The Daily Alaska empire Newspaper, December 12, 1951, Page 1

COUNGR LIBRARY WASHINGTON, D. C SSIONAL THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LXXIX., NO. 11,988 Naster Denies Graffing WASHINGTON, Dec. 12 — P — Bert K. Naster denied today he ,ever tried to get money from Abra- ham Teitelbaum in connection with | Teitelbaum’s tax troubles. Under oath before House inves- tigators, Naster declared there was no truth in Teitelbaum’s story that Naster and Frank Nathan tried to shake Teitelbaum down for $500,000 in a “tax fix” extor- tion. ’ Naster, a shaking nervous witness | 1 | | Has Pefition for |Alaska Nen-Sched To Appeals Court InFightforLife | | WASHINGTON, Dec. 12—P—Air | Trensport Associates, Inc., which i"“‘ tes between Seattle and Al- carried its fight for life to| | | Tiny Alaskan Princess May See Truman Friday; Him WASHINGTON, Dec. 12— (A — Princess Pearl Ittigiah, six-year-old Eskimo youngster from the Arctic Circle village of Minto scheduled a round of sightseeing and television appearances today as she waited for a chance to see President Tru- man., She wants to give the President a petition signed by more than 2500 Alaskans asking his help to improve air service to the Territory, A spokesman said it was hoped before a House Ways and Means!the US Court of Appeals yesterday.!that an appointment with the Pre- subcommittee, denied, too, that he ever suggested the name of any lawyer to Teitelbaum. Naster is a Hollywood, Fla., busi- | | | In three separate petitigns, the | company's attorneys asked the court (1) to review a Civil Aeronautics | Board order revoking the carrier’s | sident may be made for Friday. The little girl went to sleep while flying here from New York ness man. Nathan, the other mau“ permit, (2) to stay the order pcnd-f yesterday and had to be coaxed named by Teitelbaum, also has de-|ing a review, and (3) to grant an| into a smile when asked by pho- nied the story in testimony to the House group. Grand Jury Investigation , immediate order. | Air Transport, an irregular air | hearing on the stay [ tographers to pose with a peti- tion she plans to present to Pre- sident Truman. line, has been directed by the hoard | The petition urges the President ; on parents of the present Mrs. JUNEAU, ALASKA, WEDNESDAY, DECEMBER 12, 1951 MEMBER ASSOCIATED PRESS PRICE TEN CENTS Parents Decide Children fo See Juneau Christmas CLEVELAND, Dec. 12—{(P—Char- les Stejer, 7, and his four-year-old sister, Sharon, are going to spend Christmas at Juneau, Alaska, be- cause of a settlement reached by their divorced parents. The settlement reached in com- mon pleas court here yesterday tgives Mrs, Willlam S. Twenhofel per ion to take the children to the home of their stepfather who is vey in Alaska. Their father, Francis A. Stejer, was formerly a geologist with the survey in Alaska and his immed- iate superior was Twenhofel. Stejer is to have the right to visit the children in this country or in Alaska. He dropped his motion that Mrs. Twenhofel be punished for taking the youngsters to Alaska last sum- mer without consent of court, and dismissed a $105,000 alienation of affections suit against Twenhofel and Mr. and ‘Mrs. William H. Rob- Tank from Plane chief of the U. S. Geological Sur- | Sefs House Afire An Air Force jet plane taking off on a ferry flight to San Antonio, Texas, accidently jettisoned its two wing fuel tanks over Van Nuys, Calif. causing damage to housde and furnishings estimatcd at $20,00). new house, setting it afire (left) A ncighbor woman and the only eye- They crashed into. a Tax Scandals ‘Are Arousing President WASHINGTON, Dec. 12 — (# — Attorney General McGrath and FBI Chief J. Edgar Hoover met with President Truman at the White | House today amid indications the president will act soon to counter tax scandal testimony flooding from Capital Hill, Both the White House and Jus- tive Department press sections an- nounced the conference but neither would say what was discussed. Democratic Chairman Frank Mc- Kinney reported after a White House call yesterday that Mr. Tru- man is angrily ready to clean house in the tax scandal. McKinney said the president was “angry