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THE DAILY ALASKA EMPIRE
“ALL THE NEWS ALL THE TIME” **
• _ .
VOL. LXXV., NO. 11,565 _*_JUNEAU, ALASKA, THURSDAY, JULY 27, 1950_MEMBER ASSOCIATED PRESS PRICE TEN CENTS
CapLA.E. Lathrop Killed In Mine Accident
BOYCOTT OF
UN BY RUSS
ENDED NOW
Notification is Given that
Soviet Union Will As
sume Presidency
BULLETIN — LAKE SUCCESS,
N. Y„ July 27—l/PI—Russia notitied
the United Nations she is ending
the boycott and would assume pres
idency of the Security Council or
August one.
Soviet Deputy Foreign Minister
Jakob IVIalik. who led the Russian
walkout from the UN in January,
notified Secretary General Lie he
would assume the presidency.
Under the system of alphabetical
rotation used by the council, Rus-..
sia is due to preside in August but
other council members had not ex
pected the Russians to appear.
CAPT. JOHNSON WILL
TAKE CAPT. HANSEN'S
POST FOR SECOND TIME
In 1947 Capt. Melvin A. Johnson
relieved Capt. Svend C. Hansen as
chief of personnel and training at
the headquarters of the Alaska
Communications System in Seattle.
Captain Johnson is in Juneau now
to relieve Captain Hansen again,
this time as sector commander of
ACS here.
Captain Hansen, who has been in
Juneau since August, 1946, will turn
over command of the local sector
to Captain Johnson Tuesday. Cap
tain Hansen was a member of the
Juneau Rotary Club and resided in
West Juneau. He has been ordered
to ACS headquarters in Seattle and
will leave with his family August
6 on the Aleutian.
Captain Johnson served four
years in Alaska before the war—at
Fairbanks and Anchorage, and was
non-commissioned officer in charge
of the Nome ACS station at the
outbreak of the war.
He served as a commissioned of
ficer in Europe for three and one
half years during the war and has
been at ACS headquarters since his
return.
Captain and Mrs. Johnson ar
rived Tuesday on the Baranof and
already are settled in their home at
850 Gold Belt Avenue, a new resi
dence built by James Larsen.
fine Washington
Merry-Go-Round
Bv DREW PEARSON
(Copyright, im.ty Bell Syndicate. Inc.)
M^ASHU^GTON—It isn't gener
ally known, but Admiral Roscoc
Hillenkoetter, chief of the super
duper spy agency, central intelli
gence, had asked for sea duty well
before the Korean outbreak.
The admiral has done a better
job of foreign intelligence than
Congress gives him credit for, but
he has never been particularly
happy In the job and would like
to get back to a battleship. Hillen
koetter was former commander of
the battleship Missouri, comes from
the state of Missouri, and was
picked by Truman personnally for
the difficult intelligence assignment.
Faced with the admirals insist
ence that he wants to be trans
ferred, President Truman has asked
General Bedell Smith, former U.S.
Ambassador to Moscow, to take
over central intelligence. Smith,
so far, has refused, on the ground
that he recently underwent an
ulcer operation.
Gen. Smith knows the Russians,
and would be better than' most
military men for this assignment.
However, Congress, in creating cen
tral intelligence, did not intend that
it be run by the military. Past
experience has shown that civilians
are better qualified" to direct de
tective-espionage agencies.
Therefore, some of the President’s
friends are urging that he appoint
J. Edgar Hoover to this important
post, * f f ■ Si
Hoover is one of the best organ
izers in government, has built up
one of the best-trained investiga
tion bureaus the world has ever
(Continued on Page Four)
Superforls Strike Seoul Yards
!
Great clouds of gray and black smoke float un from Seoul marshalling yards after B-29 Superforts j
struck in the second major raid. Center of hits ap pears to be at left where trains are visible. Photo
was taken by RF-80 jet reconnaissance plane shortly after strike, iff) YVirephoto from U. S. Air Force.
REDS MASS
FOR BIGGEST
PUSH OF WAR
—
MacArthur Flies to Front
Confident of Ultimate
U. N. Victory
(By the Associated Press)
Three big Communist columns
speared eastward on the central sec
tor of the Korean front today
against American lines in the face
of murderous artillery and plane
fire, and the indications were that
the Reds were massing for what
may be the biggest battle of the
war thus far.
On the northeast flank. South
Korean troops attacked and pushed
the Reds back seven miles.
The Second and Third Red Di
visions—their best—regrouped on
the central front for the big push.
