The Daily Alaska empire Newspaper, September 14, 1951, Page 1

o 1 LN H - v e s v v ¢ 2 i A /i 4 ’ SONGRESSIONAL WABRARY WASHINGTON. D. € HE DAILY ALASKA EMP. VOL. LXXVIIL, NO. 11,912 “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, FRIDAY, SEPTEMBER 14, 1951 2 Bankers in Month Found Embezzling One Takes About $25,000 a Year for Period of 20 Years NEW KENSINGTON, Pa., Sept. 14 —(M—For the second time in a month a prominent “banker has been charged with embezzling more than a half-million dollars in this small western Pennsylvania com- munity. Amazement was expressed by most people after the arrest of William Paul Smeltzer, 60-year-old assistant cashier of the First National Bank Smeltzer is charged by the FBI with having embezzled $550,000 in the past 22 years. — Just a month ago Ludwig Schlekat, president of the Parnassus National| Bank here, was charged with em- bezzling $600,000. A few days ago he was released on $50,000 bond. At the time of Schlekat's arrest, government officials said the short= age attributed to him was one of the largest found in a small town bank in the country. New Kensing- ton is a community of about 25,000, 18 miles northeast of Pittsburgh. The FBI said that Smeltzer, the father of three grown children, took about $25,000 a year for more”than 20 years—adding .that he had full charge of the bank’s ledgers. No Candidates Filed for Ocl. City Eletljon A regular *city general will take place Oct. 2. At that a mayor, six council members a municipal magistrate will be el ected. e City Clerk C. L. Popejost ed today that no candidates filed for any of the positions. The deadline for {filing is at 5 p.m. Sept. 26, he said. This will follow & special elee- tion scheduled for next Tuesday when the matter ofichanging the length of councilmep’s termps will be decided. 28 e If the ordinance is ratified, the | three candidates receiving the highest number of votes will be installed for two-year terms, and the three receiving the next highest number will go in for one-year terms. Thereafter, three council- ymen will be elected each year to serve for two years. The mayor and municipal magis- trate are elected for two year terms. Mayor Waino Hendrickson’s term expires this October. F. O. Eastaugh bas been acting as city magistrate. Present - council members are: George Jorgenson, Bert McDowell, Pauline - Washington, Joe Thibo- deau, Bert Caro and Ed Nielson. British Stop All LONDON, Sept. 14—(®—Britain has stopped British ships from de- livering any cargoes to Iran. Board of Trade spokesman dis- closed vessels carrying “certain scarce materials” to Iram have been diverted. This, he said, was in line with a British treasury statement which earlier this week cancelled finan- cial and economic concessions to the Tehran government. LARSON FAMILY HERE Mr. and Mrs. Walter E. Larson and family from Elfin Cove, are stopping at the Baranof Hotel. Edward J. Gavell of Sitka is registered at the Baranof Hotel The Washington Merry -Eq -Round MSHINGTON.~There's some- thing awfully peculiar about the way the Senate refuses to invest- igate graft in thesale of American war supplies to nationalist China; also the manner in which some of these supplies went to Commun- ist China. This graft and the part played by the China lobby was exposed in this column three months ago, in- cluding huge fortunes made by Chinese in cornering the soybean (Continued on Page 4) |1a the early days, the $500,000,000 -Aluminum Plant Being Built in Brifish Colum By SUSY WINN of planning for the development of The years future industrial northern British Columbia came tc an abrupt halt this year — the future arrived. Just prior to the opening of the Columbia Cellulose Company’s $30,000,000 pulp mill at Port Edward, the Aluminum Com-+ pany of Canada announced in April that it had selected Kitimat, small Indian village south of Prince Rupert, as the site for the world’s largest hydroelectric plant to be built at the cost of $500,000,000. The gigantic development wili ex- tend from the smelter at Kitimat eastwards a distance of 120 miles to the Grand Canyon on the Nechako River, where a dam will be con- structed. Construction started at five locations this ‘season and over 3,000 men are now employed on the project. The work was started in February by the Morrison-Knudsen Consfruction Company and in May, gary, a Canadian associate of M-K, took over the job. Construction is going ahead at top speed with mill production scheduled to begin in 1953. 