over being sold down the river by some disloyal em- ployees of the government.” There has been speculation that Mr. Truman might name Hoover or some other big name individual to Attorney General McGrath has| ordered a grand jury investigation| of the whole matter. Justice De- make a government-wide investiga- m ssible for more milk, to g0 out of business Dec. 20. Theto make it po + Twenhofel. tion or set up a bi-partisan com- 1 witness, fairted at what she saw and is being com’orted at right by a friend. (P Wirephoto, order resulted, the board said, be- fruit and vegetables to be flown into Alaska. partment officials said it probably will begin its inquiry next week. At one point in the questioning about Teitelbaum, Naster balked at giving answers. He said he did so because of “physical fear.” Naster had told of meeting Teitcl- baum in Florida. Adrian Dewind, committee coun-| sel,.asked: “This was the first time you met him? You had heard of him before, but you had never met him?” “Yes, sir™ “How did you hear about him?” Afraid to Answer Naster conferred with his attor- ney Jules Yablock of New York City. ® vYablock said the witness was afraid to answer, “You ar2 in physical fear of an- | " swering?” demanded Dewind. M“Yes, sir,” Naster replied, adding iat he had told the committee why in preliminary questioning behind closed doors. Dewind dropped the matter for the time being. Teitelbaum is a wealthy Chicago attorney who has sometimes repre- sented interests of the late gangster Al Capone. He rocked the House hearings on tax scandals last week by testifying that Naster and Nathan tried to get $500,000 from him on repre- sentation that they could fix his tax troubles through a “clique” of influential Washington friends. Teitelbaum said they represented that the “clique” included T. Lamar Caudle, ousted assistant attorney general; Jess Larson, head of the General Services Administration; Charles Oliphant, chief counsel of the Internal Revenue Bureau, since resigned. All the officials have made de- nials. Ship Movements Denali scheduled sometime Sunday. Baranof scheduled to sail fiom Seattle on Friday. Freighter Cassiar due to arrive southbound sometime Saturday morning. Freighter Flemish Knot sched- uled to arrive from Seattle Dec. 14. TheWashington Merry - Go-Round ¢Copyright, 1951, by Bell Byndicate, Inc.) By DREW PEARSON southbound ASHINGTON Long-view GOP strategists aren’t advertising it, but a lot of them do not agree with the famed wisecrack of Illin- ois GOP Committeeman Werner Schroeder, “the Republicans can even win if they nominate a China- man.” - Even in view of the current Tru- cause the carrier violated regula- tions by making too frequent trips. | Irregular airlines are those operat- | iing are maintained by some carriers. | Attorney Warren Miller told re- porters that if the Appeals Court refuses to set aside, the board’s or- der, the company will take its case to the Supreme Court. | He added, however, no hearing could be held before Dec. 18 be- cause of the necessity of giving the board five days notice of the| Incuan. | Brifain Will PayonU.S., (anada Loans LONDON, Dec. 12—(®—Britain has decided to pay in full install- | ments of capital and interest due on | the United States and Canadfan | leans at the end of the year, an |informed government source re- | ported today. This country could have avoided | paying the interest on both loans | by invoking waiver clauses which | were written into the 1946 agree- ments. In view of its ECOnomic‘ plight, there had been speculation | that it would do so. | Britain is due to pay the Uni- ted States $51.5 millions in capital | and $87 million in interest on De 3L It is supposed to pay the Ottawa | government $14 million in Canadian ! dollars in capital and $23.7 million | in interest on the same day. Britzin owes the United States | a total of $4,350 millicin—$3,750 | million in new money made :avail-l able under the September 1946 loan | pact and $600 million in lend-lease pipeline aid. MIGs Keep Out of Way 0fU.S. Jels SEOUL, Korea, Dec. 12—(#—U.S. F-86 Sabre jet fighters today swept over northwest Korea but sighted none of the Communist