THE DAILY ALASKA EMPIRE
"ALL THE NEWS ALL THE TIME”
' VOL. LXXV., NO. 11,592
JUNEAU, ALASKA, MONDAY, AUGUST 28, 1950
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Truman Cracks Down on Gen. MacArthur
STATEMENT
ON FORMOSA
IS RESENTED
Message for Release at
VFW Encampment-Text
Made Public, However
WASHINGTON, Aug. 28 — W —
President Truman has cracked
down on Gen. Douglas MacArthut
tor proposing to make a statement
on Formosa which the White House
regarded as an improper venture
into the field of foreign policy mak
ing.
Presidential Secretary Charles G.
Ross disclosed today that Mr. Tru
man personally directed that Mac
Arthur withdraw the statement he
had sent to the Chicago encamp
ment of Veterans of Foreign Wars.
In that statement, MacArthur had
declared the safety of the United
Nations demands that Formosa re
main in friendly hands.
This was, at the least, off tangent
from the administration’s declared
policy that Formosa’s future must
be settled at the international level.
So Mr. Truman, in addition to
the crackown on MacArthur, made
public a letter to Warren Austin,
the American Ambassador to the
United Nations, repeating his For
mosan policy “to the end that there
be no misunderstanding concerning
the position of the government of
the United States.”
Crisis Arises
The whole incident seemed cer
tain - leave lasting scars in a
f; ,i already marked by sharp
mfferences between some high mil- j
itary * diplomatic officials over
foreign policy.
Th. ■ were indications that it
would lead, too, to further deterior
ation of the Republican-Democratic
cooperation on foreign matters.
Senator Knowland (R-Calif.i,
who has been critical of Far East
ern policy, got out a statement
accusing the administration of
“gagging” MacArthur. He called
this “another in the long series of
efforts to keep the truth from the
American people.”
Just how MacArthur himself felt
about it was not known here, but
Ross said there was no thought
of relieving the general as the
occupation commander in Japan.
MacArthur also commands the Uni
ted Nations forces in Korea.
How It Developed
The whole thing developed in
this manner:
Last week, MacArthur sent a
long statement to the VFW in
which he said “We may have peace”
by holding a Pacific island defense
(Continued on Page Two)
The Washington
Merry-Go-Round
■Coprrlfbt. iaim. OF Ban aFBdleatc, Ine.)
By DREW PEARSON
Washington—Every year about
vacation time there is a big argu
ment in the Pearson family—not
about Senator Taft—but about what
to do during our vacation.
The little woman naturally wants
to get away from home. For
some strange reason she seems to
feel she should get away from three
meals a day, moths in the piano
and musical crickets under the
radiator. And with her boy just
coming of draft age, she wanted to
get off to the Maine woods or the
mountains where we could forget
about Korea, and woes of the
world.
On the whole I didn't blame
her. But being almost as dis
agreeable in my home as I am to
congressmen, I confess that I put
up an argument.
“If we go to some beach resort,”
said I, “the folks in the hotel
lobby will be whispering ‘there’s
that fellow that President Truman
called a so-and-so.’ Or nice old
ladies will be wanting autographs,
and every amateur politician in the
^Continued on Page Four)
"Blue Angels" Put on Show
Four Navy Panther jets, flown by the "Blue Angels” Navy acrobatic
flying team, in elose formation start banking for a sharp turn over
San Francisco. The team put on its last demonstration before being
integrated into Navy fighter squadron 191. The Navy said team is
being dissolved until after the Korean war. I). S. Navy photo via IP)
Wirephoto.
RAIL LINES
OPERATED BY
GOVERNMENT
WASHINGTON, Aug. 28—Ul—The
nation’s railroads maintained on
time operations today under the
Army’s direction—but the labor dis
pute which had threatened to halt
the trains was still unsettled.
The Army took over the rail sys
tem at 4 p.m. (EST) yesterday. This
was on orders from President Tru
man, who last Friday ordered the
railroad industry seized by the Gov
ernment to avert a nationwide
strike.
A half hour after Mr. Truman
ordered seizure, the two strike
threatening unions called off their
walkout scheduled for today.
The presidents of seven major
railroads were put in charge of rail
operations in various sections of
the nation with the rank of Army
Colonels.
ANCHORAGE CAA MAN HERE
John Goetz of the CAA at An
chorage is a guest at the Hotel Ju
neau.
