The Daily Alaska empire Newspaper, August 17, 1951, Page 1

.,\‘JA“a.»L.“A,u.w.\A. TBRARY \SHINGTON, D. G. “ALL THE NEWS ALL THE TIME” VOL. LXXVIII, NO. 11,889 Alaska Housing Program Slashed Over Profess; Curfailment Seen By Frank W. Vaille WASHINGTON, Aug. 17—®—The House Appropriations Committee to- day approved an appropriation of $3,500,000 for Alaska’s housing pro- gram—a cut of $1,600,000 below Pre- sident Truman’s requested sum. The slice came despite protests of officials of the Housing and Home * Finance Agency (HHFA). They test- [ ified earlier that a lack of federal money would “soon curtail and de- lay urgently needed production” of Alaska housing Jail Refused The Appropriations Committee also rejected a request for $950,000 for a new jail at Anchorage. Testimony by HHFA offictals was released today. A. C. Newell, special assistant to the HHFA commissioner, said 18 projects have been started since the act was passed in October, | 194¢, Although Congress originally au- thorized a $15,000,000 revolving fund, only $10,000,000 has been actually appropriated. The President recently requested approval of the final $5,~ 000,000. Purchases Bonds Under the act, the HHFA is authorized to purchase bonds of the Alaska Housing Authority— a territorial agency—to stimulate housing construction in the terri- tory. It includes pre-construction loans for the purchase of mater- ials, construction loans to private builders' and actual construction in smaller towns where private builders are not interested. More than half of the original! $10,000,000 fund already has been: committed in loans, Nowell said. Loans now up for final approval will use the balance of the fund. In addition, some $6,000,000 in pro- jects have been given preliminary screening. Urgent Need So urgent is the need for housing, Newell asserted, that in several cases in Anchorage purchasers have mov- ed into the basement without wait- ing for completion of the home. Vernon E. Hubka, HHF attor- ney, said the Alaska program “contrary to many loan programs, has suffered no loss to date, and there is no evidence to believe that we will suffer a loss.” Hits Interest Rate Private builders, he said, are glad to get the money at the 4% percent | interest rate “because no one else will loan any money in Alaska ex- cept at the rate of 8 percent.” When Rep. Gore (D-Tenn.) crit- icized the 8 percent interest rate as “unjustifiable” and “not only poor banking but poor statesman- ship for the Territory of Alaska,” Delegate Bartiett of Alaska pointed out the legal ifiterest rate was form- erly 12 percent but had been cut twice by the Territorial Legislature. “But,” he added, “if the bank rate in Alaska were one percent it would not help in this particular program one bit because the volume of money necessary is not available within those banks. . .” JOSEPH. PIPPIN DIES HERE Joseph’ Pippin of Juneau, died yesterday noon at St. Ann’s Hospit- al. He was 79 years old and came originally from Missouri. No details regarding survivors were available today . AT THE BARANOF Ernie Mynar of Seattle, is regis- tered at the Baranof Hotel. TheWashington Merry-Go-Round By DREW PEARSON (Ed. Note—During Drew Pear- son absence in Europe, his staff will contribute an occasional column from Washington.) WASHINGTON.—Even as Con- gress is considering another $307 million for Chiang Kai-Shek, this column has uncovered shocking, documentary evidence about what has happened to thelast $125 mil- lion he received from the Ameri- can taxpayers. The indisputable fact is that huge sums have dis- appeared into private bank ac- counts, and additional, unneces- sary fees have been skimmed off bp a series of middlemen. For example, this column has traced $444,706.53 right out of the taxpayers’ pockets into the private account of a fictitious campany. This money was supposed to pay for war surplus equipment, but was mysteriously transferred to (Continued on Page Four) ! Gov. | vacation on the west Col. Lars Johnson Appointed Alaska Guard Adjutant Appointment of Lt. Col. Lars L. Johnson of Anchorage as adjut- ant general of the Alaska National Guard was announced today by Ernest Gruening. Col. Johnson replaces Col. Jo- seph Alexander who completed three years duty recently