MIG-15 jets that almost daily flock out of Manchuria. A US. Fifth Air Force summary said a U.S. F-80 Shooting Star jet crashed and burned in Red terri- tory with “no chance of pilot sur- vival” It gave no details. Doughboys in mist-draped hills across the. front held their fire as the twilight war continued. man tax scand_als, many GOP| 4 poie dozen patrols poked out leaders admit privately that there |,crocs the hill country west of Yon- could be a Democratic victory in}chon, holing up and calling for artil- 1952 if the Republican party gets| jery support at the first sign of overconfident. Here are three key factors on which they base this caution: 1. New York went for Dewey by only 60959 in 1948. Simultaneous- ly Wallace carried over 500,000 votes. Normally the Wallace votes would have gone Democratic, which would have given a margin of about 450,000 to Truman. 2. Pennsylvania went for Dewey in' 1948 by 149,771 with 55,000 voies for Wallace, thus making Dewey's actual margin about 94,000. Mean- while Pennsylvania has become | sy (Continued on Page © Reds. West of the Punchbowl, on the eastern front, one Red probing force of about two platoons was hurled back after a brief skirmish. Elsewhere there was little to re- port except brief patrol contacts in no-man’s-land, ‘Temperatures ranged from a bone chilling 5 degrees above zero in the east to 40 above in the west. FROM PELICAN W. C, McCaddon of Pelican ar- rived yesterday on PAA from Se- attle and is at the Baranof Hotel. It also protests the Civil Aeron- autics Board's recent action revok- on no fixed schedules such as|ing the permit of Air Transport, irregular air Seattle Associates, Inc., an carrier operating between and the Territory. Tiny Pearl, the daughter of an Eskimo chieftain of the Athabas- can tribe at Minto, Alaska, and her mother were clad in parkas and moccasins. They began their trip by dcgsled last Wednesday. Greeting them at the airport was Senator Gillette (D-Iowa), a member of the Senate Small Business committee which recently asked the Board to adopt a policy of encouraging air travel to Al- | aska. He said today he favors the com- mittee “continuing and broadening !its inquiry” into the board. “This is an 'important humani- | tarian issue as well as a question ost transportation and a dispute over whether we are go- ing to have a monopoly of the airways, he said in a statement. Polar Express Takes Letfers To Sanfa Claus cf low; FAIRBANKS, Alaska, Dec. 12—(#| —A commercial airliner flew over the north pole for the first time today to drop mail for Santa Claus and a striped pole to mark the top of the world. Alaska Airlines reported the bag with 5,000 children’s letters to Saint Nick and the pole were pushed out of the four-engine “Polar Express” at 12:58 a.m. (5:58 a.m., EST). The pole was an Alaskan's idea for marking the north pole with something " besides ice. The airline reported all well on | the 2,600-mile round trip flight in sub-zero cold from Point Barrow, the northernmost tip of the con- tinent. The big airliner was due back to Barrow around 8:30 a.m. (1:30 p.m., EST). The specially fitted four-engine | commercial airliner left here yes- terday afternoon on the first leg of the trip, landing at Pt. Bar- row three hours later for refuel- ing. The plane was dubbed the “Polar Express” and was the out- growth of plans sponsored by two Alaskans—neither of whom was allowed to accompany the six crewmen aboard the plane. The 9-foot steel north pole, (Continued on Page Two) ® 6 o o o 0 0 o o WEATHER REPORT (U. S. WEATHER BUREAU) ‘Temperatures for 24-Hour Period Ending at 4:30 A M. Today At Airport: Maximum, 43; Minimum, 34. FORECAST (Juneau and Vicinity) Partly cloudy and colder to- night with lowest temperature near 28 degrees in town and as low as 22 degrees in outly- ing areas. Fair with gusty northeasterly winds Thursday. Highest temperature Thursday around 32 degrees. PRECIPITATION (Past 24 hours ending 7:30 a.m. today At Airport — 0.03 inches; since July 1—19.66 inches. ® 00 0 00 0 0 0 i Four Accused In(alifornia Tax Frauds SAN FRANCISCO, Dec. !2—-1/9-' {James G. Smyth, ousted northern | California federal