THE DAILY ALASKA EMPIRE
ALL THE NEWS All THE TIME* l __
VOL. LXXVIII.. NO. 11,904 JUNEAU, ALASKA, TUESDAY. MAY S. 1951 MEMBER ASSOCIATED PRESS PRICE TEN CENTS
Alaska Steamship Co. Asks
For Constructive Suggestions
From Governor in Strike Threat
Declaring the Alaska Steamship
Company staff "ready, willing and
able to work" with Governor Gru
ening, and asking him for construc
tive suggestions now that may as
sist in solving an impending strike
threat, D. E. Skinner, general man
ager of the Alaska Steamship Com
pany has written an open letter
to the governor of Alaska.
The letter is dated Seattle, May
4 and in it Mr. Skinner asks what
should be done in view of the un
ion's demands. The letter is as fol
lows : ,
Hon. Ernest Gruening,
Governor of Alaska,
Juneau. Alaska.
Dear Sir:
Having in mind your often de
> dared sincere interest in all prob
lems vital to the Territory of Al
aska, and particularly those rela
ting to water transportation, I am
taking this early opportunity of
advising you of a serious problem
now confronting this company and
its possible effect upon the people,
businesses and industries, and the
National Delcnse Program of the
Territory.
The International Longshoremen's
and Warehousemen's Union has re
cently voted to go on strike June
15 unless its demand for a 30 cents
an hour increase in wages, pensions
and welfare benefits is met by the
Pacific Maritime Association, the
authorized maritime labor bargain
ing representatve for all steamship
operators on the Pacific Coast.
As you are aware, we were re
cently compelled to file <cw uniffi
reflecting increases in freight rates
and passenger fares. Such increases
were made necessary largely as a
result of just such regular, if not
virtually continuous, demands from
labor. We point out, however, that
the recently filed tariffs do not
take into account or make allow
ance for the labor costs involved
in the Union’s present demand.
In bringing this situation to youi
attention we are very conscious ol
x the disastrous consequences which
would necessarily accompany a dis
ruption of water transportation
service to and from the Territory—
•' especially in these critical times
We also recognize that another
round of wage increases would b«
detrimental to the Territory's pres
ent important activities as well
as to its economy generally.
Consider these facts—
, I. The 10 cents an hour increase
in the wage pattern established last
year < 1950 > increased this com
pany's annual labor costs by ap
proximately $600,000. Accordingly
the recent demands which we now
face would, if met, further increase
our annual labor costs by an ad
ditional $1,800,000. Simple arith
metic demonstrates that the It
cents per hour increase in 1951
plus the 30 cents per hour increase
,, now demanded would produce ar
aggregate increase in our annua
labor costs of $2,400,000 over 194£
labor costs.
2. In common with other bus
inesses, all of our other operating
costs (aside from labor) have sub
stantially increased.
3. Except for a decrease in the
rate on groceries and increases ir
the rates on fisheries product;
which you have continuously anc
’ strenuously urged, our present rate
structure is based upon:
The Washington
Merry-Go-Round
By DREW PEARSON
(Copyright. l»61. py Bell Srudlcmtg. Ine..
, T^ASHINGTON. — It isn’t ofter
that the newspaper denials issuec
by high public officials catch up
to them so quickly as is now showr
f by the MacArthur Senate hearings
Usually a newspaperman’s wore
counts for little compared with tha
of a cabinet officer, the Presideni
or a general—especially a genera
as high as Douglas MacArthur
However, the Senate hearings havf
now shed interesting light on som<
^ of these denials. Here are a fev
illustrations: ,
1. Home By Christmas — Wher
. the Associated Press cabled fron
1 Korea that MacArthur had madi
a statement promising to brinp
American troops home by Christ
(Continued on Page Four)
h
(a) 1947 wage levels and other
operating costs;
<b> The benefits of Public Law
| 12 and the "Interim Contract” in
cluding nominal charter hire on
government vessels, and govern
ment assumed hull insurance.
4. Since 1947 and the expiration
of the “Interim Contract” we have
{ been required to pay—
(a> Increases in labor costs ex
ceeding 75 percent.
<bi Charter hire for the use of
Government owned vessels exceed
1 ing $480,000 annually.
(c) Hull insurance exceeding
$550,000 annually.
You attacked the 1947 rates
( filed by all the carriers under the
I “Interim Contract" and after long
and expensive hearings the Mari
i time Commission found such rates
to be reasonable and lawful.
You attacked the subsequent in
creases in rates on fisheries traffic,
despite your constant protests that
such rates were too low.
