THE DAILY ALASKA* EMPIRE
VOL. LXXVIIL. NO. 11,858
“ALL THE 'NEWS ALL THE TIME”
JUNEAU, ALASKA, THURSDAY, JULY 12, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Reorganization Bill Battle Roars
Williams
Fights Field
In New Setup
By WINNIE WII.LIAMS
Dog fights between U. S. Sabre
jets and Commie MIGS were ap
parently backed off the map yes
terday if the blue smoke emanating
through the key-hole of the door
of the Governor's office was any
indication of the battle going on
over the Reorganization Bill.
Scuttlebutt, however, has it as an
uneven fight with Attorney Gener
al J. Gerald Williams against the
field. From its inception, Alaska’s
attorney general has heftl and sta
ted in the press that the 'bill is
illegal. Yesterday when attempts
were made to appoint a new aud
itor, Williams stuck to his guns.
Crux of the whole argument is
the saipe one pointed out when the
• bill came fresh from the legislature
during its dying hours.
The bill provides for two mem
bers from the House and two from
the Senate to serve on the Board
of Administration. The Organic Act,
in Section II, states that no mem
ber of the Territorial legislature
may serve on any board or com
mission created while he was a
member of the legislature, or can
receive any emoluments thereof un
til a year after the expiration of
his term.
Serving on the board are Sen
ators Gunnard Engebreth, Sieve
McCutcheon, and Representatives
William Egan and Glen Franklin.
Senator Anita Garnick and R. M
McKenzie are alternates in the
present meetings for Engebreth and
McCutcheon, respectively.
$45 Per Day
The alleged “legal" act provides
for each of them $15.00 per diem
in lieu of maintenance and $30.00
per diem “compensation while en
route to and from and attending
meetings.” In other wbrds, $180.00
per day expenses is paid the four
legislative members each day the
board is in session.
This morning, however, Territor
ial Treasurer Henry Roden said
these legislators would collect “only
their actual mileage.”
Auditor or Not Auditor?
The big question before the house
is Neil Moore, appointed to succeed
Frank Boyle, who died last year in
his elective post.
Section 32 of the Reorganization
bill "hereby repeals" the old law
of the Territory .setting up the of
fice and duties of the Territorial
Auditor and “re-enacts” an Auditor
to be elected by the legislature, or
if that body is not in session, ap
pointed by the Board of Admin
istration. His salary to be $10,000
per year.
This morning Treasurer Roden
stated that Moore was still Auditor
of the Territory and would contin
ue to serve. The Governor stated
that Roden had been instructed to
"look around” for a post auditor,
(Continued on Page Eight)
TheWashington
Merry-Go-Round
By DREW PEARSON
(Copyright. 1951. or Bell Syndicate. Inc.
Washington. — The white
House was considering a plan to
send Supreme Court Justice Wil
liam O. Douglas to Iran as special
mediator, when two published items
suddenly knocked these plans into
a cocked hat. One item was in
WincheU’s column, the other an ar
ticle in Life Magazine.
■ The Winchell item read: "Per
sonal memo to Tito of Yugoslavia,
Nehru of India and other chiefs of
foreign nations: When a Bill
Douglas i of Oregon and Washing
ton, D. C.» calls on you soon—all
courtesies extended will be appre
ciated by this column. Mr. Douglas
will file copy exclusively to us. . .
it will be relayed to all I.N.S. cUents
under the byline: ‘by Bill Douglas,
special correspondent of the Daily
Winchell.' ”
This did not go down well at the
White House. Nobody really be
lieved that the Supreme Court Jus
iContlnued on Page Four)
First Eagle Scouts
The Rev. Samuel McPhctres displays the coveted Eagle Scout badge awarded recently to three Juneau
Boy Scouts, first here ever to earn the honor. Left to right are Wayne Powers, the Rev. McPhetres,
Eddie Dull and Art McKinnon. (J. Malcolm Greany Photo)
Truman Asks
Raise for
Civil Service
BULLETIN
WASHINGTON, July 12 — M* —
President Truman today asked Con
fess for a 7 per cent pay increase
for government workers, and a Scn
itc committee approved increases
•he members said would average 8.4
per cent.
The action by the Senate Post
Office and Civil Service committee
lime less than three hours after Mr.
Truman's request, but was not di
rectly responsive to it.
WASHINGTON, July 12 — —
President Truman asked Congress
today to vote a 7 per cent "across
the board” pay increase for the gov
ernment’s postal and Civil Service
workers.