tax collector, and ! | three others are accused of tamper- |ing with income tax returns to de- |fraud the government, as the cli- (max to a seven month grand jury | | probe. | san Francisco's holdover federal| j[zrnnd jury ended its work ,\‘L‘stflh; lday by voting the four indictments. | " This difa't mean~the northern | California Internal Revenue shake- | up was over. In Washington Attorn- ' ey General J. Howard McGrath said | he is naming a special assistant to 'handle income tax cases here. And the foreman of the outgoing {grand jury told the federal court| jthere were matters still under in-} vestigation for the current jury to! act on. “Anything can happen in} | the next few months,” he added. Smyth, his former chief office deputy, Paul V. Doyle, and his chief field deputy, John J. Boland, | were charged jointly in one indict- ment with backdating income tax returns, unlawfuly extending tax, deadlines and removing office re-| cords. Three other indictments accused | Doyle and Lloyd J. Cosgrove, prom- inent San Francisco lawyer, of plot- | ting to defraud the government of $38,664 by back-dating three tax returns. Eighth Army To Remain In Korea U. S. EIGHTH ARMY HEAD-| QUARTERS, Korea, Dec. 12—/— The U.S. Eighth Army is going to stay right here in Korea until South Korea can defend itself, Gen. James A. Van Fleet declared today. “That is my mission now,” the Eighth Army commander said in an interview. “Of course the plan can change, but right now I am under orders to build up the South Korean army until it can stand on its own two feet.” Van Fleet, who is a noted trainer of underdog fighting men all th way from Greece to Korea, gave th interview in his school house head- quarters. G ¥ “We want the Republic of Kore to have the sense of security needs so that its people will fecl certain they are going to remall free,” said the man who chased th Communists out of Greece and then got them on the run in Korc ANS Tuberculosis Pafients Resignation . : | Publish Unusuai Chrisimas Card 0f McGrath The tuberculosis patients in the# sanatorium ward at the Alaska Na- tive Service Hospital in Juneau are the authors and illustrators of an unusual Christmas card. It is a mimeographed booklet in which each patient has written a paragraph about his or her place of residence, includes greet- ings to relatives and friends, .tells about the life they led before en- tering the hospital and is illustrated with ‘drawings and parka border designs. Prisoner Swap Plan Snags Truce Talks MUNSAN, Korea, Dec. 12-(P—A Greetings are given in three lang- ‘ uages: Eskimo (Agaiyunikpok), Al- R l X eut (Asagutaq Tagadaq, Slulaq; eques e and Tlingit (See-goo-wu Di-kee-on- | Kawu-Du-Yeet Ku-yu-geeyee). ) The idea of t rd gr ! N0 ‘;;i:cd ‘b‘; S:“Ff;:: ]{;‘\'r"j signation of J. Howard McGrath as Attorney General was demanded esh, medical officer in charge of . e % the hospital. His contribution to|t0%8Y Dy Representative Byrnes " ¥ 2 e | (R-Wis), member of a Congression- the card consists in telling a r"“"'\l committee holding' Heariigs .8 highlights and incidents. s g ng tax scandals. He says that in the states the. 4 \ SUnnak When the committee met today, ischarge of a patient from a tub-|p o0 2 ” | Byrnes handed reporters a pre- crculosis sanatorium is a co““""“"pured statement which said: tively simple affair and the patient: 5 i makes allihis own arrangements.| “MeGrath should be immediately However, in Alaska it “becomes an+ireplaced by an Attorney General involved scheme which calls for alwhn is willing axd able to assume knowledge of geography, climatol- ;rcspunsibilny for (e proper opera- ogy, aeronautics, ichtyology, com- |tion of the Justice Department. mu:;lcnuon.