These troops, with the mauled Reel
First Division, have been in the van
of the whole invasion march down
the peninsula. They are well trained
and still have much offensive
punch, despite their heavy lqsses.
Gen. MacArthur paid a flying
visit to the front—his second of the
war—and flew back to Tokyo, after
expressing conviction that United
Nations victory Is sure. In Tokyo
his headquarters issued a communi
que saying the Reds were continuing
pressure in a manner suggesting
"that the invaders were regrouping
and reorganizing.” The Communists
were reported moving by night to
assembly areas, to avoid punishing
air attacks.
Reds Punched Back
South Korean troops, with U.S.
air support, delivered two sharp
punches, one on the northeast of
the Yongdong sector, and one on tire
east coast. In both cases they drove
Red forces back. Six enemy tanks
were knocked out in battlefront ac
tions by bazooka fire and plane at
tacks. Allied warships helped out in
the east coast action with strong
shellfire.
At Maromyon, 15 miles northeast
of Yongdong, the 24th Regimental
combat team, the only Negro unit
(Continued on Page Eight)
STOCK QUOTATIONS
NEW YORK, July 27 — Closing
quotation of Alaska Juneau mine
stock today is 2%, American Can
90' ■>, Anaconda 327s, Curtiss
Wright 10%, International Harves
ter 28%, Kennecott 60%, New York
Central 14%, Northern Pacific 17%,
U.S. Steel 35%, Pound $2.80Vi.
Sales today were 2.300,000 shares.
Averages today are as follows: in
dustrials 206.37, rails 61.31, utilities
137.59.
Alaska Gopers
Stage Kickoff;
For Campaign!
Albert White, Speaker,!
Reveals Many Shortcom
ings of Administration
By LARRY MEYERS
KETCHIKAN, Alaska, , July 27—
(Special to The Empire) — Urging
voters of the Territory to begin “a j
crusade to save Alaska" Albert
White, war horse of the Republican J
party, was the principal speaker at
the Republican dinner Tuesday
night which marked the kickoff for
the general election campaign to I
place "taxpayers” candidates into!
Territorial office.
In a brass knuckle speech which
bristled with indignation White
hurled his brawny frame into a
blistering attack upon the present
administration and called upon the
people of Alaska to rid themselves
of "the four horsemen” which are
riding the rough shod over the ter
ritory. His four horsemen he named
as “dishonesty, corruption, malfea
sance, and misfeance."
Stating that at the last meeting
of the Republican party a commit
tee was set up in the party to in
vestigate corruption within the gov
ernment of the territory. White be
gan his speech by pointing out that
Norman Haley, former administra
tor of the Territorial Veterans
Board, had used the funds of that
board to finance personal friends
and had involved over $10,000 of
taxpayers money in a deal in Ju
neau which was never recovered.
White said that out of 2 million
dollars invested by the board since
it was first created about $400,000
of this amount is now uncollectable.
: Turning next to the treasurer’s
office. White pointed out that
former territorial treasurer Oscar
Olsen was now serving ten years
in prison for theft after it was
proven that his office was at least
$50,000 short in territorial funds.
In addition to this amount. White
said, many of the deputy collect
tors whom Olson appointed, and
whose duty it was to sell liquor
stamps to bars and dealers where
short in their account, one A them
to the extent of $27,000.
Evidence Destroyed
White said that when he went to
the treasurer’s office to find out
about this report he was told that
all records had been destroyed and
no evidence remained on which to
continue the investigation or deter
mine just what_ took place.
White then brought forth the
statement that the salary of George
Sundborg as consultant for the
Alaska Development Board and
(Continued on Page Five)
- *
HOUSE BILL i
SAFEGUARDS
COAST PORTS
WASHINGTON, July 27 — W) —
The House voted today to erect
safeguards against the sneak entry
of possible bomb-carrying "Trojan
Ships” into U.S. ports.
Without opposition, it whipped
through a bill authorizing the Presi
dent to search and control move
ments of all foreign flag vessels en
tering American waters.
Rep. Celler (D-NYi told the House
the legislation is aimed to prevent
a potential enemy from bringing
the A-bomb into American harbors
under the guise of merchant ship
ping.
Search of foreign vessels would be
conducted by the Coast Guard or
the Custom Service upon order of
the President in a national emer
gency.
The bill goes back to the Senate
for action on minor changes before
going to the White House for Mr.
Truman’s signature.
Customs officials on the West
Coast already have taken steps to
forestall possible efforts of foreign
ships to bring atomic bombs or bac
terial warfare ingredients into
American harbors.
