THE DAILY ALASKA EMPIRE
“ALL THE HEWS ALL THE TIME”
0 __—__
VOL. LXXV., NO. 11,557
JUNEAU, ALASKA, TUESDAY, JULY 18, 1950
MEMP.KR ASSOCIATED PRESS
PRICE TEN CENTS
Red Attack Slows Under Heavy Casualties
McCarthy is
PLAIN LIAR,
SAYS REPORT
Democratic Majority Gives
Findings in Commie In
vestigation, State Dept.
WASHINGTON. July 18—>jf)—"A
fraud and a hoax"—that’s the label
slapped on Republican Senator Mc
Carthy’s Communists - in - govern
ment charges by the Democratic
majority of a Senate investigating
committee.
A report signed by all three Dem
ocrats on the committee—Senators
Tydings iMd), Green (RI) and Mc
Mahon (Conn)—asserts that:
McCarthy used “the totalitarian
technique of the big lie” in waging
“perhaps the most nefarious cam
paign of half-truths and un-truths
in the history of this republic.”
McCarthy retorted that the report
of the Democrats is "gigantic in its
fraud and deep in its deceit.” The
Wisconsin Senator added:
"It is a signal to the traitors,
Communists and fellow travelers in
our government that they need
have no fear of exposure from this
administration. . . .
“The most loyal stooges of the
Kremlin could not have done a bet
ter job of giving a clean bill of
health to Stalin’s fifth column in
this country.”
The Democrats’ report, issued last
night, was generally regarded at the
capitol as one of the most scathing
condemnations of a Senator ever
made by colleagues. It accused Mc
Carthy of having lied repeatedly.
The majority said McCarthy failed
to prove any of his basic allegations,
which were fired at scores of indi
viduals in attacks directed at the
State Department. McCarthy ac
cused the Department of harboring
a lot of Communists, Red sympa
thizers, and people who were secur
ity risks on other grounds.
Republican Senator Lodge of
Massachusetts got out a minority
report saying the inquiry into Mc
Carthy’s charges “must be set down
as superficial and inconclusive.” He
said there remain “a tangle of loose
threads” and “leads which were not
followed up.”
(Continued on Page Eight)
The Washington
Merry - Go - Round
Bv DREW PEARSON
ICopyrlght, By Sell Syndicate. Inc.)
WASHINGTON — President Tru
man has received such grim reports
on the Korean war that he not
only decided on a special message
to Congress asking for all-out con
trols, but also under consideration
is the following drastic action:
1. A mass retreat, or Dunkerque,
from Korea.
2. The unleashing of the atomic
bomb.
Even early last, week, military
advisers warned the White House
of the tragic possibility of a Kor
ean Dunkerque and the evacuation
of all American men and materials
back to Japan. If Chinese Com
munist troops pour into Korea,
they could force the outnumbered
Americans into the sea. There
fore, a plan for wholesale evacua
tion is already prepared.
Simultaneously, an informal pro
posal has been made to issue an
ultimatum to North Korea, warn
ing the Communists to pull back
to the 38th Parallel or submit to
atomic attack.
Military advisers to the President
are considering both measures as
desperate last resorts. One group
is not anxious to use the atomic
bomb, but th°y are convinced that
Russia is still far behind the Uni
ted States in atomic development,
and that the men In the Kremlin
would not risk an atomic war with
us at this time.
Therefore, they argue that it
would save American lives to make
limited local use of the atomic
bomb against North Korean troop
concentrations and supply depots.
Another group of military ad
visers disagree with this. They
believe that any use of the atomic
bomb would: 1, provoke outright
war with Russia; 2, lose us the
moral support of the world and
even of many people in our own
country.
tContinued on Page Pour)
MacArihur Receives U. N. Flag
Gen. Douglas MacArthur, commander in chief of the Far East com
mand (right front) receives the I'nited Nations emblem (center) at
Tokyo from Gen. J. Lawton Collins (left front) IT. 8. Army chief of
staff. The CN flag flies between the IT. S. Stars and Stripes and
Gen. MacArthur's five-star general’s flag. (/P) Wirephoto via Army
radio from Tokyo.