as act- ing adjutant general. In 1941, Colonel Johnson was called to active duty at Fort Ri- chardson where he served with the air corps as administrative officer. He was instrumental in estab- lishing air corpss detachments at Kodiak and Umnak islands. He also activated the McGrath air- base where he was commanding officer until April of 1943. Johnson was wounded during !duty with the First Cavalry while coordinating air-ground support. ! In November 1945, he was station- | ed at Randolph Field, Tex., where he served as advisor to recruiting officers in the flight training command. He was separated from active duty at Randolph Field in 1946. Since his return to Alaska, he has fished commercially in Bristol Bay. He also worked for the Juneau Spruce Corporatica and the Ter- ritorial Department of Taxation. Col. Alexander and family left Wednesday for the States. He will be stationed with the organization and training branch of the guard bureau in the Pentagon at Wash- ington, D. C. The Alexanders will coast and a weivic VISIL (Epauves Cllivage he reports for duty about Sept.! 19, . L. J. Seeley New President 0f Dentisfs Anchorage was chosen as the 1952 convention city for the Alaska Ter- ritorial Dental Society during yes- terday's closing session of the so- ciety’s annual meeting here. A ban- quet last night at the Baranof Hotel concluded the sessions. Dr. Lawler J. Seeley of Anchorage was named president for the coming year. Other officers elected were Dr. John H. Geyer, vice president, of Juneau and Dr. Robert A. Smith~ son, 8ecretary-treasurer, Anchorage. Named to the executive council were: Dr. Frank M, Dorsey, Angh- orage; Dr. R. H. Williams, Juneh and Dr. James O. Whaley, Ketchi- kan, Delegate to the American Dental Association is Dr. Robert D. Livie of Anchorage. Dr. Lee L. McKinley, also of Anchorage, was chosen al- ternate. Doctors Williams, Geyer and Livie were placed on the legislative com- mittee. Juneau’s eight dentists and their wives have been hosts and hestesses to the visitors. Doctor Williams is president cf the local group and Doctor Geyer, secretary-treasurer. Doctor Clayton L. Polley of Ju- neau, retiring president, said every practicing dentist in Alaska is a member of the group. This, he said, is something of a record in mem- bership among dental societies. The membership is 58. Visiting dentists from = Seattle planned fishing and sightseejng trips in the Juneau vicinity for to- day and over the weekend. Dentists from the armed forces expected to réturn to Anchorage and Fairbanks today in Air Force air- craft. WEATHER FORECAST Temperature for 24-Hour Period ending 8:20 o'clock this morning At Airport—Maximum, 56; minimum, 49. FORECAST (Juneau and Vieinity) Mostoly cloudy with occa- slonal light rain tonight and Saturday. Lowest tempera- ture tonight near 50. Highest tomorrow about 60 degrees. PRECIPITATION | ® (Past 24 hours ending 7:30 a.m. today . At Airport — .44 inches; ® since July 1—3.93 inches. s JUNEAU, ALASKA, FRIDAY, AUGUST 17, 1951 Reds Ready fo Compromise After Informal Talks Delegates Laugh, Pose For Pictures, Hope for Settlement MUNSAN, Korea, Aug. 17—P—A four-man subcommittee tackled the Korean buffer zone deadlock today amid official indications the Com- munists are ready to compromise. The subcommitteemen declined to comment on what happened in their first session—held in an unusual air of informality for Korean truce talks. ‘They scheduled their second ses- sion for 11 am. Saturday (4 p.m today, Juneau time.) When they adjourned United Na- tions and Communist delegates pos- Over Iron Curfain ed for pictures togéther for the first{ time. ‘While posing, Maj. Gen. Henry L Hodes, one of the UN represen- tatives, put his arm around North Korean Maj. Gen. Lee Sang Cho. The other two delegates—U. S. Rear Adm. Arleigh Burke and Chin- ese Maj. Gen. Hsieh Fang—also ap- peared to be in good spirits. While they were negotiating be- hind closed doors, their discus- sions were broken at times by outbursts of laughter. The informal attitude—a complete reversal of the cold military form- ality of all full degelation meetings —strengthened an air of hopeful- mess brought to Kaesong by a Red broadcast. The Peiping radio quoted the chief Comunist negotiator