THE DAILY ALASKA EMPIRE
“ALL THE NEWS ALL THE TIME”
VOL. LXXIX., NO. 11,989
JUNEAU, ALASKA, THURSDAY, DECEMBER 13, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Truman Is
Going to
Gel Tough
Drastic Action to Clean
Government's House,
Has No Favorites
WASHINGTON, Dec. 13—UP)—Pre
sident Truman today promised
what he called continued drastic
action to clean house in the gov
ernment.
He indicated he will set up a
special agency to fight corruption,
possibly tomorrow or Saturday.
Allowing himself to be quoted
► directly at one point on the scand
als in the tax collecting and some
other agencies, Mr. Truman told a
news conference:
“Wrongdoers have no house
with me no matter who they are
or how big they are.”
In response to questions, the Pre
sident said he has no plans to
fire Attorney General J. Howard
McGrath or Democratic National
, Chairman Frank McKinney.
Several Republican members of
t Congress have demanded the dismis
sal of McGrath as a result of dis
closures in the House investiga
tion of tax scandals.
, Chairman King (D-Calif.) of
the House group has publicly
said he believes T. Lamar Caudle.
Assistant Attorney General in
charge of the tax division, was
unfaithful to his public trust.
* Mr. Truman fired Caudle last
month.
McKinney has come under fire
because of the disclosure that he
made a $68,000 profit on a $1,000
investment in a tractor firm head
ed by a man whose wartime gov
ernment ordnance contracts were
sharply criticized by Mr. Truman
then a Senator.
Mr. Truman’s news conference,
always well-attended, drew an even
heavier than usual attendance of
reporters who anticipated he might
announce some dramatic action in
connection with the newest dis
closures.
When the subject came up, the
President declared with firm em
phasis that his administration al
ways has acted swiftly to elimin
ate wrongdoers from its ranks and
will continue to do so.
He said his administration did
exactly this,, through its loyalty
boards, in the case of Communists
' who were found to be working for
the government.
These were brought to trial and
convictions were obtained by the
Attorney General, just as they
should have been, despite a great
deal of ballyhoo to the contrary,
the President said.
He declared that the public of
ficials recently fired—including
Caudle—all were being investi
i gated by the executive branch of
the government before their names
turned up in Congressional in
vestigations.
He said the administration was
wise to Caudle, whe has been ac
cused of taking favors from per
(Continued on Page Two)
TheWashingion
Merry-Go-Round
•Copyright. 1951, by Bell Syndicate, Inc.)
By DREW PEARSON
rr ASHINGTON — Henry Grune
wald, King of the five-percenters,
has known more important people,
fixed more interesting influence
deals, yet kept out of the limelight
—until recently—than almost any
one else in Washington. He has
had his finger in all sorts of gov
ernment pie—from income taxes
and war surplus to alien property
and defense contracts. Yet no one
knows much about him.
Almost two years ago, this col
umnist learned that Grunewald
had arranged to tap Howard Hugh
es’ telephone wire for Senator
Brewster and Pan American World
Airways at a time when Pan Am
wanted to buy Howard Hughes’
Trans World Airlines.
Later, I was able to turn over cer
tain evidence to Senator Matt
Neely (D-W-VA), chariman of the
District of Columbia committee,
which resulted in a Senate investi
gation.
However, getting the evidence on
the elusive Mr. Grunewald, some
times called “The Dutchman," was
like tracking down a will-O’-the
wisp.
The investigation of Grunewald
started by consulting the telephone
(Continued on Pago 4)
Cars Tossed in Streamliner Crash
Three cars cf Ihe Louisville and Nashville's CTascent hang over embankment after streamliner collided
, wjth the Southern Pacific’s Soutlierr.'vr near Woodstock, Ala., killing at least 16 and injuring an
estimated 60 persons. The engine of the Southerner is at right in this aerial view. The engines col
lided on lire overpass and were hurled back about 9 C feet by the impact. OP) Wircphoto.