INTERIOR AIRFIELDS
BUILDING ON TIME,
SAYS (AA OFFICIAL
The two large international air
ports now under construction at
Fairbanks and Anchorage are up
to schedule and will be completed
next year, according to Chris Lpm
ple, Civil Aeronautics Administra
tion executive in charge of Alaska
public airports.
Lample and his wife arrived hire
I on board the Baranof from Wash
ington, and will be met by Walter
Plett, CAA director in Anchorage,
who will accompany them to the
Hub City.
\ Work at the Anchorage airport is
[taking longer than originally plan
| lied because an increased appropri
ation allows the lengthening of the
1 field to 8,400 feet, rather than 7,600
i feet as first planned.
FROM PENNSYLVANIA
Catharine McClellan of Spring
Grove, Pa., is staying at the Ju
neau Hotel. She is a member of the
scientific party headed by Dr. Fred
erica deLaguna, now making an
thropological studies at Hood Bay.
AT GASTINEAU HOTEL
H. B. Crewson, broker of Seattle,
is staying at the Gastineau Hotel.
FROM SKAGWAY
Erna Taylor of Skagway is stop
ping at the Gastineau Hotel.
NO CONTROLS
NEEDED YET,
SAYS TRUMAN
A-Bomb Not Contemplated
-Solons Seek Curb on
Powers Asked
* •
WASHINGTON. July 27 — — j
President Truman said today he
sees no necessity now for wage,
price and manpower controls.
He told a news conference that
if they come they will come to
gether as part of all-out mobil
ization.
He hopes we will not have to
to have all-out mobilization, ne
added.
Mr. Truman's comments came in
response to questions about the
proposal from Bernard M. Baruch
for an immediate "ceiling on
everything."
He gave his views to Congress
yesterday. They appeared divided
on his proposal with most mem
bers apparently against any all-out
mobilization right now. There were j
others, however, who called for!
full-scale economic mobilization
with consumer rationing and wage
price controls.
President Truman also told his
news conference:
1. He is not now considering use
of the atomic bomb in the Korean
war.
2. Steps are in the making to
deal with any traitors or saboteurs
in the present emergency. Those
Steps will not infringe on the bill
of rights, he added.
3. The State and Defense Ce
,:tments a;e working on propos
als for increased military aid to
European allies. He said these
proposals will be presented to Con
gress before it adjourns.
4. He did not want to make any
comment now" on peace prospects;
that it would be better to wait for
a few more developments. A re
porter had recalled that only a
couple of months ago the President
had said the outlook for peace was
better than it had been at any
time since 1945. The newsmen
asked if the President still felt
that way.
Control Rumor “News’
On the question of wage and
price controls, *Mr. Truman said
he thought his economic message
to Congress had covered that. He
said then he would not hesitate
to ask for them if he thought
they were needed.
A reporter said there were ru
mors around Washington that price
and rationing steps were already
in the making and were to be set
in force by Labor Day.
The President said that was news
to him.
Another reporter wanted to know
whether, if prices are rolled back,
'hey would be rolled back to the
June 25 level as Baruch proposed.
Mr. Truman said he would cross
that bridge when he came to it.
But such a step, he went on, is
not being considered now.
At the Capitol. Attorney Gen
eral McGrath made a plea, mean
time, for quick passage of the con
trols asked by President Truman.
McGrath was before the Senate
banking committee, the same grdTTp
that heard Baruch.
The Attorney General told the
senators he believes the powers the
President seeks are broad enough
and flexible enough to handle the
situation unless there are "more
serious developments."
Not Fast Enough
Baruch, venerable Presidential
and Congressional adviser, critl
(Continued on Page Two)
STEAMER MOVEMENTS
Princess Kathleen from Van
couver due Saturday afternoon at
3 o'clock.
Freighter Flemish Knot from
Seattle scheduled to arrive Sunday.
Prince George scheduled to sail
from Vancouver Friday.
Aleutian scheduled to sail from
Seattle Saturday.
Princess Norah scheduled to sail
from Vancouver Saturday.
Princess Louise due to arrive at
8 a.m. Friday sailing south one hour
later at 9 a.m.
Alaska from west scheduled
southbound 5 p.m. Friday.
Baranof scheduled southbound
from west on Sunday.
I
^^^^^^^^CAPT^USTI^ErGENin!ATnR«r
- ---
More probably than any other
one man, Capt. Lathrop deserves |
to be called "the Builder of Alaska” ,
for he had pioneered in almost
every field of economic and social |
activity and has provided the Terri
tory with a great proportion of its
modern industrial structures.