as saying “it is possible to adjust” the Red demand for a demarcation line along the 38th parallel “on the basis of terrain and mutual defense.” Mad;ihnr Report Voied Down as Peril To Peare Talks 17—P— inquiry today WASHINGTON, Aug. The Senate’s -MacArthur committee voted 20 to 3 two months of hearings. Chairman Russel (D-Ga) told reporters the majority feeling was that any report at this time on the firing of Gen. Douglas MacArthur would only “revive bitter controversy at a critical period in the Korean peace talks.” He said the decision against a formal report was made on mo- tion of Senator Saltonstall (R- Mass). However, it was decided to let individual members file a state- ment of their views to be inclu- ded in the hearing record to be transmitted later to the Senate. (Adress Claims Ownership of Hearst Mansion LOS ANGELES, Aug. 17.—#—An attorney for- foi Davies says t&ai'ze’ ‘owns the Bev:: erly Hills mansion where publisher William Randolph ‘Hearst diéd last Tuesday. A. Lawrence Mitchell, the lawyer, made the disclosure yesterday in ex- planation of a codieil in the pub- lisher’s will that bequeathed the re- sidence to Miss Davies, his long time friend and business associate, and another codicil revoking it. Miss Davies purchased the resi- dence under her legal name, Marion Douras, in 1946, county records dis- close. She deeded it to Hearst six weeks later. The indicated value was $120,000. ; Mitchell said Hearst returned the deed to the residence to Miss Davies in 1948. County records indicate Hearst still is the owner but Mit- chell said it was not necessary that the transaction be recorded, since it was a gift. The codicil revoking the bequest to Miss Davies was drawn after she had been given the deed, the attorney claimed. Gen. Bradley Sworn In Second Time as Chairman of Sfaff WASHINGTON, Aug. 17 — (® — General of the Army Omar N. Bradley was sworn in yesterday for his second two-year term as Chair- man of the Joint Chiefs of Staff. At another Pentagon ceremony, Adm. William F. Fechteler was [sworn as Chief of Naval Operations. More than 100 Admirals and other high ranking military men were e © ® 0 0 0 o o o o o present. against making any report on its| Experimental plastic balloons are tested in Minneapolis prior to recent release of 2,000 of them from a point in soutehrn Germany. Balloons carried 2,000,000 leaflets of friendshnp into Red-ruled Czechoslovakia. Some of them are designed to explode at 30,000 feet, ‘scattering their load of pamphlets, Messages read: “A new wind is blowing. The free world is thinking of you daily and keeps contact with you.” (@ Wirephoto. Project is sponsored by American Crusade for Freedom. 1,000 Balloons Take ¥Vreedom Messages Into Curtained Secrefary Pace, Eonoral Colitns En Route North WASHINGTON, Aug, 17 — (B — The Army’s civilian chiefs will visit Ottawa, Canada | August 21 on their way to Alaska, the Army has announced. Secretary Pace and General J. Lawton Collins will be the guests of Canadian Defense Minister Brooke Claxton, in the dominion capitol. The two U.S. officials will stop overnight at Fort Churchill in north central Canada enroute to Alaska, where they plan to remain a week. The Army's 196th Regimental Combat Team, trained for mountain and cold weather warfare in Colo- rado, has begun maneuvers in north- western Canada which will take the unit to Alaska. After completing a 750-mile training trek the regiment will remain in the Anchorage area to bolster the U.S. defense of the Territory. actress Marjon!| Cattle Price Ceilings May Be (hanged: DiSalle WASHINGTON, Aug. 17 — (A — The government today launched a nationwide drive to enforce cattle price ceilings and disclosed plans for sharply changing the ceilings them- selves. Michael V. DiSalle, head of the Office of Price Stabilization, said a large part of the OPS enforcement staff will concentrate on checking cattle sales prices. Immediate checks are to be made at slaugh- ter plants to find out whether, ab- normally high purchases involve any over-ceiling sales. Price Board Will Meet With Salmon Industry Aug. 30 WASHINGTON, Aug. 17—{#—An Office of Price Stabilization indus- try advisory committee will meet with representatives of the Salmon Industry in Seattle Aug. 