THE DAILY ALASKA
“ALL THE NEW S ALL THE TIME’
EMPIRE
VOL. LXXVIIL, NO. 11,869
JUNEAU, ALASKA, WEDNESDAY, JULY 25. 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Reds Offer
'Acceptable'
Agenda Plan
Armistice First, Then
Alien Troop Move
Asked by Communists
WASHINGTON, July 25, —Oft—
The Communists were reported
today to have offered a compro
mise in the Korean cease-fire
talks under which withdrawal oi
foreign troops would not be dis
cussed until after an armistice.
Indications arc that this pro
posal will prove acceptable to the
United Nations command.
The Reds heretofore have insis
ted that the i-sue of pulling for
eign troops out—li. N. forces an-J
Chinese Keds—should be on the
program of armistice talks.
Secretary of Defense Marshall,
laying down the U. N. position,
said yesterday the question is not
a suitable one lor consideration
in the armistice negotiations.
Responsible information here is
that under the new Communist
offer the most the U. N. Allies
would have to undertake is a
promise to discuss arrangements
under which the whole foreign
troops problem would be taken
up later.
THIS proDaoiy means mav
of the armistice taiks, or perhaps
parallel with them, some under
slamthtg' will be reached for ne
gotiations to be held among in
teiested governments on the po
litical issues of a permanent Ko
rean settlement.
The Communist proposition had
been described by U. N. spokesmen
in Korea as ‘reasonable in con
tent and phraseology” and ‘‘suf
ficiently interesting” for the Al
lied delegates to have proposed a
long overnight recess for further
study, .
It was put forth after a four
day suspension uf the talks asked
by the Communists and was re
ported to Washington by Gen.
Matthew B. Ridgway, the U. N.
Commander in Korea. Ridgway
was said to have relayed the word
for information and, it was un
Vterstood, for instruction on tin
line he should take in the next
round of the talks tonight. ("Wush
ington time >.
However, even assuming that
this understanding clear the way
for the Kaesong talks to go for
ward promptly, at least two other
serious issues are ■said to remain.
These are reported to concern
(1) the selection of a demarcation
line between the belligerent for
ces and (2) arrangement of in
spection procedures to be sui o
that the truce, once established,
is not broken. (See elsewhere in
today’s Empire for earlier story
on Red proposals).
r
Ship Movements
Aleutian scheduled southbound
early Sunday.
Alaska northbound due Satur
day afternoon or evening.
Denali scheduled southbound 7
a.m. Friday morning, sailing south
at 10 a.m.
Freighter Sailors Splice leaves
Seattle Friday northbound.
Baranof scheduled northbound
from Seattle Friday.
TheWashinglon
Merry-Go-Round
By BREW PEARSON
ICoDyrlght. 1351. Dy Boll Syna:c«ie, Ice.
ft ASHTNGTON.- For about two
days last week, President Truman
was on the verge of losing hi
defense mobilizer, Charles E. Wil
son, who . whether you like him
or not, has done a masterful job
of speeding up production.
The crisis over Wilton came
about as a result of the Kansas
Missouri flood, and an amazing
boner pulled by the White House.
What happened was that Wil
son had urged the President to
survey the flood area; then, on
the insistence of Mr. Truman,
Wilson also went along. The de
fense mobilizer argued that he
was busy in Washington with 101
different things, but finally ac
ceded to the President's wishes.
On the trip, the President made
several statements to Kansas and
Missouri crowds that he was gi\
ing his chief mobilizer, Charles E.
Wilson, the man who knew more
about production than anyone
else in the U.S.A., the job of get
iContinued on Page Four;
Weather Hazard
A it:: ,r:r; ' Uv ter” threatens the distant Super fort of the Far Fast Air Forces 207 Bomb Wing as
it circles ter a landing at its Okinawa base after su cssfiM strike at Communist targets in North Korea.
Tv.-o airmen show little concern as they have sc it many similar storms roar over and pass harm*
le'dy out to sea, as this one did. (IS Air Force Photo via !/P, Wirephoto.)
To Strike Adieson Off
Payroll 71 to 33
WASHINGTON. July 25. —W—
At a sharply split party meeting,
a majority of House Republicans
present agreed today to support a
plan aimed at rilulitig liu&v- -«uJ
of State Acheron off the federal
payroll.
The decision to pursue the “Get
Acbescn" drive through the medium
of the Stale Department appro
priation bill was taken l)y a stand
ing vote of 71 to 33.
More than 90 Republicans either
did not attend or refrained from
voting.
The majority approved a motion
to support an amendment to tiie
Siate Department money bill.
