Daily Alaska Empire
Published every ever.:: r except Sunday by the
» MT1KI PRINTING COMPANY
Second and Mam Streets. Juneau Alaska
HELEN TROY M ONSET! .... President
DOROTHY TROY LWOO ... Vice-President
ELMER A FRIEND .... Managing Editor
Entered in the Post Office in Juneau as Second Class Matter
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MIMBIR Ol ASSOCIATE! rEESS
The Associated Press is exclusively entitled to the use for
republlcatlon of all news dispatches credited to it or not other
wise credited in this paper and also the local news published
herein. _
NATIONAL REPRESENTATIVES — Alaska Newspapers. 1411
Fourth Avenue Bldg . Seattle. Wash.__ _
Tuesday, May 29, 1951
There will be no issue of The Daily Alaska Empire
tomorrow, Memorial Day.
day for remembrance
Tomorrow, in Juneau and the Nation, we will go
to the resting places of those who have died in defense
of American ideals and pay tribute with flowers, flag?
and reverent memories.
Tomorrow is Memorial Day and again we are at
war and to those who have fallen we pay our deepest
respect and send out prayers for safety of those who
are battling on the front.
Tomorrow is a day when all should pause and
remember those who ‘are fighting for democracy, for
we all have friends or relatives who are now in the
line of duty. It is a day of remembrance and for
prayer for safe return from victory.
IMPROPER DEALS
The report of Senator Hoey denouncing the Palmer
Airport transaction between the Alaska Aeronautics
Commission and the Civil Aeronautics Commission ob
ject- i the “deceit and subterfuge” used in an attempt
to obi.tin .eased Federal matching funds for build
ing the Palm*' airport.
Seantor Hoey’s objection to this much publicized
transaction, is echded in the case of the recent ouster
of an RFC manager for what the agency called an
"improper" government deal.
W. Stuart Symington, RFC administrator said he
was not concerned whether the operation was illegal,
but added, "I am dead certain it was improper.’
“DOWN THE HATCH”
Not long ago was National Maritime Day. In
between Armed Forces Day and Memorial Day it passed
without recognition in Juneau. It is difficult to ob
serve all of the "national days" of the year.
However, the "Down the Hatch” column of Charles
Regal in the Seattle Post-Intelligencer made this
excellent commentary on Maritime Day, and what he
says is of vital interest to people in any seaport, we
believe.
Following is Mr. Regal's column:
"Everybody else will be writing editorials and mak
ing speeches in honor of National Maritime Day today,
so Down the Hatch would like to climb on the soapbox
to add a few uncalled for remarks.
"Whatever might be said about the present and
future of the American merchant marine, the pro
longed period of labor-employer peace on the water
front cuts through the fog of pessimism like a
beacon of hope.
"Maybe you haven t noticed, out mere nave uk*.
no major waterfront tie-ups in Seattle or other import
ant West Coast ports since 1948.
"That is the most significant single factor in the
maritime picture, in the opinion of this depaitment.
Continued waterfront production is the only hope
this coast has to regain its lost tonnage. No matter
what caused the labor-management tunjioil in the
three years after World War II, it nearly wrecked
he industry on the Pacific Coast.
“I remember those bitter days. I covered them
lor this newspaper. The attitude of the unions was.
Those blankety-blank operators, all they want is to cut
wages and get more work out of the men.’ The
jperators said: 'Those blankety-blank unions, all they
.vant is more wages and less work.
“It was a period of readjustment and it cost both
;ides, and the entire West Coast, millions of dollars..
That perod tapered off in 1948, or thereabouts. Both
■,ides seeemd to realize that the ship was sinking while
:hey battled it out on deck.
"A seaman friend observed recently:
“*‘What good are the best wages and conditions in
.he world, if you have no ships to sail on?’
“He is 100 per cent right. And if this is inter
preted as a subtle slap at maritime labor, all I can
say is, brother, read it over again, carefully and you
will see that it certainly is not.
“When you deal with labor and management day
after day, you soon learn that there are good guys in
dungarees and good guys in business suits; they’ve
all got plenty in common: they talk the same lan
guage and, as they are coming to realize, they have
the same objective:
“To give Uncle Sam the finest merchant marine
in the world!” _________
The Washington
Merry-Go-Round
(Continued from Page On#)
back, conspired with Jesse Jones
and RFC officials to go into “fic
, titious" and “synthetic” bankrupt
cy.