30. Senator Cain (R-Wash) told a reporter today the purpose of the meetings is to discuss problems arising in connection with the can- ned salmon price schedules re- cently established by OPS. The meeting will be opened at 10 a.m. in the Smith Tower. FROM SITKA Robert F. Halbasik of Sitka is at the Baranof Hotel, and military | ‘Czeflwslmmkiu NEW YORK, Aug 17 —(P— Harold E. Stassen said today that | freedom messages sent by balloon last Tuesday int. Czechoslovakia ha |reached their ‘targets. “There is no question “that we have torn a big hole in the Iron Curtain and our purpese is to encourage resistance to tyranny,” he said. Stassen, president of the Uni- versity of Pennsylvania and na- tional chairman of the crusade for freedom, returned by plane today from Munich. He helped launch the barrage of balloons bearing messages to Czechs. He said the event was “a suc- cessful beginning of an important new way of reaching Iron Curtain countries with the truth.” More than 2,000 balloons carrying more than 1,000,000 greetings were sent up from a point near the Czech border. A second launching took place today, Stassen said, and when it is completed more than 4,000,000 leaflets will have been scattered over that Iron Curtain country. Ex-Soldiers Deny 'Cloak and Dagger’ Killing in ltaly WASHINGTON, Aug. 17— (B — Protesting their innocence, - two former servicemen have indicated they will fight any attempt to send them back to Italy for trial in the death of their commanding officer seven years ago. And the Italian government has taken no announced action to extra- dite them to face charges made by the U. 8. Defense Department that they played key roles in the killing of Maj. William V. Holohan behind enemy lines in late 1944. Holohan, head of an Office Strat- egic Services (OSS) mission which parachuted behind German lines to direct aid to partisans, disappeared mysteriously. The Defense Department said in a statement Wednesday that he was killed by former Lieutenant Aldo (Ike) Icardi, now a resident of Preakness, N. J., and ex-Sergeant Carl G. LoDolce of Rochester, N. Y., with the help of two Italians. Both Americans - denied the accusation flatly. n (anal Zone, Guam Cifizens Subject o Draft Registration WASHINGTON, Aug. 17 — B — President Truman has signed a proclamation making citizens of the United States in the Canal Zone and Guam subject to registration for the draft. Residents of Alaska, Hawaii, Puerto Rico and the Virgin Islands already are subject to the Selective Service Act. MEMBER ASSOCIATED PRESS PRICE TEN CENTS Civil Defense Fund Stripped; Agency Rapped WASHINGTON, Auf. 17—M—The House Appropriations Committee today strippéd all but $65,255,000 out of the $535,000,000 fund which President Truman requested for the Civil Defense Administration. In doing so, the committee rap- ped the agency for not developing a “realistic, well coordinated” civil defense plan which would guaran- tee “the people the maximum of protection for the money expend- ed.” When that is done, it said, Congress will supply the money. The committee acted as House leaders strove to speed passage of other government money bills after cracking a Senate-House deadlock over the measures, No Bomb Shelters ‘The committee refused to approve any civil defense funds for bomb shelters and other protective facil- ities and cut $150,000,000 from the $200,000,000 requested for the pur- chase of medical supplies and equip-~ ment,. The civil defense budget was con- sidered along with those of a score of other agencies in a supplemental appropriation bill providing $1,677,- 566,314—a total cut of $625,304,800 from President Truman's request. The committee approved $260,- 000,000 of the $273,000,000 asked by the Atomic Energy Commis- sion to speed up construction of new facilities, to test weapons and to develop mew type of reactors. Another big allotment recommend- ed was $780,216,000 for stockpiling strategic and critical material, for which the President had requested $800,000,000. « 520,000 Men fo Be Drafted This Year; 300,000 in 1952 (ollege. Men. Warned Draft May Get Them During School Session WASHINGTON, Aug. 17— @ — Selective Service expects to induct 520,000 men into the armed services this year and 300,000 in 1952. And