THE DAILY ALASKA EMPIRE
"ALLXHEJtEES ALL THE TIME*
VOL. LXXVIII., NO. 11,813
T—- — ■ ' - ■■ ——
JUNEAU, ALASKA, FRIDAY, MAY 18, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
UN Forces Retreat on Blazing Korean Front
MacARTHUR
ASTONISHED
BY TRUMAN
Early Dismissal Statement
Stirs General Also
Republican Leader
WASHINGTON, May 18 — (A>) —
President Truman’s statement he
had considered dismissing Gen.
MacArthur off and on for a year
“astonished” the deposed general
and stirred critics of the adminis
tration to new wrath today.
Senator Hickenlooper, Iowa Re
publican dissenter on official Far
East policy charged Mr, Truman
had “deceived the people” with prev
ious declaration of support for Mac
Arthur.
General Astonished
MacArthur, in a statement issued
in New York, said his astonishment
at Mr. Truman’s remarks bordered
on incredulity. He added: "It is dif
ficult to reconcile this with my ap
pointment by him as commander
in-chief of the United Nations com
mand” in Korea. That was last June.
Mr. Truman also told his news
conference yesterday the Republi
cans are trying to overthrow the
foreign policy of the United States.
WilMt „ Republicans Comeback I
brought a retort from Sen- I
-Brewster, a Foreign Relations
committee member. He told a re
porter "We can’t overthrow it when
we don’t know what it is.”
The President said he decided he
needed a new general in the Far
- «*T ‘ A when MacArthur called on the
!. ese Communists in Korea on
"" March 24 to negotiate a truce, in
advance of a proposed presidential
peace proposal.
Cease-fire Agreement
MacArthur replied to this, too, in
the statement issued by his chief
aide, Maj. Gen. Courtney Whitney.
The deposed general said he had
twice previously tried to obtain a
cease-fire agreement, both times
"without conferring with higher au
thority and without the slightest
exception being taken thereto.”
In an expansive mood at his news t
conference, the President also said
that:
Fuss — It Did
1. Secretary of State Acheson
cautioned at an April 6 White House
conference against MacArthur’s re
moval on grounds it would stir up a
political fuss. And it did, he was
right, the President added with a.
' jpdn.
‘ 2. He is happy the Senate Armed
Forces and Foreign Relations com
mittees upheld yesterday a ruling
that Gen. Omar Bradley did not
have to divulge what was said b>
whom at the April 6 White House
meeting.
STEAMER MOVEMENTS
Princess Louise from Vancouver
due to arrive Saturday afternoon
or evening,
Baranof scheduled to sail from
Seattle late today.
Denali scheduled to arrive from
westward Sunday southbound.
The Washington
Merry-Go-Round
By DREW PEARSON ,
(Copyright. 1931. 09 Bell Syndicate, Inc..
WASHINGTON-For some time
this column has called attention to
the shipment of war materials be
hind the Iron Curtain by European
nations. It is only fair, however, to
point out that some American bus
inessmen also have been guilty ol
the same practice.
Most people don’t realize that a
steady trickle of strategic materials
has been reaching CommuKst
countries from the U.S.A. Here
are some American firms which
have been transshipping:
1. Rolfe G. Grot* of New York,
who sent chemicals to Switzerland,
later transshipped them to Soviet
Russia.
%. The Pacific Trading Corpora
tion of Boston which transshipped
steel plates to Communist China.
3. The Harris Chemical Corpora
tion of New' York which obtained
a license to ship chemicals to Bel
iContmued on Page Four)
Pan Am Visitors Honored
Mayor Waino Hendrickson presented the key to the City of Juneau
to J. D. Fessio. sales manager for Pan American World Airways, on
the opening day of their sales conference here. Left to right, (front
row): are Mayor Hendrickson, Joe Fessio, San Francisco; Fred Dunn,
Juneau; A1 Polet, Fairbanks. (Back row): D. E. McCorran, Seattle;
Keith Johnson, W'hitehorse; John Moller, Portland; Joe Goding,
Ketchikan.
