THE DAILY ALASKA EMPIRE
! *ALL TIIE NEWS ALL THE TIME"
- •— --~ ' =. ■■ ■' . ' ■ " ' ■«
VOL. LXXVI., NO. 11,704 JUNEAU, ALASKA, WEDNESDAY, JANUARY 10, 1951MEMBER ASSOCIATED PRESSPRICE TEN CENTS
UN Forces Pull OffJBiggest Offensive in Days
DEMOCRAT
SENATORS
RALLYING
Will Give Aid to Truman's
Program of Helping
European Defense
WASHINGTON, Jen. 10— W) —
Senate Democrats rallied today to
the support of President Truman’s
program of helping western Europe
man its defenses against possible
Soviet aggression.
Chairman Connally (D-Tex) of
the Senate Foreign Relations Com
mittee, Senator McFarland of Ar
izona, the Democratic leader, am'.
Senators Douglas < D-Ill >, McMahon
(-Conn) and Fulbright (D-Ark> all
went to work on speeches for the
torrid foreign policy debate.
To strengthen the President’s po
sition—under vigorous attack l>
some Republicans—Douglas propos
ed that the Senate act affirmat
ively on the question of furnishing
troops ior Euiope and of defining
similar policies in Asia.
Truman Has Power
“We should affirm the prelimin
ary agreements made at the Brus
sels conference for the establish
ment of a European defense force,”
Douglas said. “I think the Presi
dent acted under his constitutional
powers in that instance and I be
lieve the Senate will agree.”
Douglas said he wants to reverse
■ the “negative” approach taken by
Senator Wlierry of Nebraska, the
Republican floor leader, in a resol
ution which would ban the sending
of additional American ground
troops to Europe without prior ap
proval from Congress.
Mr. Truman has said that he
doesn’t need any further author
ity from Congress to commit more
ground forces to Europe. He didn’t
touch directly on the question in
his “State of the Union" message
Monday. j
However, Senator Taft (R-Ohio)
told the National Press Club yes
terday the Administration concept
of operations under the North At
lantic Treaty includes “a complete
international* army.” He added
that “anybody who says we should
n’t send a soldier to Europe is ac
cused of repudiating the Atlantic
Pact.”
GOVERNOR RETURNS
Three members of the Alaska
Statehood Committee arrived here
from Anchorage this morning by
U.S. Army plane. They were: Gov
ernor Ernest Gruening, W. L.
Baker of Ketchikan and Frank
Peratrovich of Klawock. Mildred
Hermann, secretary, remained over
in Anchorage and will return here
tomorrow. While in Anchorage,
Gov. Gruening attended a meeting
of the Territorial Aeronautics board
last Friday and the statehood com
mittee meetings Saturday, Sunday,
and Monday.
The Washington
Merry-Go-Round
By DREW PEARSON
(Copyright, 1951, ny Bell Syndicate, Inc.)
Washington—sen. Guy Giii
ett’s election investigating com
mittee has dug up sensational in
formation regarding the Dewey
Hanley controversy which turnrti
GOP high command into a lather
last October.
Most sensational development of
the recent election campaign was
a letter by New York’s Lt. Gov.
Joe Hanley, candidate for the Sen
ate on the Republican ticket, re
vealing that he had received cer
tain job promises from Governor
Dewey if he would not run for;
Governor. Simultaneously, it was.
revealed that Hanley had already
been loaned $30,000 by anti-Dewey
forces including Congressman King
sland Macy and publisher Prank
Gannett, in order to pay back
debts and help him run for Gov
ernor. But, despite this loan, Han
ley bowed out of the gubernator
ial race in favor of Dewey.
At that time Hanley explained
that he needed the money to pay
off a debt of honor incurred by nis
father. However, Senate investiga
tors asked for more details ipclud- !
(Continued on Page Four) j
Words of Encouragement
Five-year-old Albert Valle (right) of Philadelphia, whose cancer
ous eyes weer removed three yeats ago. talks on telephone to Mrs.
Frank Purcell of Alpharetta, Gr. Mrs. Purcell decided against a
similar operation for her four-year-old daughter, Carolyn Joan. With
Albert is his 14-year-oid sister, Thelma, lfl>l Wirephoto.
TAX HIKE
URGED BY
SEC. TREA.
Synder Wants to Raise
Enough Money to Bal
ance U. S. Budget
WASHINGTON, Jan. 10 — <JI —
Secretary of the Treasury Snyder
said today President Truman will
call on Congress thiS week to raise
taxes enough to balance the budget.