4 “The people of northern British ©olumbia, who live in small villages along the Canadian National Rail- way between Prince Rupert and Prince George are not as “boom happy” as they are dazed by the preject.. . Since March, the Alcan Company has been spending-half-& million* dollars each week and ac- cording to the provincial govern- ment this figure will soon be raised. This is a lot of money Hi'any man’s language, and the Canadian settlers, many of whom came north before the Canadian National was built in 1910, have a difficult time realizing the extent of their new Wz tish Columbia, dians have’good reason to be by their sudden turn of forténe, Project Plans The entire project lies within Tweedsmuir National Park, a vast wilderness area, lying south of the Canadian National Railway and Highway 16, which parallels the tracks. Within the park, a giant network of rivers and lakes will be impounded to form a lake 100 miles across. The western shore of the lake will back on the Tahtsa moun- tains of the Cascade Range and will extend eastwards through a series of existing lakes to the Ne- chako River. At the grand can- yon on the Nechako River, 69 miles southwest of Vanderhoof, Alcan is going to stop the eastward flow of water by constructing an earth and rockfill dam, which will be 310 feet high by’ 1,350 feet long. It is esti- mated that it will take five years to complete the dam, but before it is finished to its highest level, waters backed up by it will be turning the ! turbines at the main power plant, over 120 miles to the west. At the west end of this inland sea, where it backs against the Tahtsa mountains, a tunnel will be bored through 10 miles of solid rock under the mountains. From the tunnel, water will drop down 2,600 vertical feet and Alcan offi- cials have stated that an output of 1,600,000 horsepower can be devel- oped. The powerhouse will be lo- cated inside the mountain, in a quarter mile square cavern blasted out of solid rock. The western end of the tunnel is located ten miles from the head of Kenamo Bay on Gardner Canal. The power produced at the Ke- namo plant will be carried by elec- trics transmission lines to Kitimat, which is situated in a five-mile wide valley. Kitimat is the nearest suitable location for the smelter and “Aluminum City,” which is expected to reach a population of 50,000, and will rank as British Columbia’s third largest city. At Kitimat, a ‘deep sea wharf is being constructed to handle bauxite (aluminum ore) which will be brought in by ships from the com- pany’s development in the Carib- bean Sea area. The smelter, in its ‘nitial stage will produce 330,000,000 pounds of aluminum annually, and its full production is estimated to be 1,100,000,000 pounds. * Why British Columbia? There is only one answer to why the world’s largest hydroelectric plant is being constructed in the wilderness of British Columbia. R. E. Powell, president of the Alumi- num Company of Canada, when he announced the project stated, “This is the most economical large power site to be found anywhere in the world.” Cheap power is a requisite for alumjnum production as electricity * bia Wilderness represents 25 percent of the over- all cost of refined aluminum. The estimated per kilowatt hour cost at Kitimat is one cent. Americ: “Big Three” producers — Alcoa, Reynolds and Kaiser — are now paying an average of 2.74 cents per kwh. With energy costs 150 percent lower than its U.S. competitors, officials esti- mated that Alcan will be able to sell its product at two to four cents a pound lower than the American price. Kitimat’s production together with the aluminum produced at the Ar- vida, Quebec plang of the Alcan Company will make Canada the world’s top producer of aluminum. American producers have started ex- pansion programs which will raise national production to 1,025,000 tons a year as compared to Alcan’s esti- mated output of 1,050,000 tons. This Year's Work Work started this year at five areas of the gigantic project. Before {tire—spring -thaw, a.road was_bull- dozed through the wilderness from Vanderhoof to the Nechako dam site and work has now started on the dam at the grand canyon. From Burns Lake a road was pushed through to the eastern side of the tunnel at the head of Tahtsa Lake. From the head of Gardner Canal a road has been built to the western end of the tunnel. The tunnel is not only being driven through from each end but aiso fromr the middie—Crews—wi flown by helicopters to the top of the Tahtsa mountains and they are now blasting a