Mr. Truman said the present
emergency "demands prompt and
adequate adjustment of Federal
compensation levels as a practical
matter so that the government may
continue to attract and retain
skilled employes of the highest com
petence.” .
The President made his request m
identical letters to Senator Olin D.
Johnson and Rep. Murray, chair
men of the Post Office and Civil
Service committees of the Senate
and House.
Mr. Truman said that in genera
pay scales in the higher ranks of
Federal employment are too low in
relation to the lower grades. He
added:
“I urge most strongly that an>
ncreasq enacted be on an across the
board percentage basis rather than
on a uniform dollar or sliding sen e
basis, so that disproportionately
lower adjustments for the middle
and upper grades may be avoided.
Federal workers received a gen
eral pay raise late in 1949. It avei -
aged $140.50 a year.
The starting rate in the lowest
Civil Service classification was rais
ed from $2,020 to $2,200 a year.
ASHLEY’S CONDITION
REPORTED IMPROVING
The condition of D. E. Ashley,
bridge painter injured in a fall
on the Gastineau Channel bridge
Friday afternoon, is fairly good,
his attending physician said today.
Following an operation, sensation
is returning to Ashley's paralized
limbs. In addition to a broken hack,
he also suffered a broken collar
bone and fractured shouder blade.
He is in St. Ann’s Hospital.
Man Blown From
Blast Lives;
Seven Others Dead
INDIANAPOLIS, j July 12 —(«—
Seven men are beJieVed to have died
in an explosion today in the Gen
eral Motors Corp. military jet en
gine plant just west of Indianapolis.
Maj. Harold E. Wilber, Air Force
public information officer, said
eight men were working in the small
concrete block building where the
explosion occurred shortly before
daybreak.
One man was blown from the
building and survived the blast, al
though he suffered severe burns.
Two mangled bodies were brought
out about three hours after the
blare.
The major attributed the explo
sion to gas vapor but he couldn't
say what set off the blast.
“There was positively no sabo
tage,” he said.
He added that a leak had been
reported in a gas line and its source
was being sought shortly before the
explosion.
The plant is being operated under
Air Force eontrol.
Mortar Shell Blows
Up; Two Trainees
Dead, 17 Injured
CAMP PENDLETON, Calif., July
12 — fjpy— A faulty mortar shell, ex
ploded prematurely killed two Mar
ine trainees and injured 17 yester
day.
Marine Corps officers said all
normal precautions had been taken
before the 18 mm. shell was fired
in mortar practice. Maj. K. A. An
gell said the sheH was faulty. , |
Some 50 trainiess were on the gun- j
nery rang© of this vast training base ■
when the round exploded. It
sprayed fragments for a 30-yard
radius.
Killed were Ptc. Haskel Graves,
Jr„ 19, of Oklahoma City, and Pfc.
Wallace DuWayne Wherley, 20, of
Minot, N. B.
MAYNARD M*LLER HERE
Maynard Miller of New York,
and his mother Mrs. Davison Mil
ler of Seattle, are guests at the
Hotel Juneau. Miller is with the
Juneau Icecap Research Project.
LOS ANGELES VISITORS
Mr. and Mrs. Joseph Schapiro of
Los Angeles came in from Anch
orage Monday on PNA and are
guests at the ■ Baranof Hotel. .
Labor Balks
On Ceilings
WASHINGTON. July 12 — MPI —
AFL President William Green told
Democratic congressionajReaders to
day that labor unions ‘'will not and'
cannot" submit to wage ceilings
i without effective price control.
Green attended a Capitol Hill con
ference of House members backing
the Truman administration’s request
for strong anti-inflation controls.
James Carey, CIO secretary-treas
urer, said the “whole labor move
ment” was behind Green’s declara
tion.
“If an unworkable controls bill is
made law labor will not support
wage controls,” Carey said.
The session was in the nature of
a strategy meeting on how to save
the administration’s wage-price con
trols program from threatened total
defeat.
Also sitting in was Defense Mo
bilizer Charles E. Wilson.
Green. Carey, Wilson and T. V.
Anderson, chairman of the Rail
way Union Executives Association,
all pleaded for a strong controls
program.
Green told newsmen afterwards
he had stressed that the nation is
"facing a great emergency filled
with uncertainty, and that it was
up to Congress to pass a ’reasonable’
controls bill."
“Labor agreed lo wage controls
and is submitting to them now,”
Green said, “but we cannot continue
if Congress refuses to pass a de
fense production act which does not
give the government authority to
exercise price controls in a reason
able and adequate manner.”
Today’s session was the second
labor union leaders have had with
Congress members bucking strong
anti-inflation controls.