After a review of the testimony
at a hearings and the documents
in the files presented before this
committee,” the Senate Banking
and Currency report concludes, “It
fs found that the B & O originated
the idea of its present reorganiza
tion, persuaded RFC to accept the
idea sometime before April, 1944,
and thereby involved RFC in a col
lusive proceeding in bankruptcy."
The suppressed report plus sen
ate hearings of the Banking and
Currency committee is scathing in
its criticism of the RFC and the
B & O railroad. It tells how Cas
suis Clay, solicitor general of the
railroad, denounced the "bankrupt
cy" as a “fraud" and “frameup.”
Mink Coat vs. kk
A total ol three lawyers resigned
in disgust.
"For ethical and professional rea
sons,” says the Senate report, "Mr.
Clay refused as a lawyer to sanction
a second B & O petition in bank
ruptcy. Two other lawyers question
ed the good faith of B & O's pro
posed bankruptcy proceedings—its
veteran general counsel and law
department head, John J. Corn
well, and B & O's special counsel,
Henry W. Anderson.”
The mystery is why these char
ges against an important govern
ment agency were suppressed. Ob
viously an $87,000,000 loan to a
railroad is more important than a
$9,000 mink coat worn by a White
House secretary. Yet the mink coat
has become a symbol of RFC cor
ruption, whereas the loan to the
Baltimore & Ohio on which Uncle
Sam is still owed $76,300,000 was
hushed up.
Significantly, the Republicans
were in control ol Congress during
the Senate probe of 1947 If they
had acted then, the scandals which
have been exposed recently might
not have happened. Furthermore, if
the Republicans liad published their
report, instead of suppressing it,
they might even have changed the
election results in 1948.
Yet the RFC was saved from ex
posure chiefly by two Republican
Senators, Capehart of Indiana and
McCarthy of Wisconsin, the same
Senators who are now demanding
that **. RFC be abolished. Reason
for then range suppression was
that Capehart s friends were mixed
up in the 1947 RFC scandal where
as President Truman's friends and
his secretary were mixed up in tlie
present RFC scandal.
Bigger Than Teapot Home
The investigation of the B & o
was conducted by Senator 'lobey
ol New Hampshire, Republican,
then chairman of the Senate Bank
ing and Currency committee How
ever, just as the report was fin
ished, he was called to the bedside
of his dying wife. Capehart took
advantage of Tobey's absence and
imUlv .ladled a. (Josed-door meet
ing to pigeonhole tobey's ieport.
More money was involved than
in Teapot Dome, yet it took only
eighteen minutes for Capehart to
order the report locked up. I
The meeting convened July 25,
1947, at ? pm., and adjourned at j
2:18 pm. Here are excerpts from
the secret minutes of that fateful
meeting, which if it had voted the
other way, might have changed the
course of political history.
“Senator Capehart, acting chair
man, explained the reason for the
meeting, and a general discussion
was held regarding the report, an
alysis of the loan of the Recon
struction Finance Corporation to
the Baltimore and Ohio railroad,”
the secret minutes state. "Senator |
Capehart suggested that action on;
the report be postponed and that j
chairman Tobey present the report
to the investigating committee
when it meets to investigate RFC.
Senator McCarthy noted that cer
tain House committees because cf
the rush of business had decided
to do the same thing, and that he
concurred with Senator Capehart
. . . Senator Capehart suggested
that no publicity be given to the j
ieport and no announcement be'
made to the press at this time, and
ail copies should be returned to
the Banking and Currency com
mittee and put under lock and
key.”
Jesse Jones’s Henchmen
Thus Capehart kept lrom the
public the story of RFC corruption
until, four years later, Senator
Fulbright of Arkansas unearthed
entirely different scandals.
In addition to the revelations in
yesterday's Washington Merry-go
round, here are more shocking
facts on the B & O “Bankruptcy"
case, as revealed in the suppressed
report:
1. After Jesse Jones had loaned
$87,000,000 to the B & O in 1939.