His career of over 50 years in
Alaska was one of constant and
varied successes, it brought him to
eminence as a director of trans
portation companies as builder and
manager of real estate properties,
a mine operator, radio executive,
legislator, university regent and
banker. I
Capt. Lathrop was born in La
peer, Mich., October 5. 1865, the
son ol Eugene and Maria Parson
Lathrop. When he was 16 The
family moved to Ashland, Wiscon
sin. Following his education in the
public schools he began a transfer
business there before he was 21.
While engaged in that business.
Capt. Lathrop read of the disas
trous fire in Seattle on June 6.
1889. Recognizing the opportunity
offered by the rebuilding of the
Puget Sound city, he left Ashland
within 24 hours and was on Hi#
way to the west coast before the
ruins of the Seattle he was to help
rebuild had ceased smoking.
“Boy Contractor"
By 1890, he had earned the name
of "Boy Contractor,” Seattle was
largely rebuilt and he moved his
headquarters to Anacortes. There
he cleared the townsite, graded
streets and built an electric road.
His next move, after the panic ol
1893 in which he suffered severe
losses, was to Protection Island
near Port Townsend where he de
veloped one of the region’s show
places and engaged in chicken
ranching.
Comes to Alaska
Capt. La'hrop’s first active in
terest in Alaska was aroused by
news of the gold strike at Cook’s
inlet. Seizing the opportunity the
-old rush opened in the transport
ltion business, he purchased a hall
interest in the steam schoonei
'L. J. Perry” and tor some years
operated the vessel in Alaskan
waters. It was this connection with
the sea w'hich won him the title of
■captain" and he was afterward
known affectionately as “Cap"—
or "Capt.” as it became in the
interoffice correspondence of ills
organization.
Prospects for Oil
In 1901 he took the first drilling
rig into the Territory and used it
to prospect for oil in the Cold
Bay district. Shortly afterward he
moved to Valdez and with the help
of San Francisco capital, organ
ized the California-Alaska Mining
and Development Company to pros
pect for copper and though copper
was found, it could not be profit
ably mined because of lack ol
transpor’ation facilities.
In 1907 he expanded his interests
to several cities and many enter
prises. He started a transfer bus
iness in Cordova, entered the
theatre business. In 1917 he bul>
a large apartment house there.
He had extended his interests to
Anchorage and there repeated In
vestments in the transfer business,
theatre and apartment operations.
Fairbanks was brought into the
realm of Capt. Lathrop’s activities.
In that year he purchased a thea
tre there and acquired an interest
in the Healy River Coal Corpora
ion w hich operated the mine where
lie met his death yesterday.
His enterprises in Fairbanks were
enlarged by the construction n
1927 of the first concrete building
in that city and, ten years latei
another large concrete building
which houses his second theatre
his newspaper, the Fairbanks Dailj
News-Miner, and radio station
KFAR of his Midnight bull Brtiad
casting Company and apartment.*.
His most recent development is
another radio station, KENI ti
Anchorage and the beautiful 4th
Avenue theatre.
Never Considered Costs
Capt. Lathrop planned and erec
ted all of his buildings without con
sideration of costs. He endeavored
to return to Alasku in the form ol
line buildings the benefits he re
ceived from the Territory.
In addition to his business acti
vities, Capt. Lathrop always took
a sincere interest in political and
educational affairs In Alaska. He
was a member of the Territorial
legislature, Republican national
committeeman from 1928-1938 arftk
had been named Republican na
tional committeeman again at tht
recent party convention in Juneau.
On the occasion of his 80th
birthday celebration in Anchorage.
The Fairbanks Daily News-Miner
published an editorial on the front
page of its extra "birthday edition”
which ended with this revealing
paragraph:
"We, as employees and friends
of Capt. Lathrop, are proud of oui
association with a man whose ac
complishments are so great and
who still leads the way.”
At the moment of his untimely
hath, he was still leading the way.
CHAMBER PAYS TRIBUTE
TO LATE CAPT. LATHROP
The Juneau Chamber ol Com
merce at its noon meeting todaj
paid tribute to Capt. Austin E.
Lathrop, Alaska’s outstanding in
dustrialist who died in a tragic
coal mine accident yesterday.
“ ‘Cap’ Lathrop was a great Alas
kan industrialist and a wonderful
leader," Chamber President Robert
3occhever said. "We all feel deeply
ibout his passing.”
