THE DAILY ALASKA EMPIRE
j “ALL TIIE NEWS ALL THE TIME"
VOL. LXXVI., NO. 11,706 ■
JUNEAU, ALASKA, FRIDAY, JANUARY 12, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Blistering Allied Air Strikes Crumple Reds
ECONOMIC
MESSAGE
IS GIVEN
' Double Tax Boost Request
ed by Truman tor Mili
tary, Foreign Aid
WASHINGTON, Jan. 12 — —
President Truman today called on
Congress to boost taxes this session
by “very much more” than the
^ $8,000,000,000 combined total of the
last two increases.
The President, in his annual eco
nomic message, notified the law
makers that the nation's security
will demand lending and spending
authority totaling $140,000,000,000
for this fiscal year and next. The
present fiscal year runs out next
July 1.
1 As he set it out. this total would
be for actual military and foreign
* aid spending plus contracting, lend
ing and loan guaranteeing authority
for national security purposes.
Other government expenses would
be in addition to this.
Wage Restraints
Mr. Truman said workers must
accept wage restraints and business ;
men must accept lower profits—
that no one should seek to hike
his income to escape his share of
, the higher tax burden.
He told the legislators, too, that |
1,000,000 more men and women may
be added to the armed forces within
a few months. The military man
power goal has been a force of
3,^:00,000 by June 30, but only today
this figure was raised to 3,462,205.
Congress voted a $4,700,000,000
increase in individual and corpora
tion taxes last fall. In December,
it passed a bill to get $3,300,000,000
more from corporations through an
"excess profits” tax and an increase
1 in existing taxes.
No Specific Figure
Mr. Truman used no specific
figure for his new tax proposals
but said the total should exceed
the combined total of these two
bills.
Mr. Truman said it should be the
first principle of policy to "main
tain a balanced budget, and to fi
nance the cost of national defense
on a ‘pay-as-we-go’ basis.” He
added:
’ Tax Upping
* “Corporations should pay much
higher taxes. Individuals should
pay much higher taxes. Excise taxes
should be higher and more exten
sive.”
Mr. Truman said new tax pro
posals soon will be submitted to
Congress carrying these recom
mendations as well as recommenda
tions for closing “many loopholes’
, in present tax laws.
The President also informed
Congress that staffs are being rap
idly gathered to apply “broader
controls” over prices and wages.
To Hold Price Line
"In the case of prices,” he said,
“the general policy must be to held
(Continued on Page Two
The Washington
Merry-Go-Round
By DREW PEARSON
(Copyright, 1951, Dy Bell Syndicate, Inc.)
I^ASHINGTON—President Tru
man isn’t likely to move on it, but
some of his genuine well-wishers
have been dropping discreet hints
that the most important thing he
can do to bring about national
unity is appoint two top Republi
cans to his cabinet—including pos
sibly Governor Dewey as Secretary
of State.
Most unfortunate difficulty about
the current bickering over for
eign policy is the reaction abroad.
All over Europe there has been
indecision and dismay. The recent
foreign-policy controversies came
on top of the Korean disaster, al
so on top of the President’s music
critic letter, both of which increas
ed lack of confidence among our
allies.
Most people don’t realize it, but j
the music-critic letter was pub
lished all the way from Africa to
Norway. To the man in the street
it may have been humorous, but
to the prime ministers and for
eign ministers of Europe, it arous
ed fear that the head of the
(Continued on Page Four)
Father Views New-Born Quads
New-born quadruplets—two boys and two girls—who weighed a total of 15 pounds 12 ounces at birth,
are viewed by a happy father, Kenneth Rosebush (center), 36, a Pontiac, Mich., stonemason. Doctors
delivered the quads by Caesarean section. The Rosebushes already have four other girls ranging from
seven to fifteen years. Drs. Harold F. Stahl (left) Edward Christie at right. Iff) Wircphoto. ,
PEACE BID TO
RED (HINA IS
NEARING VOTE
UN Offering Political Con
ference for Cease
Fire in Korea
LAKE SUCCESS, Jan. 12——
The United Nations drove toward
a vote today on a final peace bid
to Communist China, offering a
political conference on Par-East
ern problems in return for a
cease-fire in Korea.
The United States accepted the
plan. Russia, in what seemed to
be a stall for time, expressed cool
ness toward it.