* Meantime, for the moment. Mr
Truman’s lieutenants in the House
Were playing for time in the hope
an aroused public opinion would
swthg some votes to their side in
the controversy over, controls.
OPEN HOUSE FOR
MRS. E. L. BARTLETT
TODAY FROM 4 TO 6
This afternoon, from 4 to 6
oclock, Mrs. Ernest Gruening is
holding open house at the Gover
nor’s Mansion, honoring Mrs. E.
L. Bartlejtt, wife of Alaska’s Dele
gate to Congress. Mrs. Bartlett ar
rived here a week ago for a sum
mer visit.
Mrs. Gruening extends an invi
tation to all residents of the chan
nel area to renew acquaintances
and meet Mrs. Bartlett.
• HEADLINES
• ARE THIS WAY
• AND THAT WAY
• The Empire is in the process
• of changing its style of head
• line, as was evident yester
• day. In this complicated deal,
• which takes a bit of doing on
• the part of all hands, some
• "heds” came out in the new
• style and some remained in
• the old style.
• This mixup will probably
• stay with us a few days, so
• don’t be alarmed.
• Reason for the change is for
• speedier handling of news
• copy. Almost all newspapers
• now use what is termed the
• ‘ flush left” headline.
•
Jap Peace Pact
Unveiled; Termed
'Unique' in History
WASHINGTON, July 12 — bTl -
The United States and Britain as
co-sponsors formally unveiled to
day a “peace of reconciliation” with
Japan they expect to be signed by
some 50 nations.
Ambassador John Foster Dulles,
in charge of negotiations for the
U. S., said it was still hoped Soviet
Russia would Join in the settlement.
But he gave notice the other na
tions otherwise will make peace
winko’.it Moscow.
The treaty, which Dulles termed
“unique” in history, Is due to be
signed at San Francisco the week
of Sept. 3. It strips Japan of Its
pre-World War II overseas holdings,
but permits the Japanese to rearm
and in other major respects restores
the former defeated empire to the
status of a sovereign equal in the
Free World.
The signing is to be followed by
a U. S. - Japanese pact permitting
the U. S. to retain troops and mili
tary bases in and near Japan, pend
ing the future creation of a system
of collective security for the Pacific.
A three-way security pact among
the U. S., Australia, and New Zea
land and a separate commercial
treaty between this country and
Japan are parts of the general set
tlement.
The revised draft is the product
of more titan a year’s negotiation
with the other principal Pacific Al
lies in which Dulles took the lead
as the U. 8. representative. He pre
dicted it will be "generally accept
able to the 50-odd nations at war
with Japan.”
“No one will be 100 per cent sat
isfied but almost everyone should
be about 95 per cent satisfied,” he
said lx> a statement.
Forest Fire Rages
In Washington
As Heat Mounts
By Associated Press
Firefighters labored under a blis
tering sun today to control a major
fire raging through Southwest Wash
ington timberland south of Randle
on the Cowlitz river.
As1 temberatures soared toward
the 100-degree marie for the second
day in a row, state forestry offic
ials called for additional help in
battling the blaze.
A forest authority said conditions
were the worst since 1922.
The fire, first reported at noon
yesterday, had blackened 1.500 acres
at midnight last night. Firefighters
said it was fanned by a strong east
wind.
C. 8. Cowan, manager of the
Washington State Fire Association
office at 8eattle, said logging camps
in the area were sending every avail
able logger to the area. He esti
mated 500 to 600 men would be in
the firelines today.
Lewis County Sheriff Frank Thay
er said Governor Langlie was pre
paring to ask Fort Lewis for 200
soldiers to help fight the fire, which
Thayer said "could be another Tilla
mook."
Seven Dead
In Worst
Kansas Flood
TOPEKA, Kas., July 12 — W» —
Flood waters poured over Eastern
and Central Kansas in the greatest
torrent In the state's history today
and lapped over Into parts of Mis
souri leaving seven dead and five to
eight missing.
At leaet five persons were dead
in Kansas, and two in Missouri. Two
more were killed by lightning at
Fort Leonard Wood, Mo., which was
not affected by floods. Army Eng
ineers estimated damage from the
floods totaled at least .$85,000,000.
It likely would go higher.
The Kansas river valley was the
hardest hit although the Neosho,
Marais des Cygnes, and Cottonwood
rivers in Kansas were causing wide
spread damage and the Blue river
in Missouri was overflowing in
Kansas City threatening many
plants in the rich industrial district
on the city’s eastern edge.