Snyder refused to give any figure
whatsoever on how much taxes that
would involve—or how much the
budget will be for the fiscal year
beginning next July 1.
There were indications elsewhere
that a tax hike of nearly 40 percent
in present taxes would be neces
sary.
The Treasury Chief told reporters
the President will lay down a full
‘‘pay-as-you-go’’ policy in his eco
nomic report Friday and his budget
message next Monday. This, Snyder
said, will be followed by specific
tax-boosting recommendations in a
special message before February 1.
The President’s recommendations
will deal with fiscal 1952, beginning
July 1, which will be the first year
in which the speeded up rearma
ment program will show real im
pact on the budget.
Earlier there had been talk on
Capitol Hill that taxpayers might
get a year’s breather before taking
on any new tax burden although
the chairman of the House Tax
Committee said he expects new
levies to be enacted by midsum
mer.
One Democratic Congressional
leader said he understands the bud
get will be in the neighborhood of
$70,000,000,000 and that Mr. Truman
will ask for about $15,000,000,000
in new taxes. That would be a jump
of nearly 30 percent.
This official, who asked not to
be named, has been in close touch
with the White House on tax and
budget matters.
“That’s the way the program was
shaping up the last I heard,” he told
a reporter.
He added that original plans
called for a budget of about $75,
000,000,000, "but I understand they
have decided to cut that back some
to around $70,000,000,000. Last min
ute changes might make the figures
a little higher than that.”
FROM MT. EDGEG'L'MBE
Lillian M. Workman of Mt. Edge
cumbe is registered at the Baranof
Hotel.
Union Leader
t
Of Teamsters
Shof; Chicago
~~ i
CHICAGO, Jan, 10—(ffl—A busi- i
ness agent of the American Fed
eration of Labor Teamsters Union
was shot and wounded in an am
bush at his home on the West Side
last night.
The wounded man, shot three
times in the left arm, was A1 |
Cease, 42, of Local 705, Interna-;
tional Brotherhood of Teamsters.
He was the third official of the
local to be shot at within the last
eight months.
The shooting of Cease occurred
only a few hours after the Chicago
Federation of Labor had pledged its
full support to a fight against
gangsters seeking to muscle into an
affiliated union.
Only last night, William A. Lee,
President of the Chicago Federation,
told a radio audience that "hood
| lums” had approached him with a
demand that he help ‘hern '“move
into” the A.FT,. Be! r:y Drivers’
Union.
Cease was shot as he stepped into
his automobile alongside his home.
HARBOR SURVEYS BEING
MADE HOONAH, PELICAN
Lewis Stanley of the Corps of
Engineers office in Anchorage is in
Juneau in connection with small
boat harbor developments in south
east Alaska.
The survey at Hoonah has beeh
completed, he said, and surveys are
going forward at Pelican. A party
is due at Tenakee shortly.
Stanley will attend hearings at
Ketchikan January 26 for proposed
projects in that area,
FROM KETCHIKAN
John F. Todd of Ketchikan has
moved to the Juneau Hotel.
_i_
STOCK QUOTATIONS
NEW YORK, Jan. 10 — Closing
quotation of Alaska Juneau mine
stock today is 3%, American Can
97, American Tel. and Tel. 151, Ana
conda 41. Douglas Aircraft 100%,
General Electric 50%, General Mo
tors 48‘4, Goodyear 67%, Kenne
cott 76%, Libby McNeill and Libby
9, Northern Pacific 31%, Standard
Oil of California 91, Twentieth Cen
tury Fox 20%, U. S. Steel 44%,
Pound $2.80, Canadian Exchange
95.31.
Sales today were 3,270,000 shares.
Averages today are as follows: in
dustrials 240.45, rails 78.50, utilities
41.63.