it warned certain college men yes- terday that they are liable to be drafted during the coming school session. The induction figures were made public by a House military subcom- mittee in a report on recent mili- tary appropriations hearings. The warning to students came from Brig. Gen, Louis H. Renfrow, acting director of Selective Service. In a statement interpreting the new draft law, Renfrow said: % “Those college students who fail to meet the class standing or test grade criteria for deferment as stu- dents and who enroll in colleges can be called out of college for induc- tion if their induction has already been postponed once under statu- tory provisions.” F Juneau Turns Info Pocket-Size Reno; Eight Divorces Juneau became a pocket-size ver- sion of Reno yesterday when eight divorces and one separate mainten- ance case were granted in U. 8 District Court. Reason for the large number, it was said, was the absence of Judge George W. Folta from Ju- neau for the past several weeks. He returned from Anchorage yes- terday afternoon where he has been holding court in the Third Division and immediately heard the divorce petitions. Divorces were granted to: Frank L. Stukel from Lucille Stu- kel, Petersburg residents; Edward A. McDonald from Ethyl J. McDonald; George Wilker Jones from Harriet Virginia Rossiter Hayden Jones; Noreen P, Bishop from Elbert Ross Bishop; Eleanor B. Kobbivik from Arthur Kobbivik; Margaret M. Voil- es, from Sidney L. Voiles, of Doug- las; Donald K, MacKechnie from Hertha A. MacKechnie, Petersburg, and Maria Matthews from James Matthews of Skagway. Pear]l Pauline Sphung was granted separate main- tenance from James M. Sphung. All complaints charged incompat- ibility. FRIDAY FIRE CALL A fire call at 1 p.m, Friday was for a furnace back-firing at St. Ann's Hospital. There was no dam- age reported by firemen. Mrs. 8. M. Dore has returned to Juneau after visiting relatives in Seattle for the past nine weeks. Fourth Plane Missing; Bush Pilof; 3 Passengers Lost fo Westward FBI Chief Snores Through Robbery LA JOLLA, Calif.—(®—An armed robber held up a wealthy Texan here today within a few feet of J. Edgar Hoover. The FBI chief was asleep. Herman D. Cornell, 64, of Fort Worth, reported that the robber took $800. Cornell’s hotel cottage, where the holdup took place at 4:30 a.m., was next to the one oc- cupied by Hoover. ® o 0 0 0 0 Fish Hearings Will Wind Up in Alaska This Year For the first time in its history, the U. S. Fish and Wildlife Ser- vice will wind up, its annual fish hearings in Alaska instead of Se- attle. ‘This was pointed out this morn- ing by C. Howard Baltzo, assist- ant regional director, as he an- nounced dates for the hearings. Public hearings are held follow- ing the close of each fishing sea- son at which time proposals for the next year’s regulations are made. Operators, fishermen and all interested parties are invited to attend to present briefs or tes- timony which are considered by the service in drawing up future regulations, Baltzo added that another new policy will be carried out this year, The service will publicize pose of this action, he said, Is that witnesses appearing at the hearings will be fully informed and can be better prepared to argue the pros and cons of its proposals, Hearings have already been held at Naknek (Aug. 1) and Dilling- ham (Aug. 2). Others scheduled are: Kodiak, Sept. 17; Anchorage, Sept. 20; Cordova, Sept. 24; Yak- utat, Sept. 26; Ketchikan, Oct. 13; Craig, Oct. 15; Wrangell, Oct 17; Petersburg, Oct. 18; Sitka, Oct. 20; Seattle, Nov. 7-8; Juneau, No- vember 15. Hearings will be conducted by officials of the Juneau office of the service. Two Seiners Nabbed for illegal Fishing Two fishing violations were re- ported in Southeastern Alaska yesterday to the Fish and Wildlife Service headquarters here, it was announced by Doug Swanson, as- sistant law enforcement supervi- sor. In Petersburg the captain and two crew members of the side-rig seiner Spot pleaded guilty of fish- ing in the closed waters of Bar- rie Creek. Agent Monty Clemmons, of Wrangell, npprel‘nded the boat. Names of those aboard the boat were not given. U. S. Commis- sioner Dale H. Hirt assessed an 3800 fine against the captainand crew and confiscated fish