THE DAILY ALASKA EMPIRE
UALL THE NEWS ALL THE TIME* ___
VOL. LXXVI., NO. 11,751
JUNEAU, ALASKA, WEDNESDAY, MARCH 7, 1951
MEMF.ER ASSOCIATED PRESS
i'kick team umsrs
Thousands of Reds Smash Back At Allies
_________— » _
REEVES BILL
READ BEFORE
LEGISLATURE
Lengthy Reorganization
Measure Before House
for Amendment
By BOB DE ARMONB
The lengthy bill to provide for re
organization of the Territory’s fi
nancial control structure, introduc
ed in the House yesterday by the
Committee on Judiciary and.Federal
Relations, went through its second
reading this morning and was held
over for possible amendment.
Members of the Senate sat in with
the House during the reading of
the bill and the bill’s author, H.
Clyde Reeves, was present to answer
questions and make suggestions.
Reeves, who is Commissioner of
Revenues for the State of Kentucky,
was to leave this afternoon for his
home.
The bill provides, in brief:
For a newly constituted Board cf
Administration which would in
clude, in addition to the Governor,
the Speaker of the House and
Chairman of the House Ways and
Means Committee, the President of
the Senate and the Chairman of
the Senate Finance Committee. The
four members of the first board,
however, would be chosen by elec
tion of two members from the
House and two from the Senate.
Department of Finance
The bill also creates a Department
of Finance, under a Commissioner
of Finance, appointed by the new
Board of Administration. The com
missioner would have charge of
budgeting, accounting, pre-auditing,
purchasing and property control
and the bill sets forth in detail his
duties and responsibilities.
The Office of Auditor would also
be changed by the bill to provide
for the election of an Auditor by
the House and Senate in joint ses
sion. The Auditor would be elected
for a six-year term and could be
removed only by a two-thirds vote
of each the House and Senate, vot
ing separately.
The Auditor w'ould make the final
audits of all Territorial depart
ments, boards and agencies.
Under the provisions of the new
bill, the duties of the present Aud
itor as ex-officio Commissioner of
Insurance would be shifted to the
office of the Commissioner of La
bor, while his duties as ex-officio
Commissioner of Corporations would
be shifted to the office of the Secre
tary of Alaska.
Extends Thanks
When the reading cf the bill was
completed, fhis morning, Senate
President Engebreth, on behalf of
the Legislature, extended the thanks
of the' two bodies to Mr. Reeves: for
his work.
(Continued on Page Two)
The Washington
Merry-Go-Round
By DREW PEARSON
(Copyright, 1951, oy Bell Syndicate, Inc..
(Ed. Note: Drew Pearson is on a
flying tour of Europe and the middle
East, surveying the world situation.)
R^ASHINGTON. — The Bureau
of Internal Revenue has ordered its
first major crackdown on the big
racketeers sipce this column star
ted publishing the income tax re
turns of mcbsters who have been
cheating on their taxes.
As a result, T-men are now in
specting the books of Chicago’s
policy racket, or numbers game,
for income tax violations. Their in
vestigation has already led to the
tax returns of Tony Accardo and
Jack Guzik, Chicago’s underworld
bosses. The T-men have also un
covered evidence that a Chicago
Congressman controls the patron
age for 7,000 jobs in connection
with the policy racket.
Betting on the numbers in Chi
cago has mushroomed into a bil
lion-dollar, back-alley business,
which feeds upon the nickeis and
dimes of the little people. It has
resulted in gangland murders,
bombings and kidnappings, all still
unsolved. Only a few small timers
have been picked up by police and
fined $25 for operating lotteries.
Though safe from the local po
(Contlnued on Page Four)
Appropriate Spring Bonnel
Mrs. Georgia Neesc Clark, Treasurer of the Cnited States, adjusts
her hat, made of 32 one dollar bills, after it was presented her in
Dallas. The hat has a crown of softly folded folding money with
new greenbacks arranged like a neat hand of cards across the top.
Mrs. Clark wore the hat down a crowded street but nobody seemed
to pay any attention to it. (iP) Wirephoto.
COMMITTEES!
OK SENDING!