STATEMENT OF
TREASURY MADE
FOR DECEMBER
The monthly statement of the
Treasurer of Alaska, at the close
of December, 1950, as issued by
Treasurer Henry Roden is as fol
lows:
Bank balance as of Decem
ber 31, 1950 . $3,530,419.68
Less outstanding
warrants . 802,301.95
2,728,117.73
Less special funds and funds
incorporated in the General
Fund which are not avail
able for the general opera
tion of the Territory:
Public School Permanent..$ 18,749.50
University of Alaska
Permanent . 158.67
Smith-Lever 29,721.17
Engineers’ and Architects’ 10,104.63
Museum bequest and dona
tion . 1,240.04
Radio-Telephone . 5,445.53
Teachers’ retirement . 28,738.57
Vocational education
(Federal) . 7,023.49
School lunch program
(Federal) .,. 426.50
Forest reserve (Federal) .. 85,054.11
Aleutian Island monies
(Federal) . 1,302.86
Old Age Assistance —
Grants (Federal) . 107,525.53
Old Age Assistance —
Administration (Fed)... 12,559.16
Child Welfare Services
(Federal) . 5,672.79
Allowance to Mothers —
Grants (Federal) . 47,635.83
Allowance to Mothers —
Administration (Fed) .. 15,715.63
Unemployment Compensa
tion Com. (Federal) . 78,835.33
General Health (Federal) 26,607.96
Maternal and Child <*■
Health (Federal) . 33,443.52
Crippled Children (Fed) .. 48.45
Venereal Disease Control
(Federal) . 7,085.42
Control of Tuberculosis
(Federal) . 9,516.11
Cooperative Clinical Evalu
ation of Streptomycin in
Bone and Joint Tubercu
losis (Federal) . 3,623.50
Hospital Survey (Federal) 528.58
Alaska Grants (Federal) .. 142,776.97
Heart Disease Control
(Federal) . 393.95
Water Pollution (Federal) 7,185.36
Military Base Schools
(Federal) . 30,134.86
Veterans’ Administration
—Revolving (Special) .. 113,781.71
Veterans’ Housing — Re
volving (Special) . 18,945.99
Alaska Merit System '
(Special) . 69.49
Territorial Building Fund
(Special) . 407.56
Vision Conservation Pro
gram (Special) . 428.92
Alaska Crippled Children’s
Assn. (Special) . 19,034.01
American Red Cross
(Special) . 849.58
Motor Fuel Oil Tax (Chap
ter 33, S.L.A. ’47) (Spec) 251,922.15
Alaska Aeronautical Re
volving Fund (Special).. 62,839.61
Second Injury. Fund
(Special) . 8,810.19
Nurses’ Examining Board
(Special) . 497.50
School Fund (Tobacco
Tax) (Special) . 268,509.67
Refund of Amusement
Device Tax (Special) .... 69,652.50
Public Employees Retire
ment Fund (Special) .. 38,644.28
Fisheries Experimental —
Special Research (Spec) 567.62
Amount certified available
to U.S. Treasurer for Old
Age Assistance: (Federal)
Grants . 89,809.00
Administration . 6,000.00
Amount certified available
to U.S. Treasurer for Aid
to Dependent Children
(Federal) . 51,081.50
Lujuor refunds . 6,400.00
Alaska Tuberculosis Assn. 1,438.42
Business Licenses . 60,173.14
Punch board . 9,724.50
Property Tax refunds . 163,961.88
Accountancy Fund . 7,580.00
Invested Funds . 360,785.21
Totals .$2,389,168.43
Balance of cash in General
Fund .$338,949.30
AT THE GASTINEAU
Mrs. John Poling, ANS teacher'
from Quinhagak is staying at the
Oastineau Hotel.
TANKER IN PORT
The Standard Oil tanker, Alaska
Standard, docked at the company’s
dock last night at midnight on a
routine delivery run. Scheduled
time of departure is 8 this evening.
Russians Turn Over Police Duly to Americans
Goose-stepping Russian military police, with fixed bayonets, march past the American and Russian com
manders in Vienna in a ceremony handing over military police duties to Americans in the international
sector of Vienna. At left In background a Russian band plays the Soviet national anteh, with the
U. S. band in center, background, standing at attention, awaiting the appearance of the U. S. military
police. In February the British will take over the police duty in the monthly change-around among the
Allied occupation forces. Iff) Wirephoto.
ACHESON IS
READY, TALK
WITH TAFT
WASHINGTON, Jan. 10— UP) —
Secretary of State Acheson said
today he would be glad to talk
I with Senator Taft, or any other
member of what he called the min
ority party, on foreign policy mat
ters.
Answering questions at a news
conference, Acheson also told re
porters he thought failure of the
United Nations to solve the prob
lem of the Korean crisis would
naturally diminish its prestige and
power. But he characterized as an
overstatement a suggestion that a
UN failure to take strong action
now would wreck the organization.
Taft, Republican policy chairman
chief in the Senate, has been car
rying on a continuous criticism of
the Administration’s foreign policy.
At the same time, a number of
Senate Democrats rallied to the
Administration's ,sup.» >rt lin its
plan to help western Europe man
Its defenses against possible goviet
aggression.