Non-Communist spokesmen made
it plain that if Peiping rejects this
ofier, the Reds can expect no fur
ther overtures and the war will
go on.
Diplomats here held little hope
that China Communists would
agree to the proposals. They felt,
however, the effort was worth
while if only as a demonstration
that the UN had explored the last
possible avenue of peace.
The five-point plan, drafted by
cease-fire commission members
Nasrollah Entezan, Iran; Sir Bene
gal N. Rau of India and Canada’s
Lester B. Pearson, will be put be
fore the 60-nation political com
mittee in a resolution this after
noon.
Sponsors hoped for a vote (about
2 p.m. PST) before today’s session
ends.
Announcement of the plan yes
terday brought from S-oviet dele
gate Jacob A. Malik the charge
that it was an ultimatum. Malik,
howver, did not completely close
the door.
Explaining U. S. approval, Amer
ican delegate Warren R. Austin
said the proposals restated the
principle that a cease-fire must
precede negotiations. He added the
U. S. wanted to maintain the unity
of the United Nations.
JENSEN - TALKINGTON
USE TO BE SETTLED
OUT OF COURT TODAY
The case of Oscar Jensen versus
Mr. and Mrs. Paul Talkington in
volving boundary line and tit e
to property claimed by both plain
tiff and defendant on the Fritz
Cove road, was .concluded this
morning in the V S. Dis*’ric
Court when attorneys for botn
parties in dispute announced an
agreement for a settlement out of
court. It was expected final settle
ment would be made this after
noon.
Motions were made before the
Court today.
U. S. District Attorney P. J- G“*
more, Jr., was to bring three cases
before Judge George W. Folta in
court this afternoon.
Two Engineers Summoned
For Testimony in Palmer
Airport Hearing Jan. 18
ANCHORAGE, Alaska, Jan. 12—
W)—A wire received yesterday from
Senator Hoey (D-NC) said Army
Engineer Corps employees who sur
veyed the Palmer airport sites and
assertedly set prices of $120,000 and
$125,000 will be asked to appear at
a Jan. 18 hearing in Washington.
Hoey is chairman of the Senate
Investigations subcommittee that
has scheduled the hearing into the
controversial Alaska airport deal.
Earlier, Rep. Stanley McCutcheon
had charged that the hearing was
being “rigged” with an eye toward
damaging the Alaska statehood
movement.
McCutcheon, who is speaker of
the Alaska House of Representa
tives, was one of three persons
originally listed as under summons
to testify. He was summoned as
counsel for the Alaska Aeronautics
Commission in the Palmer transac
tion.
The others were Tony Schwamm,
Territorial Aviation Director, and
Roland Snodgrass, secretary of the
Palmer aeronautic committee. They
protested against the failure of the
committee to summon others who
participated in the airport project
and who they said would be key
witnesses in supporting actions of
territorial officials.
McCutcheon’g Explanation
McCutcheon gave this explana
tion yesterday of the transaction:
“Three men residing at Palmer
were first to appraise the land for
the territory. The lowest value any
of these three set was $160,000. The
territory placed it at $150,000 and
proceeded on that basis.
“When Senator Butler (R-Neb)
came up with his charges the CAA
(Civil Aeronautics Administration)
enlisted the aid of the district en
gineer to make a new appraisal.
Surveys were made and all facts on
land values compiled.
“The engineer came to the con
clusion the value was $120,000.
“Subsequently, the Portland of
fice of the Corps of Engineers chal
lenged the appraisal and ordered
a new one.
Engineers Are Called
“Another engineer, a federal em
ployee, and a crew man spent many
days resurveying the airport, com
puting land values and the work
performed. They came up with a
value of $125,000 which was an in
crease of $5,000 over the first ap
praisal.”
These two engineers are the latest
to be called to appear at the Wash
ington hearing.
“Again the appraisal was chal
j lenged in the Portland office,” Mc
, Cutcheon continued. “An official
from there was sent here to make
a third appraisal.
“He made a quick trip, without
use of surveys or instruments, and
| decided the land was worth only
! $31,985.”
McCutcheon said that figure
seemed to be what officials in Wash
! ington wanted and no further ap
| praisals were ordered.
I
‘‘There is great evidence that
heavy political pressure was brought
from Washington to overrule any
findings tending to substantiate
Alaska’s claim," McCutcheon told
Senator Hoey by telegram.