ONE MORE
ARREST IN
SPY RING
—
Another Link Discovered
by FBI-Julius Rosen
berg Is 4th Suspect
j NEW YORK, July 18—JPI—'The
I fourth American allegedly linked to
' Russia’s Klaus Fuchs atom spy ring
I was seized at his home here last
I night by the FBI.
He is 32-year-old Julius Rosen
! berg—a balding, bespectacled engi
' neer. married and father of two
j children.
The Department of Justice
charged him with conspiracy to
commit espionage, and said he had
recruited for a cloak-and-dagger
Soviet spy apparatus that pene
trated America’s atomic secrets.
He was arraigned and held be
hind bars in lieu of $100,000 bail
for a federal court hearing on July
31. His attorney insisted he was
innocent.
“Rosenberg is another important
link in the Soviet espionage appa
ratus,” FBI Director J. Edgar Hoo
ver said in Washington, where the
I arrest was announced.
i In the past two months the gov
ernment has arrested three other
Americans it says were implicated
in the spy ring headed by Dr. Klaus
Fuchs, the German-born Com
munist sympathizer who worked
his way to the top of Britain’s
atomic program.
Fuchs confessed and now is serv
ing a long prison term in England,
j Harry Gold, a Philadelphia bio
| chemist; Alfred Dean Slack, a
! scientist, of Syracuse, N.Y., and
! David Greenglass, a New York ma
{ chinist and former U.S. Army Ser
| geant.
All w:ere charged writh wartime
! espionage—a charge that can mean
the death penalty.
The FBI announcement said the
American-born Rosenberg’s part ir
the ring was the recruiting ol
Greenglass—then stationed at the
atomic bomb laboratories at Lo>
Alamos, N.M.—to work with Gold.
Like a character in a fictiona
spy drama, Rosenberg gave Green
glass an oddly cut top from a jellc
box to be matched with the othei
half as a recognition signal will
Gold, the FBI said.
J As a result, Greenglass turner
! over bomb data to both Gold anc
| Roseberg in 1945, the agency said.
General in
Jeep Leads
Relief Force
No Dents, American Lines,
North of Taejon,
Says Gen. Dean
By WILLIAM R MOORE
AN AMERICAN COMMAND
POST IN KOREA, July 18 — (A3) —
, Maj. Gen. William F. Dean per
I sonally led an attack that pulled
j seme of his front line troops out
j of the fire in Saturday's heavy
’ lighting near the Kum River,
j Back here briefly after four days
[in the front lines, the commander
of the U. S. 24th Division told of
the incident tonight. He prefaced
it by saying the North Korean
Communists had not dented new
American lines north of Taejon,
1 former American headquarters in
i South Korea. He said the Reds
| had not been able to put their
tanks across the shallow river in
forces.
In response to questions. General
Dean told of the personally led
relief given to Infantrymen at
the roadblock in the heavy fighting.
The general said he put his jeep
ahead of two tanks leading an
Infantry column against the road
block on the American supply
road.
An Infantry unit in trucks, led
by two armored personnel carriers
and two tanks, W'as being sent to
relieve heavily pressed troops on
the Kum River line.
General Dean, who was tempor
ary commander of U. S. troops in
Korea before Lt. Gen. Walton H.
WalkeP of the Eighth Army ar
rived, said he went forward and
found the Infantryment had left
the trucks to deploy. Going far
ther he found the armored cars.
Around another corner the two
tanks.
“Well, I found out that somebody
who had the wrong information had
come down that road telling them
that Red tanks were coming against
(us,” Dean said.
“I told them this was all wrong
and put my jeep in front of the
tanks and started up toward the
roadblock.”
SALMON LANDINGS
_
The trolling boat Mabel K. landed
600 pounds of troll-caught salmon
at the Juneau Cold Storage Com
pany wharf today.
TRUMAN NOT
TO SEEK TAX
BOOST-YET
He'll Ask for Men, Money
and Authority, Is Concen
sus - Talks Tomorrow
WASHINGTON. July 18 — OW —
President Truman will call for more
men. money and authority to deal
with the Korea crisis tomorrow but,
one Congressional leader said, will
not now seek a tax increase.
The President set aside much of
today for work on final drafts of
his two Wednesday messages—a re
port to Congress at 11 a.m., EST,
and a broadcast to the people at
9:30 p.m. EST.