On another subject, however,
Acheson said that the United States
is consulting with Britain and
Prance on a new note to Russia
about a Big Pour meeting of foreigli
ministers. He said no differences of
views have developed among the
three western powers and that a
note will go out to Moscow very
soon.
■ 11 1 -
SINCLAIR LEWIS
DIES IN ITALY OF
PNEUMONIA AT 65
ROME, Jan. 10— CP) —Sinclair
Lewis, America’s most controversial
novelist of the 20th Century, died
today in the Italy he loved. The
author of “Main Street,” who wrote
"Babbit” into the English language
and ran up a total of 22 books, suc
cumbed at 65 after an attack dl
bronchial pneumonia.
The famed red-haired novelist
had been a patient at Villa Electra
clinic since Dec. 31. Hospital at
tendants said he suffered also from
inflammation of the heart. He
would have been 66 Feb. 7.
Lewis’ main novels were biting
in portraying the United States
of the '20's and ’30’s. He was the
first American novelist to win a
Nobel Prize. He accepted the award
in 1930 for "Babbit," written in
1922.
The lanky native son of Sauk
Center, Minn., had many best sell
ers to his credit.
BACK FROM VACATION
Mr. and Mrs. Clarence Baumgar
ner have returned from a visit to
the states. Baumgarner is equipment
superintendent for the Bureau of
Public Roads here.
North America has 21.3 persons
per square mile.
i
No Rearming
Of Japanese
Says Yoshida
TOKYO, Jan. 1ft—WP)—Japan’s
Prime Minister, Shigeru Yoshida,
told the world tonight that re
armament of his nation should not
be undertaken without “discreet
handling as well as mature delib
erations."
The political chief of Japan's
80,000,000 people said putting arms
into the Iwids of the Japanese
was not to be taken lightly.
In a speech at the Tokyo Cor
respondent’s Club, Yoshida said
there were two prime reasons why
building up of any army would be
serious move:
1. Some nations are desperately
afraid of the implications of the
renewal of Japanese armies. “In
ternally, we have every reason to
avoid doing anything which might
intensify that fear.”
2. “Moreover the cost of rearm
ament would upset our entire pro
gram for economic rehabilitation.”
i_
FIRST PRACTICE ALERT
MAY BE HELD JAN. 30
BY CIVILIAN DEFENSE
The first practice alert for Ju
neau will probably be held about
January 30, it was announced at
last night’s meeting of the local
civil defense council.
The former lack of interest locally
in civil defense is gradually being
overcome, according to the local
civil defense council members pre
sent at the meeting. This lack of
interest has made it difficult not
only in completing the civil defe ise
organization but also in obtaining
volunteers for courses in Red Cross
first aid, home nursing, nurses aides
and canteen services. The council
was informed last night that about
60 women have indicated their de
side to take the nurses aide course.
Plans and surveys relative to
food supplies, motor pools and re
fuge areas in event of emergency
are under way. Dr. W. P. Blanton
is appointed as head of the local
civil defense medical and health
division.
The need for providing a 10 to
15 bed emergency hospital was pre
sented by members from Douglas
of the Juneau-Douglas civil de
fense organization. The council is
investigating this matter to ascer
tain to what extent such need can
be supplied.
About 250 wardens nave been en
rolled and it is anticipated that the
full organization will be completed
shortly. Mis*’ Florence Ullrich,
American Red Cross nursing field
representative discussed the plan
of cooperation between the civil
defense organization and Red Cross
activities.
Commanding officers of the
Alaska National Guard and Civilian
Air Patrol will be invited to attend
tHe next meeting of the civil de
fense council next Tuesday evening.
CONGRESS IS
URGED TO OK
DRAFT PLANS
Military Service for 18
Year-Qtds Requested
by Secy. Marshall
WASHINGTON, Jan. 10 — Iff) —
Secretary of Defense Marshall urged
Congress today to approve a draft
of 18 year olds for 27 months service
to build up the nation’s fighting j
forces.
He told a Senate Armed Services
subcommittee that a system of “uni
versal military service and training
represents what I believe Is the best
way to meet our immediate need
for enlarged combat forces and at
the same time, to provide an en
during base for our military J
strength.” i
Marshall, former Army Chief of
Staff and former Secretary of
State, was the first witness at what
Chairman Lyndon Johnson (D-Tex)
of the subcommittee said would be
an overall hearing on manpower
problems.
Under the present draft law, boys
of 18 are required to register but
they cannot be drafted until they
reach 19. Their service after induc
tion is limited to 21 months.
The present draft law expires I
next July 9. The Senate subcom- \
mittee hearings are aimed at de
veloping such questions as how long
the law should be extended and
with what changes.