Right oi Newspapers So
Criticize Upheld by Supreme
(curt of South Carolina
Chamber Elects Two 1
New Beard Members;
Reelects Four
Tlie Juneau Chamber of Com
merce elected six executive board
members and plans were announced
regarding the Christmas decora- j
tions contest at a regular luncheon j
meeting at the Baranof Hotel this j
noon. ... • |
Reelected to the board were O. F.
Benecke, F. O. Eastaugh, Henry'
Green and F. D.Nagel. New members I
chosen were Charles Burdick and
E. J. O'Brien. Outgoing president !
Herbert S. Rowland will automat- j
ically become a board member.
Jessie McCrary, chairman of the:
civic affairs committee, announced j
that instead of soliciting prizes for !
the Christmas contest from mer-j
chants this year, the chamber would j
issue gift certificates redeemable |
at any business houso in the city.:
Prizes will be given in two divi- ;
sions—for business establishments J
and residences and apartment
houses. Gift certificates will be is- i
sued in the amounts of $20, $15, $10
and $5 for first, second, third and I
honorable mention. A picture of j
the winning display will be taken
for publicity purposes.
Mrs. McCrary suggested that the
judges remain anonymous this year
and the certificates be awarded im
mediately after the judging in order
that the recipients may utilize them
before Christmas. Judging will taly
place between 5 and 8 p.m., Decem
ber 23.
Mayor Waino Hendrickson and
the Juneau city council were com
mended by the executive board for
the full publicity given the city
bond issues prior to the special elec
tion last Thursday.
A letter from the Alaska Develop
ment Board was read requesting
suggestions for roads needed in this
vicinity within the boundaries of
the National Forest. It was referred
to the road committee.
There was some discussion of the
traffic and parking problems, of
the children’s coasting streets and
difficulty in maintaining necessary
traffic signs.
Charles Carter reported that dur
ing Hallowe’en a traffic sign had
been removed from its original loca
tion and placed on the Carter
Chapel door. It read “One Way
Traffic.”
T. P. Hansen, Union Oil Co., rep
representative from Ketchikan was
a guest.
Stock Quotations
NEW YORK, Dec. 13—OTt—Clos
ing quotation of Alaska Juneau
mine stock today is 2%, American
Can 110* i, American Tel. and Tel.
156%, Anaconda 50%, Douglas Air
craft 59, General Electric 57%,
General Motors 51%, Goodyear 43%,
Kennecott 86%, Libby McNeill and
Libby 8%, Northern Pacific 6*7%,
Standard Oil of California 50%,
Twentieth Century Fox 19, U. S.
Steel 40, Pound $2.80%, Canadian
Exchange 97.25.
Sales today were 1,380,000 shares.
Averages today were as follows:
industrials 265.81, rails 82.70, util
ities 46 65.
COLUMBIA, S.C., Dec. 13—
Anyone holding or seeking a public
office Is subject to legitimate crit
icism in newspapers, the South
Carolina Supreme Court held yes
terday.
This ruling in a unanimous opin
ion rejected an appeal by former
State Rep. A. Y. Cartwright. Jr.,
of York in his $100,000 damage suit
against the Herald Publishing Com
pany of Rock Hill and publisher
Tablot Patrick.
Cartwright charged that two let
ters to the editor of the Rock Hill
Herald libeled him. The ■’Circuit
court jury verdict held for the de
fendants.
"When a citizen holds a public
office or holds himself as a candi
date for public office,” the court
said, “he becomes an object of
legitimate criticism; his policies,
acjts, and fitness, and qualifications
for the office he holds. And any
newspaper or citizen is privileged
to publicly criticize him and discuss
him thereabout without being held
liable for damages.”
Huge Water
Tank
Collapses
Business Section of Toton
Flooded; Four Lives Lost
Heavy Damage
TUCUMCARI, N.M., Dec. 13—1.4*
—A 3,000,000-gallon water tank col
lapsed before dawn, killed four per
sons and caused damage estimated
in millions here today.
