THE DAILY ALASKA EMPIRE
_ “ALL THE HEWS ALL THE TIME’ ,
VOL. LXXV., NO. 11,563
JUNEAU, ALASKA, TUESDAY, JULY 25, 1950
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Carrier Planes Hit Reds Flanking Pusan
SIZE, ARMED
FORCES, IS
GIVEN LIFT
All Military Enlistments
Also Frozen-Measures
Passed by House
WASHINGTON, July 25 — OH —
The House today passed bills lifting
the ceiling on size of the Armed
Forces and freezing all military en
listments for one year beyond their
normal expiration date.
Both bills were passed by voice
vote without opposition.
President Truman asked for
prompt action on the measures in a
special message to Congress last
week.
The enlistment-freeze bill was
passed by the Senate last week. It
now goes to the White House for
Mr. Truman's signature to make it
law.
The measure lifting the lid on
military manpower still needs Sen
ate approval. It removes all Con
gressional limits on size of the
Armed Forces, now fixed by law at
2,005,882.
Mr.' Truman’s request for $10,
500,000,000 of new defense money
provides for a manpower increase or
600,006. This would bring the Armed
Forces to about 100,000 over the pre
sent authorized ceiling.
Freezing Bill
The House .voted first on the
enlistment freezing bill.
The legislation extends the term
of service for nearly 300,000 men
now in the Armed Services whose
enlistments are due to expire in the
coming 12 months.
Chairman Vinson (D-Ga) of the
House Armed Services Committee,
estimates it will affect 145,000 men
in the Army, 62,000 in the Navy,
and 88,000 in the Air Force.
Size of Force
Another bill before the House
would lift the lid on the size of the
Armed Forces.
Before passage of the enlistments
measure, Republicans sounded em
bittered demands for an accounting
of responsibility for U.S. reverses
in Korea. They also called for a
“house cleaning” in the State and
Defense Departments.
Rep. Short (R-Mo), ranking GOP
member of the House Armed Serv
ices Committee, bitterly assailed the
"dust settling" policy of the State
Department and what he called the
impresion of “false security” created
by Defense Secretary Johnson.
“Who’s responsible for all this?”
he demanded.
“We’ve appropriated $50,000,000,
000 for defense in the last four
years. What have we got to show
for it?”
Earlier Rep. Vinson (D-Ga) called
for the House to “get down to busi
ness.” adding that “the grim and
unpleasant truth is that a global
war is a real and distinct possibility
at any time.”
CITY TO CLOSE
SATURDAY FOR
SALMON DERBY
This weekend, starting with the
first day of the Salmon Derby on
Friday, July 28, will take on the
aspects of a Fourth of July holiday.
Saturday, July 29, the business of
the city will virtually close up for
the big event. Housewives are
warned that most stores will be
closed and if the family wants to
eat something besides fish, buying
should be done on Friday.
Among those closing Saturday all
day will be: Case Lot Grocery,
Bert’s, 20th Century, California
Market, Home Grocery, Behrend’s
Grocery, both bakeries, Thomas and
Juneau-Young Hardware stores, all
transfer companies. Doubtless others
will be added to the list by the end
of the week.
Reason for closing is to give em
ployees an opportunity to partake
in the big annual salmon event Ju
neau puts on each year. Their civic
minded cooperation helps to make
the big event even bigger.
So, Thursday and Friday will be
the busy days at the stores, filling
orders for housewives and Saturday
will find the town practically closed
up—with everyone out dangling a
herring and hoping to snare that
“big one” to get in on the list of
awards for his effort.
CHANCE OF GLOBAL
WAR MAKES ARMY
BOOST 'TOO SHORT'
WASHINGTON, July 25 — <A>» —
' Rep. Vinson (D-Ga) said today "a
global war is a real, distinct possi
bility at any time” and American
forces must be built' up for that
possibility.
Vinson, chairman of the Armed
Services Committee, made the state
ment in a speech prepared for House
delivery in support of a bill that
would add a year to the service per
| iod of enlisted men now in the
Armed Forces.
A House vote was expected later
in the day.
The enlistment "freeze” already
has passed the Senate.
The House also expected to take
| a vote later on legislation to lift
all limits from the size of the
Armed Forces.