MEN OVERSEA
—
WASHINGTON, March 7 y-Ufi— !
i Two Senate Committees today ap
! proved in princip'e the sending of
■ American ground troops to Europe
! under the North Atlantic Treaty.
I The Foreign Relations and Armed
j Services Committees, meeting joint
ly, also approved the naming of Gen.
Dwight D. Eisenhower as Supreme
Commander of the Western Euro
pean Defense Forces now being
formed.
The action was taken in the ap- 1
proval of sections of a Senate reso
lution introduced by Chairman
Connally ID-Tex) of the Foreign
Relations Committee and Chairman
Russell <D-Ga> of the Armed Serv
ices group.
The committee did not complete
action on the resolution as a whole.
Connally said another closed door
meeting would be held tomorrow.
Connally. announcing to report
ers what the committee had done,
commented:
In substance it is approval by
the committee of the Connally- j
Russell resolution.”
In advance of the meeting. Sen- 1
ator Byrd <D-Va> joined the Re
publicans in demanding that Con- j
gress write into law any authority
for President Truman to assign U.
S. troops to an international Army.
BURKE FUNERAL IS SET
FOR TOMORROW 2 P.M.
Funeral services will be held for
Jacob Burke at 2 p.m. tomorrow
in the Carter Chapel with the Rev.
G. H. Hillerman officiating. Inter
ment,will be in Evergreen cemetery.
Burke was found dead in his
cabin here last Monday. He was1
born in 1880 in Finland and had
been a resident of Alaska for the
past 18 years.
STOCK OliOTATiCe
NEW YORK, March 7 — Closing
quotation of Alaska Juneau mine
stock today is 3'i, American Can
1071, Anaconda 41a, Douglas Air
craft 102lh, American Tel. and Tel.
156 a, General Electric 5611, Gen
ral Motors 5171, Goodyear 77'a,,
Kennecott 74',. Libby, McNeil and
Libby 9:;i, Northern Pacific 35 i,
| Standard Oil of California 03.
| Twentieth Century Fox 23. U. S.
! Steel 44, Pound $2.80, Canadian Ex
! change 95.68.
| Sales today were 1,770,000 shares,
j Averages today were as follows:
j Industrials 252.45, rails 85.01, utili
j ties 43.44.
»,
PREMIER OF IRAN
IS ASSASSINATED;
NATION ALERTED
TEHRAN, Iran, March 7 —l/P)—
American-supported Premier Ali
Razmara was shot to death today
in a Tehran mosque. The govern
ment of this politically turbulent
neighbor of Russia immediately
placed the armed forces of the na
tion on the alert.
(Western sources in London ex
pressed fear that the assassination
might increase the political turmoil
in the oil-laden but impoverished
country, which sprawls along a
critical flank of western defenses
against Communism),
Apparently the people took the
news calmly.
The gunman who pumped four
shots into the slim, 50-year-old pre
mier as he entered a bazaar dis
trict mosque was seized quickly. He
was identified in a communique only
as “a certain man.” An informed
source said the killer was a member
of a small, fanatical religious sect.
The cabinet went into emergency
session.
Shah Mohamed Reza Pahlevi
quickly called in his advisers and
named 70-year-old Khalil Fahimi
acting premier.
“The country’s affairs are to be
conducted with the utmost care,”
the acting premier said in a broad
cast to the nation.
Razmara, however, had been
pushing a U. S.-urged program of
widespread reforms unpopular with
the country’s wealthy ruling minor
ity and h^is opposed widely-support
ed demands for nationalization of
the huge British-controlled Anglo
Iranian Oil company.
KETCHIKAN TEAM
PLAYERS HONORED
BY J-HI STUDENTS
Members of the Ketchikan Basket
ball Team and Coach Bassett were
guests of the Juneau High School
Pep Club at a luncheon given to
day in the Domestic Science rooms
at the school.
A dance in honor of #the visiting
team will be given at the conclusion
of the basketball series now in play,
either this evening or tomorrow
depending on the outcome of the
second game between the Polar
Bears from the First City and
Juneau’s Crimson Bears tonight
The dance will be given in the
high school gymnasium.
REV. SWEENEY HERE
The Rev. Leo Sweeney, who is at
present acting pastor of »t. Greg
ory’s Parish, Sitka, arrived in
Juneau this morning by Alaska
Coastal. He will be here for a few
days’ visit, returning to Sitka at the
end of the week.
