battle line. The Communists want it along the 38th parallel. Marsl;;II "Shocked' a Letdown WASHINGTON, July 27 —®— Secretary of Defense Marshall said today he is “shocked” at the de- fensive let-down of the American people since the Korean truce negotiations. In a plea to Senators, Mar- shall asked that Congress approve the full $6,300,000,000 the admin- istration asks for foreign arms aid. He said that if it came to a ckoice it would be better to cut funds fer the United States’ own armed services rather than trim the money intended to strengthen western European forces. The program will provide “only the essential military require- ments” in 1952 for Gen. Dwight D. Eisenhower's armies, Marshall said, and stressed that the “major* purpose” is to prevent * another war, not just to defend Europe in case of war. “The best’ deterrent to war is being prepared,” he said. — EXCURSION INLET CANNERY TO OPERATE Columbia River Packers new high speed two-line cannery at Excursion Inlet will be ready for operation by August 6, Ansel J. Wright, bookkeeper there, said to- day. Most of the American Can |Co. equipment is installed. The power house and a fish elevator (Continued on Page Four) Gastineau Hotel, are yet to be completed, he said. ‘| past Service and the sal- have been carrying out extensive aerial surveys the few days. Observers predict an unusually good salmon season in Southeast Alaska, probably ex- ceeding the 1949 run. Trollers are experiencing an un- usually good year. “One cannery in Pelican, canning troll-caught fish, reports from half to three times more cohoes than last year. On July 5, it packed 746 cases of cohoes as compared to 427 in 1950 on July 22, it put up 15836 cases as compared with 3431 on the same day last year, Pinks they reported far ahead of last year's pack. # Clarence Rhode, regional direc- tor, attributed the unusual troll situation to later opening and shorter fishing seasons the past five years, which gave incidental protection to hoth red and cohoe salmon. [ oremons southbound Both the mon industr; Aleutian scheduled early Sunday. Alaska northbound due day afternoon or evening Freighter Sailors Sphce Seattle today. Baranof scheduled from Seattle today. Princess Norah due northbound tomorrow afternoon, southbound on Tuesday. Princess Louise due northbound ‘Tuesday. Satur- leaves northbound VISITOR FROM HAINES H. C. Bradshaw, Haines business man, is stopping at the Baranof Hotel. L4 will be held in Fish | IATTLE, July 27, —P— Its | time for Alaska to quit booming ’and settle down to a pioncer at- L(i(udo of toil and sweat. | This was the opinion of L. A.| | Colby, president of the Pacific Northwest Trade Association, who | | stopped here yesterday after a | three-week visit to Alaska cham- | bers of commerce which belong to | the Association. | Alaska’s gold and defense con- | struction booms have been a good thing from the standpoint of popu- ‘Izlllnx the territory, Colby said, but Alaska should now think of | more permanent things. “I was impressed by amount of apparently the vast unusable “but I believe Alaska could go a long way toward self-sufficiency by adopting a program of agricul- ture with crops adapted to local and climatic conditions ( “People going to Alaska to get what they can and then get out are not these who will give the Territory a permanint economy. It takes the pioneer qualities of hard work and perserverance to successfully produce in Alaska, But experience has shown it can be done, “Once Alaska is self-sufficient in certain aspects, extra dollars will be available for the purchase outside of items which are impos- sible to produce there.” Colby was accompanied on his teur by D C. Knapp, executive secretary. of the Pacific North- west Trade Association’s Seattle office, and by, his son Conrad, 11. His home office 'is in Missoula, Mont. Sid ,Thompson Recommended for Marshalship Sidney J.. Thompson, of Juneau, was recommended today for the appointment of U. 8. Marshal for the First Division, according to an Associated Press dispatch from Washington, D. C. The Marshal’'s office left vacant by the deatr of William T Mahoney last fall. Thompson has been deputy mar- shall in the Juneau office since 1940. | The recommended appoinmu-:u" made by Delegate E. L. Bartlett and carrying the endorsement of Howard Lyng, Democratic National Committeeman for