The Daily Alaska empire Newspaper, December 13, 1951, Page 1

CONGRESSIONAL LIBRARY WABHINGTON, D. ¢, VOL. LXXIX., NO. 11,989 Truman Is oing lo Gef Tough Drastic Action fo Clean Government's House; “Has No Favorites ' WASHINGTON, Dec. 13—(P—Pre- sident Truman today promised what he called continued drastic action. to clean house in the gov-| ernment. He indjcated he will set up a special agency to fight corruption, possibly tomorrow or Saturday. Allowing himself to be quoted directly at one point on the scand- als in the tax collecting and some | other agencies, Mr. Truman told a news conference: “Wrongdoers have no house with me no matter who they are | or how big they are.” In response to quesfions, the Pre- sident said he has no plans to fire Attorney General J. Howard McGrath or Democratic National Chairman Frank McKinney. Several Republican members of , Congress have demanded the dismis- sal of McGrath as a result of dis- closures in the House investiga- tion of tax scandals. Chairman King (D-Calif.) of the House group has publicly said he believes T. Lamar Caudle, Assistant Attorney General in charge of the tax division, was unfaithful to his public trust. Mr. Truman fired Caudle last month. McKinney has come under fire because of the disclosure that he made a $68,000 profit on a $1,000 investment in a tractor firm head- ed by a man whose wartime gov- ernment. ordnance contracts were sharply criticized by Mr. Truman then a Senator. Mr. Truman's news conference, always well-attended, drew, an eyen heavier than usual attendance of reporters who andcipated he might announce some dramatic action in connection ‘with the newest dis- closures. When the subject came up, the President declared with firm em- phasis that his administration al- ways has acted swiftly to elimin- ate wrongdoers from its ranks and will continue to do so. He saild his administration did exactly this, through its loyalty boards, in the case of Communists who were found to be working for the government. These were brought to trial and| convictions were obtained by the Attorney General, just as they should have been, despite a great deal of ballyhoo to the contrary, the President said. He declared that the public of- fimials recently fired—including Caudle—all were being investi- gated by the executive branch of the government before their names turned up in Congressional in- vestigations. He said the administration was | wise to Caudle, 'whe has been ac- cused of taking favors from per- (Confinued on Page Two) The Washington Merry-Go-Round ¢Copyzight, 1951, by Bell Syndicate, Inc.) By DREW PEARSON ASHINGTON — Henry Grune- wald, King of the five-percenters, has known more important people, fixed more interesting influence deals, yet kept out of the limelight —until recently—than almost any- one else in Washington. He has had his finger in all sorts of gov- ernment pie—from income taxes and war surplus to alien property and defense contracts. Yet no one knows much about him. Almost two years ago, this col- umnist learned that Grunewald had arranged to tap Howard Hugh- es’ telephone wire for Senator Brewster and Pan American World Airways at a time when Pan Am wanted to buy Howard Hughes’ Trans World Airlines. Later, I was able to turn over cer- tain evidence to Senator Matt Neely (D-W-VA), chariman of the| Distrigt of Columbia committee, | which resulted in a Senate. investi- | gation. However, getting the evidence on the elusive Mr. Grunewald, some- times called “The Dutchman,” was like tracking down a will-O'-the- wisp. HE DAILY JUNEAU, ALASKA, THURSDAY, DECEMBER 13, 1951 back about 9 ¢ feet by the impa, Cars Tossed in Streamliner Crash . | sleepless Three cars of the Lovisville and Nashville’s Crescent hang over embankment after streamliner collided ~ with the Sputhern Pacific’s Southerrer near Woodstock, Ala., killing at least 16 and injuring an estimated €0 persons. The engine of the Southerner is at right in this aerial view. The engines col- ct. (P Wirephoto. o 1'ded on (e overpass and were hurled Righi of Newspapers fo (riticize Upheld by Supreme Court of South Carolina e COLUMBIA, S.C, Dec. 13—M— Anyone holding or seeking a public (hamber Eleds Two office is subject to legitimate crit- licmn in newspapers, the South .'szllm\ Supreme Court held yes- New Beard Members; - This ruling in a unanimous opin- R l d F ion rejected an appeal by former ee e S our | State Rep. A. Y. Cartwright, Jr., lof York in his $100,000 damage suit The Juneau Chamber of COM-|.gqinct the Herald Publishing Com- merce elected six executive board pany of Rock Hill and publisher members and plans were announced | ma 1ot patrick. I regarding the Christmas decora-| Gartwright charged that two let- tions contest at a regular lunchenn‘m.rs to the editor of the Rock Hill I meeting” at the Baranof Hotel this g7o41q libeled him. The-seircuit Heap: »« | eouri jury verdict held for the de- Reelected to the board were O. F.