4 MILLION
MANPOWER
LIMIT SET
WASHINGTON, March 7 — WV
The Senate approved a 4,000,000
limit for the Armed Forces today.
The limitation, accepted on a 49
to 41 vote, came after sponsors of
the Universal Military Service and
Training Bill under consideration
had first opposed any restrictions
on the size.
Originally Senator Morse (R
Ore), with powerful Republican
backing, sought to place a 3,500,000
manpower ceiling upon the combin
ed Army, Navy, Air Force and Ma
rines.
Senator McMahon (D-Conn)
moved to make it 5,000,000 but the
Senate rejected that 56 to 32.
Senator Robertson (D-Va) then
offered the 4,000,000 figures and it
was approved.
All were offered as amendments
to the pending Manpower Act which
would authorize drafting of 18 year
olds, and also provide a long-range
program of universal military serv
ice and training.
Originally the Senate had agreed
to vote first upon 3,500,000 limita
tion offered by Senator Moorse with
strong Republican support.
The Morse limitation drew op
position from top miliary leaders
and Senator McMahon offered the
5,000,000 figure as a substitute.
The Army said that its May draft
call had been reduced to 60,000 men
"because we are catching up on Gen- ,
eral MacArthur's requirements in
the Far East.”
An Army spokesman told report
ers that the reduction — all other
monthly calls this year have been
for 80,000 men — “has no connection
with or effect upon the proposed
draft of 18 year olds.”
15-Year-Old
Gunman Shot
In Robbery
SAN JOSE, Cal., March 7 — W—
A 15-year-old gunman was killed
last night when he walked into a
police trap at a liquor store.
Patrolman Stanley Hardman, who
had hidden in the rear of the store
after five stores had been held up
in two weeks, told this story:
The boy, identified as Howard
Morgan, asked for cigarets. When
the clerk turned his back the boy
pulled a pistol and said:
“This is it. Give me all of it.”
He scooped up $280 and ran.
Hardman, from a back room, or
dered, “Stop, or I’ll shoot.”
The boy reached for his gun and
fled. Hardman emptied a sub
machine-gun then a pistol.
OFFICE AUDITING
GIVEN APPROVAL
BY HOUSE, SENATE
A full scale audit for virtually all
territorial offices and departments
was voted yesterday by the House.
The Senate had voted for the
audit the previous day but the House
had delayed its decision until after
the Ways and Means Committee
could consider it.
The two houses instructed John
Butrovich, chairman of the Senate
Finance Committee, and Glen
Franklin, chairman of the House
Ways and Means Committee, to pro
ceed with auditing arrangements
for the 1947-49 bienntutn.
Auditing of the auditor's office
has just been completed by Arthur
Anderson and Company of Seattle
The Veterans’ Affairs Department
was audited previously.
EMBLEM CLUB MEETS
The Juneau Emblem Club will
hold the regular business meeting
in the Elks auditorium Thursday
March 8. The newiy elected officers
will conduct the meeting. Fina
arrangements for the Baby Show
and plans for other communitj
projects will be discussed. All mem
i bers are urged to attend this meet
j ing.
They Also Served
Marines wounded In fighting in Korea are on the pier at San Francisco as the transport General Breckin
ridge with 1,174 First Division buddies aboard is berthed. Aboard the ship were some 400 convalescent
wounded Marines while the others were coming home from the fighting in Korea under the recently in
stituted rotation program. Wirephoto.
SENATE VOTES
FOR TWO BILLS
TO AID JOBLESS
Two bills to increase unemploy
ment compensation benefits won
approval in the Alaska Senate yes
terday after hearings that lasted
all afternoon.
The Senate first approved increas
ed dependency allowances, 15-1,
then voted by a surprisingly one
sided 13-3 to raise the weekly com
pensation to unemployed from $25
a week to $30.
Both measures had passed the
House previously. Both were intro
duced by Rep. Wendell Kay (D
Anchorage). They now go to Gov
ernor Gruening as the first major
controversial pieces of legislation to J
reach his desk in this session.