vertical opening which will allow: them to start tun- nelling from the middle. There are 700 men employed in constrfiction at Kitimat. Surveys for rail and highway connections from Kitimat to Terrace, a distance of 38 miles, were made this summer A four-lane paved highway will connect the two cities. dnaped Or Killed MANILA, Sept. 14—(®—Th2 of an American engineer missing Xsince yesterday noon said today she | feared he has been kidnaped. | Mrs. Lester Corp offered a $5,000 !reward for information concerning her 60-year-old husband. | Speculation that he has been killed or kidnaped increased when his jeep was found in a river near | the Pulungmaba sugar plantation] 'near Del Carmen. Four bullet holes | were found in the jeep. iShuman Will Preside af Kodiak Fishery Meefing Flying to the Westward today was Richard Shuman, fisheries management supervisor of the Fish and Wildlife Service, to con- | duet fish hearings in Kodiak on Sept. 17. The hearings are conducted an- nually after close of the commer- cial seining season to hear sug- gestions for regulations for the following year. |, Shuman will also conduct hear- ings at Anchorage on Sept. 20, and then will go on to Cordova and Yakutat on a similar mission. He said regional Director Clar- ence Rhode and Al Day, director of the Fish and Wildlife Service in Washington, D. C., probably would be present at the Anchorage session. Fish and Wildlife proposed changes in the 1952 regulations in the Anchorage and Cook Inlet districts were announced by Shu- man. They are: (1). A 'quota to be placed on the catch of king salmon limiting it to 100,000 fish for the season. The quota would be broken up intc weekly quotas with the number based on the mean weekly cat- ches of recent years. (2). A 1,500,000 fish quota on reds for the -season. The quota would be handled the same as for kings. (3). Leads of all pile trap to remain entirely out of the water until the opening of the fishing season. (4). All fishing to be prohibited on Willow Creek of the Susitna River drainage. Fishermen, packers, and other interested parties who attend the hearing will have the privilege of either protesting or upholding the proposals made by the department Shuman added. FROM ANCHORAGE istered at the Baranof Hotel. _l Thumbs Ou MEMBER ASSOCIATED PRESS King Neptune Shows Who's Boss on Briny Deep; Too Much for Ship's Cook # PORT ANGELES, Wash., Nev; Secrefary | is Ading Governor On First Day | -»—A University of Washington faculty member who defied the tra- ditions of the sea knows better now. His sad story came to light when the U. S. Fish and Wildlife Ser- vice's exploratory vessel John N. Cobb put in here. The University research assistant, John Slipp, started it all when he Judge Joseph W. Kehoe, new SPC-! sighted a white albatross flying retary of Alaska, began his first day | near the vessel which was engaged in office' by becoming Acting Gov-|in exploratory deep sea trawling ernor. it i 4 | off Cape Flattery earlier this month, Judge Kehoe arrive n Juneau| Excited by sight of the bird, us- late yesterday afternoon from Nome | ually found only off the coast of and was sworn into office a little | Australia, Slipp asked permission :mlrora:j 5bp,rt|'_ d’rhe gnth wn:vad:l]l:- | to shoot it and bring it to the Uni- i; T;fe secyreu:lryg: ofl:::s;efor.e Gfinvfi: ; :;;‘ltie:‘ftfl;mw:?wt h.:l!:;:mn::;: ernor Ernest Gruening and members | in Washington coastal waters. of the office staff. The seven crewmen immediately ——Andy-Gunderson-thumbs a ride for his family on a highway_east of Yakima, Wash., as they continue the long journey from D: to Worthington, Minn., to see Gundersen’s ailing father. been en route a week and gotte s, Ore., They have n only 300 miles. From left are: Shirley Mae, Mrs. Gunderson, Beverly Bell, Andy Jr., (standing), Gaffnay George and Gunderson. ™ Wirephoto. Ministers of 3 Nafions Discuss Inflation Threat WASHINGTON, Sept. 14— B — The ministers of three countries, the United States, Britain and France today discussed a major threat to the west's defensive build- up: inflation. How to keep inflation from wreck- ing the rearmament drive and along with it the economies of western Europe was a topic of talks by the big ihree foreign ministers. Secre- tary of the Treasury Snyder, Brit- il SRaRAZ ek L D (attskell and French Finance Minister Rene Mayer sat in on the meeting. The three foreign ministers—Se- cretary of State Acheson, Britain's Herbert Morrison and France’s Rob- ert Schuman—last night agreed on main