• WEATHF.Il REPORT •
• Temperatures for 24-Hour Period •
• ending 6:20 o'clock this morning •
• In Juneau—Maximum, 55; •
• minimum, 48. •
• At Airport—Maximum, 54; •
• minimum, 47. •
• •
• FORECAST •
• (Juneau and Vicinity) •
• Cloudy with rain showers •
• and slowly decreasing south- •
• easterly winds tonight and •
• Tuesday. Lowest temperature •
• tonight about 52. Highest •
• Tuesday near 55. •
• *
• PRECIPITATION •
• (Pa«t 24 hn'i^s enrfinar » m tndny •
• City of Juneau—.43 inches; •
• since August 1—4.36 inches; •
• since July 1—14.29 inches. ' •
• At Airport—.26 inches; •
• since August 1—4.63 inches; •
• since July 1—11.67 inches. •
Revoke Bail;
Jail Terms
Red Leaders
NEW YORK, Aug. 28—(fl—The
U. S. Court of Appeals today re
\otcea tne bail of the 11 convicted
Communist leaders and gave them
30 days to try to stay their jail
terms.
The order was in a two-to-one
decision by the three-judge court.
U. S. Attorney Irving H. Say
pool said the ruling in effect gave
the Red leaders a 30-day stay of
their prison terms.
During the time, he said, the
convicted men may apply to the
U. S. Supreme Court for a further
stay of sentence pending deter
mination of their case before it.
The Court of Appeals, at the
same time, denied a petition by tne
Red leaders for a rehearing of
their appeal.
Quake Dead
Now 5,000
NEW DELHI, India, Aug. 28—l/P
1—The face of northeast India still
| was changing today in the wake
, of the devastating earthquake 13
I days ago, termed by scientists the
I world’s fifth most severe recorded
earthquake.
| Spreading flood waters pushed
1 further over1 tea gardens in Assam
province, where the quake hit hard
, est. The death toll was in the
neighborhood of 5,000.
! Minor shocks continued in the
province. Millions prayed in the
• streets and fields
An estimated 5,000,000 persons
were reported homeless. Property
damage was placed at $20,000,000.
SEATTLE VISITORS
Registered at the Baranof Hotel
from Seattle are Ted Edwardson,
Emil F. Helem, G. Henning, Ted
Johnson, and B. Rosenquist. i
BILLIONS
FOR GOVT.
IS PASSED
Appropriation for Opera
tion for Year Okehed by
Senate - Voice Vote
WASHINGTON, Aug. 28—<*>—The
Senate passed a $35,554,000,000 single
package appropriation bill today to
operate the Government for the year
ending next June 30. It goes back
to the House for concurrence in one
amendment.
The bill provides $14,680,000,000
in regular military funds. In addi
| tion, the Senate will act later this
; week on a $16,771,000,000 House
i approved bill to provide new equip
| ment for the Korean war.
Included in today’s measure was
i a direction that $62,500,000 be loaned
to Spain.
President Truman has publicly op
posed this loan.
Senate passage was by voice vote.
The huge appropriations measure
carried $5,222,000,000 in funds for
military assistance for anti-Com
munist countries.
It also provided $2,525,000,000 in
! Marshall Plan funds, and a $26,
900,000 fund to provide technical
assistance to the world’s backw’ara
areas.
The Senate Appropriations Com
mittee in a closed door meeting
agreed to name a subcommittee to
take over the work of the Senate
House "watch-dog” committee on
Foreign Economic Cooperation.
The joint “watch-dog” group,
headed by Senator McCarran (D
Nevi, will go out of existence Sep
tember 1.
The $16,000,000,000 supplemental
bill calls for 5,333 new planes and
other weapons of war.
CRITICAL
MATERIALS
ARE LISTED
GSA Orders Government
Agencies to Conserve
Supply Levels
WASHINGTON, Aug. 28— <*) —
The General Services Administra
tion set up a list of 11 critical ma
terials today and ordered Govern
ment agencies to conserve them.
The order applies especially to
purchases of motor vehicles, type
writers, steel filing cabinets and
other equipment using critical ma
terials.
Jess Larson, Administrator of
General Services, also ordered Civil
ian agencies to reduce their pre
sent stocks of such items progres
sively so that by next June 30 they
shall be limited to a three-month,
six-month and 12-month supply lev
el, depending on types of items and
time required for their replacement.
Larson’s order listed the following
as “critical materials at this time”:
Aluminum, cement, copper, lead,
leather, lumber, paper, rubber (syn
thetic, natural or in combination),
steel, wool and zinc.
STEAMER MOVEMENTS
Aleutian from Seattle due 11 a.m.
tomorrow.
Baranof from west scheduled
southbound at 5 a.m. tomorrow.
Susitna due to sail from Seattle
Tuesday.
Alaska due to sail from Seattle
Thursday and is due to arrive here
Sunday, Sept. 3.
Until further notice there will
be no sailings of Canadian vessels.