Jones proceeded to put some of his
own favored proteges ifeto lush
jobs with the B & O at higher sal
aries. These included Stewart Mc
Donald, deputy loan administrator
who became B & O’s chairman;
Russell Snodgrass, assistant general
counsel who became B & O’s vice
president in charge of finance; F.
L. Baukhages, an RFC counsel, who
started as executive financial as
sistant and moved up to become
B & O’s general solicitor; and Cas
sius Clay, head of the RFC's rail
load section, who became B & O's
solicitor.
“RFS's failure to protect its own
interests,” the Senate report com
ments, “appears on the basis of
evidence before this committee to
have been the result of RFC’s
carelessness and extraordinary
complacence in dealing with a B
A; O management which included
o many former RFC officals.”
2. As the due date of the loan
appioached, Jones's proteges feared
| they might lose control of the B
& O in case the RFC loan should
be paid off in 1944 and Jones
should be ousted from the RFC as
a result of the 1944 elections. So
they hit upon a daring scheme to
plunge the B fc.O into a fictitious
bankruptcy, and thus lock up fin
ancial control of the B & O until
1965. This strategy was carried out
following a conference between
Jesse Jones and vice president
Snodgrass oil a private B <St O car
en route to St. Louis in December,
1943.
In this connection, the Senate
report observes: ‘The RFC was
formed to save railroads and other
financial institutions from bank
ruptcy, not to plunge them into it.”
Record Profits
3. At the same time that the B
& O filed for bankruptcy, its net
profits were higher than any other
period during its 120-year history,
and the railroad industry was
booming with war business. Yet
the B & O deliberately used these
profits to buy bonds that didn’t
mature until well after the RFC
loan was due.
The Senate report pointed out
that the "administrators of the RFC
have had concentrated in their
hands the greatest financial power
held by any group, private or pub
lic, in American history. It’ is the
responsibility of Congress to learn
from actual study how this power
has been exercised and, if there
has been abuse, to legislate to in
sure against repetition of such
abuse.”
May 29
George A. Parks
Angelo F. Ghiglione
Katherine Mack
Art Hedges
Miriam Lowe
Marilyn Jackson
Esther Martinson
John Lowell
Lynn Jackson
Anna Mae Cousart
May 30
David Harman
Diana Host
Crystal Jenne
Ed Jahoda
Mrs. William R. Weir
Frank Heinke
COMMUNITY EVENTS
TODAY
At 8 p.m. — CDA meeting in parish
hall.
At 8 p.m. — Odd Fellows meet in
IOOF hall.
May 30
At 10:45 a.m. — Memorial Day
parade.
At 8 p.m. — Elks lodge.
May 31
At noon — Chamber of Commerce'
meets at Baranof.
June 1
At 10 nan. — Trinity Guild rummage
sale in Undercroft of church. I
At 8:30 p.m. — First series of sum
mer square dances given in parish
hall.
June *
At noon — Lions club. Baranof.
At 8 p.m. — American Legion post
meets in Dugout.
June 5
At noon — Rotary club, Baranof.
Yet Senators Capehart and Mc
Carthy ducked this responsibility
and concealed the RFC abuse from
the public for four years. Even after
the more recent RFC scandals were
exposed, Capehart and McCarthy
joined in publicly denouncing the
RFC, but continued to suppress the
RFC scandal that affected their
friends. Meanwhile, the taxpayers
are stuck with a $76,300,000 unpaid
B & O balance until 1965.
TWO APPOINTED
TO FISHERY BOARD
KET. LABORATORY
- i
Gov. Ernest Gruening today an
nounced appointment of twp new
members to the board of the Fish
eries Experimental Laboratory in
Ketchikan.
One of the men is Andrew Gund
ersen, widely known herring fisher
man of Southeast Alaska and for
mer Territorial senator. For over
30 years Gundersen has been ac
tively engaged in fishing operations
of the Ketchikan area and is well
informed on fisheries matters.
The other appointment is Jack
Mendenhall, also of Ketchikan. He
is director of the National Fisher
ies Institute and has been manager,
of the Ketchikan Cold Storage since
11934. He was also recently appointed
a member of the Emergency In
dustry Advisory Commission for the
Defense Fisheries Administration
by Secretary of Agriculture Charles
F. Brannan and Price Administra
tor Mike DiSalle. The third man
on the board is John Dassow, di
rector of the laboratory for the
Fish and Wildlife Service. ,
_—_
—EMPIRE WANT ADS PAY—
-.