As pieced together from a dozen
sources in the capital, Mr. Truman’s
requests to Congress were expected
to include:
An additional $5,000,000,000 to $6,
000,000,000 in military spending
authority.
Permission to increase by 220,000
men or more the authorized
strength of the armed forces—or,
about 770,000 above today’s actual
strength.
Limited powers of priority and
allocation, to channel steel and
other materials into arms produc
tion, by voluntary means if possible
and compulsory means if necessary
Anti-inflation measures including
curbs on consumer credit but nol
including the price, wage or ration
powers of World War II.
Along with his call for more men.
money and authority, officials said
Mr. Truman would take this line:
The Korean conflict and the in
ternational situation generally will
require effort and sacrifice by the
American people, but the economy is
strong and can take it without im
portant dislocation—if businessmen
and consumers keep their heads.
Billions will be needed to carry on
the Korean fight, but those coats
must be considered in the light 01
the national output now well above
$270,000,000,000.
Higher taxes have been predicted
freely by officials as the Korean
"police action” mushroomed into
war proportions. Senator Lucas ol
Illinois, Democratic leader in the
Senate, told a reporter, however, he
does not expect that Mr. human
will ask higher rates at this time.
POWER BILL
FOR EKLUTNA
TO TRUMAN
WASHINGTON, July 18 — UP1 —
Legislation to authorize the In
terior Department to build the
$20,365,400 Eklutna power plant in
Alaska is before President Truman
for action.
The House yesterday accepted the
Senate version of the bill and sent
it to the White House.
The measure provides the depart
inent may construct a 30.000-kilo
watt plant at Lake Eklunta, near
Anchorage.
Other provisions:
1. The power shall be disposed
of at the lowest possible rates con
sistent with sound business to en
courage its widest use.
The rates must be approved by
'he Federal Power Commission.
2. Preference in sale of the power
| shall be given to public bodies. Co
operatives and Federal agencies.
3. The government must be re
paid the cost over “a reasonable
l number of years,” plus 2'i per
1 cent interests.
4. Receipts from sale of power
shall go into the Treasury.
1 5. After the government is re
I paid, the department must report
to Congress on feasibility of trans
fering the plant to public owner
| ship in Alaska.
Eliminated was authority for the
I department to make plans for other
power projects in Alaska, as pro
j posed in the House bill, and auth
ority to establish a recreation area
around the lRke.
IIAINES BUSINESSMEN
Two businessmen from Haines
W. H. Scriver and Crawford D
Smith, are spending several day
litre, guests at the Juneau Hotel.
"World's Largest Square Dance"
Eight thousand costumed “do-si-do” fans participate in the “world’s largest square dance” at Santa
Monica. Calif., a feature of Santa Monica’s 75th Diamond Jpbilee Celebration that required five blocks
of YVilsliire Boulevard pavement for a dance floor. Thirty-six callers directed the dancers while 50,000
spectators looked on. (/P) YVirephoto.
Thirty Wounded Yanks Slain
On Litters by Reds; Chaplain
Giving Benediction Murdered
USSR BEHIND
NO.KOREANS
IS DISCLOSED
! WASHINGTON, July 18 — UPI — j
I Definite information was given to- j
| Jay that the".* are "Russian ad
visers with . "certain unit" of the
North Korean Army.
Reporters were told at a Penta
gon briefing that between 10 and
20 Russian officers are with the
"certain unit.” Its identity was not
disclosed.
This gives the first confirmation
the American Army has had of the
presence of Russian advisers wtth
the North Koreans, the briefing
officer said.
Asked whether the Army's infor
mation is tliat the Russians arr
advisers rather than combatants
the spokesman replied:
"As far as we know.”
STEAMER MOVEMENTS
Princess Kathleen from Van
cover in port, sailing for Skagway
at y :3d p.m.
Prince George scheduled to sail
from Vancouver tonight.
Princess Norah scheduled to sail
from Vancouver Wednesday, July 19
Alaska scheduled to sail from
Seattle, Thursday. July 20.
Chilcotin scheduled to sail from
Vancouver Thursday.
Baranof scheduled to sail from
Seattle Saturday.
Princess Louise scheduled to sail
from Vancouver Saturday.
Aleutian from westward due
southbound Sunday.