FWS MAX HERE
C. H. Pemberton of the U. S.
Pish and Wildlife Service arrived
from Seattle and is a guest at the
Juneau Hotel.
• •••••••••
• WEATHER REPORT
• •
• In Juneau—Maximum, 53;
• minimum, 48.
• At Airport—Maximum, 53;
• minimum, 46.
•
• FORECAST
• (Juneau and Vicinity)
• Cloudy tonight. Intermit
• tent rain Friday. Low tem
• perature tonight about 50
• and high Friday near 60.
•
• PRECIPITATION
• (Past 24 hours ending 7:30 a m. today
• City of Juneau—0.98 inches;
• since July 1—8.67 inches.
• At Airport — 1.22 inches;
• since July 1—6.53 inches.
*•«****•••
FINANCIER
CRUSHED BY
LOAD OF COAL
84-Year-Old Alaska Lead
er, Beloved as "Cap,”
Dies in Healy River Mine
FAIRBANKS, Alaska, July 27—
i.fl—Alaska's foremost Industrialist
and wealthiest man—Capt. Austin
Eugene Lathrop—died beneath the
wheels of a loaded coal car yester
day. He was 84.
The fatal accident occurred as
Lathrop inspected a load of coal
gondolas at his Healy River Corp.,
holding at Suntrana, 112 miles south
of here.
Dr. Paul B. Haggland of Fair
banks said the operator of the gon
dolas failed to see Lathrop and
released a loaded car down a slight
incline. The industrialist either
tripped or fell under a wheel.
An inquest was to be held at the
mine today by U.S. Commissioner
Margaret Sullivan of Nenana.
The Fairbanks News-Miner owned
by Captain Lathrop. said the body
was being returned here in an
Alaska Railroad ambulance car.
After several days, it will be ship
ped to Seattle where his will stip
ulates that he be buried.
His extensive holdings are be
lieved to run to several million dol
lars.
Captain Lathrop many years ago
expressed his intention of turning
his businesses over to his senior em
ployees upon his death.
In addition to controlling interest
in the Healy Blver Corp.. Alaska's
largest coal mine, and the Fair
banks newspaper, Lathrop owned
five theaters, two radio stations, a
large apartment building and a
bowling alley.
DU1U 111 JJOJJCLi , wv.
1865. Lathrop came west to Seattle
In June, 1889, a few days after the
Seattle fire razed much of the city.
"Boy Contractor”
He pitched a tent, set himself up
as a contractor, and began razing
old buildings and excavating for
new. Within a year he was known
throughout the Pacific Northwest
as the "boy contractor".
He contracted to build an electric
railroad from Anacortes, to Fidalgo,
on Fidalgo Island, but the railroad
collapsed in the 1893 financial panic.
Undiscouraged, he leased Protec
tion Island, off Sequim on the
Olympic Peninsula, setting up one
of the northwest’s first modernized
poultry ranches. It was there that
he entertained Benjamin Harrieon,
former President of the United
States.
Acquires "Captain" Title
Lathrop acquired the title of
Captain in 1896 when he bought a
half interest in the 110-foot steam
schooner L. J. Perry and piloted lt>
carrying gold-seekers from port to
port in Alaska.
He set up a draying business at
! Valdez and hauled supplies over
| the rugged trails to the interior cop
| per mines. With the start of con
struction on the Copper River
j Northwestern Railroad. Lathrop
j moved to Cordova, the rail terminus,
i and contracted to haul all supplies
from the docks to the railroad work
ing areas.
Lathrop married Mrs. Cosby L.
McDowell, a Seattle widow, in Val
dez in 1901. Mrs. Lathrop died in
1909.
In 1900 he took the first modern
oil-drilling equipment into the Ter
ritory and started drilling for oil at
Cold Bay, near the tip of the Alaska
peninsula.
He abandoned the oil project
when Alaskan coal and oil lands
were withdrawn from public entry
by the government a few years later.
Start in Cordova
It was at Cordova, Lathrop fre
quently said later, that he got his
start. He subsequently became a di
; rector and president of the Bank of
! Cordova, bought the Cordova Com
mercial Company and his first the
ater.
Naturally, he has been a vital
figure in the Territory’s politics. A
staunch Republican, he served as
the party’s national committeeman
during ex-President Hoover's term
and was recently renamed to the
post. He was opposed to Territorial
Governor Ernest Gruening and to
Statehood for Alaska. He served in
I the Alaska Legislature in 1921 as
(Continued on Page Two)