| fonqants, § Benccke, F. O. Eastaugh; Henry .when a citizen holds a public Green and F. D.Nagel. New members ! oerice or holds himself as a candi- chosen werg Charlgs ,Burdick and | qate for public office” the court E. J. O'Brien. Outgolng p"e\ide“l;said, “he becomes an object of Herbert S. Rowland will automat- | legitimate criticism; his policies, ically become a board member. Jessie McCrary, chairman of the civic affairs committee, announced that instead of soliciting prizes for the Christmas contest from mer- chants this year, the chamber would issue 'gift certificates redeemable at any business house in the city. Prizes will be given in fwo divi sions—for business establishmen and residepces and houses. Gift certificates will be is- sued in the amounts of $20, $15, $10 and $5 for first, second, third and honorable mention. A picture of the winning display will be taken for publicity purposes. Mrs. McCrary suggested that the judges remain anonymous this year and the certificates be awarded im- mediately after the judging in order that the recipients may utilize them before Christmas. Judging will taks. place between 5 and 8 p.m., Decem~ ber 23. Mayor Waino Hendrickson and the Juneau city council were com- mended by the executive board for the full publicity given the city bond issues prior to the special elec- tion last Thursday. ment Board was read requesting suggestions for roads needed in this vieinity within the boundaries of the National Forest. It was referred to the road committee. There was some discussion of the traffic and parking problems, of the children’s coasting streets and difficulty in maintaining necessary traffic signs. Charles Carter reported that dur- ing Hallowe'en a traffic sign had been removed from its original loca- tion and placed on the Carter Chapel door. It read “One Way Traffic.” T. P. Hansen, Union Oil Co., rep- representative from Ketchikan was a guest, Sieck Quotations NEW YORK, Dec. 13—®—Clos- ing quotation of Alaska Juneau mine stock today is 2%, American Can 110%, American Tel. and Tel. 156'z, Anaconda 50%, Douglas Air- craft 59, General Electric 57%, General Motors 51%, Goodyear 43%, Kennecott 86%, Libby McNeill and Libby 8%, Northern Pacific 67%, Standard Oil of California 50%, Twentieth Century Fox 19, U. S. Steel 40, Pound $2.80%, Canadian Exchange 97.25. Sales today were 1,380,000 shares. The investigation of Grunewald started by consulting the telephone —— e (Continued on Page 4) Averages today were as follows: industrials 265.81, rails 82.70, util- ities 46.65. apartment A letter from the Alaska Develop- | {acts, and fitness, and qualifications | for the office he holds. And any | newspaper or citizen is privileged | | to publicly criticize him and discuss | him thereabout without being held | liable for damages.” Huge Water Tank Collapses Business Section of Town Flooded; Four Lives Lost; Heavy Damage TUCUMCARI, N.M., Dec. 13—® —A 3,000,000-gallon water tank col- lapsed before dawn, killed four per- sons and caused damage estimated in millions here today. Giving way with a deep rumble the tank loosed a flood through the business district about - 4:10 a.m (MST). The cause was not deter- mined. . Water up to waist deep spread devastation over an area three blocks wide and, in a lessening de- gree as the distance grew, a quarter mile long. The scene was likened to one hit by a bomb. Two business places, the city warehouse and about 15 homes mostly of adobe (mud brick), were laid waste. Another estaBlishment, a motor firm, was damaged by water. Pieces of the three-eighths- inch thick steel from the tank were scattered over a city block. Rescuers, including quickly mobi- lized National Guardsmen, recov- ered four bodies and there were no reports of any persons missing. The last to be found, a boy 3 or 4 years old, was under a 250-foot section of the tank. The dead: Deal Elliott, about 60. A Mrs. San Miguel and her small son. Steve Gallegos, about 14. FROM SEATTLE Don Lundberg of Seattle is re- gistered at the Baranof Hotel. He was here for an Alaska Public Works bid opening on the Haines water and sewer improvement pro- ject yesterday. Mrs. K. Raatikainen of Pelican is a guest at the Gastineau Hotel. 