Within the past few days you
have filed a petition with the Mar
itime Board requesting suspension
of all rate increases and asking for
extensive public hearings.
While we welcome public hear
ings since they afford an oppor
tunity of getting at the facts un
der oath, we do object to the heavy
expense which such hearings en
tail and which must ultimately be
borne by our customers.
We are vitally interested in any
reasonable suggestions and con
structive criticism that will i contri
Lute to an 'ntelligerv •solution
Alaska water transportation prob
lems, but such suggestions and
criticism cannot be helpful when
the basic facts and problems of the
-lade are ignored.
Our most immediate problem is—
shall we resist the Union’s present
demand to the point where a strike
results, or shall we give in to those
demands? If we resist, we presume
that you will charge us with being
“inefficient” and if we give in, we
presume you will charge us with
with being "wasteful."
The opportunity is now at hand
for you to lend your assistance in
solving this difficult problem, and
we earnestly request that you give
it your attention in the hope that
an intelligent solution will prevent
increased costs and therefore, fur
ther increased rates.
We would welcome and appreci
ate constructive suggestions now
rather than criticism later, and
our staff is ready, willing and able
to work with you.
Very truly yours,
Alaska Steamship Company
D. E. Skinner, General Manager
GAMES TODAY
Chicago —(if)— Bobby Shantz reg
istered his first 1951 victory here
today as the Philadelphia Athletics
trounced the Chicago White Sox, 9
to 4, to salvage the final of a three
game series. The Athletics pounded
out 13 blows, tipped by the homers
of Eddie Joost and Ferris Fain.
Brooklyn —bfl— Hank Sauer's
two-run homer in the first inning
and Rookie Bon Schultz’s nine-hit
pitching gave the Chicago Cubs a
3-1 victory over the Brooklyn Dodg
ers today. It was Sauer’s fifth homer
of the year.
Three night National games.
HANFORD RETURNS
Fred Hanford, Territorial direc
tor of the Office of Price Stabiliza
tion, returned yesterday from Fair
banks where he had been setting
up an OPS branch office. He an
nounced that Charles W. Preston,
Jr. had .been named branch man
■ ager for the Fairbanks offite.
j -
GOVERNOR DUE
Governor Ernest Gruening was
due to return to Juneau today from
Washington, D. C., where he has
been for several weeks on defense
. matters for the Territory.
SUSAN HELGESEN BACK
After three years in the states,
['Susan Helgesen, daughter of'Mrs.
[ Gertrude Boggan, returned home
[ ( Sunday. She has recently been do
ing secretarial work in Salt Lake
j City.
FAVORABLE
REPORT ON
STATEHOOD
WASHINGTON. May 8 — DPI —
Chairman O'Mahoney (D-Wyo) of
the Senate Insular Affairs com
mittee filed favorable reports today
on the Alaska and Hawaii state
hood bills.
The reports, authorized by the
committee a month ago, said state
hood for Hawaii would be in the
“best interest of the nation as a
whole as W’ell as the half-million
American citizens of the Territory.”
Statehood for Alaska, it said, is
advisable from the standiioint of
national defense, foreign relations
and economic development.
Bills to grant statehood to the
two Territories were passed by the
House last year but not by the Sen
ate. This year, statehood proponents
are seeking Senate action first.
Report on Alaska
The report said Alaska has been
a Territory for 83 years — "longer
than any other area under Ameri
can flag that has not attained
statehood.”
It listed three major reasons why
the committee believes statehood
should be granted at this time: Na
tional Defense. 2. Foreign Rela
tions; 3. Economic Development.
Although recognizing that ad
mission to the Union would not off
set such military problems as vast
distances and the weather, the re
port said that military advantage
would accrue through the stabiliza
tion of government and increased
growth which would result.
Testimony Cited
i. cneii testimony by State De
partment witnesses that statehood
for Alaska “would be an act in ful
fillment of obligations assumed by
the United States under the charter
of the United Nations.”
Granting of equal status through
statehood to Alaska would enhance
our position with peoples of other
countries, it said. While Alaska is
well known for its gold and furs,
the committee said it has even
(Continued on Page Two)
JUNEAU AIRPORT
MAY GET FUNDS
FOR IMPROVEMENT
WASHINGTON, May 8 — (tfl —
The Federal Government will con
tribute $991,037 toward development
or improvement of 22 airports in
the Pacific Northwest and Alaska
in the 12 months beginning July 1
if Congress will provide the money,
the Commerce Department reports.