Minority Reports Against
Alaska, Hawaii Statehood
Filed Today by Committee
2 FAST
TRAINS
CRASH
Six Persons Are Reported
Killed with Over
50 Injured
BRYN WAWR, Pa., May 18 — UH—
Two famed .Pennsylvania railroad
passenger trains crashed near this
Philadelphia suburb today, killing
six persons and injuring at least 51
others.
A spokesman said one of the dead
has been identified as C. S. Lauen
stein, a metallurgist, of Indiana
polis.
Five bodies were taken from the
wreckage of the Pittsburgh-Phila
delphia night express and the Red
Arrow, bound from Detroit to New
York. Another w!as reported to have
been located in the debris.
The Red Arrow plowed into the
rear of the stopped night express,
a short distance west of the station
here.
A spokesman said the 19-car
Philadelphia night express had been
halted on a signal indicating that
something might be dragging from
underneath the train.
It was while the crew was trying
to detect the drag that the Red
Arrow smashed into the rear car—
a sleeping car from Cleveland —
telescoping it and splitting it in
half.
Within moments after the acci
dent hundreds of people gathered at
the scene — in one of the quietest
of Philadelphia’s residential, well
to-do suburbs.
Today’s wreck was the second in
the history of the New York-Detroit
Flyer. On Feb. 18, 1947, the express
went off the tracks on a lonely
mountain curve near Altoona, Pa.,
and plunged into a gully, killing 24
and injuring 150. A coroner’s jury
found the railroad blameless.
STOCK QUOTATIONS
NEW.YORK, May 18 — Closing
quotation of Alaska Juneau mine
stock today is 2%, American Can
107'4, American Tel. and Tel. 154%,
Anaconda 41 %. General Electric
53%, General Motors 50, Goodyear
78%, Kennecott 72%, Libby, McNeill
and Libby 9, Northern Pacific 37%,
Standard Oil of California 46.
Twentieth Century Fox 19%, U. S
Steel 42%, Pound 2.80%, Canadian
Exchange 93.90%.
Sales today were 1,110,000 shares.
Averages today were as follows:
Industrials 250.13, rails 79.48, utili
ties 42.35.
W - ' ■
WASHINGTON. May 18 — GP) —
Members of the Senate Insular Af
fairs committee, opposing statehood
for Alaska and Hawaii filed today
their minority views on the state
hood bills now awaiting Senate ac
tion.
'» TV «Jrvsjpts«
| mission of Hawaii because of what
j they said was the risk of Communist
I influence in the Islands, and urge
j against Alaska statehood because of
"grave economic ills" in the Terri
tory.
The Hawaii minority report was
signed by Senators Butler, Malone
and Smathers. The three were join
ed by Senators Watkins and Long
in signing the Alaska minority re«
port.
The Alaska report says that Ter
ritory "cannot afford statehood at
the present time.”
Alaska Deficit
Asserting tnat Alaska, despite re
cent tax increases, will end the
1951-52 biennium with a deficit of
more than $2,000,000, the report
says:
“Federal spending in Alaska, in
cluding the multi-million dollar
project for war and defense, is at
a peak. Aside from the salmon in
dustry, which is declining, Federal
spending constitutes the Territory’s
main industry.
Economic Hardship
“When this bubble bursts, Alas
kans will be faced with extreme ec
onomic hardship.”
Statehood, the report said, would
increase the peril of “governmental
bankruptcy,” adding $10,000,000 a
year to the already heavy tax bur
den.
“Statehood for Alaska," the report
said, “would benefit a handful of.
political opportunists who are am
bitious to become the officials of
the new state, thus gaining powers
and stature on a par with other
state officials throughout the nation.
These are the same individuals un
der whom governmental abuses have
been practiced in the Territory for
years.”
Should Elect Governor
The minority group suggested that
instead of statehood, Alaskans be
given the right to elect their own
governor.
The three senators opposing Ha
waii statehood said the bill should
not be passed “until we are sure
we are not adding a red star to the
48 white ones in the American flag.”