Parly leaders said tlie amendment,
still to I.e drafted, would not des
ignate Aeheson by name, but would
specify that no federal pay could]
go <c any "policy-making'’ Depart - i
cient head who, at any time dur
ing tlie five years preceding an
i -it-;- rftt'i.Xc. - .»*<»• tt> «c t'fuVrthfls 'iff*
! firm that represented a foreign
government.
Ache -on's law firm once represent
ed Poland.
The decision of the GOP confer
ence i not binding on the mem
bers. Individuals stili can vote the
way they feel.
Put refusal of so many of then:
to support the amendment made h
doubtful that the Get Achcson'
drive would succeed unless it gain
ed heavy Democratic support.
Democratic leaders were confi
dent they could beat it.
NEW YORK, July 25, —(Jl—Frank
Costello, named by the Senate
Crime Committee as tho top man in
the nation’s underworld, was in
dicted by a federal grand jury to
day On a charge of contempt of
the Senate.
Gambler Joe Adonis (Joseph;
Doto) and confessed bookmaker)
Frank Erickson were indicted on
the same charge.
The indictments stemmed from
their retinal to answer questions
at tlie widely-publicized crime com
mittee hearings in New York last
'March.
Costello was indicted on nine
counts, Adonis on 16, and Erickson
on 74.
The maximum penalty on each
count is a year in prison and a
$1,000 fine.
It. S. Attorney Irving H. Saypol
said the charges against the three
men were certified to the Senate
by the Committee and by the Sen
ate to lnm as prosecutor in the
federal district where the alleged
contempt occurred.
i
Will Issue Warrant
Eavpol said a warrant would be ;
issued for Costello's arrest.
Both Adonis and Erickson already :
are serving sentences for violation I
of gambling laws, Adonis in New
Jersey and Erickson in New York.
Costello held the rapt attentiol
of one cf history's largest televis
ion audiences last March as he
jousted with the efforts of Itudalph
Halley, then the Committee’s Chief
Counsel, to pry information from
him.
OSCAR BERG SETH IS HERE
Oscar Bcrg.eth of the Fnrwe.st
Wrangell Canning Co., with head
quarters in Seattle, is registered
at the Baranof Hotel.
Appeals Coart
Upholds Credit
Cl Salmon Industry
SAN FRANCISCO, July 25. —iW—
The U. S. Court of Appeals yester
day upheld a January 18 District
Court judgment at Juneau which
ordered Alaska’s Employment Sec
urity Commission to assign $822,
311 credit to members of the Al
aska Salmon Industry, Inc.
Federal District Judge George W.
Folta at Juneau had found that
the Commission inaccurately com
puted the unemployment compen
sation trust fund .surplus for 1950.
The Commission and its members
lost an appeal by today’s ruling.
The action originally was brought
by the New England Fish Com
pany of Maine and the Wards Cove
Packing Company on behalf of all
other members of the Alaska Sal
mon Industry Inc.
Today’s opinion was just a par
agraph, affirming Judge Folia's
judgment with his same reason
ing.
Seward flayer
Found innocent
ANCHORAGE July 25, —iA1)—Sew
ard M. yor Eugene Lanier was .found
innocent by a U. S. District Court
jury yesterday of a charge of ob
taining money under false pretens
es.
The jury returned a sealed ver
dict after three hours of deliber
ation.
Testimony showed the Seward
City council appropriated $200 as
expenses for a trip by the mayor
to Juneau.
The defense held that Lanier was
detained in Anchorage on city bus
iness and could not make the Jun
eau trip. The trial brought out
that the Seward councilmen gave
the mayor a vote of confidence.
The first Negroes were imported
to America in 1618.
V
Three Toledo
HocpsSers in
Basketball 'Fix
NEW YORK,.July 25, —#1—Three
players from the University of Tol
edo's crack basketball team were
involved in the giant college bask
etball scandal, District, Attorney
Frank S. Hogan said today,
Toledo thus became the sixth
Into the nut hrobming .scandal—the
biggest in college history.
Nineteen players from four New
York schools—('. ('. N. Y.. Manhat
tan College, New York University
and I,on>{ Island l’.,—and six from
Bradley already have h-en named
In connection with the gigantic, cx
pose.
Bradley, the No. 1 team of the
1949-50 se ven, was drawn into the
picture yesterday.
Hogan did not name the Toledo
players but he said they had coop
erated with his office. Hogan said
that while giving or receiving n|
bribe to an amateur athlete in Ohio
was not a crime, the players had
agreed to come to New York.
(See story on Sports Page con
cernin'' developments in Bradley
College.)