BRIBERY
CHARGES
HURLED
WASHINGTON. Jan. 12 — UR —
Rep. Sutton (R-Tenn) said in the
House today that Reconstruction
Finance Corporation officials have
accepted bribes of “several thou
sand dollars” to make loans.
He told his colleagues his charges
would be ‘‘borne out” when a Sen
ate committee reports on its inves
tigation of the RFC. A Senate
Banking subcommittee headed by
Senator Fulbright (D-Ark) has
been, looking into the RFC's ad
ministration for several months.
Sutton hurled the charge of brib
ery in criticizing the RFC for fore
closing last fall on a $37,500,000 loan
it had made to the Lustron Corpo
ration of Columbus, Ohio. The firm
makes prefabricated housing.
Sutton said “the Lustron Corpo
ration should be reopened for busi
ness immediately.”
HARJU! HEAR FROM
SON STATION D IN
KOREA WITH NAVY
Mr. and Mrs. George Harju
recently had a letter from their
son, Radar Third Class, Leonard
Harju, presently stationed in Kor
ean waters with the navy. He stat
ed that he helped deliver a Christ
mas present to ground forces in
Korea when he aided in the evac
uation of the Hungnam beach.
To quote from his letter: “I have
eight months more to do. I know
that President Truman did declare
a national emergency, but I think
it will be over by when my time
is up. I hope that I never have
to spend another Christmas like
this again. I know that all the
soldiers and marines we took off
that beach are happy.”
Harju was stationed on the Mc
Kinley until recently but is now
aboard the LST 974. His letter was
written enroute to Pusan.
RICHTERS FROM SKAGWAY
Mr. and Mrs. C. E. Richter, old
time residents and store operators
of Skagway. arrived in Juneau
on the Alaska Coastal Airlines
plane yesterday.
TRUMAN
REPLIES
TO TAFT
President Talks Plainly on
Aid Abroad-Senator
Comes Right Back
WASHINGTON, Jan. 12 — UP) —
President Truman’s assertion he
will consult Congress in sending U.S.
troops to Europe — but won’t be
bound by it—was labelled by Sena
tor Taft (R-Ohio) today as "the
end of the bipartisan foreign pol
icy."
At the same time. Senator Wherry
(R-Neb) challenged Mr. Truman’s
indirect claim that the American
people will back substantial use of
U.S. troops to bolster Western
Europe’s defenses against attack.
The President told his news con
ference yesterday he has authority
to send more foot soldiers to Europe
and intends to use it. But he will
consult with Congressional foreign
relations and armed services leaders
as a matter of politeness before he
does it, he added.
He said that, as Commander in
Chief, he isn’t bound by any deci
sion Congress makes unless it re
stricts the number of troops by
limiting appropriations.
And if the lawmakers want to
go to the country with that kind
of a restriction, he declared, he is
willing.
He licked ’em once before, the
President said in an obvious refer
ence to his attacks on the Republi
can 80th Congress in the 1948 Presi
dential campaign.
Taft told a reporter he thinks
the only practical limitation on the
President’s authority may be in
such appropriations restrictions.
But Taft said the President’s in
sistence on his right to send troops
to Europe without prior Congres
i sional approval of the policy and
I what Taft called Mr. Truman’s by
I passing of elected Republican lead
jers in his consultations “brings an
j end to the bipartisan foreign
. policy.”
Mr. Truman also told his news
, conference that Gen. Douglas Mac
Arthur, contrary to some published
reports, has not recommended that
United Nations forces be withdrawn
from Korea. And he denied a Tokyo
report that the U N. commander
has been “muzzled” by Washington
to prevent his speaking publicly
about Korea.
CLAIMS PEARSON
COLUMN DID HAVE
SECRET MESSAGE
WASHINGTON, Jan. 12 — OP —
The Army said today the Drew
Pearson column of Dec. 30 contained
"quoted excerpts from classified
(secret) messages,” and an investi
gation is being made.
In a letter to Senator McCarthy
(R-Wis), Secretary of the Army
Pace also said the matter is being
submitted to the Judge Advocate
General of the Army. The Judge
Advocate General is the Army’s top
legal officer.
Pace made the letter public. It
was in response to a demand from
McCarthy to know whether ma
terial in the Pearson column was in
fact quoted from secret messages
as Pearson said. McCarthy said In a
Senate speech last week that if
Pearson had quoted secret messages
he had given aid to foreign coun
tries in efforts to break U.S. codes.