They said the International Long
shoremen’s and Warehousemen’s
Union, which controls shipping and
sugar and pineapple production in
Hawaii, is “absolutely controlled by
known Communists.”
SILVER WAVE TAKES
CARGO TO SEATTLE
The Silver Wave of Ketchikan,
owned by Lane Brothers, leaves
this afternoon lor Seattle with
frozen bulk and boxed fish con
signed to Sebastian Stuart and
liver and viscera consigned to the
| Washington Laboratory.
CONTEMPT
' WARNING
IS GIVEN
Secretary Commerce Saw
yer, Others Told Off by
U. S. Court Appeals
WASHINGTON, May 18 — (jW —
The U. S. Court of Appeals today
served notice on Secretary of Com
merce Sawyer and nine others that
they will be sent to jail for contempt
unless they comply with its order in
litigation over control of American
President Lines, Ltd.
The court said it would enter an
order giving Sawyer and the others
five days in which to comply with
its decree.
The court said:
"If they have not complied as di
rected in the order (they) must sub
mit themselves . . . for commitment
as in civil contempt until they do
comply."
Sawyer and eight other govern
ment officials and attorneys earlier
had been cited by the court on con
tempt charges for failure to deliver
“effective possession” of 92 per cent
of the voting stock of American
President Lines to R. Stanley Dollar
and his associates.
The tenth person involved in the
proceedings is George L. Killion,
president of the big steamship com
pany. Killion is former treasurer of
the Democratic National Committee.
STATEMENT BY SAWYER
WASHINGTON, May 18 — Wl —
Secretary of Commerce Sawyer, ut -
n,.:' e*»oc)wof timig jailcu for
tempt of the U. S. Court of Appeals,
said today he will obey an order
from that court — unless the su
preme court excuses him from so
doing.
This statement, made through
counsel for the Commerce Depart
ment, implied the supreme court
will be asked to take some action
in the cqpe which involves a legal
battle between the government and
private interests over control of a
big steamship company.
Nine others — eight of them gov
ernment officials or attorneys — are
involved with Sawyer in the threat
ened jailing.
Investigate
Loyalty of 846
Govt. Workers
_ i
WASHINGTON, May 18 — (A>) —
The Loyalty Review Board today
ordered new inquiries into the loyal
ty of 846 government workers.
In addition, government agency
heads were given authority to re
open other cases at their discretion.
The 846 cases are to be examined
in the light of stricter standards
for determining loyalty.
Under rules recently issued ay
President Truman, any worker may
be fired where there is “reason
able doubt as to his loyalty.”
Under the previous standard, a
worker could not be fired on loyalty
grounds unless there was more than
"reasonable doubt.”
The cases to be reopened fall in
two categories:
1. Cases which were reversed by
agency head or by the Loyalty Re
view Board on appeal from an ad
verse finding by a lower Loyalty
Board. There are 119 such cases.
2. Borderline cases reviewed by a
panel of the Loyalty Review Board
in its check-up program.
«__—
VESSEL BURNS
The fishing vessel, Mary R, burn
ed at Kelly’s Cove on Noyes Is
land, according to information re
ceived here by 17th U. S. Coast
Guard headquarters. It belongs to
fed Wick of Seattle. Aboard with
Wick were Dust Stenstron and
Dunnger Husby. The cutter White
Holly went to the scene where the
Mary was aground on Gavioti
Rocks and the crew decided to re
main there until a tender could
take them to Ketchikan tomorrow.
Keith B. Snowden of Sitka is
at the Baranof Hotel.
To Appear at U. of Alaska Commencement
At the University of Alaska commencement exercises Monday will be tho above four: Top. .left, Gov.
Gruennig; top right, Gen. Nathan F. Twining, Deputy Chief of Staff, U. S. Air Forces; lower left. Gov.
Earl Warren of California, who is scheduled to be in Juneau today; lower right, Bradford Washburn,
President Boston Museum of Science.
HOUSE KILLS
EXTRA PAY IN
TERRITORIES
WASHINGTON, May l» — (>p) —
The House voted yesterday to deny
pay differential to residents of Ha
waii, Alaska and Puerto Rico em
ployed in those areas by the Agri
culture Department.