0Iipfianl Testifies in Tax (ase WASHINGTON, Dec. 13 — ® — Charles Oliphant, former chief legal jofficer of the federal tax collection service, told House investigators to- day he knew nothing of any gov- ernment “clique” seeking “soft touches” among troubled taxpayers. Speaking slowly, and voice, Oliphant declared: in a low | T again deny categorically either I membership in, or knowledge of the ‘.exisu_nce of any such clique as described in the testimony of Teit- Ielbnum before this committee De- cember 4.” Abraham Teitelbaum, wealthy ; Chicago attorney, has charged that two men tried to shake him down for $500,000 last April under threat he would have “bad tax troubles” if he did not retain their services. He said the two—Frank Nathan and Bert K. Naster — claimed they had connections with a “clique” of high government officials including Oliphant. Nathan, a Pittsburgh promoter, and Naster, a Hollywood, Fla., busi-; ness man, have denied there is any truth in Teitelbaum’s statement. Naster was in the witness chair preceding Oliphant. He accused Teitelbaum of ‘“con- cocting” the story. Oliphant resigned last week as chief counsel of the Internal Rev- enue Bureau with a blast at “scur- rilous” allegations. He said he was quitting his $14,800 a year job be- cause he could no longer endure being the target of “vilification.” Two Ar_é Arraigned On Assault Charge Charles Tubbs and Leonard Stokes are accused in a -complaint sizzied by Patrick Robinson, of assault and battery and driving an automobile without the owner’s permission. Rotinson, a Yellow Cab driver, al- leged that he was assaulted in Douglas early Tuesday- morning by two men who then took his cab and drove to Juneau. Tubbs and Stokes were arraigned in U. 8. Commis- sioner's Court yesterday and bail was set for $500 each. No time was set for entering a plea, U. S. Dis- trict Attorney Patrick Gilmore said | today. Robinson {Broken jaw. is suffering from a YOUNG GOPS TO MEET The Young Republican Club will meet tomorrow evening at 8 o'clock in the Gold Room of the Baranof Hotel, Bill Vernon announced to- day. FROM' ANCHORAGE Buell A. Nesbett of Anchorage stopping at the Baranof Hotel Ship Movements Denali scheduled sometime Sunday. Baranof scheduled to sail Seattle on Friday. Freighter Cassiar due to ar southbound sometime Satu morning. Freighter Flemish Knot in | southbo Oscar Olson Tesfifies in Court Case SEATTLE, Dec. 13—(P—Oscar G. Olson, former treasurer of the Ter- ritory of Alaska, testified in Super- ior Court yesterday he “spent many nights” worrying about his use of Territorial funds for personal expenses. Olson, now an inmate of McNeil Island Federal penitentiary serv- ing a 10-year sentence for embez- zlement, was a witness in an action brought by the American Surety Co,, of New York and the General Casualty Co., of America against the Seattle- First National Bank. The bonding companies, which paid out a total of $43,351 for Olgon’s admitted defalcations, are sulng the bank, contending it sheuld not have honored Olson’s signature as Territorial Treasurer on, checks the companies said ob- viously were for personal expenses. MEMBER ASSOCIATED PRESS Altorneys for the bank argued' the law requires the bank to dis-| burse funds on demand of the Ter-, ritorial Treasurer; that the bond-| ing companies should have requir- ed more than two audits of Olson's Leooks in 10 years; and that t,he‘ statute of limitations outlaws the suits. Some of Olson’s checks were issued as far back as 1941. They ran as late as 1948. Olson admitted on the witness stnad he cashed the checks for his Hawaii as queen in the annual Henelulu New Year's Day. Unde State College in the annual post- to right) are: Barbara Park, An Wirephoto, ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” PRICE TEN CENTS One of these lovely island misses will represent the University of Pineapple Bowl fooiba!l game at feated Hawaii will meet San Diego season game. The candidates (left e Martin and Natalic Wells. (P persenal use. He identified a long| series of checks handed to him by bonding company attorneys. Ag the former treasurer identified one after another of the checks, Superior Judge Hugh C. Todd asked him: | “Didn’t you expect the bulldingi to fall on you?” “I spent many sleepless nights,” Olson answered O'son was brought into court | in ¢astody of a U. S. Deputy Mar=-; s i Thé Seattle bank was a depository | for Alaskan Territorial funds, which | ran up as high as $300,000 at a time, i Win Biggest JetBattle Thirteen Communist MIGs Knocked Down in Slashing Fight in Air SEOUL, Korea, Dec. 13 — ® — No 'Death March’ for Prisoners Allies Make Demand on Korean Reds; No Prog- ress in Truce Proposals MUNSAN, Korea, Dec. 13—{f— Democrafs Meeling In Sitka ( Keynote Speech Made by Governor; 50 Delegates; | Doyle for Chairman SITKA, Alaska, Dec. 13—(P—The Democratic convention for the First Division opened here today with Gov. Ernest Gruening, in his key note speech, calling on Alaska Democrats to remember the ach- ievements of the party, to work together, and “to know these truths | {and spread them. Gov. Gruening summarized at length what “the application of Democratic principles” has meant to the country and to Alaska. “Alaska is on the march to- ward the achievement of its des- tiny. That destiny is to be, in these far northern latitudes, id- eologically and materially, the bulwark of freedom, the bastion of the North American continent. Al- aska is on its way to becoming the northern citadel of the Ameri- can way of life,” Gov, Gruening declared. The Governor sald successive Re- publican administrations showed no D-P Family From Poland on Way fo Fairbanks NEW YORK, Dec. 13—P—They, have been pushed around all over| the map, and today, Mr. and Mrs. Heinz Guenther Borchard were on | their way to “make a fresh start in a fresh, new country"—Alaska. The couple and their two children Almer 8, and Ingrid 3, were among 1,370 displaced persons arriving irom Europe on the military trans- port Gen. S. D. Sturgis. “Supny Italy may be alnght! for most people,” Borchard said, ‘but give me a place where the air is snappier and colder. I want to wipe the slate clean and make a fresh start in a fresh, new country.” Borchard, a 31-year-old native of Selesia (now part of Poland), fled to Lithuania, and from there with ! They bagged 13 Communist MIGs, march” of Allied prisoners in Korea. American Sabre jet pilots won hls-l'!‘ho Allies today demanded the Red: tory’s biggest all jet victory today. guarantee there would be no “death probably knocked down two others| “No progress of any sort” was re- and damaged one in two slashing ported by a truce subcommittee on | air battles over North Korea. Four of the MIGs went down be- fore the blazing guns of America’s hottest jer ace, Maj. George A. Davis, Jr.. of Lubbock, Tex. In 16 days Davis has bagged 12 planes, including nine MIGs. On the ground, a series of minor battles flared today as Allied In- fantrymen carried the war to the Reds for the second time in 21 hours. The Fifth Air Farce said none of the Sabre jets was shot down, but one ran out of fuel, caught fire and crashed. A helicopter rescued the pilot. Heavily-outnumbered Sabres knocked down four MIGs and dam- aged one in a morning battle over Sinanju in northwest Korea. Nine more MIGs were destroyed in the afternoon. two probables. his wife to Italy, to escape Nazi persecution. Last January, after reading an article about the Alaskan news- paper, “Jessen’s Weekly,” he wrote 1 letter to the paper. The letter was published and brought several offers of jobs to the Borchards. Mrs. Borchard, a dressmaker, will work as an alteration tailor for Dr. John Monsey, of the Pantor- ium Cleaners in Fairbanks. Mrs. Griffith, oifered the family housing, and the Rev. John L. Naakestad, pastor of the Fairbanks angelical Lutheran church, wrote that interested citizens had rais- ed $800 as a loan to bring the fam- to America. COUNCIL MEETS TONIGHT A special meeting of the Juneau city Council will be held tonight to act on applications for liquor li- censes. The council will meet at 7:30 o'clock in the city clerk’s of- fice at the city dock. Sixty-four Sabres were matched against 145 MIGs in the two battles. Davis bagged two planes in each fight. “Yeah, I went up twice today,” he said. “We were just morth of the Isnanju river when we saw a flight of about 50 MIGs. I just led my 12 planes into the middle of them.” This was the second time Davis has bagged four enemy planes in a single day. On Dec. 5 he shot down three Communist TU-2 bombers and a MIG. His first two jets were destroyed Nov. 28. He added two more Dec. 5. U.S. Eighth Army headquarters said an Allied raiding team battled Red ground troops north of Ko- rangpo on the western front most of Thursday morning. The raiders returned to their own lines before noon under cover of an artillery barrage. An Allied unit battled for seven hours Wednesday with Red troops south of Panmunjom, site of the truce talks. On the eastern front Allied troops threw back three Red probing jabs Thursday west of the Mundung val- |ley. The central front was quict. ‘() SHOPPING DAYS TO CHRISTMAS FROM SAN FRANCISCO Prentiss French of San Francisco, Calif,, is registered at the Baranof Hotel. VISITORS FROM PETERSBURG Mrs. C. O. Pagks and Sylvia Moe | of Petersburg are at the Baranof Hotel, Pilots reported ' prisoners, - but