Pearson replied in a statement
at the time that he had been told
by “the Pentagon” that it was all
right for him to use the messages if
he changed dates and altered a
few words.
Pace told the Senate committee
the whole matter is being “actively
investigated.” He said the Army had
not given Pearson “secret messages”
or any messages at all from Gen.
Douglas MacArthur’s headquarters.
FRED DAHL HERE
Fred Dahl of the Dahl Trans,
portation Co., owners of the vessel
Robert Eugene, is in Juneau until
tomorrow or Sunday. He reports
that repairs are being made on
the Robert Eugene in Seattle and
that it is hoped to be put back
1 into service soon. He is staying at
| the Baranof Hotel.
Hits Appeasement
President Truman says “we will not engage In appeasement” as he
delivers his "state of the union” speech before a joint session of
Congress in Washington. (PI Wirephoto.
INCREASED j
AIR FORCE
NOW ASKED
WASHINGTON, Jan. 12 — ^ —
The armed forces, with Presidential
sanction, aimed today for an Army,
i Navy and Air Force of 3.462,205
men by June 30, instead of their
previous 3,200,000 man goal.
The announcement came from
Mrs. Anna M. Rosenberg, Assistant
Secretary of Defense, at a Senate
Preparedness subcommittee hearing.
Her testimony came amid talk of
lowering the minimum draft age
from 19 years to take in youths of
18 years and six months, instead of
the 18 year minimum the Defense
Department has proposed.
Also today. President Truman
said in his economic message to
Congress that “our present defense
targets will require an increase of
nearly one million men and women
in the armed forces within a few
months."
Late last month the forces num
bered an estimated 3.266,000.
Senator Lyndon B. Johnson
(D-Tex), the Preparedness subcom-j
mittee chairman, commented in the
hearing that "there is some senti
ment in Congress, and I understand
in the Pentagon” to require 30
months of military service and
training.
The Defense Department has re
commended the period be extended
from 21 to 27 months, under a pro
posed universal military service
and training law on which the sub
committee is holding hearings.
Mrs. Rosenberg had told the com
mittee the armed forces would have
to start drafting husbands, fathers
and veterans unless the age limit
is cut.
BLM OFFICIAL LEAVING
MONDAY FOB ANCHORAGE
M. H. Lightwood, Land Econo
; mist with the Bureau of Land
Management, plans to leave Juneau
Monday for his headquqarters at
: Anchorage. Lightwood has been
1 here since last Wednesday investi
1 gating homesites in the National
Forests in order to expedite issu
ance of patents. He is conferring
with officials of the U. 9. Forest
i Service regarding homesites elim
' mated from the National Forests.
I —----“
deputy marshal returns
Deputy V. 8. M*rf»l Sid
• Thompson returned to his Juneau
headquarters yesterday on the Pan
American Airways clipper from
the states. He went south to ac
l company federal prisoners from
i Juneau and Ketchikan to federal
i institutions in the states.
1 -----“*
1 Gerald Overman of the Polaris
Taku Mine at Tulsequah. B.C., is
, in Juneau for medical attention. He
is stopping at the Hotel Juneau.
MANPOWER
GOAL NOW
INCREASED
Mrs.Rosenberg Announces
Plan Has Been Given i
Approval by Truman
WASHINGTON, Jan. 12 — <^F» —
Senators were told today that
President Truman had increased
the June 30 manpower goal for the
nation’s fighting forces by about
260,000.
Assistant Secretary of Defense
Mrs. Rosenberg testified that Mr.
Truman had approved raising the
armed forces strength to 3.462,205
by that date or "at the earliest pos
sible moment.”
The previous June 30 target was
3,200,000 men, although Mr. Truman
has talked of having 3,500,000 in the
next year or two.
Mrs. Rosenberg made her an
nouncement as she and top ranking
Army, Navy, Air Force and Marine
officers appeared before the Senate
Armed Services subcommittee to
urge drafting of 18-year-olds.
Mrs. Rosenberg said she had just
received a telephone call from Sec
retary of Defense Marshall inform
ing her of the higher total for the
armed services.
"The Joint Chiefs of Staff re
quested it yesterday,” Mrs. Rosen
berg said. "The Secretary of De
fense and the President approved it
this morning.”