ACROSS
1. Part of a circle
4. Horse feed
8. Jagged
• protuberance
12. Sign of the
zodiac
13. Boisterous
festivity
14. Heap
15. Herd of whales
16. Highly
estimable
IS. Terrify
20. Dry
21. Put out
forcibly
23. Foot level
27. Genus of
the rue
29. Meaningless
repetition
81. Valuable roclc
32. Unwilling
34. Hostile
feeling
36. Confine
37. Pitcher
39. Edges
40. Satiated
42. Fruit of a
trailing plant
44. Urn
46. Edible bulb
49. Bond-like
Instrument
63. Palm leaf:
variant
61. English river
69. Shoshonean
Indians
66. Born ,
67. Warm
68. Besting placea
69. Turf
_- «
'
Solution of Yesterday’s Puzzle
DOWN
J. Seaweed
2. Harvest
3. Qualified
4. Papal vfall
6. Help
6. Love appla
7. Arouse
8. Garden Im
plement
9. Beak
10. Whole
11. Teamster’*
com mand
17. Become mature
19. Partly open
22. Gang
24. Countries under
particular
government
25. Genus of herb*
26. Not so much
27. Strikes sharply
28. Dark portion
of the iris
30. Allowance for
weight of
container
33. Type of
automobile
body
35. Metal
38. Mutinous
outbreak
41. Occurrence
43. Deposit of
loam
45. Short piece
standing out
47. Butter
substitute
48. W’ant
49. Burmese knifanO
50. Nig lit before
51. Large serpent
52. Color
20 YEARS AGO tkTe empire j
MAY 29. 1931
John E. Stewart, son of B. D. Stewart, who was to graduate with
the class of 1931 from Juneau High School, had won the Phipp’s
Scholarship in the Alaska Agricultural College and School of Mines. The
scholarship was awarded every year to the student making the best
showing in competitive exams.
The mailboat Estcbeth was back on the run after being laid up
several weeks. She broke a crankshaft three weeks before while two
hours out of Juneau and reached port under sail. She left for Sitka
with the following passengers: For Hoonah: Max Peterson, Matthew
Lawrence. For Tenakee: J. F. Buchanan. For Killisnoo: F. A. Boyle.
For Sitka: Einar Olson, Calvin McKay.
Leaving on the Admiral Rogers for Seattle were: Mrs. J. L. Museth,
G. W. Ramsey, Y. Shatanda. Mrs. S. Hellenthal, Mrs. F. B. Smith, Henry
Shatanda, Mrs. Laura Burns, W. E. Jacobson.
Memorial Services were to be observed in Juneau with practically
every place of business closed. A program was to start at 11 a.m. in
front of Elks Hall with Major L. E. Atkinson, USA, making the address.
Other parts in the program were to be taken by the Juneau City Band,
the Rev. C. C. Saunders, Brice Howard. Muriel Jarman and the Rev.
William LeVasseur. A parade was to march to the wharf were flowers
were to be strewn on the water in memory of those lost at sea. From
the wharf the march continued to Evergreen Cemetery for graveside
services.
Weather: High, 50; low, 44; showers.
j Daily Lessons in English w.l. cordon
WORDS OFTEN MISUSED: Do not say, “They were at war with
that country." Say, "They were at war AGAINST that country.”
OFTEN MISPRONOUNCED: Stolid. Pronounce the O as in DOLL,
not as in STOLE.
OFTEN MISSPELLED: Nonpareil; EIL, although pronounced as
ELL.
, SYNONYMS: Controversy, dispute, disputation, discussion, debate,
disagreement.
WORD* STUDY: “Use a word three times and it is yours.” Let us
increase our vocabulary by mastering one word each day. Today's word:
PENITENT; feeling pain or sorrow for sins or offenses. "We should
be penitent, but we should also try to make amends for offenses.”
| MODERN ETIQUETTE ROBERTA LEE J
Q. When a relative wishes to send a girl, who is to be married, a
check as a wedding present, should the check be made nut to the girl
in her maiden name or her future name?