MARRIAGE ICENSE
SEATTLE, Aug. 28—(41— Marriage
! license application (3-day waiti has
! been made by Claude M. Bentz, 42,
Anchorage, and B. Edith Anderson,
< 36, Seattle.
In Safe Hands
U. S. Marine Pfc. Frank Frey of Cincinnati, O., stands guard over three wounded North Korean prisoners
captured when Marines took their ridge objectives in' Naktong River sector of Korean front.. UR Wire
photo.
REVISED
SC BILL
SIGNED
Approximately Ten Mil
lion Persons Added to
Old Age Pension Rolls
WASHINGTON, Aug. 28— CPI —'
President Truman today signed the
revised Social Security Bill adding
approximately 10,000,000 persons to
the old age pension rolLs.
The White House indicated there
would be a statement later.
Mr. Truman has expressed strong
objections to one part of the mea
sure as it went through Congress.
That is a provision limiting the
power of the Secretary of Labor to
cut off unemployment insurance
funds from states whose systems
he holds do not conform to Federal
standards.
The millions of additional work
ers will come under the old age
benefit program and begin paying
payroll taxes next January 1. Per
sons now retired will start getting
bigger checks a few weeks hence, in
October.
The new law also more than
doubles payroll taxes over the next
20 years, to help pay for the larger
benefits. The payroll taxes will in
crease from $2,500,000,0000 this year
to about $7,800,000,000 in 1970.
DAUGHTER BORN TO
ADVERTISING MAN OF
DAILY ALASKA EMPIRE
•
A seven-pound nine-ounce daugh
ter was born early this morning at
St. Ann’s Hospital to Mr. and Mrs.
Donald R. Clark. Her nase is Kim
berly Joyce. Don is advertising man
ager of the Daily Alaska Empire.
Mrs. Clark’s parents, Mr. and Mrs.
C. E. Douglass of Seattle were here
for the event. Mr. Douglass is a
professor of engineering at the Uni
versity of Washington.
Don Clark’s parents also live in
Seattle where Mr. Donald H. Clark
is a free lance author.
AT HOTEL JUNEAU
Marjorie Charles, daughter of Sid
Charles of Ketchikan, is staying at
the Hotel Juneau temporarily until
she can find an apartment. Her
apartment above the Coco Cola
bottling plant was burned out dur
ing the recent fire.
Robert
Eugene
Raised
VANCOUVER, B. C„ Aug. 28—1
—The United States motorship
Robert Eugene—wrecked Tuesday *
on Addenbrook Island, 250 miles
northwest of here—has been sal
vaged and should reach Seattle
under tow today.
The 100-foot, 130-ton freighter,!
almost totally submerged off the
Queen Charlotte Sound Island, was
raised and patched by nightfall
Sunday.
Salvage work was carried out by
the Pacific salvage tug Salvage
Queen of Vancouver.
Home port of the Robert Eugene,
used on the Seattle-Alaska run,
was Juneau, Alaska. The crew of
five escaped safely when the ves
sel grounded.
NEW BB COACH,
FAMILY, ESTABLISH
RESIDENCE, JUNEAU
i
i Mr. and Mrs. A. Soley and their
[ three children, Arnold, Barbara and
Lynn, arrived in Juneau last Wed
nesday on the Baranof. They have
moved into an apartment of Alder
Terrace.
Soley is the new athletic director
and coach for Juneau High School.
He is also a teacher in social
science.
Coming from Winlock, Wash.,
high school, Soley has 18 years ex
perience in coaching in all sports.
From 1945 to 1947 he was Director
of Education at the Washington
State Reformatory at Monroe Watli.
The new coach is no stranger to
the Territory. In 1920 he spent a
year at Wasilla, Alaska, working
for the Alaska Road Commission.
His brother, Verne Soley, lived in
Juneau for seven years and was
manager of Juneau Drug.
"Ever since we have been mar
ried I have been talking Alaska to
my wife,” Soley said. "I know We
are going to enjoy our residence
in Juneau and hope to turn out
some basketball players of which
the town can be proud.’’
MRS. GHIGLIONE BACK
Mrs. A. F. GhigUone has re
turned from a two-week stay in
Seattle, and her husband is de
lighted to turn back the respons
ibility of their energetic young
family. However, with the capable
help of friends and neighbors,
I everything went well.
THOUSANDS
OF IH MEN
OUT, STRIKE
Eleven Plants Reported
Involved in Trouble
Operations Cease
CHICAGO, Aug. 28—W—Nearly
50,0110 workers at 19 International
Harvester Company plants through
out the country were on strike to
day.
The farm equipment division ol
the United Electrical Workers (Ind)
yesterday ordered its 27,000 mem
bers on strike in 11 plants.