\-, ete. Each situation de- The Attorney General's testimony mands an individual solution. A |pefore the subcommittee yesterday patient may arrive in July wearing revealed that he is either unwilling summer clothing, but when he de- |or incapable of providing the kind parts for the tundra the sanatorium 'of leadership necessary to restore | may have to provide polar apparel.” the confidence of the American i people in our principal law-enforce- WASHINGTON, Dec. 12—(P—Re- | Herbeil Lang Talks On Sweden at Kiwanis Luncheon Herbert Lang, University of Alaska graduate, gave a talk on his recent 'Buropean ‘trip ‘at a ‘regular luncheon meeting of the Juneau Kiwanis Club at the Baranof Hotel this noon. ‘The members agreed to aid the Salvation Army in its kettle drive for Christmas funds. It was én- nounced by Ken Morgan that the club was providing a Santa Claus and gifts for children in the hos- pitals here for Christmas. The scrap drive was postponed until new Red plan for exchanging pri- soners of war and an Allied com- | promise for supervising a Korean truce with neutral observers fell cold shoulders today. ‘ The United Nations command expressed fears publicly for the first time that the Communists might not give up all the prisoners they The fear was exptessed in turn- ing down a five-point prisoner ex- change plan advanced today by Communis{ negotiators at Pan- munjom. 'The Red proposal still called for release of all prisoners, The UN insists on a man-for-man ! exchange. “The UN command is concerned,” 10 official communique said, “that’ premature agreement on bulk ex- change of prisoners before adequate data is available could result in sizeable numbers not being recov- ered.” Allied negotiators, .the com- munique added, “excoriated the Communists” for not letting the ! Red Cross see how prisoners are being treated and for refusing to say how many prisoners they hold and where. The Reds have said they would supply the information only after he Allies agree on a blanket ex- hange. They kept this stand in their five-point plan. The number of Allied troops in Red hands has been estimated at from 98,000 to 139,000. The UN 5ays | t holds between 120,000 and 135,- )00 Chinese and North Korean Reds. The Reds said it would take them a month to deliver all pri- oners. Brig. Gen. William P. Nuckols, UN spokesman, said “the ques- tion of prisoners of war is being held over our heads” to force what he called an undesirable <olution of the prisoner and truce Singular Incident i " N * !ment agency. A s hells Of @ d-year-old| MoGrath testltied o the House . f.“: D‘&;L?m ,lK"‘gi Cave ‘;" 0;"‘“;":} Ways and Means subcommittee yes- ! her 1,000-mile ‘trip to the hospi terday that he had approved an ex- here without any escort, wmmut-pmse_pnm trip to Europe last . The child's mother explained the | n‘ny uckvet, without any ldentili-“bumm" by T. Lamar Caudle, As-' f“”"“‘ “‘Lhu'f' APE: money, w"h‘"f“sl.stant Attorney General who was A'llj,' baggage and arrived here safe- fired by President Truman last situation to a sympathetic skipper lof a mailboat who somewhere alungl ‘the way tranferred the child to| .Island does not speak English but {her ward mates translated her paragraph in which she tells of her Says Air Force the post post office there is onlyi Jopen in winter when the ski-planes ~WASHINGTON, Dec. 12—(®—The can land. | Air Force says the United States | of Martha Shaquanie of Kake gXVES‘F(ncp amount to 300 planes. ia Chamber-of-Commerce description’ ®*Those totals included 317 non- lof her home town including the|combat Allied losses. But, the Air ia. Harding visited Juneau. She pat causes. writes “This year when the band| For that and other reasons, the strikes up its Christmas music, I| Air Force said, the ratio of United Byron and Karen Shaquanie.” “When I am aw I remember | fizures made it seem. Juneau as it is in the spring,” writes| Other reasons the Air Force gave were: the hooligan (eulachon) run there. Willie Eluska writes of the signs |jsts took to the air in significant and pictures on the cliff faces at | numbers only in the last eight |or nine months. mission to make an inquiry. Both the Justice Department and the Internal Revenue Bureau have been rocked by the disclo- sures before a House committee investigating tax irregularities. McGrath testified before the com- mittee yesterday and afterwards said he was refusing to comment any longer on whether he would resign. He had sald previously he would not do so, despite demands from Republican Congressmen that he step oat. after January 1. Lang was introduced by Miss Hal- lene Price, university