A. It would be better to make the check out to the girl in her
maiden name, so that she will be able to cash it before the wedding.
Q. Is it all right for a child to address a young aunt as “Helen,”
instead of “Aunt Helen”?
A. .'Yes, if the aunt prefers it or requests it.
Q. Should a woman take her partner’s arm when entering the
tfchihg room at an informal dinner?
’ A. No; she should merely walk at his side.
| LOOK and LEARN A. C. GORDON j
1. What are the five climate zones on the earth's surface?
’ 2. What is a shako?
3. What one word means both to separate and to cling closely?
4. What does the prefix “Mac” or "Me” in proper names mean?
5. What is the Viking name that corresponds to heaven?
ANSWERS:
1. North and South Frigid, North and South Temperate, and Torrid.
2. A high military head-dress, stiff hat, originally of fur.
3. Cleave.
4. Son.
5. Valhalla.
■jMMIMMtllllUlllllMHM!, 'Hull" III„I,K,,I>. „",l,i, Ill,,,,
The MAMZELLE SHOP
310 S. Franklin — Open 10:00 a. m. to 10:00 p. m.
-— o
WASHABLE RAYON PRINT DRESSES.$2.98
Sizes 12 to 48
GABARDINE SLACKS, Sizes 10 to 4(V. 6.98
, Grey — Brown — Navy — Black
:xfc:==::::::===
IMS. IfUJBLHT MPirSUN
as a paid-up subscriber to THE DAILY ALASKA
EMPIRE Is invited to be our guest THIS EVENING
Present this coupon to the box office of the
CAPITOL THEATRE
and receive TWO TICKETS to see:
"THE HAPPY YEARS"
Federal Tax—12c Paid by the Theatre
Pkwi 14—YELLOW CAR CO.-Phme 22
and an insured cab WILL CALL FOR YOU and
RETURN YOU to your home with our compliments.
WATCH THIS SPACE—Your Name May Appear!
i- i ———■———i—————«——<
t —
Oldest Bank in Alaska
1891—Over Half a Century of Banking—1951
The B. M. Behrends
Bank
Safety Deposit
Hoxes for Dent
COMMERCIAL SAVINGS
Weather at
Alaska Points
Weather conditions and temper
atures at various Alaska points
also on the Pacific Coast, at 4:30
a.m., 120th Meridian Time, and
released by the Weather Bureau
are as follows:
Anchorage . 44—Cloudy
Annette Island . 48—Cloudy
Barrow . 19—Snow
Bethel . 44—Partly Cloudy
Cordova . 42—Cloudy
Dawson . 44 Partly Cloudy
Edmonton . 36—Partly Cloudy
Fairbanks . 47—Partly Cloudy
Haines . 45—-Clear
Havre .. 32—Clear
Juneau . 40—Partly Cloudy
Kodiak . 43—Fog and Rain
Kotzebue .. 38—Cloudy
McGrath . 39—Partly Cloudy
Nome . 37—Partly Cloudy
Northway . 39—Partly Cloudy
Petersburg . 40—Cloudy
Portland . 43—Partly Cloudy
Prince George .... 33—Partly Cloudy
Seattle . 37—Partly Cloudy
Sitka . 47—Cloudy
Whitehorse . 37—Partly Cloudy
Yakutat . 43—Cloudy
COMMUNICATION
Juneau, May 29
Elmer Friend, Alaska Daily Empire:
The word is “RESIGNED”—not
“RETIRED!" I refer to the article
in last night's paper relative to me
and my leaving the bank. After all,
Elmer, I taught school for 30 years
on salaries you could not brag about;
I oniy work in the bank — I don’t
own it; the value of the dollar has
shrunk a wee bit in purchasing
power so any income I had a few
years ago is not of the same value I
today; and besides this, I now have
a small daughter about two years of
age who sort of looks upon me for
food, lodgirig and education.
No, Elmer, it is true that I have
resigned from the bank but it is
certainly not true that I have
retired. What I am going to do after
I come back from California about
the middle of July, I do not know
for certain as yet. It is my hope
that I can stay here in Juneau—
that something will show up along
my line and that I can do or be of
service. But if not, then I will have
to go elsewhere.