The strike call brought the big
implement manufacturing firm’s
operations to a standstill. Eight
other Harvester plants have been
shu’t down since Thursday by a
strike called by the CIO Unitec
Auto Workers, who represent 22,000
workers.
Announcing the FE-UE strikt
after a mass meeting yesterday,
Gerald Fielde, director of the
union’s Harvester council, termed
! the company’s withdrawal from a
tentative contract agreement last
week “the most brazen double cross
in modern labor labor industry.’’
W. J. Reilly, Harvester's labor
relations manager, said "the com
pany has been and is willing to
make very substantial wage in
creases for employes.”
The rejected agreement had been
reached last Monday. It called for
a seven cent an hour wage boost
and semi-annual opening of the
contract for wage discussions dur
ing the two years it was to have
been in force.
Harvester said Friday it was
i withdrawing from the offer because
j the FE-UE local at East Moline,
111, had refused to sign the agree
ment, and new strikes had broken
out in five other plants after Mon
day.
STOCK QUOTATIONS
NEW YORK, Aug. 28.—Closing
quotation of Alaska Juneau mine
stock today is 2%, American Can
97%, Anaconda 34, Curtiss-Wright
10%, International Harvester 30%,
Kennecott 651 i, New York Central
14%, Northern Pacific 16 s, U. S.
Steel 38, Pound $2.80%.
I Sales today were 1,300,000 shares.
I Averages today are as fellows: in
i dustrials 218.53, rails 62.52, utilities
1 39.03.
i
BIG DRIVE
AGAINST UN
FORCES NOW
"Last Gasp" Indicated by
Commies in Push-Reds
Number 40,000 Men
(By Associated Press)
The entire 45-mile northern front
of the United Nations beachhead
in South Korea flamed today with a
desperate Communist offensive that
inched closer to the important east
coast port of Pohang and drove
back the defenders north of Taegu.
The Red North Koreans committed
40,000 troops to the northern offen
sive all the way from the rubbled
central front city of Waegwan on
the Naktong River eastward to the
Sea of Japan at Pohang. The Am
erican command said it signaled the
"last gasp” attempt to drive the UN
forces out of all Korea.
The Reds hit the middle of the
Allied line by taking Uihong, 22
miles north of Taegu. The main UN
forward base, from South Korean
forces. Red infiltrators, repeating
the deadly tactics they had used to
good advantage all through this
two-months-old war, were seen be
hind South Korean lines north of
Taegu.
Reds Inch Ahead
The Reds drove to within 3% miles
of Pohang Port, which the Allies
only recently rewon. They Inched
ahead despite a severe pasting from
Allied warships off the east coast
and from U. S. warplanes, U. S. of
ficers said they thought the airstrip,
six miles southeast of Pohang, would
be held.
B-29s took off again on their pun
ishing offensive into North Korea
dropping 300 tons of bombs today
on Songgjin, 180 miles north of the
38th Parallel. Other warplanes all
around the front lashed heavily at
enemy troops.
The Communists apparently were
trying for the big blow which might
open the way to Pusan, the main
American base.
Enemy’s Last Gasp
Lt. Gen. Walton H. Walker, U. S.
Eighth Army commander, told Am
ericans and South Koreans: "It is
by belief the over-extended enemy
is making his last gasp."
All around the 120-mile defense
perimeter some 64,000 Communist
troops lunged at American and
South Korean lines. But a spokes
man at Gen. MacArthur’s head
quarters said despite the apparent
desperation of the northern drives,
ihe real big Red push was not yet
under way. The key to it. the of
ficer said, is the Red Second Divi
sion, which is reported refitting
somewhere around Kumchon, north
west of Taegu.
Big Red Push
The Second Division is within a
day’s march of either the Taegu or
the northeast front. When lt gets
into action, the spokesman said, the
Red push will be underway against
Taegu, the UN forward base, and •
Pusan, the main Allied supply base
on the southeast coast.
On the southern front, the Reds
hit American lines near Hwman,
about 35 miles west of Pusan. U. S.
planes battered at a column of 30
vehicles and artillery pieces there
and an Amrican artillery barrage
blasted it.
A Naval operations summary re
ported carrier pilots destroyed 11 new
Russian-type Yak fighter planes on
the ground at Yonpo on the North
Korean east coast.
HRS. MEHERIN GUEST
AT VANDERBILT HILL
Mrs. J. J. Meherin was a Pan Am
erican arrival from Seattle Sunday
and will spend the week visiting*Dr.
and Mrs. R. H. Williams at their
country home on Vanderbilt hill.
Mrs. Meherin will be joined later
in the week by her husband who Is
in Anchorage on a short business
trip. Mr. Meherin is president of the
Baranof Hotel Co.