valued at $350. The other violation occurred in Oralg area with the charge fish- ing in a closed area. Capt. Charles L. Arrington, of the seiner Aksala pleaded guilty before U. S. Commissioner Don T. Bodar in Craig and was fined 3600. Two members of the crew, Samuel B. Burgess and PFred E. Brandes Jr., were fined $300 each. A minor crew member, Jerry Lee Burgess, vas released with a sev- ere reprimand. The arrest was made by Agent Elmer Copstead. A total of 1319 fish in posses- sion of the Aksala were confisca- ted. Princess Norah scheduled to arrive Saturday p.m. from Vancouver. Baranof due southbound Sunday at 10 am. - Aleutian. scheduled to arrive northbound Monday p.m. —————4% ANCHORAGE, Aug. i i i “lefrity hatos 17— B — Another plane was missing today in Alaska—the fourth in less than a month. The wreckage of one, a Navy patrol bomber with a crew of 12, has been found. The latest search was for a plane flown by veteran Alaska bush pilot Glen Hudson. It failed to return from a flight Wednes- day night to a lake near Dead Man Mountain, about 170 miles northeast of Anchorage. Among the three passengers was a 10-year-old boy. Their names (have not been learned. The party was due back in a few hours, af- ter taking off. ' Three private pilots from Tal- keetna, 100 miles north of. An- chorage, and a B-17 from the 10th Air Rescue Squadron here took off yesterday in bad weath- er to look for Hudson's plane. It carried emergency rations and a gun, Charred wreckage of the Kod- iak-based Navy patrol bomber was found Wednesday on lonely Amak Island, off the Alaska peninsula *about midway between Kodiak and Adak Island in the Aleutian chain, The PB4-Y-2 took off last Sunday from its -home field on a routine flight to Adak. A ground party was due to reach the shat- tered bomber late yesterday, but has not reported by radio. Still missing are a Korean air- lift DC-4 which disappeared July 21 between Cape Spencer and Yakutat, Alaska, with 38 aboard, and a single-engined plane which vanished in the same area July 27 with the pilot and the wife and daughter of Walter Wood, wealthy New Jersey sclentist. It was anticipated that four aircraft from the 10th Air Res- cue Squadron would search today as weather ‘mitted in the vi- Cape St. Elias. ? Only one Alr Force craft was up yesterday to total seven search hours over the area between Cape Suckling and the Copper River north to Miles Glacler. Wéather was not good and little improve- ment was expected today. U. 8. Coast Guard headquarters here said that no information had been received regarding the two or three men who had been left at the Seward Glacier camp where ice studies were being made by the Arctic Institute, with which Wood was working. Crime Probers Turn Up 1949 Polifical Contribution Offer WASHINGTON, Aug. 17 — A — Senate crime probers developed a story today that Abner (Longie) Zwillman offered to contribute $300,000 to the Democratic candi- date for Governor of New Jersey in 1949 but was turned down. State Senator Elmer Wene was the Demo- cratic nominee. The story was related by James Bishop of Teaneck, N.J., a writer and one-time reporter who served as an adviser to Wene in the cam- paign. Bishop said the offer was relayed from Zwillman by George Kessel- haut, an assistant to the then Democratic leader in Essex county, Col. William Kelly. Bishop said he told Wene about it the next day and that the State Senator would have no part of it. A retired Treasury intelligence employee told the committee Abner (Longie) Zwillman was a kingpin in the bootlegging syndicate which made $50,000,000 in six years. Edwin Baldwin of Summit, N.J., testified this mob handled 40 per- cent of all illicit liquor brought into the U.S. during prohibition. Baldwin described Zwillman and Joseph Rehinfeld as top men in this northern New Jersey bootlegging sydnicate, and commented: “I worked on the Waxey Gordon and Dutch Schultz (former New York and New Jersey gangsters) cases, and they were pikers com- pared to the Rehinfeld syndicate.” AT THE GASTINEAU Mr. and Mrs. J. A. Nowak of the Pate Oil Co, of Milwaukee, Wis., are stopping at the Gastineau Ho- tel. BOB DE ARMOND HERE Bob De Armond, Sitka newspaper- man, is stopping at the Baranof Ho- tel for a few days.