terms for a partnership deal which would allow the west Ger- mans to contribute forces to the western alliance. it was reported reliably, sters confirmed big three unity on measures to protect their nationals behind the Iron Curtain Informer officials said the ministers agree that such unity already ex- ists as evidence of yesterday's joint ban on Czechoslovak airline flights over Germany and France. The move presumably was a mea- sure of retaliation for Czechoslovak- ia’s refusal to release AP correspon- dent William Oatis from a Prague jail where he is serving a ten year sentence on charges \of espionage. Program Outlined WASHINGTON, Sept. 14—(®— The big three foreign ministers said today negotiations will be pressed “as rapidly as possible” to bring West Germany intc the European defense lineup. The big three—the U S, Britain and France—also announced a de- cision to make a “new and reso- lute effort” to bring about an agreement with Russia on a final postwar settlement with Austria. A communique, issued near the close of a five-day conference, said Secretary of State Acheson, Foreign Secretary Herbert Morri- son and French Foreign Minister Robert Schuman “found solid grounds for confidence in the growing strength and unity of the free world.” They announced “sympathy” for Italy’s proposal to revise its peace treaty setting a maximum of 300, )00 men on Italian armed forces and said “this question will be the subject of further conversations between the governments.” The big three said they have agreed on instructions to the high commissioners for West Germany n negotiating a peace contract h the Bonn government. In the concluding session today. the threat of inflation to defense buildup was discussed. Stock Quofations NEW YORK, Sept. 14—(P—Clos- ing quotation of Alaska Juneau mine stock today is 3%, American Can 118%, American Tel. and Tel 160%, Anaconda 497, Douglas Air- craft 58%, General Electric 63%., Gengral Motors 51%, Goodyear 477, Kennecott 84%, Libby, McNeill and Libby 9, Northern Pacific 547, Standard Ol of California 54, Twen- tieth Century Fox 20%, U. 8. Steel 44'2, Pound $2.79 15/16. Sales today were 2,170,000 shares. Averages today were as follows: W. C. Mau of Anchorsge is reg-|industrials 276.06, rails 84.45, utilitics 45.55. ;‘Annoumes ‘Hgaring, 0d. A public hearing will be held here | by the U. 8. Coast Guard on Oct. 24 | tor the purpose of discussing marine inspection and clasification of south- | east Alaska waters, 17th district headguarters announced here today. The purpose of the hearing is to "rg("",vc q@nmems on and discuss meiter. nertaining to the maritine industry which are peculiar to Alas- ka, over which the Coast Guard has jurisdiction, principally with respect to marine inspection and the classification of the waters of southeast Alaska,” a press release stated. The hearing will open at 10 a.m. in the Senate Chamber of the Fed- eral Building. Briefs will be welcomed from those attending and those unable to at- tend the bearing, beadquarters saic ‘The press release requested that those wishing to asrend the hearing corumanicate with the Commander, 17 Coast Guard Pistrict,vBox 2991, L. The Coost Guarl desires imes and positions of the pe:r- s who will remesent the various wierects and if they wish to discuss the problems orally. Taku Road Would Help Dorothy Lake Eledtric Project The Bureau of Reclamation re- port on the Lake Dorothy hydro- electric project Has been comple- ted, Joseph M. Morgan, district manager of the Alaska office, re- ported in° a letter to the Juneau Chamber of Commerce. The Bureau has recommended the immediate construction of the project, Morgan said. He pointed out that the construction of the proposed Taku road as:far as Point Bishop would aid materially in lowering the cost of constructing the project by transporting equip- ment_and materials. He also said that the road would facilitate the patrolling ana maintenance of transmission-lines which would parallel the road along the mountain side from Point Bishop to Thane. “For your information,” “the let- ter read, “mining industries in the Tulsequah area have made formal inquiry as to the availability of electric power supply for use in their mining operations. Obviously any, ultimate extension of the road from Point Bishop toward the mining area would expedite the construction and maintenance of a transmission line built in that direction.” The Lake Dorothy project will have an ultimate capacity of 24.