STOCK QUOTATIONS
NEW YORK. July 18 — Closing
I quotation of Alaska Juneau mine
stock today is 21., American Can
92'-, Anaconda 30 7», Curtiss
Wright 9, International Harvester
27, Kennecott 56 \, New York Cen
tral 127s, Northern Pacific 15:'i, U.S.
Steel 33’-, Pound S2.80's.
Sales today were 1.820.000 shares.
Averages today are as follows: in
dustrials 201.88. rails 56.36. utilities
38.20.
MARRIAGE APPLICATION
SEATTLE, July 18—<jPi—A mar
riage license application was filed
yesterday by Morton S. Wood of
Berkeley, Calif., and Virginia Hill,
Fairbanks, Alaska.
FROM PETERSBU RG
Richard Hofstad of Petersburg is
stopping at the Baranof Hotel.
By WILLIAM U. MOORE
AN AMERICAN COMMAND
POST IN KOREA, July 18—(/Pi
Thirty wounded American soldiers
were reported tonight to have been
shot to death on their litters by the
North Koreans who swarmed across
the Kum river Sunday night.
Two of those reported slain were
mortar men WTho hud held their
mortar tubes in place by hand until
their hands were burned and heir
arms broken.
This story was told tonight
(Moore’s dispatch was filed at 11:20
p.m., Tuesday—8 a.m., Tuesday, Ju
neau time) by some of the men of
the Nineteenth Regiment who were
in the thickest of Sunday's battle.
The Reds' Sunday thrust forced
the Americans back to new defense
lines north of I’aejon, which they
still hold tonight.
Sgt. Arnold McKenny, 28, of New
port, Vt.. relating the slaying of
the wounded, said those killed in
cluded a Catholic Chaplain ‘‘while
he was giving the benediction."
McKenney said, "I did not see it
but I know it’s true.”
Capt. D. E. Sandstrom, 32, of
Chadron, Nebr., who also told the
story, did not mention the Chap
lain, but said he got his account
first-hand from an American med
ical administrative officer who was
shot in the leg.
’’The officer told me all the men
were killed,” Sandstrom said.
He said this officer and the Chap
lain had elected to stay with the
stretcher cases to see if they could
get them out.
“I don’t know whether he saw it
or went back after the North Ko
reans left,” Sandstrom explained.
"He did say the North Koreans
made gleeful noises while they were
killing our wounded.”
WEATHER REPORT
In Juneau—Maximum, 56;
minimum, 50.
At Airport—Maximum, 56;
minimum, 48.
FORECAST
(Juneau and Vicinity)
Mostly cloudy with occa
sional light rain and little
change of temperature to
night and Wednesday. Low
tonight about 52; high Wed
nesday about 55.
PRECIPITATION
(Past 24 hours ending 7 30 a m. today
City of Juneau—1.51 inches;
since July 1—4.41 inches.
At Airport — 1.13 inches;
since July 1—2.76 inches.
WES PRICE HERE
Wesley C. Price of the District
i Engineer’s office, Anchorage, 1/
i stopping at the Daranof Hotel.
ALASKA HAS
GIANT SLICE
OF NEW FUNDS
Bill Before Senate Con
tains Largest Yearly Bud
get Ever Given Northland
By CHARLES I). WATKINS
WASHINGTON, July 18 — UP) —
The one-package appropriation bill
now before the Senate contains
more money for Alaska than evei
has been appropriated for the Ter
ritory in a single year.
Delegate Bartlett of Alaska slid
today the funds now earmarked for
the Territory total $215,089,304.
He told a reporter he had ob
tained the tentative allocations
from the budget officers of tfft
various government agencies. The
measure itself does not list all of
the Alaskan items as such, as many
of the appropriations are lump
sums which are allocated by gov
ernment departments.
Bartlett said the largest appro
priation in the bill for Alaska is
that for the Defense Department.
It totals $88,560,765 Of that, $69,
707,845 is for Army and Air Force
construction. This was added after
the measure reached the Senate.
These projects had not bean auth
orized by Congress when ttr. Hoti$<
acted upon the money bill.
Bartlett gave this breakdown of
Army funds of $58,769,645:
$8,741,000 for Eielson Air Force
Base; $11,352,300 for Ladd Air Force
Base; $35,295,345 for Fort Richard
son; $3,131,000 for Whittier and
$250,000 for classified field activity.