I hope that you will correct the
slight error in last night’s paper so
that my friends won’t get the wrong
impression about what I am going
to do. There is a vast difference be
tween RETIRED and RESIGNED!
Sincerely,
(Signed) A. B. PHILLIPS.
MRS. JENNE IS TO
OBSERVE BIRTHDAY
Tomorrow will be Postmaster
Crystal Snow Jenne’s 64th birthday.
She came to Juneau in 1887 and
grew up here, going through the
Juneau schools graduating in the
second whole high school class in
1905. She later attended the Uni
versity of California. She is a grad
uate of the Spencerian Business
College in Cleveland, Ohio, and re
turned, to Juneau to teach in the
schools here.
SEATTLE VISITOR
John Partros of Seattle arrived
here yesterday from Anchorage on
PNA and is stopping at the Bar
anof Hotel.
FROM SITKA
Eugene Williams of Sitka is at
the Baranof Hotel.
STEVENS’
LADIES’—MISSES’
READY-TO-WEAR
Seward Street Near Third
The Charles W. Carier
Mortuary
Fourth and Franklin Sts.
PHONE 136
Caslers Men's Wear
McGregor Sportswear
Stetson and Mallory Hats
Arrow Shirts and Underwear
Allen Edmonds Shoes
Skyway Luggage
BOTANY
"500"
CLOTHES
NUNN-BUSH SHOES
STETSON HATS
Quality Work Clothing
FRED HENNING
Complete Outfitter for Men
SHAFFER’S
SANITARY MEAT
FOR BETTER MEATS
13—PHONES—49
Free Delivery
MOUNT JUNEAU LODGE NO. 14J
SECOND and FOURTH
Monday of each month
in Scottish Rite Temple
beginning at 7:30 p. m.
Ytm. A. Chipperfield,
Worshipful Master;
JAMES W. LEIVERS, Secretary.
B. P. 0. ELKS
Meeting every Wednesday at 8
P.M. Visiting brothers welcome.
LE ROY WEST, Exalted Ruler.
W. H. BIGGS, Secretary.
■ ■■
Noose Lodge No. 760
Regular Meetings Every Friday
Governor—
LOREN CARD
Secretary—
WALTER R. HERMANSEN
-
V. F. W.
Taka Post No. 5559
Meeting every Thursday in
the C.I.O. Hall at 8:00 p.m.
t--— - ---"
Brownie's Liquor Store
Phene 103 139 So. Franklin
» P. O. Box 2508
.—-—- *
J. A. Durgin Company, Inc.
Accounting Auditing Tax Work
Room 3, Valentine Building
JUNEAU, ALASKA
.P. O. Box 642 Telephone 919
—EMPIRE WANT ADS PAY—
"The Rexall Store"
Your Reliable Pharmacists
BUTLER-MAURO
DRUG CO.
Alaska Mnsic Supply
Arthur M. Uggen, Manager
Pianos—Musical Instrument*
and Supplies
Phone 206 Second and Seward
--*-- ---
Card Beverage Co.
Wholesale 605 10th St.
PHONE 216—DAY or NIGHT
for MIXERS or SODA POP
The Alaskan Hotel
Newly Renovated Rooms
at Reasonable Rates
PHONE SINGLE O
THOMAS HARDWARE
and FURNITURE CO.
PHONE 555
PAINTS-OILS
Builders’ and Shelf
HARDWARE
Remington Typewriters
SOLD and SERVICED by ,
J. B. Burford Ce.
“Our Doorstep Is Worn by
Satisfied Customers”
FORD AGENCY
(Authorized Dealers)
GREASES — GAS — OIL
Juneau Motor Co.
Foot of Main Street
MAKE
JUNEAU DAIRIES
DELICIOUS ICE CREAM
a daily habit—ask for it by name
Juneau Dairies, Inc.
HOME GROCERY
Phones 146 and 342
Home Liquor Store—TeL <M
American Meat — Phone 38
To Banish “Blue Monday”
To give you more freedom
from work — TRY
Alaska Laundry
H. S. GRAVES
The Clothing Man
LEVI’S OVERALLS
for Boys
BLACKWELL’S
CABINET SHOP
117 Main St. Phone 773
High Quality Cabinet Work
for .Home, Office or Store