Alaska, has been was presented to Attorney General How- | ard MeGrath, Rollbacks To Pre-Korea Levels Vofed Final Decision on Non-Farm Produce Considered Today WASHINGTON, July 27, —(P— Senate-House conferees voted tent- atively early today to permit price rollbacks on non-farm cominocities to levels which prevailed just be- fore the Korean war—provided cer- tain cost increases are taken into acconnt The tentative decision came near the end of an all-night session of the conference committee, which agreed to extend economic controls legislation through next June. The extension measure cover: , rent and other emer- gency curbs. Final Decision Senator Maybank (D-S. C) the joint committee chairman, told re- porters the group will meet again later today to make a final decis- ion regarding the non-farm roll- back provision. He said a few other provisions also will eome up for a final vote then. The legislation would keep intact the ten per cent beef price roll- back already in effect, but would bar additional price cutbacks fo1 that commodity. The price admin- istration planned two more reduc- tions, each 4!z per cent. In its tentative form, the com- promise extension bill fell far short of the kind of controls legislation President Truman has requested The separate bills passed earlier, by the Senate and House were minus of the additiomal controls which ~ the president most authority sought, . Credit Controls The conferees also approved more liberal consungr credit controle than the Federal Reserve Bank Board now has 'in effect, covering the instaliment purchase of new and used cars automobiles and suct household items as radios and tel- evision sets. The administration won at leas( one victory when the conferees agreed to permit rent rolibacks te levels which prevailed just before the Korean war, in newly desig- nated critical defense areas. al Votes The compromise bill produced by the Senate-House conference com- mittee must go back to both cham- for final votes before going to Truman to be signed into law. conference committee under the gun. Controls Mr { The working is tion expires July 31 unless 540 Million Cellulose Plant at Ward's Cove fo Produce 525 Tons Daily §Si ning Coniract Culminates Efforts 0f Heinizleman of the contract today | the Ketchikan Pulp and | Paper Company and the Forest | Service culminates the 30-year ef- fort of one man | That man is B. Frank Heintzle- | man. | since 1918 when he first came |to Alaska he has seen Alaska's | possibilities for the production of pulp and paper and has inter- }viewbd dozens of prospective pro- ducers over the years. | Graduating frem the ®ehool of | Forestry at Yale in 1910, Heintzle- man joined the Forest Service and was stationed in Oregon until 1018 when he was sent to Alaska /to cut spyuce for plane manufac- [ture during World War 1 He became assistant orester in 1921 and in {made regional forester. | The Ketchikan Pulp and Paper Company creates a manent industry for the Territory. Trees will be harvested unuer scientific management to use, and yet protect, Alaska’s forests, he ex- plained, The sale of timber to the Ketchikan Pulp and Paper Company is the largest ever made | | Signing regional 1937 was !said today., M is-sufficient to fur- 50 years, Of the eiforts he plugged the past many Heintzleman said todayi “I am gratified to know the contract has beem signed and the project is installed because of its tremendous importance to the ec- onomy of Southeast Alaska and the Territo! s a whole.” has spark- years, Timberlands Development WASHINGTON, July 27, —P— Delegate Bartlett (D-Alaska) urg- ed development of Alaskan timber- lands today as a source of pulpwood to help overcome the worldwide newsprint shortage, Testifying before a House Inter- state Commerce subcommittee, Bartlett said the defense esta- blishment had frequently urged a build-up of the Alaskan economy tor closer supply sources. The sub- committee is making a general in- quiry into the newsprint situation. Rep. Wolverton (R-N. J.), rank- ing GOP committee member, sug- gested federal tax concessions might encourage industrial expan- sion in Alaska, Large stands of virgin timber in | Southeast Alaska are under control | of the Department of Agriculture However, the department's forest regulations require processing at the source, which private industry has contended would be uneco- nomical in a competitive market. Bartlett said there would be great advantages in having pulp and newsprint mills in southeastern Al- aska. NEW YORK, July 27, —{Mm—Clos- ing quotation of Alaska Juneau mine stock today is 2%, American Ccan 112, American Tel. & Tel 157%, Anaconda 42'2, Douglas Air- craft 49%, General Electric 557, General Motors 48'2, Goodyear 7887, Kennecott 76, Libby, McNeil f& Libby 8%, Northern Pacific 497, Standard Ol of Califor! 