spokesmen for both sides indicated another subcommit- tee might soon break a 17-day dead- lock on how to police an armistice, Ther didn’t get anywhere today. |' An official UN. Command spokes- {man said the Reds may hold many prisoners in camps far to the east {of Panmunjom, where the Com- munists want to trade prisoners, } “We don’t want our prisoners to 'have to walk hundreds of miles,” said Lt. Col. Howard S. Levie. “We don’t want g (Bataan) death march in reverse.” A tough talking American ad- miral told the Reds there would be no “blind payment” on prisoner exchange until the Communists gave assurances of the safety of ] Allied fighting men they hold. | Levie sald statements of Rear Adm. R. E. Libby implied “the Com- ! munists have some sinister reason . for withholding information.” | Levie said the United Nations wants the Communists’ prisoner lists now because “if we get the names of five, ten or 15,000 we will | know that we will get at least that ! number back. If we get a figure we consider completely out of line with our estimates, there is going to be quite a bit of discussion before we come to agreement.” The two subcommittees will meet iin Panmunjom again at 11 am, | Friday (6 p.m., EST, Thursday). Tirade From Chinese Chinese Maj. Gen. Hseigh Fang opened Thursday’s truce supervi- sion session with a 45-minute tirade ainst the latest U.N. proposal. Then he expressed confidence a solution could be found if both sides searched for one. Maj. Gen. Howard W. Turner said Allied negotiators were ready to discuss any reasonable proposal. The U.N. negotiators said the | deadlock would be broken if the teds accepted the seven-point UN proposal submitted Wednesday The Reds said they didn't like i but they have not turned it down. TIDE TABLES DECEMBER 14 High tide 2:46 a.un,, 15.2 ft. Low tide 8:17 am, 46 ft. High tide 2:14 pm,, 173 ft. e Low tide 8:54 pm, -10 ft. 0 0 0 0 0 0 0 0 0 | interest in the people who were trying to open the territory, or in the progress and development of Alaska. He reminded delegates to the convention that while the Uni- ted States was expanding econom- ically and in population, Alaska was shrinking. “In the years between 1900 and 1930 while the population of Al- aska was diminishing, the popula- tion of the United States as a whole increased by some 45 millions,” Gov. | Gruening said. i He the tion, doul growth of any state or territory un- der the flag."” . He enumerated the social and economic reforms of the Demo- cratic administration nationally and in Alaska and asked delegates not to forget “the dark depression days.” He sald the Republican party hrought about the depression because of its “traditional philos- ophy.” “It has been sald our party is a coalition of all the minorities, and that is true—all the minorities which once every two years have become, and will, under a continu- ation of our policies, become the majorities on election day.” James Nolan, retiring Pirst Di- vision committee chairman, opened the convention this morning in the Elks Lodge rooms. Some 50 dele- gates carrying proxies from various precincts in southeast Alaska are in attendance. Hotel and apartment rooms in Sitka were the scene of several “midnight caucuses” on the eve of the convention. Another pre-con- vention affair was the Sitka Demo- cratic caucus Wednesday evening where delegates were chosen for today's convention. Off-the-cuff reports appear to throw the spot light on Dan Doyle, Sitka's mayor, for the chairman’s job. It was reported that Doyle gained the support of Juneau, Ket- chikan and other groups in pre- convention get-togethers in those ‘smoke-{illed rooms.” Doyle For Chairman The possible choice of Doyle was said to be a compromise move af- ter several other proposed candidat- 2s did not prove satisfactory to 2nough of the various factions. Frank Peratrovich, of Klawock, former Senator, was picked for mporary chairman. He then nam- »d his credentials committee: Eliz- ibeth Peratrovich, and Tom Stew- art, of Juneau; Willlam W. Knight, of Sitka; R. E. Ellis, of Ketchikan; ind Morgan Reed, of Skagway. that since the advent of Demeocratic administra- of Alaska has WEATHER REPORT (U. 8. WEATHER BUREAU) Temperatures for 24-Hour Period Ending at 4:30 A M. Today At Airport: Maximum, 36; Minimum, 30. FORECAST (Juneau and Vieinity) Mostly fair but with consid- @ erable high cloudiness tonight o and Friday. Gusty northeast- e erly winds. Lowest tonight ® near 25 degrees. Highest Fri e day around 32 degrees. . e PRECIPITATION @ (Past 24 hours ending 7 . today e At Airport — 0.2 inches; ® since July 1—-19.78 inches. e 0 0 0 0 0 0 0 0 0