1 On a speed up schedule, it may
: vote next week on giving the Armed
Forces the $10,486,976,000 in addi
i tional money asked for them by
i President Truman.
Vinson said the United States is
i “seriously short” at present in
j "standing military strength” and he
j questioned whether the expansion
program the administration has be
gun will be enough.
1 He said he is not satisfied with
! the plans for increasing the size of
| the Navy and the Air Force “for I
; believe there is too much conserva
| tism in the program.”
Vinson said Russia out numbers
the United States 7 to 1 in tanks,
! more than 17 to 1 in military man
j power and has almost 300 subma
i rines and “a vast air force.”
j On the U.S. side of the military
j ledger, he said there are these
! assets:
‘‘Goyernmen tally, we are far
stronger than our potential enemies
...in any long term effort our sys
tem can outlast and surpass the dlc
j tated, regimented system of the
i Communists. Our industrial poten
| tial is the envy of the world.
“Our seapower is vastly greater
than that of Russia and her satel
lites. Our strategic air power is
unmatched anywhere in the world.
We are still far ahead in the atomic
arms effort and will probably stay
ahead for some years in the future.”
STOCK QUOTATIONS
NEW YORK, July 25 — Closing
quotation of Alaska Juneau mine
stock today is 2'/4, American Can
90‘4, Anaconda 32 V4, Curtiss
Wright 1014, International Harves
ter 27, Kennecott 58%, New York
Central 1514, Northern Pacific 17,
U.S. Steel 35V Pound $2.80%.
Sales today were 2,770,000 shares.
Averages today are as follows: in
dustrials 203.83, rails 61.13, utilities
37.74.
AT JUNEAU HOTEL
Bill Lambert of Hood Bay is a
guest at the Juneau Hotel.
The Washington
Merry-Go-Round
Bv DREW PEARSON
iCoprrltht. jim. dj Sell syndicate. Ins.)
J^ASHINGTON — A significant,
off-the-record meeting took place
in the office of the Secretary of
Defense on the morning President
Truman sent his re-armament pro
gram to Congress.
Secretary Louis Johnson, who had
previously hacked billions from the
armament estimates of the Joint
Chiefs of Staff, called in his most
vigorous opponent, Rep. Carl Vin
son of Georgia, and said quietly;
“I need your help, Congressman.
You were right.”
Vinson, the powerful chairman
of the House Armed Services Com
mittee, replied: “We’ll let bygones
be bygones, Mr. Secretary. The
important thing is that we all work
together to get the kind of de
fense we need to win a war.”
When Johnson explained the
plans for an enlarged Army, Navy,
and Air Force, they were virtually
identical to the demands Vinson
has been making like a modern
Jeremiah ever since the end of
World War II.
A year and a half ago, in de
fending a joint chiefs estimate of
$30,000,000,000, Vinson argued that
our minimum defense needs were:
Army strength of 711,668; pur
chase of 673 new skysweeper anti
aircraft guns; modernize 743 med
ium tanks; put 421,314 Army re
serves on drill-pay status; build up
the Navy to 555,700 officers and
(Continued on Page Four)
PRIMARIES
BEING HELD
IN 4 STATES
(By the Associated Press)
Democrats in four Southern states
are holding primaries today, with
| national interest centered primarily
j on a Senatorial race in Oklahoma.
There, Senator Elmer Thomas,
j chairman of the Senate Agriculture
Committee and a veteran of the
Washington scene since 1927 is try
ing to hold off the bid of Rep.
Mike Monroney, who has been in
the U.S. House 12 years.
Monroney led Thomas in the Sen
atorial primary July 4 but lacked a
clear majority because the total
vote was split by other candidates
then in the field. This time it is
strictly Monroney-vs-Thomas.
Monroney has campaigned in the
second go-around with the argu
ment that Thomas, as chairman of
the Senate Appropriations subcom
mittee handling military appropri- j
ations, is partly responsible for the |
plight of U.S. forces in Korea.
The other states, in brief:
Arkansas — There is a national I
angle in the race for the nomina- |
tion for Governor, between Gov. I
Sid McMath and former Gov. Ben j
Laney. Laney is a leader of anti- i
Truman Democrats while McMath
has supported much of the Truman
program.