- 000 kilowats and will be capable of producing and making available to the area 123,000 kilowat hours of firm power energy annually. “This office strongly endorses the Chamber’s program for expe- diting eonstruction of this import- ant segment of the route connect- ing Juneau with Canadian British Columbia,” the letter concluded. | JUNEAU VISITORS Al Johnson and Bud Ostby of Portland are stopping at the Bar- anof Hotel, Coast Guard Shortly afterwards, former secre- tary Lew M. Willlams arrived to greet and congratulate the new se- cretary and turn over to him the keys of the office. Secretary Kehoe will become act- ing -governor tonight —when the Princess Louise, carrying Governor and Mrs. Gruening south, passes Dixon Entrance and the governor is out of the Territory. Judge Kehoe comes to Juneau from Nome where he has been U. S. District Judge for the second divi-| sion since 1944. Prior to that he was special assistant to the U. S. Attorney General and from 1933 to 1043 was U. 8. Attorney in the third division, . He was admitted to the Alaska bar in 1920 and from 1824 to 1929 was U. 8. Commissioner at Ketchi- kan. He served in the Territorial House of Representatives in 1933 and again in 1943. Kehoe was educated at Columbia | University and holds a Bachelor of | Law degree from the University of Oregon. Mrs. Kehoe, who is still in Nome, will join the new seceretary in Ju- neau as soon as personal matters can be taken care of there. who will welcome them as residents (of the Capital City. In speaking of his new office today Judge Kehoe said: “I hope that I may be of service to the people of the Territory and conduct the office of secretary as it should be conducted. T am gratefu) to all my friends who have greeted and welcomed me and particularly to Mr. and Mrs. Lew Williams who have been so gracious and cordial.” Lovett Is Confirmed WASHINGTON, Sept. 14—#- The Senate has confirmed the nom- ination of Robert A. Lovett to be Secretary of Defense succeeding Gen. George C. Marshall. Confirmation came 48 hours after Marshall resigned and President Truman named Lovett to succeed him. Majority Leader McFarland of Arizona received unanimous consent to bring up the nomination out of the regular order. TIDE TABLES SEPTEMBER 15 High tide 1:24 am,, 184 ft. Low tide 7:38 am., -2.1 ft. High tide 1:55 p.m. 185 ft. Low tide 8:00 p.m., -1.0 ft. ® 6 o o 0 0o 0 0 o Baranof due southbound Sunday at 6 p.m. | Princess Louise sails from Van-| | couver Sept. 19, anrives Juncau| each; cauliflower, $4 a head; a tin| r®in. 3ept. 22. WEATHER REPORT (U. 8. WEATHER BUREAU Temperatures for 24-Hour Period ending 6:20 o'clock this morning At Airport—Maximum, 54; minimum, 47. FORECAST (Juneau and Vicinity) Partly cloudy tonight and Saturday. Lowest tempera- ture tonight about 47 degrees. Highest Saturday near 60. . . . ] . . . . . L] . . . . L3 | L2 PRECIPITATION (Past 24 hours ending 7:30 a.m. today At Airport — .70 inches; e since July 1 — 801 inches. | shouted “No!” reminding Slipp of | Mariner” and the old tradition of an albatross, Bu because of the specimen’s rar- ity, Capt_ Sheldon_Johnson 1 antly granted Slipp's request. After seven shots, Slipp brought the big bird down. And this is what followed: ‘The net cables fouled up three times. ‘The net caught on the sea bottom and was ripped to shreds. The shaft on the main winch snapped, It then took the crew 5'2 hours to reel in the 1,700 feet of cable. Ted -Moellendorf, a scientific aide aboard the ship, fell down a hatch ladder and broke a rib. Slipp became violently seasick for the first time in his life. The sea was calm, Its exploratory work halted by the broken gear, the ship turned back to Seattle, There the cook quit. Largest Milifary Building Bill Has The Kehoes are widely known| ; Alaskans and have many friends E PRICE TEN CENTS Doughboys ..., Wrest Peak From Reds Bloody ‘Battle of Hills’ Is Fought; Supply Lines Are Slashed U. S. EIGHTH ARMY HEAD- QUARTERS, Korea, Sept. 14—(P— United Nations doughboys today wrested a towering peak from bit- terly resisting Reds north of Yang- gu as the bloody “battle of the hills” ground on in eastern Korea. On the other end of the penin- sula, six Russian-type T-34 tanks and ‘two self-propelled guns were | the fate of Coleridge’s “Ancient|spotted west of Yonchon. They were immediately attacked by U. !bad luck which follows shooting| . artillery, planes and tanks, An Allied briefing officer said they were dug in, and apparently designed for -defensive-purposes . the Reds, In the air war, Allied planes