Giving way with a deep rumble,
the tank loosed a flood through the
business district about 4:10 a.m
(MST). The cause was not deter
mined. •
Water up to waist deep spread
devastation over an area three
blocks wide and, in a lessening de
gree as the distance grew, a quarter
mile long. The scene was likened
to one hit by a bomb.
Two business places, the city
warehouse and about 15 homes
most'y of adobe (mud brick!, were
laid waste. Another estaBlishment,
a motor firm, was damaged by
water. Pieces of the three-eighths
inch thick steel from the tank were
scattered over a city block.
Rescuers, including quickly mobi
lized National Guardsmen, recov
ered four bodies and there were no
reports of any persons missing. The
J last to be found, a boy 3 or 4 years
j old, was under a 250-foot section of
the tank.
The dead:
Deal Elliott, about 60.
A Mrs. San Miguel and her small
son.
Steve Gallegos, about 14.
FROM SEATTLE
Don Lund berg of Seattle is re
gistered at the Baranof Hotel. He
was here for an Alaska Public
Works bid opening on the Haine<
water and sewer improvement pro
ject yesterday.
Mrs. K. Raatikainen of Pelican i;
a guest at the Gastineau Hotel.
Oliphant
Testifies in
Tax Case
WASHINGTON, Dec. 13 — Ml —
I Charles Oliphant, former chief legal
officer of the federal tax collection
service, told House investigators to
day he knew nothing of any gov
ernment "clique” seeking “soft
touches” among troubled taxpayers.
Speaking slowly, and in a low
voic?, Oliphant declared:
j “I again deny categorically eithir
i membership in, or knowledge of the
existence of any such clique as
described in the testimony of Teit
elbaum before this committee De
cember 4.”
Abraham Teitelbaum, wealthy
Chicago attorney, has charged that
two men tried to shake him down
for $500,000 last April under threat
he would have "bad tax troubles" if
he did not retain their services.
He said the two—Frank Nathan
and Bert K. Naster — claimed they
had connections with a “clique" of
high government officials including
Oliphant.
Nathan, a Pittsburgh promoter,
and Naster, a Hollywood. Fla., busi- |
ness man, have denied there is any
t'uth in Teitelbaum's statement.
Naster was in the witness chair
preceding Oliphant.
He accused Teitelbaum of “con
cocting” the story.
Oliphant resigned last week as
chief counsel of the Internal Rev
enue Bureau with a blast at “scur
rilous” allegations. He said he was
quitting his $14,800 a year job be
cause he could no longer endure
being the target of “vilification.”
Two Are Arraigned
On Assault Charge
Charles Tubbs and Leonard
Stokes are accused in a complaint
;i'>ied by Patrick Robinson, of
assault and battery and driving
in automobile without the owner's
permission.
Robinson, a Yellow Cab driver, al
leged that he was assaulted in
Douglas early Tuesday morning by
two men who then took his cab and
drove to Juneau. Tubbs and Stokes
were arraigned in U. S. Commis
sioner’s Court yesterday and bail
was set for $500 each. No time was
set for entering a plea, U. S. Dis
trict Attorney Patrick Gilmore said
today.
Robinson is suffering from a
broken jaw.
YOUNG GOPS TO MEET
The Young Republican Club will
meet tomorrow evening at 8 o’clock
in the Gold Room of the Baranof
Hotel, Bill Vernon announced to
day.
FROM ANCHORAGE
Buell A. Nesbett of Anchorage H
stopping at the Baranof Hotel.
Ship Movements
Denali scheduled southbn
sometime Sunday.
Baranof scheduled to sail fi'1”
Seattle on Friday.
Freighter Cassiar due to arrive
southbound sometime Satur.u.v
morning.
j Freighter Flemish Knot in port
Oscar Olson
Testifies in
Court Case
SEATTLE, Dec. 13—i.fl—Oscar G.