home demon- stration agent. She explained that his trip was financed by the 4-H Foundation and the University Ex- tension Service, as part of the In- ternational Farm Youth Exchange program., Lang spent four months working on farms for his board and room in Sweden, He covered all parts of the country from the Arctic to the southern tip. He illustrated his talk with col- ored slides as he explained methods of farming, the system of coopera- tives, reindeer herding and the Lap- landers. Stockholm impressed him especially because it was an un- usually clean city with many fine apartment houses and no slums. Lang will speak at 8 p.m. to- night to an open meeting in the Methodist church and to the Ju- neau high school assembly tomor- row morning at 11 o'clock. Sales Tax For Valdez VALDEZ, Alaska, Dec. 12—(P— Voters of Valdez, at a special el- ection, approved a 2 percent sales tax by a six to one margin. The funds from the tax are ear- marked by the ordinance to be used only toward the costs of a contem- plated sewer system, school facilit- ies, and for water system, hospital and street improvement. There was a good turnout of voters. carved them a long time ago when they killed whales from their kay- aks. “Today there arc no kayaks in Alitak,” he says. month. ' an understanding bush pilot so she | u“ loses 900 'might arrive here more quickly. | | Pretty Lea Apayaok from Barter PI n K rea rlanes, horea, life in that Arctic outpost. Kathryn Eluska from Nikolai on the Kuskokwim River writes that Bertha and Christopher Lake tell and its Allies in Korea have lost f their home life at Hooper Bay. nearly 900 planes, while Communist Harding’s Band |losses as confirmed by the Air President Harding Band which led |Force said, they did not include the parade to the governor's man- | Red ‘planes classed as “probable” sion here when President Warren kills, or Red losses from non-com- wish all the happiness and peaceNtaions to Communist, losses in of the Yuletide Season to Aubrey,|the air- was not as unfavorable as the annowrdsd three-to-ctie Daisy Hayes. Fisheman Frank Lee from Haines' UN planes have been in action gives an interesting description of | since fighting started in Korea over | 19 months ago, while the Commun- Cape Alitak where the old timers UN fliers make many low-level attacks in support of troops, risking heavy opposing fire from the supervision problems, A UN spokesman said the Allies made “major compromises and con- cessions” in its new effort to break the 16-day deadlock over how to upervise the truce. Despite the strong words and the, failure of negotiators to aceept cither plan advanced, the feeling persisted here that negotiators could still agree to an armistice before o |the December 27 deadline. If they o !sign on the dotted line by then, a High tide 1-38 p.m., 17. o | cease-tire line already drawn will Low tide 8:18 p, 1 o 'become effective. Otherwise a new ® © o 0 0 o o o o o line wil have to be set, FROM SEATTLE Harland Smith of Seattle i gistered at the Baranof Hotel | DECEMBER 13 re- High tide 2:10 am,, 152 46 1 51 9 ground, while Red fliers stay high. Tort "TREORS M represented By | —rmrorTSN T Hannah Peters who writes that “It isn’t so big, but it is the biggest town along the Yukon River.” She entered the hospital when she was in the sixth grade. Tllustrations for the booklet were | done by Bertha Lake of Hooper | Bay; Clara Owletuk, Marshall; Vir- | ginia Afcan of PFish Village; Agnes Shelton, Alakanuk and Jacob Kam- eroff, Kwiguk. FROM SITKA | Glyn Freeland of Sitka is regis- | tered at the Gastineau Hotel. | SHOPPING DAYS | TO CHRISTMAS /| Can Stock Quolations NEW YORK, Dec. 12—(®—Clos- ing quotation of Alaska Juneau mine stock today is 8, American 110, American Tel. and Tel. 158'z, Anaconda 49%, Douglas Air- craft 59, General Electric §7%, Gen- eral Motors 51%, Goodyear 43%, Kennelott 86%, Libby McNeill and Libby 8%, Northern Pacific 66%, Standard Oil of California 50%, 51| Twentieth Century Fox 19%, U. 8. Steel 40, Pound $2.80%, Canadian Exchange 96.68%. Sales today were 1,280,000 shares. Averages today were as follows: industrials 266.00, rails 82.59, util- ities 46.64. e