Longshoremen
Settle Lumber
Schooner Strike
SAN FRANCISCO, July 25, —:.P>—
Harry Bridges’ longshoremen re
turned to their jobs on eight West
Coast lumber schooners today, their
week-old strike ended by agree- j
ment.
The settlement between Bridges
International Longshoremen’s and
Warehousemen’s Union and the
Pacific Maritime Association pro
vides a 28-cent an hour bonus for
stevedores handling packaged lum
ber. The normal wage in $1.97 an
hour.
The new pact, signed last night,
also grants a $1 an hour premium
for handling packaged lumber on
ships where the vessel’s crewmen
handle more than one hatch.
Operators said the schooners will
sail as soon as possible. The walk
out tied up six ships, owned by the
Coastwise Steamship Co., and one
each owned by the W. R. Chamber
lin and Consolidated Olympic S S.
Companies. The coastwise line was
the only Alaska operation affected
by the strike.
NEW YORK, July 25 —.■Pi -Clos
ing quotation of Alaska Juneau
mine stock today i 2 American
Can 111 '-i, American Tel. & Tel.
156 , Anaconda 41, Douglas Air
craft 49’-,. General Electric 55"-.
General Motors 48 5. Goodyear 89
Kennecott 73',, Libby, McNeill &
Libby 8"i, Northern Pacific 49'
Standard Oi! of California 48
Twentieth Century Fox 13 . U. S
Steel 40“.. Pound 2.80-1 16, Can
adian Exchange 94.43 .
Sales .today were 1,870,000 shares.
Averages today were a follows:
industrials 258.11, rails 79.06, util
ities 44.72,
Certificates Approved for
Ketchikan Pulp Mil!
Plane lurns
futile in Giannel;
Passengers Doused
A sintli -ei Mined Seabee plane
turned tunic in Gastineau .Chan
nel at 5:'l'i p.m. yesterday, to
douse its three passengers and
injure its pi] : slightly.
The plane <.ivned by Flying,
Inc., a small Juneau company,
lit on the water between the
rock dump and the Alaska Coastal
Airlines han ■■■ r with its wheels
down, which caused it to upend
suddenly.
According to Sheldon Simmons,
pilot, thi hydraulic landing gear
system apparently tailed. He suf
fered she hi cuts on the fac^.
Passengers were George Tapley,
Alaska R- . I Commission engin
eer, the Hi \ Raffaele Forni, va
cationing Swiss priest and Walter
K. Yost, tourist, of Berkley, Cal
ifornia.
The plan" was under charter
to the Ala kn Road Commission
and wi returning from Skagwsy
wiicn the upset occurred. Wait
listed a; Skagway on an Alaska
Coastal flit lit, Forni and Yost
were picked up as a courtesy.
At ume 01 trie accident, tne
harbor area was exceptionally
busy, Jfhree aircraft wt re pre
paring to land at the Alaska Coa
stal 1! rat and there were several
boats in the channel.
Alasna Coastal officials tried
vainly to signal the pilot of the
Seabetv, but were unable to at
tract his attention in time.
Assi'jug in the rescue were
two sni-iil outboards owned by Al
aska Coastal employees and the
yacht Golden Mist which reached
the sr me immediately and brought j
gangers ashore.
Simmons crawled through tne
smashed windshield and assisted
Tapley and Vost through a door.
The three managed • to remove
the Rev. Form through another
door.
Simmon, sustained slight cuts
on the face and the loss of his
ylxssi . Yost and Tapley were
uninjured save for a dousing. The j
Rev. 1 orni was taken to St. Ann's
Hospital and is reported to have I
suffered nothing more serious!
than an overload of salt water
and was reported recovering nice
ly
Still missing today was Tapley’s
wallet.
LASALLE UNIVERSITY
REGISTRAR IN JUNEAU
W. H. Baum, registrar of La
Salle Extension University, Chi
cago, arrived yesterday from Sit
ka. He will spend several days in
Juneau on University business.
Baum will then visit other Alas
kan towns in the Interior before
returning to his home office in
Seattle.
BOAT IS AVAILABLE
FOR DERBY FISHERMEN
Another vessel is uvilable for Fri
day and Sunday of the Golden
North Salmon Derby, Curtis Shat
tuek, co-chairman, said today. Erl
ing Martinson’s Northwind, which
can accomodate four persons, is not
full for two days. Martinson's phone
number is 86.
' A pulp mill for Southeast Al
aska —for which residents have
been working for 30 years—was
two Mops nearer reality today
with approvals given a certificate
of necessity, according to an As
sociated Press dispatch from
Washington, D. C.