Olson, former treasurer of the Ter
ritory of Alaska, testified in Super
ior Court yesterday he “spent many
sleepless nights" worrying about
his use of Territorial funds for
personal expenses.
Olson, now an inmate of McNeil
Island Federal penitentiary serv
ing a 10-year sentence for embez
zlement, was a witness in an action
brought by the American Surety
Co., of New York and the General
Casualty Co., of America against
the Seattle- First National Bank.
The bonding companies, which
paid out a total of $43,351 for
Olpon's admitted defalcations, are
suing the bank, contending it
should not have honored Olson’s
signature as Territorial Treasurer
on checks the companies said ob
viously were for personal expenses.
Attorneys for the bank argued •
the law requires the bank to dis-;
burse funds on demand of the Ter- j
ritorial Treasurer; that the bond- I
ing companies should have requir- I
ed more than two audits of Olson’s |
books in 10 years; and that the |
statute of limitations outlaws the
suits. Some of Olson’s checks were
issued as far back as 1941. They
ran as late as 1948.
Olson admitted on the witness
stnad he cashed the checks for his
personal use. He identified a long
series of checks handed to him by
bonding company attorneys.
As the former treasurer identified
one after another of the checks,
Superior Judge Hugh C. Todd
asked him:
“Didn’t you expect the building
to fall on you?"
“I spent many sleepless nights,”
Olson answered
O'jon was biought into court
in r is tody of a U. S. Deputy Mar- ;
minis '
The Seattle bank was a depository ;
for Alaskan Territorial funds, which I
ran up as high as $300,000 at a I
time. ;
D-P Family |
From Poland on
Way to Fairbanks
NEW YORK, Dec. 13—tTI—They ,
have been pushed around all over
the map, and today, Mr. and Mrs.
Heinz Guenther Borchard were on
their way to "make a fresh start
in a fresh, new country”—Alaska.
The couple and their two children
Aimer 8, and Ingrid 3, were among
1,370 displaced persons arriving
from Europe on the military trans
port Gen. S. D. Sturgis.
"Sunny Italy may be alright
for most people,” Borchard said,
"but give me a place where the
air is snappier and colder. I want
to wipe the slate clean and make
a fresh start in a fresh, new
country.”
Borchard, a 31-year-old native of
Selesia (now part of Poland), fled
to Lithuania, and from there with
his wife to Italy, to escape Nazi
persecution.
Last January, after reading an
article about the Alaskan news
paper, “Jessen’s Weekly,” he wrote
a letter to the paper. The letter
was published and brought several
offers of jobs to the Borchards.
Mrs. Borchard, a dressmaker, will
work as an alteration tailor for
Dr. John Monsey, of the Pantor
ium Cleaners in Fairbanks. Mrs.
p. Griffith, offered the family
housing, and the Rev. John L.
Naakestad, pastor of the Fairbanks
Evangelical Lutheran church, wrote
that interested citizens had rais
ed $800 as a loan to bring the fam
ily to America.
COUNCIL MEETS TONIGHT
A special meeting of the Juneau
City Council will be held tonight to
act on applications for liquor li
censes. The council will meet at
7:30 o’clock in the city clerk’s of
fice at the city dock.
8 SHOPPING DAYS
TO CHRISTMAS
One Will Be Queen
One of these lovely island misses will represent the University of
Hawaii as queen in the annual I'ineapplc Howl football same at
Hrnclulu N'ew Year's Day. Undefeated Hawaii will meet San Diego
State College in the annual pod-season game. The candidates (left
to right) arc: Barbara Bark, Anne Martin and Natalie Wells. Iff)
Wirephoto.
U.S. Pilots
Win Biggest
Jet Battle
Thirteen Communist
MIGs Knocked Down in
Slashing Fight in Air
SEOUL, Korea, Dec. 13 — —
American Sabre Jet pilots won his
tory’s biggest all jet victory today.'
They bagged 13 Communist MIOs,1
probably knocked down two other> |
and damaged one in two slashing
air battles over North Korea.