Many of the state’s major cities
were deep under the waters of the
swollen Kansas river, Including the
North Topeka and Oakland sections
of Topeka, the state capital.
Hundreds of residents of North
Topeka who ignored evacuation or
ders yesterday were trapped by
water that poured through two levee
breaks and covered the area to a
depth of six feet or more.
AFL Convention
Condemns Bay
Strikebreaking'
SPOKANE, July 12 —The
Washington State Federatlon'of La
bor (AFL), entering the final day of
its 49th annual convention, took up
the last unsettled issue today: A
charge that “certain unions” en
gaged in 'strikebreaking activities
during the recent strike at Bristol
Bay, Alaska.
The Sailors Union of the Pacific
and the Seafarers International Un
ion made the charge in a resolu
tion which condemned certain un
named unions for strikebreaking it
said occurred during the strike of
2,300 Bristol Bay fishermen and can
nery workers affiliated with the Ber
ing Sea Fishermen's Union and
Local 46, Cannery Workers Union.
The convention’s grievance com
mittee heard both sides of the dis
pute at a two-hour meeting yes
terday. Afterwards it was reported
a milder version of the original res
olution would reach the convention
floor.
The "toned down” version, a
spokesman said, reaffirms a posi
tion adopted by the State Federation
last year. The Federation agreed
at the 1950 meeting that all AFL
unions would oppose any moves by
Harry Bridges, West Coast longshore
leader, to organize in Alaska.
The two striking Bristol Bay un
ions announced affiliation with the
Seafarers’ International while the
recent strike was ®n. The Bering
Sea union broke away from the
Alaska Fishermen’s Union (Ind)
which was to be merged with
Bridges’ longshoremen.
• • «
WEATHER FORECAST •
Temperature tor S«-Hour Period •
ending S:M o’eioek this mornlns •
In Juneau — Maximum, •
83; minimum, 54.
At Airport — Maximum. •
82; minimum, 52. •
forecast •
Continued fair and warm •
with some cloudlnejs tonight •
and Friday. Lowest tonight •
near 55 and highest Friday •
about 80. •
precipitation •
(Peit 24 hour* endlns toder •
City of Juneau — None. •
Since July 1 — .04 Inches. •
At Airport — None. •
Since July 1 — .04 Inches. •
Defense Work
In Alaska
'To Continue'
SEATTLE, July 12 —(fl— What
ever the outcome of peace nego
tiations in Korea, the government
will not slow down its vast defense
program in Alaska, a Seattle banker
predicts.
Walter E. Mitchell, head of the
Alaska department of the National
Bank of Commerce, said today the
500 million dollar defense expansion
program in Alaska will continue In
full swing.
Mltcneu recently returned from a
2Ms month tour of Alaska, during
which he inspected defense work,
toured through many Alaska com
munities and consulted with busi
ness leaders.
“What the Alaska Road Com
mission Is doing In blacktopping
Alaska roads Is astounding," he said.
“Forty per cent of the road between
Fairbanks and Anchorage already
is blacktopped.
"Everywhere I went In Alaska I
was amazed at the Air Force and
Army installations that are being
built. Ninety cents of every dollar
spent In Alaska is government
money. There are huge civilian
apartment projects going up, along
with the actual military Installa
tions.”
Mitchell said he found Alaska
businessmen optimistic over the fu
ture. No one expects the defense
program to collapse because of a
Korean peace.
Tourist Potential
Alaska will also grow as a tour
ist attraction for Pacific Northwest
people after completion of the John
I Hart 'highway, which will cut more
1 than 900 miles off the driving dis
tance from Seattle to Dawson Creek.
Mitchell said.
Dpzens df. Seattle area contractors
have participated in Alaska defense
work. Portland contractors are pro
viding stiff competition for such
contracts, Mitchell said.
Within the last year Anchorage
has become a “notable immigration
point,” he pointed out.
He saw Malayans, Indians, Jap
anese and many other nationalities
at Anchorage, entering the United
States over the heavily-traveled
Great Circle Air Route.
With its growth Alaska will also
continue to be a heavy importer of
food. Agriculture in the Matanuska
Valley is highly developed, but ex
pensive, and Alaska is able to raise
only a fraction of the food it uses,
he said.
The economic importance of the
Territory to the Pacific Northwest
will continue to grow rather than
diminish, Mitchell concluded.
Parents of Young
Vandals Agree to
Pay for Damage
The 14 families whose children
were Involved In the demolition of
Dale Osterman’s trucks at the ball
park last week, have agreed to pay
$15 each toward the damage on
the vehicle, Juneau police repor
ted today.