He said he was told Air Force
funds of $10,938,200 would be split
be* ween $5,635,200 for Eielson and
$5,303,000 for Ladd.
Bartlett listed other proposed ex
penditures by the Defense Depart
ment :
Alaska Communications $5,877,920;
Nome Harbor $800,000; Wrangell
Narrows, $750,000; maintenants
work at Nome $45,000, at Petelp
burg $5,000 and at Wrangell Nar
rows $20,000; Naval Petroleum Re
serve No. 4. $11,000,000 and for
Navy navigation aids, Arctic test
stations and scientific studies, $355,
000.
The second largest appropriation
for Alaska is in Interior Depart
ment funds. This. Bartlett saffi,
amounts to $70,544,251 plus $9,000,
000 in contract authority.
The third largest item, he said,
is $18,532,750 in Commerce Depart
ment funds. This includes $14,
982,750 for salaries and expenses
of the Civil Aeronautics AdmiiTis
tration, the Anchorage and Fair
banks airports and Federal aid for
the airport program. It also in
cludes funds for the Coast and
Geodetic Survey and the Bureau %.
Public Roads.
Other funds for Alaska are in
the appropriations for the agriful
■ ture, postoffice and treasury dv
j partments.
YANKS HOLD
ABOVE TAEJON
AGAINST ODDS
Communists Move Tanks
by Night in Face of Terri
fic Air Bombardment
(By the Associated Press)
North Korean Communists, with
ranks dented by "terrific” casualties,
have slackened their attack in South
Korea and American forces arc
holding all along the front. U.S.
ifflclals announced today.
Heroic U.S. 24th division troops
battling against overwhelming odds
still hold positions above Taejon.
That rail center, once considered
the key to South Korea's defense,
remains in American hands, a U.S.
Eighth Army spokesman reported.
To the west, South Korean troops
attacked on the central sector Tues
day night (Korea time) and then
withdrew to defense positions after
Inflicting heavy casualties, an
Eighth Army spokesman said.
The Reds were taking a battering
from the air by U.S. jet fighters.
Mustangs and light bombers. Heavy
bombers struck behind the lines in
strategic attacks which soorfer or
later would show up in a slackening
of Communist supplies at the front.
So terrific was the air beating
that fighter pilots reported the Reds
were moving their armor and motor
columns only by night and lying
'ow in daylight.
Pressure Lets Up
U.S. Far East headquarters in
formed the Defense Department
that the defenders.were holding aU
Along the line' 'Mid that enemy
pressure slackened. The Washington
spokesman warned against consid
ering this a decisive turning point.
A Red force to the east posed a
serious threat. Gen. MacArthur's
headquarters reported the Reds
moving reinforcements to their
Fifth Division driving south from
Tanyang, 60 miles northeast or
Taejon, striking for American sup
ply lines. The South Korean First
Corps had blunted this drive Sun
day.
A lull fell over the main battle
sector and over the central sector
Just to the east, where South Ko
rean troops dug In at defensive posi
tions.
Gen. MacArthur’s headquarters
estimated Red casualties to date at
11,000, but said accurate figures were
impossible. The airmen bagged 21
tanks and 143 trucks Monday. They
struck hard again today. Light
bombers strafed Communist supply
lines all the way back to Seoul.
B-29 Superforts blasted railyards*
(Continued on Page Six)
"WE ARE
HOLDING"
IN KOREA
•
Report Includes All Forces
at Front - Enemy
Pressure Slackens
WASHINGTON, July 18 — Ufi -
Far Eastern headquarters has in
formed the Pentagon that “we ar
holding all along the line, includ
ing all forces, and the enemy
pressure has slackened.”
A briefing officer told reporters
the message had arrived here this
j morning, apparently about 6 a.m
However, he cautioned against
I interpreting these developments as
a decisive turning point.
He was asked if this meant the
J "turning point has been reached?”
"I think that is premature,” the
| officer said.
"I don't think any evidence we
I have now shows that to be a fact.”
The officer went on to say there
has been a definite stiffening bn
| the front, that there is more tact
j ical fire by artillery, more air sup
I port and that the “plays are click
ing better.”
“But it takes time," he said,
; adding that “we are blunting the
1 attacks."