Four or the MIGs went down be
fore the blaring guns of America’s
hottest Jer. ace, Maj. George A.
Davis, Jr.', of Lubbock, Tex. In 10
days Davis has bagged 12 planes,!
including nine MIGs.
On the ground, a series of minor
battles flared today as Allied In
fantrymen carried the war to the
Reds for the second time in 21
hours.
The Fifth Air Force said none of
the Sabre jets was shot down, but
one ran out of fuel, caught fire
and crashed. A helicopter rescued
the pilot.
Heavily-o utnumbered Sabres
knocked down four MIGs and dam
aged one in a morning battle over
Sinanju in northwest Korea.
Nine more MIGs were destroyed
in the afternoon. Pilots reported
two probables.
Sixty-four Sabres were matched
against 145 MIGs in the two battles.
Davis bagged two planes in each
fight.
“Yeah, I went up twice today,”
he said. "We were Just north of
the Isnanju river when we saw a
flight of about 50 MIGs. I just
led my 12 planes into the middle
of them.”
This was the second time Davis
has bagged four enemy planes in a
single day. On Dec. 5 he shot down
three Communist TU-2 bombers
and a MIG. His first two jets were
destroyed Nov. 28. He added two
more Dec. 5.
U.S. Eighth Army headquarters
said an Allied raiding team battled
Red ground troops north of Ko
rangpo on the western front most
of Thursday morning. The raiders
returned to their own lines before
noon under cover of an artillery
barrage.
An Allied unit b&ttled for seven
hours Wednesday with Red troops
south of Panmunjom, site of the
truce talks. |
On the eastern front Allied troops
threw back three Red probing jabs
Thursday west of the Mundung val
ley. The central front was quiet.
FROM SAN FRANCISCO
Prentiss French of San Francisco,
Calif., Is registered at the Baranof
Hotel.
VISITORS FROM PETERSBURG
Mrs. C. O. Faults and Sylvia Moe
of Petersburg are at the Baranof
Hotel,
No 'Death
March' for
Prisoners
Allies Make Demand on
Korean Reds; No Prog
ress in Truce Proposals
MUNSAN, Korea, Dec. 13—Ml—
The Allies today demanded the Reds
guarantee there would be no “death
march” of Allied prisoners in Korea.
“No progress of any sort" was re
ported by a truce subcommittee on
prisoners, but spokesmen for both
sides indicated another subcommit
tee might soon break n 17-day dead
lock on how to police an armistice.
The? didn’t get anywhere today.
An official U.N. Command spokes-1
man said the Reds may hold many
prisoners in camps far to the east
of Panmunjom, where the Com
munists want to trade prisoners.
“We don't want our prisoners to
have to walk hundreds of miles,”
said Lt. Col. Howard S. Levle. “Wc
don't want 3 (Bataan) death march
in reverse.”
A tough talking American ad
miral told the Reds there would
be no “blind payment” on prisoner
exchange until the Communists
gave assurances of the safety of
Allied fighting men they hold.
Levie said statements of Rear
Adm. R. E. Libby Implied “the Com
munists have some sinister reason
for withholding information.”
Levie said the United Nations
wants the Communists’ prisoner
lists now because “if we get the
names of five, ten or 15,000 we will
know that we will get at least that
number back. If we get a figure we
consider completely out of line with
our estimates, there is going to be
quite a bit of discussion before we
come to agreement."
The two subcommittees will meet
In Panmunjom again at 11 a.m.
Friday (6 p.m„ EST, Thursday).
Tirade From Chinese
Chinese Maj. Gen. Hselgh Fang
opened Thursday's truce supervi
sion session with a 45-minute tirade
against the latest U.N. proposal
Then he expressed confidence a
solution could be found if both
sides searched for one.
Maj. Gen. Howard W. Turnei
said Allied negotiators were readj
to discuss any reasonable proposal.
The U.N. negotiators said the
deadlock would be broken if the
Reds accepted the seven-point U.N
proposal submitted Wednesday
The Reds said they didn't like it
but they have not turned it down.