The Ketchikan ‘Pulp and Paper
Co., a $40,000,000 concern formed
by a Bellingham, Wash, firm and
a New York company, had its ap
plication okehed by both the Do- !
ion.so Produ&i oil Administialion
and the National Production Au- j
thority.
Tlie DPA's action came only
about an hour after the national
production authority announced
that it had approved such a cer
tificate and sent it on to the DPA
for consideration.
Murray Howe, head of llie Na
tional Production Authority's pulp
and paper division, said the com
pany plans to produce bleached
sulphate pulp which can he con
verted to rayon “or even to gun
peuder if refined sufficiently."
A certificate of necessity per
mits a company to amortize a
part of construction costs in lira
oi taxes over a live year period
and give it priuiity on scarce con
struction materials.
Delegate Bartlett of Alaska told
a reporter the approved certificate
authorizes amortization of 05 per
cent of plant construction costs.
Theer was no indication here
when construction oi the plant
may begin.
Harry A. Binzer, secretary of
(he Puget Sound Pulp and Tim
ter Co.. Lester Gore, attorney for
the new pulp company, and Wil
liam Bates, vice president met on
Monday with the Territorial
Beard of Assessment vanc* Equal
ization concerning the “industrial [
incentive” clause in the property
tax law passed by the 1943 legis
lature.
The Euyet Sound firm is one
mill.
The pulp company is asking,
and tiie Ketchikan school district
lias approved, a proposition to
tax the pulp company at one
eighth its true valuation over a
period of several years. However,
the property tax law provides that
property shall be assessed at its
lull and true value in money as
of January 1 of the tax year. This
lechmVlity i, planned to be
ironed out at another meeting this
afternoon of pulp and tax board
members.
Members of the Board of equal
ization and taxation are Lrnie
Parsons, chairman; Peter Wood
and Joe Krause, the latter of Ket
chikan.
'Ilie mill will employ about 1,
200 persons and support a com
munity of 4,500 families, accord
ing to Binzer.
VIKIIIN’SKY BACK
TO WORK SOON
MOSCOW, July 25, — (*>— A
British diplomat reported today
that foreign minister Andrei VI
shlnsky is almost completely re
covered from his month-long ill
ness and shortly will return to
lull time duty at the foreign min
istry.
ACS AUDITOR ARRIVES
Harold R. Wilson, ACS auditor
from Anchorage, is at the Hotel
Juneau for a few days.
WhalJ-l!s
Monster rend
On Shuy»*k island
SEATTLE, July 25 !' Photo
graplis a ml measurement.; of a 30
foot headless creature with hend
like front feet, found by Alaska
fishermen, were boi.v. sent tmtaj
to the United States l i h Wild
life Service office here far po ai'jlt
identification.
Tlie decaying animal, found or
Shuyak Island banks, GO mile nor11
of Kodiak, was reported to lie cov
ered with hair or fur hire-quart
ers of an inch (hick and u. brown
isli-yellow In color. If had a tai
like a whale and two fluke; meas
uring 72 inches each. The "feet'
measured 45 inches aero
Fish and Wildlife officials here
said (he animal possibly could be
a giant shark or any one of a num
ber of small whales.
North Pole Flterj
Seeing Fairhaiihs
FAIRBANKS, July 25, - ' -Ter
crewmen of ir British bombei
stretched their sir legs today aftei
a casual hop over the top of tht
world from Iceland to Fairbanks.
It took the four-englned Arie;
bomber 18' hours and 54 minutes tr
no over the North Pole to Fair
banks from the takeoff print a
Keflavik, Iceland, a 3,353-miU
Jaunt.
"It was a beautiful clay at the
North Pole" and a "jolly coot
flight", Win;.; Commander It. T
Kruglov oonuncnlcil briskly afte
arriving here through "typical Eng
fish weather" in an instninifii
landing at 9:54 a.m. yesterday.
Tcday the lt)-man party, plus i
Reuters reporter, PAter Jackson
who joined the expedition tire last
minute in Iceland, was sightseeing
buses and gold mining operation,
were to be Inspected.
Then tomorrow at 8 a.m. Ihej
plan to fly the plane the 4,128 miles
back to Manby, England. The re
turn flight will be via the pa'ar re
gions, but not nece -arlly over the
po'e again, i rugley said.
Training Flight
He called the trip merely a train
ing flight and passed over question
on whether it had military signif
icance.