The proposal for drafting 18
year-olds was running into some op
position in the Senate group. Sena
tor Saltonstall (R-Mass) demanded
that Defense officials "prove their
case” for such a step.
WEATHER REPORT
Temperatures for 24-Hour Period
ending 8:2* o'clock this morning
In Juneau—Maximum. 35;
minimum. 30.
At Airport—Maximum, 33;
minimum, 30.
FORECAST
(Juneau and Vicinity)
Cloudy with mixed rain and
snow tonight becoming
mostly cloudy with snow
showers Saturday. Colder
Saturday with high tem
perature near 28.
PRECIPITATION
(Past 24 hours ending 7:30 a m. today
City of Juneau—0.08 inches;
since Jan. 1 — 3.26 inches;
since July 1—41.25 inches.
At Airport — 0.02 inches;
since Jan. 1 — 1.85 inches;
since Julv 1—29.85 inches.
ENTIRE UN
FRONT HAS
NEW THREAT
Red Columns Mass in Sev
eral Sedors-Artillery
Barrages Laid Down
(By the Associated Press)
Blistering Allied air strikes and
artillery barrages crumpled a Red
Korean attack near Wonju today.
But another Communist force strik
ing 30 miles behind this Allied posi
tion threatened the entire United
Nations stand in central Korea.
The deep-striking Red column
skirted the American-French-Dutch
line in the Wonju area. It fought
several sharp clashes with Allied
patrols on the approaches to Tan
yang, 37 miles southeast of Wonju.
The flanking Reds set up a road
block, mined a vital supply highway
and poured a hail of small arms
fire into an Allied force sent out
to clear the route.
Ram Deep Wedge
Two North Korean divisions—the
Sixth and 10th—were ramming a
deep wedge into the U.N. positions
in central Korea. Possibly 20,000
Communist troops were in this
force which was threatening the
supply and withdrawal routes of
the U.S. Second Division and its
French and Dutch supporting units
making a fighting stand just south
of Wonju.
The immediate peril in the Wonju
area eased as daylong Allied air
strikes and artillery barrages routed
two Red Korean regiments which
had seized a commanding height
Thursday night.
Withering Fire Slammed
This force, striking from the
northeast, had cut across the Won
Ju-Chechon road, occupied the
dominant hill and slammed a with
ering fire into the Allies’ horseshoe
shaped defense perimeter just south
of Wonju.
The fighting raged in foot-deep
snow and bitter cold.
Allied planes, including the big
B-29 Superl’orts rarely used on
tactical missions, sowed heavy ex
plosives and fragmentation bombs,
machinegun fire and Jellied gasoline
into the Red positions.
Navy pilots from the carrier Phil
ippine Sea seared the half-mile
ridge with napalm firebombs. They
killed an estimated 450 Reds. “They
were trying to make an advance and
we caught them," said Lt. (jg) Don
Loranger, Hanford, Calif.
Rain of Steel
Second Division artillery slammed
a rain of steel at the Reds.
Field dispatches said the air
artillery pounding wiped out part
of Wonju.
Allied cargo planes Thursday
dropped 215 tons of food, ammuni
tion, medical supplies and clothing
to the central Korea defenders.
Other Red forces were dug in
south of Wonju.
But brisk fighting swirled in the
Tanyang area, far behind this ex
posed Allied position. Tanyang is a
rail and road center south of the
Han river at its southernmost bend.
It is astride one withdrawal route
for the Second Division leading
toward the old Pusan beachhead.
STEAMER MOVEMENTS
Baranof scheduled to sail from
Seattle, 5 p.m„ today.
Princess Norah scheduled to sail
from Vancouver January 17.
Denali from west scheduled to ar
rive southbound Sunday morning.
nOCMUOTATIONS
NEW YORK, Jan. 12 — Closing
quotation of Alaska Juneau mine
stock is 3%, American Can 98,
American Tel. and Tel. 150%, Ana
conda 41%. Douglas Aircraft 101%,
General Electric 51%. General Mo
tors 48%. Goodyear 69%. Kenne
cott 77%, Libby McNeill and Libby
9Vi, Northern Pacific 32%, Standard
Oil of California 92%, Twentieth
Century Fox 21%, U.S. Steel 45%,
Pound $2.80, Canadian Exchange
95.18%.
Sales today were 2,950,000 shares.
Averages today are as follows: in
dustrials 243.75, rails 81.63. utilities
42.15.