Under the newly approved un
employment compensation bills, a
worker with three dependents re
siding in Alaska could draw $48 a
week for 25 weeks for a total of
$1200 compared with the present
maximum of $625.
Sen. W. L. (Dan) Lnamon, Fair
banks Republican, cast the only
vote against the dependents' in
crease bill. There was little crit
icism of it because dependents must
reside in Alaska to benefit.
The bill raising the basic work
ers’ benefit to $30. however, drew
fire because of testimony of of
ficials who said about 45 per cent
of the total payments go to workers
who are in the states for the winter.
Many of them are construction
workers.
Votes against the increase were
cast by Sens. John Butrovich, A. F.
(Joe) Coble, and Lhamon, all Fair
banks Republicans.
A Senate majority approved the
bill after Unemployment Compen
sation officials testified all indi
cations are the fund will increase
during the year, due to increased
Alaska activity, even if individual
and family payments are higher.
John McLaughlin and George
Crisman of the employment secur
ity division testified and were cross
examined at length on the two bills.
A1 Anderson, executive secretary of
the Alaska Miners Association, testi
fied against them, labeling the com
bination of the two bills "a double
barreled blast.” He complained that
miners couldn’t draw benefits dur
ing the off-season "and we object
to having it go south for California
holidays.”
Cleta Mae Cammock. executive
secretary of the Territorial Feder
ation of Labor, contended the $25
weekly figure was long outdated;
that it was set in 1946 on the basic
theory that it would be roughly
50 per cent of a person’s earnings
rate. She said the average earnings
then, however, were $60 a week and
the average has climbed to $89, leav
ing the $25 benefit scale far behind.
A “by request” bill introduced in
the Alaska Senate yesterday by
Sen. W. L. (Dan) Lhamon, Fair
banks Republican, would make per
sons under 21 equally responsible
with the bartender if they buy or
try to buy intoxicants.
(Continued on Page Two)
_SEEKS DIVORCE
Denise Darcel. French actress and |
screen star seeks legal separation
from her wealthy husband, Peter
Crosby. She is shown on the beach
at Miami Beach, F!a„ where she is
singing in a night club. (/W Wire
photo.
STEEL CUT IS
ORDERED BY
GOVERNMENT
-WASHINGTON, March 7 — IIP)—
The government has ordered makers
of approximately 150 consumer dur
able goods, ranking from passenger
cars to pocket Knives, to use less
steel. They are to be limited during
the second quarter of this year to
20 per cent less than they used
during the average quarter in the
first half of last year.
The order puts into effect the
steel cut announced Feb. 20 by Man
ly Fleischmann, the National Pro
duction Administrator.
It lists in detail for the first time
the products affected.
In addition to passenger cars,
furniture, refrigerators, radios and
television sets, which were men
tioned in the previous policy an
nouncement, the list Includes vac
uum clet%'rs and lawn mowers,
cameras and ashtrays, private air
planes, garbage disposal units, bur
ial caskets and many others.
GRANTS PASS GUEST
Mrs. Clara Hu.vey of Grants
Pass, Ore. is at the Oastineau Hotel.
$996,150 j
APW FUNDS !
UNFROZEN
WASHINGTON, March 7 —(A>)—
Secretary of the Interior Chapman
announced these allotments lor J
public works in Alaska:
Anchorage — $239,000 for exten
sions and improvements to sewage
system and $130,400 for additions
and improvements to municipal
water system.
University of Alaska — $208,350
for additonal utilities, including an
electric generating plant and distri
bution system.
Fairbanks — $251,800 for develop
ing a water supply and building a
distribution system.
Cordova — $166,600 for additional
and improvements to the municipal
water system.
Don Wilson, director of Public
Works for Alaska, said today that
these allotments were from 1951 ap
propriations and work is being
rushed on plans in order that bids
may be let as soon as possible to
take advantage of the coming con
struction season.
He also said that active consider
ation is being given to Kodiak sew
er and water systems and to a sewer
system for Seward.
DEPT. OF TAXATION
OFFICE OPEN NOON
HOUR TO MARCH 15
The office of the Territorial De
partment of Taxation will be open
from 12 noon until one o’clock in
the afternoon as well as the regular
hours from 9 to 5 from tomorrow
through March 15 for the conveni
ence of persons filing Alaska net
income tax returns, it was an
nounced by that office today. This
announcement was made today by
Tax Department officials.