49, Twentieth Century Fox 197, U. S Steel 40%, Pound 280-1 16, Can- adian Exchange 94.43%. Sales today were 1,450,000 shares. ities 44.81. committee whips together hefore midnight Tuesday. new and per- by the Forest Service, that nuenc_v' nish @ 525-ton daily capaciy Koe] Averages today were as follows: | industrials 25023, rails 81.69, util-| extended anew as is or unless the a bill which can get two-house approval % Alaska’s first big year-round in- dustry was assured today with word from Regional Forester B. Frank | Heintzleman that a contract has | been signed in Washington, D. (o between the Forest Service and the Ketchikan Pulp and Paper Co. Heintzleman, regional forester here, said he was informed of these terms: The Forest Service contract re- | quired a financial showing of $40,- 1 000,000. This was done with pri- | vate money. | The company under the contract will be given 7,500,000,000 board | feet of timiber, mostly on the north end of Prince of Wales Island, west | of Ketchikan. A 50-year rotation | plan for n perpetual crop is called | for. It is the largest sale ever made | by the Forest Service. | The cdhtract says the company ! must produce 300 tons daily, and | within 10 years, 525 tons. The com- pany must be in production by Aug. 2, 1954, which means construction of its proposed plant at Ward's | cove, six and a half miles north | of Ketchikan, will probably start this fall or winter, he said. High grade rayon, cellophane, and | nitro-celltlose will be produced, but no paper. Two ‘Parents’ The venture is backed by the parent Puget Sound Pulp and Tim- ber Co., of Bellingham, Wash,, and the American Viscose Corp. of Philadelphia.. The latter, = largest rayon producer in the nation, has eight rayon plants in the East. man prompted Southeastern Alask- ans to observe that the way is now clear for other pulp producers to move in. They predict that other lumber plants, milling Alaska cedar and other fine woods unsuitable for pulp, will move to Ketchikan event- ually, The new plant will employ 600 men, with another 600 in the woods | tor year-round cutting. The firm may use railroad car-ferries to take the pulp to Prince Rupert, B. C., south of here, thence East by rail. No Pollution “The operation provides secur- ity against pollution of salmon streams,” Heintzleman said. He said he understood a magnes- ium oxide process would be used to recover chemicals and burn waste for electric power. The “industrial incentive” clause of the Territorial property tax act was adjusted by Tax Commissioner M. P. Mullaney so only one-half of the true valuation will be reel oned. Board of Equalization membets Peter Wood and Ernest Parsoms, explained that the Ketchikan school district would make the assessment, with the tax commission levying on that figure. One of the major features of the agreement is provision for conserv- ation of the area’s natural resources. This includes handling of the tim- ber on a sustained yield cutting plan, safeguarding the salmon spawning streams, prevention of pollution and preservation of scen- ic values. Cutting Contract | The sale was made on the basis | of a 50-year cutting contract which | expires June 30, 2004. The company | agreed to pay 85 cents a hundred | cubic feet for timber cut for man- ! TR P S e M (Cuatinued on Page Two) | | | A WEATHER FORECAST Temperature for 24-Hour Period ending 6:20 o'clock this morning In Juneau — Maximum, 68; minimum, 54. At Airport — Maximum, 74; minimum, 50 | | FORECAST Junean and vieinity: In- creasing cloudiness tonight with lowest temperature about 53. Mostly cloudy Sat- urday with occasional light rain. Highest Saturday near 64. ee0c0csegreccsscoese PRECIPITATION ® (Past 24 hours ending 7:30 a.m. today e City of Juneau — .00 inches; e Since July 1 — 4.02 inches; ® At Airport .00 inches; e Since July 1 — 228 inches. e ® 00 0 0 00 00 @9 000000000000 ®0 0000000000