Marshall said he felt 18 year olds
should be called for actual service
and combat. ,
"The program proposes that
young men reaching the age of 18
fulfill their obligation for the na
tion’s defense by entering the
armed forces for 27 months of serv
ice and training.” Marshall said.
"Immediately thereafter they would
enroll for a specified term in a re
serve component.”
In his State of tfie Union message
on Monday, President Truman
called for extension and revision of
the draft law but did not say what
changes he wanted.
QUICK DRAFT START
WASHINGTON, Jan. 10 — tfl —
The Defense Department called late
today for an immediate start on
drafting of 450,000 18-year-olds to
build up the armed forces.
Secretary of Defense Marshall
and Mrs. Anna K. Rosenberg, Assist
ant Secretary, outlined the proposal
to a Senate Armed Services sub
committee in urging immediate en
actment of a universal military
(Continued on Page Twc)
STEAMER MOVEMENTS
Baranof scheduled to sail from
Seattle 5 p.m. Friday.
Princess Norah scheduled to sail
from Vancouver January 17.
Denali from west scheduled to ar
rive southbound Sunday morning.
ROAD-RAIL
(ENTER IN
UN HANDS
Wonju Is Recaptured by
Tank-Led American and
French Fighting Forces
(By the Associated Press)
A small tank-led American and
French force fought through a crust
of Red Koreans today into the key
road-rail center of Wonju. The
Allies found the town empty.
Allied intelligence said however,
the Reds have 200 tanks and 500
Chinese planes poised farther north
for a big push into the heart of
South Korea. It said the Com
munists have massed a force of pos
sibly 280,000 troops for a new of
fensive.
The Allies had abandoned Wonju
to the Reds only Monday after two
days of fighting for the gateway
town to South Korea’s interior.
Enemy Position Attacked
Fighting swirled in new fallen
snow throughout the Wonju area
Censorship obscured the sharp de
tails but permitted disclosure in a
field dispatch that the U.S. Second
Division supported by French units
was attacking strong enemy forces
in the area.
A brief A.P. field dispatch from
the Second Division front indicated
the Korean Reds had counterat
tacked in force. Timed at 10:43 p.m
Wednesday (5:43 a.m., PST), it said
that aa attempt to outflank U.N.
forces was beaten back.
Beat Back Blow*
At nightfall a small American
task force still occupied Wonju, 45
miles south of the border in the
center of the Korean peninsula.
A tank supported company of the
Second Division swept into the town
from the southeast after beating off
fierce Red Korean counterblows.
It was the biggest United Nations
offensive effort in days. The Allied
move was obviously an attempt to
throw off balance the Red drive
down the center of the peninsula
threatening the Taejon - Taegu
escape corridor for Eighth Army
forces withdrawing in the west to
ward the old Allied Pusan beach
head.
Now the Communists appeared to
be ready to strike a heavy blow in
the west. Allied intelligence officers
said great masses of enemy troops
were moving southward from a
staging area 15 miles north to 25
miles south of fallen Seoul.
General MacArthur, in his war
summary warned of a "very large”
Communist force strung along a
70-mlle front from Osun to Wonju.
He slid it was "capable of mount
ing a powerful offensive supported
in great depth.”
Estimated Enemy Strength
The strength of the tfirce poised
on the battleline or in close reserve
was estimated at 280,000 men.
MacArthur’s summary declared:
"Because of Its large manpower po
tential It can strike in a number
of places at the same time with
ample reserves to support each for
ward thrust."
Censorship
Censorship restrictions on battle
news from Korea were tightened
yesterday. The new rules threaten
ouster or even court martial for a
correspondent who violates them.
ooooooeoooo
• •
s WEATHER REPORT e
O Temperatures for 34-Hour Period s
O ending <:2S o'clock thu morning o
o In Juneau—Maximum, 35; e
• minimum. 31. •
• At Airport^-Maximum, 33; e
o minimum, 30. o
o o
• FORECAST •
O IJuneaa and Vicinity) O
• Cloudy with intermittent e
o snow tonight and Thursday. •
o Low temperature tonight •
• near 28 and high Thursday •
• near 33. •
• •
• PRECIPITATION •
0 (Past 34 boura ending 7:30 a m today •
e City of Juneau—0.13 inches; •
• since Jan. 1 — 3.14 inches; •
• since July 1—41.13 Inches. •
o At Airport — 0.13 inches; •
o since Jan. 1 — 1.76 inches; •
• since July 1—29.76 inches. •
• esedseecst