Louisiana—The main race here is
for the Senate, between Senator
Russell Long, son of the late Huey
P. Long, and two opponents.
South Carolina — Most statewide
races were settled in a first primary
July 11 but two Congressional dis
trict nominations are being decided.
HOUSE ACTS TO
ENLARGE ARMED
FORCES 600,000
(By the Associated Press) s
The House of Representatives to
day mapped out a swift schedule
toward boosting the size of the U.S.
armed forces. The House may vote
next week on President Truman’s
request for $10,500,000,000 extra for
the battle against Communism in
Korea and elsewherg.
Administration forces pushed
ahead with the task of obtaining
broad emergency controls over busi
ness, industry and consumer credits.
In the wprks is the addition of
600,000 men to the Armed Forces
total in the fiscal year, to bring the
total in the services to more than
2,000,000. The funds also, in the Pres
ident’s words, will help the U.S. pre
pare to “deter further acts of ag
gression.”
Representatives of the 12 alliance
nations met in secret session in
London, prodded by events in Ko
rea, to study ways of cutting a four
year rearmament schedule to two
yeafrs. The delegates, forming the
permanent civilian high command
of the pact, are expected to remain
in session four or five days.
The United Nations Security
Council was called into session to
day to hear the first report from its
military commander-in-chief for
Korea, U.S. Gen. Douglas Mac Ar
thur. Informed sources said the re
port contained no further recom
mendations for the U.N., but con
cerned an accounting of the war
thus far.
$22 TAKEN IN BURGLARY
OF SHOE REPAIR SHOP
Burglars entered the American
Shoe Renewing Shop on Seward
Street last night and took $22 from
the till, city police said today.
The burglars apparently entered
by forcing a window at the rear
of the shop, police said.
The burglary was discovered when
the store was opened for business
this morning.
Over $4 Million
Requested for ACS
WASHINGTON, July 25 — UP) —
President Truman’s request for!
$10,486,976,000 for military needs
includes $4,393,000 for Alaska com
munications.
FROM TENAKEE
Mrs. Birdie Gilkison of Tenakee
is at the Juneau Hotel.
Higher Taxes
Indicated; to
Hit Paychecks
WASHINGTON, July 25 — (>P) —
Secretary of the Treasury Snyder
today. said higher taxes probably
will take a bigger bite out of wage
earners’ pay envelopes before the
end of the year.
Snyder told a news conference he
is "sure” President Truman will ask
Congress this week to raise indivi
dual and corporation taxes. The
money would go to pay costs of de
fense to meet Communist aggression
in Korea and elsewhere.
Congressional approval would
mean bigger withholding taxes from
employee paychecks.
Snyder said Mr. Truman’s request
would be for an "interim” tax in
crease to go into effect as soon af
possible.
The Secretary said he is in ac
cord with Congressional leaders that
no excess profits tax on corporations
should be included in the interim
bill because the measure should be
passed quickly. He said excess
profits tax proposals are so com
plicated they would mean extended
and delaying debate.
Snyder also endorsed proposals to
hold excise (sales) taxes at their
present levels, close "loopholes” to
garner more taxes, and speed up
payment of corporation income
taxes.
TRUMAN’S REQUEST
WASHINGTON, July 25 — W —
President Truman asked Congress
today for a prompt $5,000,000,OOt
increase in taxes, to be collected
partly from individuals and partly
from business.
He proposed that the higher taxes
on individuals start coming oul
of paychecks received after Oct. 1.
He said the new withholding rate
should be 18 percent instead of 15
percent on that part of wages sub
ject to withholding.
In a letter to Senator George (D
Ga), Mr. Truman propdsed tttat a
tax bill already passed by the House
be used as a peg for Immediate ac
tion. That bill is now before the
Senate Finance Committee, headed
by George.
Mr. Truman proposed that Con
gress "increase tax collections sub
stantially for the taxable year 1950."
He suggested that rises apply to
1950 corporation income and that
the withholding tax on individual
earnings be increased for the last
three months of this year.
The President-asked the tax rise
to finance in part the $10.5 billion
increase he has proposed in military
spending.
"We embark on these enlarged ex
penditures at a time when the fed
eral budget is already out of bal
ance," he wrote. "This makes it im
perative that we increase tax reve
nues promptly lest a growing defi
cit create new inflationary forces
detrimental to our defense effort.”