TIDE TABLES
DECEMBEK 14
High tide 2:40 a m., 15.2 ft.
Low tide 8:17 a m., 4.6 ft.
High tide 2:14 p.m„ 17.3 ft.
Low tide 8:54 p.m.. -1.0 ft.
Democrats
Meeting
In Sitka
Keynote Speech Made by
Governor; 50 Delegates;
Doyle for Chairman
SITKA, Alaska, Dec. W—Of)—The
Democratic convention for the First
Division opened here today with
Gov. Ernest Omening, in his key
note speech, calling on Alaska
Democrats to remember the ach
ievements of the party, to work
together, and "to know these truths
and spread them.”
Gov. Gruenlng summarized at
length what "the application of
Democratic principles" has meant
to the country and to Alaska.
“Alaska is on the march to
ward the achievement of Its des
tiny. That destiny Is to be, in
these far northern latitudes. Id
eologically and materially, the
bulwark of freedom, the bastion of
the North American continent. Al
aska Is on its way to becoming
the northern citadel of the Ameri
can way of Ufe,” Gov. Gruenlng
declared.
The Governor said successive Re
publican administrations showed no
Interest In the people who were
trying to open the territory, or In
the progress and development of
Alaska. He reminded delegates to
the convention that while the Uni
ted States was expanding econom
ically and in population, Alaska was
shrinking.
"In the years between 1000 and
1830 while the population of Al
aska was diminishing, the popula
tion of the United States as a whole
increased by some 45 millions,” Gov.
Omening said.
He said that since the advent of
the present Democratic administra
tion, the papulation of Alaska has
doubled.^ •*tM largest percentage
growth of any state or territory un
der the flag.”
He enumerated the social and
economic reforms of the Demo
cratic administration nationally
and in Alaska and asked delegates
not to forget “the dark depression
days." He said the Republican
party brought nbout the depression
because of Its "traditional philos
ophy."
“It has been said our party Is a
coalition of all the minorities, and
that is true—all the minorities
which once every two years have
become, and will, under a continu
ation of our policies, become the
majorities on election day."
James Nolan, retiring First Di
vision committee chairman, opened
the convention this morning In the
Elks Lodge rooms. Some 50 dele
gates carrying proxies from various
precincts In southeast Alaska are
in attendance.
Hotel and apartment rooms In
Sitka were the scene of several
“midnight caucuses” on the eve of
the convention. Another pre-con
vention affair was the Sitka Demo
cratic caucus Wednesday evening
where delegates were chosen for
today’s convention.
Off-the-cuff reports appear to
throw the spot light on Dan Doyle,
Sitka’s mayor, for the chairman's
job. It was reported that Doyle
gained the support of Juneau, Ket
chikan and other groups in pre
convention get-togethers in those
'smoke-filled rooms.”
Doyle For Chairman
The possible choice of Doyle was
;ald to be a compromise move af
ter several other proposed candidat
es did not prove satisfactory to
enough of the various factions.
Frank Peratrovich, of Klawock,
former Senator, was picked for
temporary chairman. He then nam
ed his credentials committee: Eliz
tbeth Peratrovich. and Tom Stew
irt, of Juneau; William W. Knight,
)f Sitka: R. E. Ellis, of Ketchikan;
ind Morgan Reed, of Skagway.
WEATHER REPORT
<U. 8 WEATHER BUREAU)
Temperatures for 24-Hour Period
Ending at 4:30 A M Today
At Airport: Maximum. 36;
Minimum. 30.
FORECAST
(Juneau and Vicinity)
Mostly fair but with consid
erable high cloudiness tonight
and Friday. Ousty northeast
erly winds. Lowest tonight
near 25 degrees. Highest Fri
day around 32 degrees.
PRECIPITATION
(Past 24 hours ending 7:30 a m today
At Airport — 0.12 inches;
since July 1—19.78 inches.
• •••••••A