The 22 juveniles, ranging In age
from 4 to 13 years, did a thorough
Job of ruining the carryall truck
when Osterman left It at the ball
park after the Fourth of July when
he was unable to get It started.
LARRY IIAGEN HERE
Larry Hagen with the Standard
Oil Co. of Seattle is stopping at
the Baranof Hotel.
Ship Movements
Princess Louise from Skagway at
8 a.m. Friday, sailing south 9 a.m.
Chllcotin from Vancouver due at
4 this afternoon.
Alaska from Seattle due to arrive
Saturday.
Princess Kathleen from Vancou
ver due 3 p.m. Saturday.
Baranof scheduled to sail from
Seattle Friday.
Princess Norah scheduled to sail
from Vancouver Saturday.
Aleutian from westward scheduled
southbound Saturday afternoon.
Denali from westward scheduled
to arrive southbound 8:30 p.m. Fri
day.
Reds Stop
Newsmen;
Allies Quit
By JIM BECKER
MUNSAN. Korea, July 12 — MV
The United Nations broke off cease
fire negotiations today over the
question of press representation at
Kaesong after Red guards challenged
part of a UN convey.
• The Allied command put the next
move up to the Communists.
Up to 10 p.m. tonight (5 a.m. PDT)
a U. S. 8th Army communique said,
the Reds had not replied to an Al
lied ultimatum that UN peace con
voys pass unchallenged.
There was no indication when the
talks would be resumed.
Sessions scheduled for today were
cancelled after Communist guards
refused to let a truck load of 20
newspapermen pass a check point
with a UN convoy.
Vice Adm. C. Turner Joy. chief
UN delegate, said there would be no
more cease-fire talk until the Reds
agreed that "my convoy, bearing
the personnel of my choosing, in
cluding such press representation
as I consider necessary, will be
cleared to the conference site,”
Joy ordered the entire 17-vehlcle
convoy to turn back from the Red
check point where the newsmen
were halted.
The UN commander, Gen. Mat
thew B. Ridgway, said it was "all
or nothing.”
Won’t Return
The five Allied armistice nego
tiators did not leave Munsan Thurs
day for their scheduled sessions in
Red-occupied Kaesong, 12 miles
away.
They won't return, Joy announc
ed, until the Reds permit the UN
party, as selected by UN represent
atives, to proceed intact.
Joy so informed North Korean
Gen. Nam 11, head of the Commun
ist cease-fire delegation, in a strong
ly worded dispatch sent to Kaesong
by helicopter.
General Ridgway informed the
Communists Wednesday that the
“presence of a selected number of
newsmen at a conference of such
major Importance is considered an
inherent right by members of the
UN.”
At that time he said flatly they
would be “an integral part of the
UN command delegation to any and
all future sessions beginning July
12.”
Press — Not Yet
Thursday morning the Commun
ists replied that they would lt!&|o
have press representatives -» out
not yet'. The convoy, includjng
newsmen, already was on its wap.
When armed Red guards insisted,
politely but firmly, on cutting the
newsmen out of the convoy, all ve
hicles were ordered back and talks
were broken off.
The general impression here was
that the break was temporary.
The opinion among many military
men and some correspondents was
that the whole situation was the
result of a Communist misunder
standing, although delegates have
been arguing over press represent
ation since talks started Tuesday.
There was a feeling that talks
might be resumed later in the week.
Admiral Joy's message to General
Nam made it clear the UN is ready
to go on with the cease-fire talks,
but insists on deciding for itself who
shall be in the Allied party.
Censorship Fouls
Army censorship second-guessed
itself in releasing Admiral Joy’s
message. Eighth Army cen
sors approved a story containing
the text of the message. Subse
quently, Army censors at general
headquarters in Tokyo asked press
(Continued on ;Jage Eight)
STOCK QUOTATIONS
NEW YORK. July 12 —MV- Clos
ing quotation of Alaska Juneau mine
stock today is 2%, American Can
109%, American Tel. and Tel. 154%,
Anaconda 39%, General Electric
55 'i. General Motors 49. Ooodyear
83%,'Kennecott 73%, Libby. Mc
Neill and Libby 8‘a, Northern Paci- ,
fic 38, Standard Oil of California
4811, Twentieth Century Fox 17%.
U. S. Steel 40%, Pound $2.80 110,
Canadian Exchange 94 37'/,
Sales today were 1,950,000 shares.
Averages today were as follows:
Industrials 252.59. rails 75.73, utili
ties 43.24.