The department submitted to Con
gress its list of the projects, includ
ing 21 in Washington, Oregon and
Idaho and one at Juneau, Alaska.
Local sponsors’ matching shares
would total $641,973, the department
said.
The projects include only those
which the Civil Aeronautics Admin
istration rates Class Four or larger.
Airport expansions, new buildings,
runway improvement installations
of lights and other work are pro
posed.
The department said the projects
should be undertaken during the
1951-52 fiscal year. However, if this
is not possible, they will be pro
posed for the following year.
The list, with local sponsors'
matching share and the proposed
Federal contribution, includes:
Alaska — Juneau, $100,000 and
$300,000.
•
• WEATHER REPORT
• Temperature for 24-Hour Period
• ending 6 20 o'clock this morning
• In Juneau — Maximum,
• 54; minimum, 38.
• At Airport — Maximum,
• 58; minimum, 37.
• forecast
• Cloudy tonight and Wed
• nesday. Lowest temperature
• tonight about 44 degrees.
• Highest Wednesday about 54.
• PRECIPITATION
• (Past 24 hours ending 7:30 a.m. today
• City of Juneau — .09 inches;
• Since May 1 — -34 inches;
• Since July 1 — 68.39 inches.
• At Airport — Trace;
• Since May 1 — .16 inches;
• Since July 1 — 39.43 inches.
• •••••••••
Korean Yeis Welcomed Home
Girls, high brass, felpw serviceemnt and streaming fireboats all combine to welcome the first shipload
of Army veterans of Korean combat home on new rotation plan. Soldiers crowd rails of tranport Gen.
Le Roy Eltinge as it pulls into pier at Seattle. I#) Wi rephoto.
The Windup Handshake
Gen. Douglas MaeArthur (right) and Sen. Richard Russell (D.-Ga.),
chairman of the Senate inquiry into Far East policies, shake hands
after the five-star general wound up three consecutive days of tes
tifying before Senators on his foreign affairs views, Iff) Wirephoto.
r
Body, Missing
Woman, Found
The body of Mary Adams, missing
from the steamer Denali, was found
near here today by two trolling
boats, the Edrie, skippered by Ken
Millard and the Wild Bill, skippered
by Cliff Mason. The fishermen con
tacted Juneau by radiophone and
sent a message to U- S. Commis
sioner Gordon Gray.
Gray and Acting U. S. Marshal
Walter Hellan went to Auk Bay tc
meet the boats taking the body here
Identification of the body as that ol
Mary Adams was determined by a
steamship ticket and marriage cer
tificate found in a small overnighl
bag which was strapped to hci
waist. The bag contained about 3E
pounds of toilet articles. She wai
dressed in black peddle pushers.
Millard and Mason found the bodj
floating close to Outer Point or
north Douglas Island.
An inquest was to be held today al
3:30 p.m. The body is at the Cartel
mortuary.
The woman was reported missint
from the Denali upon arrival hert
early last Sunday morning. Th<
woman had purchased a ticket »
Seward for Juneau. The woman wa:
about 40. small, light complexioi
and with light hair. She weighec
about 135 pounds.
The Juneau police was active it
tracing the whereabouts.
Ralph Martinson received thi
radio call and immediately notifiec
Commissioner Gray.
Actress Mary Astor
Attempts Suidde
HOLLYWOOD. May 8, — UP) —
I Actress Mary Astor attempted sui
j cide early today but her condition
was described as good after hospital
treatment, police reported.
Police officers R. O. Ernst and
D. R. Gardner said they were
called to her suburban Enclno
home and found her unconscious
on the floor of a bedroom. The
officers said sleeping pills were
strewn about. They listed the case
as "attempted suicide.”
PUCKETT HERE
L. M. Puckett of the Bureau of
Land Management from Anchorage,
is stopping at the Baranof Hotel.
FROM KODIAK
Mr. and Mrs. Vic Ellis of Kodiak
arc registered at the Baranof Hotel
SIOCKOUCiATIONS
NEW YORK, May 8 — Closing
quotation of Alaska Juneau mini
stock today is 2%, American Car
113, American Tel. and Tel. 155%
Anaconda 43%, Douglas Aircraf
103%, General Electric 56. Genera
Motors 55%, Goodyear 78'4, Kenne
cott 77%, Libby. McNeill and Libb;
9 *4, Northern Pacific 39, Standari
Oil of California 49%, Twentietl
: Century Fox 20%, U. S. Steel 45%
Pound $2.80%, Canadian Exchang
i 94.