The differential of 25 per cent in
Alaska and Puerto Rico and 20 pel
cent In Hawaii will still apply to
employes transferred to those areas
from Continental United States.
An amendment by Delegate Bart
lett (D-Alaskai to eliminate what he
termed the “discriminatory” provis
ion of the Agriculture Department
Appropriation bill was defeated by
a standing vote of 100 to 32.
Delegate Farrington (R-Hawaii),
supporting the Bartlett amendment,
said It would be “colonialism of the
worst sort" to have two pay scales
in the Territories, the lower one ap
plying to local residents.
Chairman Whitten (D-Miss) of
the House Agriculture Appropria
tion subcommittee said it is unfair
to pay more money to a Federal em
ploye living and working at home
in the Territories, than to a Fed
eral employe, living and working
at home on the mainland.
The House recently voted to elim
inate a similar provision from the
Interior Department Appropriation
bill.
Farrington said there were about
150 Agriculture Department em
ployes among the 25,000 civilian em
ployes of the Federal Government
In Hawaii.
Whitten said he would support
legislation to eliminate the differ
ential for all government employes
residing permanently outside Con
tinental United States.
COUNCIL TONIGHT ►
A regular meeting of the Juneau
City Council will be held tonight
at 8 o’clock in the of fires at the
city dock.
FROM SEATTLE
Warner Shipper of Seattle ar
rived here yesterday on PNA from
Anchorage and is stopping at the
Baranof Hotel.
Territory Is
Exempted to
Match Funds!
Senate Holds Alaska Taxes
Highest Per Capita-De
fense Up to Govt.
WASHINGTON, May 18 — (VP) —
The Senate approved a bill yester
day exempting Alaska from match
ing funds provisions of the Civil
Defense Act. The bill now goes tc
the House.
•'By direct taxation the Territory
is contributing a substantially larger
amount on a per capita basis than
any other state or territory for Civil
Defense purposes,” the Senate Arm
ed Services committee said in its
report on the bill.
Under the present Civil Defense
Act, Federal aid which can be given
to a territory or state is limited to
matching funds.
The committee said that because
of the immensity of the Alaska pro
gram, Federal participation must be
increased if there is to be a proper
Civil Defense for the.territory.
U. 5. CASUALITIES
IN KOREA, 65,523
WASHINGTON, May 18, — 'jW —
Announced U. S. casualties in Ko
rea have reached 65,523, an increase
of 1,468 since last week.
The total covers casualties repor
ted to families through May 11
and includes 9,848 killed in action,
44,669 wounded and 11,006 missing.
Of the wounded, 1,163 later died.
Also 101 of the missing are known
dead. This raises the total of
deaths to 11,112.
The missing total also Includes
1,169 who have since returned to
U. S. military control and 115
known prisoners of war.
Army casualties increased 1.301
during the week to reach 54,416.
KETCHIKAN VISITOR
H. L. Paulson of Ketchikan is
at the Baranof Hotel.
GOV. WARREN
ARRIVES HERE,
ALASKA TRIP
* ■
When the big Douglas DC-4, of
Pan American Airways, landed at
Juneau airport this afternoon at
1:30, it brought one of the country’s
most, distinguished and well known
national figures, Governor Ear)
Warren of California. He was ac
companied by his secretary, Max
King.
He was greeted by Alaska’s Gov
ernor Ernest Gruenlng, accompan
ied by his aide Comdr. Edward P.
Chester, Mayor Waino Hendrlcksor
and other notables of- Juneau. A
color guard, from the U. S. Coast
Guard vessel Storis and guard o(
honor formed by members of Head
quarters, Headquarters arid Service
Company, 208th Infantry Battlior
• Sep), stood at attention while Cali
fornia's first citizen was escorted
to Gov. Gruening’s car.