WEATHER REPORT
Temperature for 24-Hour Period
ending 6 20 o'clock this morning
In Juneau — Maximum.
18; minimum, 13.
At Airport — Maximum,
20; minimum, 9.
FORECAST
Continued fair; cold and
windy tonight and Thursday.
Low temperature tonight
near 14; high Thursday near
24.
PRECIPITATION
(Past 24 hours ending 7:30 a m. toda:
City of Juneau — None;
Since March 1 — .32 inches;
Since July 1 — 51.21 inches;
At Airport — None;
Since March 1 — .41 inches;
Since July 1 — 32.38 Inches.
• ••••••••
GENERAL
ASSAULT
IS MADE
By Associated Press
Allied forces attacked on a 55
mile front behind a thunderous ar
tillery barrage in Korea today but
thousands of Reds smashed back
on the eastern end of the battlelinc.
Elements of all three corps in the
U. S. Eighth Army pushed off in
clear, crisp weather in a general
assault. Taking part were six Amer
ican and Republic of Korea (ROK>
divisions and smaller Allied units.
Scarcely had the push started
with crossing of the Han River east
of Seoul than two Korean Red corps
with an estimated strength of 13,
500 counter-attacked on the East
ern flank of the mountainous bat
tlefront.
Reds Mass Suddenly
AP Correspondent Tom Stone re
ported "the sudden appearance of
the massing Reds all but check
mated a U. S. Seventh Division at
tack that started earlier in the day.”
An RQK battalion was unreported
at nightfall.
ROK troops on the American di
vision's right flank were forced to
withdraw one to three miles.
Red resistance was bitter else
where on the Central and West
Central fronts.
Assault Boats Used
On the western end of the attack
line, a battalion of the famous 27th
Wolfhound regiment of the U. S.
25th Division surged across the
twisting, Han in assault boats.
In the center the U. 8. First Ma
rine Division and four American
infantry divisions and their attach
ed Allied elements pushed off easi
of the Han crossings. The U. S. 24th
Division took one hill and ran into
stiff Red resistance on two others.
British troops attacked the enemy
dug in deeply north of the lateral
Yongdu-Hoengsong road.
Massive Red Offensive
Oen. MacArthur made his l«tl]
flying visit to the front and warned
the Chinese were building up for a
"massive offensive.” He called for
a UN decision on Red China’s un
declared war and declared the pres
ent situation will reach a “theoreti
cal stalemate" unless something is
done about it.
MacArthur visited frontline posi
tions around captured Yongdu. He
arrived there in a small observation
plane, then returned to Suwon Air
field to return to Tokyo in his own
big transport plane “Scap.”
DR. RYAN BE GUEST
AT TOASTMASTERS
MEETING THURSDAY
The local Taku Toastmasters
! Club will have an interesting and
i varied program Thursday night iri
j the Gold Room of the Baranof
! hotel. Dr. James Ryan will be spe
1 clal guest, and offer his comments
j on educational subjects after the
speakers have delivered their sub
jects of the week.
Leo H. Saarela is toastmaster and
he will be assisted by Commander
Ed Chester who will give a dis
I sertation on the Gold Medal Bas
ketball tourney. Commander Haw
1 ley will give a five-minute educa
| tional speech on the subject "Word
Play, and Herb Rowland will talk
about “The Man I Would Like to
1 Introduce."
| A high school graduation address
by Joe McLean promises to be the
I highlight of the program. He will
give a 10-minute address on “Grad
j'uatlon from the Podunk High
| School.”
Chief critic will be A1 Ransome,
1 assisted by critics Richie. Dunn,
i Reynolds, Nelson and Green.
SENATORS WILL BE
CHAMBER GUESTS
TOMORROW NOON
Alaska Territorial Senators will
J be special guests of the Juneau
| Chamber of Commerce at a regular
■ luncheon meeting in the Gold Room
1 of the Baranof Hotel tomorrow
1 noon, Herbert Rowland, president,
| said today.
Following a regular business ses
] sion, each senator will be intro
, duced with a short biographical
j sketch.