Sales today were 1,600,000 share'
Averages today were as follows
I Industrials 261.10, rails 85.03, utili
ties 42.62,
ALLIES IN
PUSH NORTH,
LONG LINE
Patrols Hunt for Vanishing
Reds-Commie Build
up Is Reported
By Associated Press
Allied troops today pushed cau
tiously north at both ends of the
100 mile Korean front for the sec
ond consecutive day.
Patrols hunted in the vacuum be
tween these points for vanishing
Red troops. Far north of the the
oretical battle line, pilots reported
new Communist build-ups in Red
Korea.
The current limited offensive is
in the hands of UN troops.
For the second successive day an
armored column rumbled unopposed
into the hub city of Chunchon, 45
miles northeast of Seoul. Patrols
jabbed north into Red defenses but
elsewhere found no Communists.
Build-up Reported
South Koreans fighting above the
38th Parallel battled a Communist
battalion east of Inje. Northwest of
this Red-held city airmen reported
a “considerable build-up” of Red
troops.
Lt. Gen. Van Fleet, 8th Army
commander, visited the western
front to award the U. S. Presiden
tial unit citation to the heroic
British Gloucestershire regiment.
Ground Regained
United Nations trooops already
have regained about half the ground
lost in the Communists’ spring of
fensive that fizzled.
Allied officers on the western
front reported the Chinese and
North Korean Communists are bit
terly disappointed in not having had
sufficient tanks and planes to make
their spring drive successful.
Associated Press Correspondent
John Randolph quoted one officer
as saying:
Two Solutions
"If they aren’t deliberately hoard
ing their heavy stuff up north (in
Manchuria) there are only two so
lutions — either they couldn’t cross
the Yalu river, or else the Russians
welched on their promises.”
All(ed officers said that Red of
fensive preparations indicated they
had expected both armored support
and air cover. Roads were widened.
Air fields were put in condition. But
the support did not develop. The
infantry carried the full burden of
the attack. More than 80,000 Com
munists were killed or wounded in
the offensive which began April 22.
PRINTER TO ARMY
Murlin Everson, of Wrangell, was
1 through Juneau today, leaving on
the afternoon flight of Pacific
’ Northern Airlines for Port Rich
1 ardson where he will be inducted
1 into the Army.
• Everson was mechanical superin
! tendent for the Wrangell Sentinel,
VOLNEY RICHMOND HERE
Volney Richmond of the Northern
• Commercial Co. of Seattle is reg
istered at the Baranof Hotel.
DEATH BLOW'
TALK IS MADE
BY PRESIDENT
Truman Discusses Propos
als Made by MacArthur
-Atomic War Feared
WASHINGTON, May 8 — UD —
President Truman sought to con
vince his countrymen last night that
Gen. Douglas MacArthur's Korean
war proposals might provoke an
other World War and "Death Blow”
atomic attacks on America's great
cities.
Today he observed his 67th birth
day and the sixth anniversary of
his proclamation of victory over
Nazi Germany, awaiting reaction to
his declaration that victory, can be
won in Korea. The first cpmment
from Republican senators was to the
effect they'll have to be shown.
Mr. Truman took a personal hand
in the administration drive to rally
public support for his course with
a Foreign Policy speech to some
800 civilian defense workers here
last night.
Possible "Death Blow"
He declared that to expand the
Korean war, as the general he ousted
proposes, would bring the "real pos
sibility” of Russia launching “death
blow" atomic attacks on New York,
Cleveland, .Chicago, Seattle, Los
Angeles and Washington and other
cities.
On the other hand, he said, the
free nations have stopped the march
of Communism in Asia and “dealt
a heavy blow to the Kremlin con
spiracy” all over the world by their
fight in Korea.
Atomic War Next
“Remember this,” Mr, Truman
said, “If we do have another World
War, it will be an atomic war. We
could expect many atomic bombs to
be dropped on American cities.
"And a single one of them could
cause many times more casualties |
than we hove suffered in all the ,
fighting in Korea.
“I do not want to be responsible i
for bringing that about.”
Mr. Truman did not refer by name j
to MacArthur, who has advocated ;
air action against Manchuria, a !
Naval blockade and use of Chinese i
Nationalist troops on Formosa ,
against the Chinese Reds.
Hits at Republicans
Supporters of MacArthur — most
ly Republicans — plainly were the
targets of this assertion:
“We are right in the midst of a
big debate on Foreign Policy. A lot
of people are looking at this debate
as if it were just a political fight,
i But the stakes are a lot more im
| portant than the outcome of an
election. The thing that Is at stake
! in this debate may be atomic war.