The Aries bomber ha-: no gui
turrets and has extra has tanks foj
long rang - flying. It is a modified
version of the British Lincoln. Ai
earlier Lincoln model skipped ovei
the pole to land at Ladd Air Foret
Base here in 1944. The Frogley hop
wound up at Eielsou Air Foret
Bare, 20 miles from here.
V.lts, COitliDN GUILD
TO BE HONOltEl)
A coffee honoring Mrs. Gordon
Gould,, wife of the district super
intendent of the Alaska Mission
Conference of the Methodist
Church will be held at the home
uf Mrs. Harold Schult?, president
of the Women's Society of Chris
tian Services. The hours will be
trom 3 to 5:30 pan. tomorrow. All
members of the church and
mends are invited, she said.
Max Barth of Washington, D.
C. is registered at the Baranof
Hotel.
One May Be Named
One of these four-star admirals may be named by President Truman to succeed Adm. Forrest P. Sher
man as chief of naval operations. Sherman died in Naples, Italy. The admirals are (I. to r.) William
M. Fechteler, 55, now commander-in-chief of (he Atlantic Fleet: Robert B. Carney, chief of I s. naval
forces in the Eastern Atlantic and Mediterranean, and Arthur W. ltadfcrd, 55, comamnder of the Pacific
Fleet, ijfi Wircphoto.
i
Air Search
Concentrating
On land Mass
Planes Scan from
Maiaspina Glacier to
Spencer for Lost Ship
A 30-mile wide land mass between
Cape Spencer and Mala spin i Glac
ier was scoured today by search
planes endeavoring to locate the
missing Canadian airlift plane
which disappeared off Cape Spenc
’r four days ago.
me jost craft, with military
md civilian passenger. aboard, plus
even crew. was enroll to from
Vancouver. B. C. to Anchorag n
the first leg of its flight to Tokyo.
Five large C-124 Air Force plan
es were expected to arrive from Mc
Ohord Field. Wash, today to join
in tlie search, bringing the total
aircraft engaged to 26.
Coast Guard headquarters here
said thut the cutter Storis, which
lias been in Seattle for overhaul,
was due to arrive here at 5 pin.
today and would Join the search
as soon as it could be unloaded. .
Three other cutters are systemat
ically working a 30-mile wide wat
er area off the St. Elias Range.
They are the Cahoonc, Citrui and
Buttersweet.
A Coast Guard cutter inve tt;,at
■d one clue—a report that cb’bris
had been sighted off Cape Fair
weather—but reported it was only
dgs, kelp and crates.
Col. Wallace Walton, of the 10th
itescue Squadron from Klmrndurl
Field at Anchorage who is here
working with the Coast Guard on
the search mission, hud high praise
for all the cooperating organizations.
He said:
"The cooperation of all people
in regard to this mission ha ; been
superior and operations are wo
...; tiaios.tinyl Coordination
handled by the Coast Guard has
been splendid as well ns the alert
ness of the CAA. the scheduled air
carriers such as the Canadian Pac
ific Airlines, Pan American World
Airways, Pacific Northern Airlines,
Alaska Coastal Airlines, the C>vn
A.r Patrol and the Ala ka Com
munications System, in addition to
manv others too numerous to men
.!on."
Smoke Flares Seen
Near Prince Rupert
investigated
PRINCE RUPERT. July 23, - m
-Smoke flares, sending up heavy
black smoke, were sighted today in
the mountains northeast of Prince
Rupert.
Possibility that the signals may
have come from survivors of the
missing Korean airlift transport
was under investigation.
Another theory, however, was
that the flares may. have been rent
up by a Dominion Topographical
Survey party operating in the dist
rict 15 miles north of here.
156 Haiibuf Boats
Duf for Split
Season Tonight
PRINCE RUPERT, July 25, — T»
Forty or more Prince Rupert hal
ibut. boats are among a fleet of up
wards of 156 Canadian and Am
erican vessels heading today for the
two halibut areas off the British
Columbia and Alaska coasts which
are being opened at midnight to
night for the long advocated split
season. They will havp their gear
in the water by dawn tomorrow.
WHAT lint I OUTCAST
Temperature for 24-Hour Period
ending 6 20 o'clock this morning
In Juneau — Maximum,
69; minimum. 49.
At Airport — Maximum,
70; minimum, 43.
F O RECAST
Juneau and vicinity. Contin
ued fair tonight and Thurs
day. Lowest temperature to
night about 50 degrees. High
est Thursday near 75.
P It E C I 1* I T A T I O N
(Past 24 hours ending 7.30 am. today
City of Juneau — .00 inches;
Since July 1 — 4.02 inches;
At Airport — .co inches:
Since July 1 — 2 38 inches.