Income Taxes
On individual income taxes, Mr.
Truman proposed a return to the
rates of 1946.
This was at the peak of World
War II rates and would mean a
sharp boost in taxes for all the 52,
000,000 taxpayers.
As to corporations, Mr. Truman
proposed to increase the normal
corporate rate from 21 to 25 per
cent. Mr. Truman said this would
result in a 25 percent tax on the
first $25,000 of the corporation’s in
come and a 45 percent tax on the
rest.
Nothing to be Cut
The tax bill now before George's
committee proposes to cut some of
the wartime excise taxes—the levies
such as those on telephone bills,
railroad tickets, furs and luggage.
Mr. Truman asked that these pro
posed cuts and other revenue-losing
provisions be dropped, but that Con
gress keep those parts that close
loopholes, applying withholding
taxes to corporate dividends and
change taxes of life insurance com
panies.
Although asking a return to 1945
individual income tax rates, Mr.
Truman said the present personal
exemptions of $600 a person and the j
privilege of income splitting between j
husband and wife would be left un
changed.
In 1945 the personal exemption
was $500. It was raised to $600 by
a 1948 bill which cut taxes all along
the line for individuals.
One effect of the increase in the
exemption to $600 was to drop some
7,400,000 persons with small in
comes from the tax rolls.
MORE POWER
WANTED FOR
PRESIDENT
Even Critics Urge Higher
Taxes - Sawyer Says
We Can Stand It
..
WASHINGTON, July 25 — tfl —
Secretary of Commerce Sawyer said
today the economic control powers
the administration is asking may
not be enough. He declared greater|
powers will be needed if military |
spending is increased further.
Sawyer was before the Senate |
Banking Committee to urge that1
Congress quickly give President'
Truman the controls he has asked. |
These include powers to parcel out '■
scarce materials to industries, to1
say how these materials shall be
used, to stop production of any item,;
and to fix the terms of credit sales. |
Some members of Congress al-1
ready are balking at such a grant of
power. At the same time there has
oeen growing sentiment for a sharp
increase in taxes with the idea that'
this would tl) put defense costs on;
a pay as you go basis, and (2) hold 1
down the inflationary pressures,!
lessening the need for controls.
A rise in taxes appears certain |
[ since the administration—as well as1
| some critics of its controls program ;
—is urging higher taxes.
There also is some sentiment for j
an even bigger military expansion j
than the $10,000,000,000-plus asked 1
jy President Truman.
Sawyer said he is "convinced the
American people will willingly give i
up whatever is necessary to guar-!
~.tee our national security, in spite j
jf inconvenience and some sacrifice
jf the very high levels of consum
ption which they now enjoy."
_
MANPOWER RESERVE
ON SEATTLE FRONT
IS BEING recruited:
SEATTLE, July 25—(if)—A man- J
igement-union report said today a j
manpower reserve was being re
quited for work on the Seattle
waterfront to meet any possible
shortage created by movement of
military cargo to Korea.
Art Olsen, secretary of the CIO
International Longshoremen and
Warehousemen's Union, Local 19,
ind D. W. Cornell, area manager of
the Pacific Maritime Association, j
said a reserve of 150 men is being
enlisted as a start.
Olsen said the local union not - .
nally has about 1,600 members. He :
said the program has been ap-1
proved by the union membership, j
Cornell said the heavy demand,
for longshoremen to handle mil-1
itary cargo has come at a time!
when commercial shipping is reach
■ng its annual peak.
Qualified men seeking work on
the waterfront through regular hir
ing channels are being accepted \
also, Olsen said.
“From now on we will be having ;
large cargoes of salmon arriving al
most daily from Alaska,” Cornell
said, “and we must have the men
available to move them.”