V, S. Foreign Policy
“Our Foreign Policy Is not a po
j litical Issue. It Is a matter of life
| and death. It is a matter of the fu
i ture of mankind.”
I For the United States to “go it
' alone” in Asia, he said, could wreck
the whole free world security sys
tem, Including the UN and the
North Atlantic Pact.
MacArthur, In his Senate testi
monye last week, called for an ulti
matum to Red China—either to talk
peace or suffer military action with
in her own borders. He said the
United States should be willing to
"go it alone” if the other UNs held
back.
Against MacArthur* Views
"We cannot go it alone in Asia and
go It in company in Europe,” Mr.
Truman declared.
He said if the United States is
separated from its Allies, “that
would be a tremendous Soviet vic
^"We do not intend to fall Into
j that trap," Mr. Truman said.
I “I do not propose to strip this
! country of its Allies In the face of
Soviet danger.”
On point affer point, the Presi
dent took Issue with MacArthur s
views.
STEAMER MOVEMENTS
Princess Louise from Vancouver
due at 4 this afternoon and sails
for Skagway at 11 tonight. South
bound sometime Friday.
Denali scheduled to sail from
Seattle Friday.
Baranof from westward scheduled
southbound Sunday morning.
ORDERS ARE
STRICT ON
WAR MOVE
Marshall Gives More In
formation on Conduct
in Korean Fighting
WASHINGTON, May 8 — (PI —
Secretary of Defense Marshall testi
fied today that UN troops In Korea
are barred from approaching within
15 miles of the Russian border.
In his second day of testimony
on the ouster of Gen. Douglas Mac
Arthur, Marshall said also that
MacArthur hRd been ordered to
confine his operations to Korea "and
under no circumstances to carry out
operations beyond the border of
Korea into Manchuria."
There is every indication these
orders have not been changed and
still restrict the operations of Lt.
Gen. Matthew B. Rldgway, MacAr
thur’s successor as Pacific com
mander.
Bombing Retaliation
However, Marshall said there was
"modification” in the restrictions '
“in the event that our forces were
attacked outside of Korea—to the
effect that he (MacArthur) was au
thorized to retaliate in bombing
against such operations.”
Marshall, who like MacArthur la
a five-star general, testified before
the Senate Foreign Relations and
Armed Bervlces committees. They
are making a general inquiry into
MacArthur’s dismissal from his Far
Eastern commands and the policy
differences which led to it.
The caution against giving the
Russians any reason to raise ques
tions about operation near their
border was touched on earlier in
the hearings.
Border Restrictions
MacArthur, in the witness chair
last week, complained he was never
allowed to bomb a North Korean
supply center because of its proxi
mity to the Russian border.
This was the town of Rashin (Na
Jin on some maps) in northeast
Korea. Most of Korea borders on
Manchuria, but an area in the
northeast Joins Russian border.
Marshall said MacArthur was
"cautioned against having units
within, I think it was. about 15 miles
of the border in northeast Korea
where it touched the perimeter of
Siberia, the Soviet government.”
Manchurian Coast Protected
He addted:
“The restrictions did not apply to
operations by the Navy on the water
i along off the coast of Korea, but
those were restricted, in othor words,
forbidden, in relation to the Man
churian coast, the China coast, and
most specifically the northeastern
tip of Korea in close proximity to
the Soviet border.”
Senator Russell (D-Ga) chairman
of the Joint committee, asked whe
ther the restrictions originated with
the Joint Chiefs of Staff or with
the United Nations.
Restrictions Discussed
Marshall said the restrictions
grew out of the views of the Chiefs
of Staff and were discussed in the
National Security Council.
He said those taking part in the
discussions as members of the coun-.
cil were President Truman, Vice
President Barkley. Secretary of
State Acheson, W. Stuart Syming
ton, then chairman of the National
Security Resources board and him
self as secretary of defense.
I "There was an intermingling there
I of political necessities along with
I military directions," Marshall said.
Feared Retaliation
I “There was an agreement that not
I only were these restrictions neces
1 sary in order to avoid a break with
I our Allies and a complete confusion
j in our relations tq the UN and spec
ifically the Security Council (of the
UN), but they also felt it would be
necessary in regard to the retalia
tion that could be carried out by
a heavy force if they developed on
the Communist side.”
The committees are holding all
their hearings behind closed doors.
A stenographic report of the testi
mony is given to news reporters but
first goes through a military and a
State Department censor for dele
tion of statements they believe
might injure the national interests
1 j if made public.
The censors deleted 12 lines from
(Continued on Page Two)