roared through Korean skies on close support missions for the in- fantry and slashing attacks at Red supply lnes. One marine corsair fighter was downed by Communist ground fire, The Fifth Air Force said there was no chance of pilot survival. For the first time in six days there were no reports of jet battles, Grouna action” was concentrated along the spiny ridges of Korea's eastern front. The U. N foot troops captured a towering mountain peak there af- ter getting reports that it was thinly defended, But die-hard North Koreans re- pulsed a U. N. attack on another mountain to the west. A briefing officer sald Allied ,troops on one mountain slope re- ceived “an unusually large amount” of Red mortar fire. WASHINGTON, S¢pt. 14— P — 's owe' Senate and House conferees reached agreement today on a $5,864, 301,178 military construction program—the largest ever to be approved by Con- gress in a single package. They eliminated provision for a $23,000,000 troop carrier base il Goldsboro, N. C., subject of contro- versy among North Carolina mem- bers of Congress. ‘This was the only change in the bill recommended by the conferees. | ‘The bill includes an Alaska mili- tary building program of more than $335,000,000. It includes big sums for Elmendorf, Ladd and Eielson Air Force Bases, improvements in the Kodiak Naval Station and work E] | Pa), in Aleutian bases. ‘The bill, however, is only an au- thorizdtion. Actual money would have to be provided later. Now See What Is Being Done To Wafermelons ToBe Drafted As (andidate PHILADELPHIA, Sept. 14—(P— Congressman Hugh D. Scott (R- GOP, National Chairman in the 1948 presidential campaign, has returned from a trip to Europe and a meeting with Gen. Dwight D. Eisenhower convinced that he and others in the Eisenhower-for-presi- dent movement have a “green-light” to go ahead, the Evening Bulletin said today. The newspaper sald in a dispatch by its Washington correspondent, Carl W. McCardle, that Scott “Jeft Eisenhower with the clear impression that the General will ‘not puil the rug out from under' those who are working to get the GOP nomina- tion for him.” Scott left Eisenhower sure that the LAFAYETTE, Ind. Sept. 14—(®— | General is a Republican and that There's a nearly seedless water- |any talk of his running on the Dem- melon on the way. ocratic ticket is silly, the newspaper Purdue University has develop- | reported, adding: ed one with seeds. Commercial have it next year. It's round only two or three “But Eisenhower, it is said, made seedsmen will| it plain that if he is to be the and | GOP candidate it must be a ‘draft’ weighs only elght to ten pounds,|in the strictest sense and not some- too—just right for keeping in the | thing contrived.” refrigerator., Purdue says the qual- ity is high. A chemical called colchicine did the trick by changing the internal structure of the fruit. Reporf Givenon Life in Russia If Alaskans think prices high, they should be living in the American Embassy in Moscow, Russia. A report from a young attache to friends her€ says that tomatoes there are $2 a pound; eggs, 40 cents of crab, $2.50; and 5-ounce steaks $1 each. $150 per month but if she were working in a Russian house she would only get $80. A bus driver Townls Isolafed, . ~|Kdlfl rd ALICE, Tex., Sept. 14—®—This south Texas town was virtually isolated and hundreds were home- less today following 14.21 inches of Murky water up to five feet deep surged through the streets, and The cook at the embassy gets amphibious trucks and boats were used to evacuate flood victims. But R. E. Horine, chairman of the Jim Wells County Red Cross if he is a Stakhanovite, getsfrom| Chapter, said the worst appeared $300 to $500 monthly but works| to be over. many more hours than 48 a week, the attache says. It is estimated that no than 100,000 automobiles have been produced in Russia since 1946, he said. g FLYING TO MINNEAPOLIS Mrs. Chester Zenger and daugh- ter Linda flew south Wednesday en route to Minneapolis, Minn, Only light mist fell this morn- ing, following a flood crest at more| dawn by the rampaging San Diego Creek. No _casual . were reported among the 21,000 residénts, although editor Curtis Vinson of the Alice Echo sald property damages would be “tremendous.” GREGG JOINS PAA STAFF Douglas Gregg has joihed the where they will visit relatives for|staff of the local Pan "American o the next six weeks. They were ac-| World Airways office here. He is & e o0 9 90 0 9 o o o o companied by the family's pet dog. traffic representative,