In an interview with Gov. Warier,
at the airport he was asked hi:
reaction to an Associated Press dis.
patch today reporting that the But*5
ler Committee had rejected state
hood for Hawaii and Alaska. For
Hawaii because of "its Communism’'
(Continued on Page Two)
GAMES TODAY
NEW YORK May 18 -4*1— Out
fielder Eddie Stewart poled a home
run with the bases full in the eighth
inning today to givr the Chicago
White Sox a 7-4 victory over the
league-leading New York Yankees
It was the first deteat in Yankee
Stadium this year for the world
champions, who had w on 10 straigh;
at home.
BOSTON, May 18 r — Vern
Stephens' pinch hit m: cle with the
bases loaded today g«\« Maury Mc
Dermott. Boston Rod S' x >outhpaw
a 2-1 victory over the Cleveland
Indians. McDermott, who struck out
nine, had a shutoui ing until the
ninth,
«
RED FORCE
OFFENSIVE
IS FIERCE
Enemy Is Spending Men
Recklessly-Allies Lose
Last Toehold, N. Korea
By Associated Press
United Nations troops retreated
along most of the blazing Korean
warfront today in the face of what
appeared to be the mightiest Com
munist offensive in the 11-month
old war.
The Reds, spending men recklessly
for territory, gained as much as 20
miles. The Allies lost their last toe
hold in North Korea.
Field dispatches said one U. S.
division was “in great trouble" on
the Central front. A smaller Ameri
can unit was overrun by the on
coming Reds and another was pene
trated deeply.
The Communists died like flies
before the withering fire of Allied
guns and warplanes. Still they surg
ed forward, despite the terrible
slaughter.
Bloody Offensive
In Washington the Army esti
mated Communist losses at 904,788
through May 7 — before the present
bloody offensive began.
The heaviest fighting was on the
East-Central front but in the West
the Reds spearheaded within 10
miles of Seoul.
The Chinese, pouring through a
break in two South Korean divisions
south of Inje, exposed both flanks
Of the American force. By up
weight of numbers the enemy over
ran one U. S. unit on the Central
front and penetrated another. Al
lied forces withdrew along the East
front and on some sectors of the
Central front.
Enemy Losses Coltoasal
Enemy losses vierp collossal. Com
munist Infantrymen were cut down
by the thousands. One report said
the Reds lost more than 9,000 men
before they broke through a heav
ily defended American position near
Chunchon on the Central front.
Climb Over Dead
But on they came, clambering
over their ‘own dead.
Dispatches on the Central front
action were heavily censored.
Allied forces mowed down the
oncoming screaming masses of Chi
nese with artillery. UN planes raked
the Red waves with rockets, ma
chineguns, fragmentation and fire
bombs. The Air Force claimed kill
ing 5,570 Communists yesterday,
drkatest Pressure
The Reds evidently were now
exerting their greatest pressure in
the center. Their "human sea” at
tack overran an American unit at a
costly price.
AP Correspondent William C.
Barnard said it was "an amazing
storm of men.” The frenzied Reds
rushed into a bursting inferno.
Hundreds were hung up on barbed „
wire entangles.
Oblivious to Losses
‘ A front line officer said:
"They are entirely oblivious to
their losses.”
To the Chinese nation and its
Communist overlords men were
cheap and expendable. General
Ridgeway’s Tokyo headquarters es
(Continued on Page Two)
• ••••••••••
• •
• WEATHER REPORT •
• Temperature for 24-Hour Period •
• ending 6:20 o'clock this morning •
o In Juneau — Maximum, •
• 49; minimum, 43. •
• At Airport — Maximum, •
o 51; minimum, 41. •
0 FORECAST •
• Cloudy with rain and south- •
• easterly winds as high 25 •
• miles per hour tonight be- •
• coming cloudy with inter- •
• mittent light rain Saturday. •
• Lowest temperature tonight •
• about 43 degrees. Highest •
• Saturday near 51. •
• *
• PRECIPITATION t
• (Past 24 hour*ending 7:10 sub. today •
• City of Juneau — .25 inches; •
• Since May 1 — 2.05 Inches; •
• Since July 1 — 70.10 inches. •
• At Airport — .27 inches; •
• Since May 1 — 1.46 inches; •
• Since July 1 — 40.73 inches. •
• •oaeeeeef*
1