TRANSOCEAN LINE CREW
Weathered in after arriving on
a charter flight, the crew of a
Transocean Airlines plane stayed j
jvernight at the Juneau Hotel. In i
the group are William L. Word, I
F. V. Kennedy and Ronald M. \
Backues. j
r*.:l
• WEATHER REPORT • j
• In Juneau—Maximum, 55; •
• minimum, 51. •
• At Airport—Maximum, 57; •
• minimum, 49. •
• •
• FORECAST •
• (Juneau and Vicinity) •
• Decreasing cloudiness with •
• lowest temperature near 50 •
• degrees tonight becoming •
• partly cloudy with highest •
• temperature near 62 degrees •
• Wednesday. •
• PRECIPITATION •
• (Past 24 hours endlns 7:30 a m. today •
• City of Juneau—0.33 inches; •
• • since July 1—7.28 inches. •
•»' At Airport — 0.20 inches; •
• since July 1—4.96 inches. •
Flee Advancing Reds
Carrying only a handful of their possessions—and the little fellow
has less than that—these South Koreans arrive in Taegu, Korea, after
fleeing from Taejon ,80 miles to the north. Railroad station in back
ground. «Pl Wirephoto by Staff Photographer Frank Noel.
STATE BILL "DENIAL"
OF RIGHTS, SCREAMS
INDIAN OFFICE WIRE
WASHINGTON, July 25 — Wl —
The Interior Department’s advisory
committee on Indian affairs has
urged that the so-called anti-res
ervation section be cut out of the
pending Alaska statehood bill.
The section would provide that
pending a vote of the people of
Alaska and approval by Congress
no reservations should be set aside
or natives.
In a telegram signed by nine of
the committee’s 11 members, chair
man Oliver La Farge told Interior
Secretary Chapman:
"This section is grossly unfair to
natives and its enactment in or
ganic law would set a most vicious
precedent for denial of native
rights.’’
FISHERMAN HELD
AFTER ASSAULT IN
PETERSBURG HOME
Arthur Paul, 44-year-old Peters
burg fisherman, was in Federal jail
here today, held for the grand juryl
on three charges of assault with in
tent to kill, robbery by force, and
for breakin s and entering. ,
Victim of the assault, which took
place at 4 a.m. July 21, was John
Hendricksen of Petersburg. He was
arrested later that day by Deputy
Marshal Ralph E. Smith.
In a hearing before U.S. Com
missioner Dale H. Hirt, Paul waived
his right to have a lawyer. The com
missioner ordered him held to an
swer to the grand jury. Bail was set
at $3,000.
The charges against Paul, all
signed by Hendricksen, read that
the fisherman entered Hendricksen’s
home and assaulted him with intent
to kill; entered his home, commit
ted a robbery by force and putting
in fear, stealing $46 from the vic
tim; and breaking and entering,
breaking down a door by force while
Hendrickson was in the house.
STEAMERMOYEMENTS
Princess Louise from Vancouver
in port at 3:30 this afternoon and
sails for Skagway at 11:30 o’clock
tonight.
Baranof from Seattle scheduled to
arrive at 8:30 tonight. „ •
Princess Kathleen scheduled to
sail from Vancouver Wednesday.
Prince George scheduled to sail
from Vancouver Friday.
Aleutian scheduled to sail from
Seattle Saturday.
Princess Norah scheduled to sail
from Vancouver Saturday.
Alaska , from west scheduled
southbound Friday.
SCHOOL DISTRICTS
SKY 5% OF FUNDS
FOR COMING YEAR
Rising Costs, Increased En
rollment, New Districts
Throw Estimates Off
Alaska's 26 Incorporated school
districts will be deprived of at least
5 percent of their funds this com
ing year unless the coming legis
lature passes a deficiency appro
priation of more than $104,000, It
was announced today by Dr. James
C. Ryan, commissioner of educa
tion.
The shortage is in the refund
granted each district by. the Ter
ritory for operation of its schools,
ranging from 75 to 85 percent oi
the total cost, depending on the
number of pupils enrolled.
Juneau itself will be shy $8,522.26,
Dr. Ryan estimated.
If the legislature turns down Ms
request for more money to keep the
schools operating as they were
planned to operate when the bi
enniel budget was made out, each
district must pare expenses by
approximately 5 peroent or dig up
the extra money themselves.
The education commissioner
pointed out the shortage is by no
means the fault of the 1949 as
sembly, because it granted every
cent Dr. Ryan asked for—and Dr.
Ryan in turn had presented every
cent each district had asked him
for.
Three reasons were given for
the deficiency:
1. Costs have risen beyond ex
pectation.
2. Great increase in enrollment
has been reported almost every
where.
3. Several communities have in
corporated since the legislature met,
and were not included in the esti
mate.
Transport Funds
At the same time, the same thing
has happened in regard to school
transportation, he .ai. A great i
influx of families adjacent to towns, j
plus added costs in contracts, TVs I
piled up a large deficit, approxi- .
mating some $58,000 for the coming
year.
This too was no fault of the
legislature, Dr. Ryan said, because
they gave him what he asked—
$300,000 for the biennium. The
first year alone, however, saw $178,
035.18 spent in contracts, leaving
only $121,964.84 for the coming year.
He estimates it will take $180,000
to see the children transportef
next year, making the shortage
about $58,000.
Again, if the assembly turns down
his request for a deticiency appro
priation, districts must cancel out
certain routes, or shorten them, in
order to keep within their allot
(Continucu on Page Two)
ONLY THIRD OF
AREA REMAINS
TO DEFENDERS
Communists Seize Town
Near Taejon-Surround
ing Our Key Port
(By the Associated Press)
Yongdong fell to North Koreans
today. On the other side of the
ledger, U.S. and British carrier
planes streaked across Korea's
southwest tip and struck hard at
advancing Communist columns
threatening to flank United Nations
forces in a push toward Pusan.
The war was a month old, and
the MacArthur command was fight
ing to keep the one-third of South
Korea it still holds.
On the central front, U.S. First
Cavalry division elements, "fighting
like hell," retreated from Yongdong
before a sustained Communist
frontal attack supported by stabs in
both flanks and sneak attacks from
.he rear. Fighting to protect the
American flanks, the 25th Division
hrew back two Communist infantry
ittacks with heavy casualties. Yong
iong is 20 miles southeast of aban
loned Taejon.
The carrier plane attack was part
of Gen. MacArthur’s planned mea
>ures against the burgeoning threat
jn the southwest front, where Red
columns have been driving against
token resistance from South Ko
reans and menacing vitally import
ant U.S. supply lines in the broad
flank movement.
Navy Planes Strike
The Navy pilots Mt unidentified
front line targets "of opportunity”
in the area of Kwangju, where the
Communists have been spearing
east in what looked like the be
ginning of a drive on Pusan. This
main American supply port is on
the southeast coast. The Reds al
ready have seized all the western
and southwestern part of Korea,
driving the Americans and South
Koreans Into a corner making up
only about a third of the peninsula.
U.S. Army field officers were re
ported to have asked the air strike,
in which British planes supplied
cover for U.S. Naval fliers. The at
tack was under the direction of
Vice Adm. Arthur D. Struble, who
had just returned with his ships
from recent strikes at targets north ,
of the 38th parallel. For the first
time in the campaign a rearming
ship came alongside the task force
is it proceeded to its new operation.
A dispatch from U.S. Eighth
Army headquarters in Central Ko
rea quoted North Korean prisoners
as saying 20,000 Korean veterans of
the Chinese Communist army were
used for the invasion of South Ko
rea. The prisoners also said Russian
advisers were working with Com
munist army units, and that Russia,
a month before the invasion, sup
plied the North Korea army with
huge quantities of equipment.
Roadblocks Cut Us Off
Front dispatches from the central
sector said the Yongdong with
drawal was orderly after the Ameri
cans stood their ground since Sun
day before waves of attacking Reds.
First Cavalry elements on the flanks
had been cut off from time to
time by roadblocks set up in their
rear by Red Infiltrators.
(Continued on Page Two)
TRAVELS 4,000 MILES
TO COMPETE, GOLDEN
NORTH SALMON DERBY
After traveling some 4000 miles
to compete in the Golden North
Salmon Derby, Mr. and Mrs. Ben
C. Salmon and daughter Janis of
he Igloo Munitions Depot in South
Dakota arrived in Juneau Sunday
via the Alaska.
While here they will be house
quests in the Gold Belt home of
Mr. Salmon's sister and brother-in
law, Mr. and Mrs. Marvin G. Ripke.
tn Seattle they were Joined by the
two young Ripke's. Bob and Greg
who were on their return trip from
the Valley Forge Boy Scout En
campment.
Mr. Salmon and his brother, both
engineers, are the nucleus of the
Salmon Construction Company,
wellknown in the Middle West.
While in Alaska, Mr. Salmon plans
to look over the possibilities of
expansion.