THE DAILY ALASKA EMPIRE
14ALL THE NEWS ALL THE TIME”_.
VOL. LXXVI., NO. 11,770
JUNEAU, ALASKA, THURSDAY, MARCH 29, 1951
MEMBER ASSOCIATED PRESS .
PRICE TEN CENTS
Korean Reds Are Putting Up Stiff Resistance
Roden Named
Com, of Finance
For Territory
Henry, Roden, treasurer of Alaska,
was unanimously elected as the
Commissioner of Finance for the
Territory, the position set up to
head the Territory’s fiscal structure
under the Reorganization Act <HB
141) passed by the Twentieth Leg
islature, at the first meeting of the
Board of Administration established
by the Act, held yesterday after
noon in the office of Governor Ern
est Gruening, pursuant to the Act,
Chapter 122 SLA 1951.
Appointment to the position of
Post-Auditor is yet to be made.
Members of the board present at
its first meeting were Gov. Gruen
ing, chairman; Senators Gunnard
M. Engebreth and R. M. MacKen
zie and Representatives William
Egan and Glen Franklin. The two
other members of the board. At
torney General J. Gerald Williams
and Tax Commissioner M. P. Mulla
ney are absent from the city.
Best Possible Choice
In a press release issued by the
board today it comments:
“The board unanimously elected
Henry Roden as the Commissioner
of Finance. In selecting him it feels
that it made the best possible choice
in accordance with the terms of the
Act, of a long-time resident of
Alaska who has served the Territory
conspicuously since the beginning
of Territorial Government. Roden
served in the first Territorial Sen
ate in 1913. Subsequently he has
been active in many public causes
and has served also as President of
the Senate, as Attorney General,
and more recently as Treasurer. For
years he has been keenly interested
in the question of fiscal reorganiza
tion of the Territory and is there
fore, in addition to his experience,
admirably predisposed to the im
portant task which has now been
assigned to him.
Post-Auditor
“The subject of appointment to
the important position of Post
Auditor came up for discussion at
the first meeting of the board, and
since under the terms of the Act
this appointment is net due until
July X, the Secreta'ry of the Board
was instructed to make a thorough
search in the interval so that the
best possible incumbent could be
secured.
Measure Not Perfect
'While we feel the measure is not
perfect, it contains many admirable
features calculated to improve the
Territory’s condition if carried out.
Experience and trial of two years
will reveal what changes, if any. are
desirable and recommendations to
that effect will of course be pre
sented to the Twenty-First Legisla
ture.
“The board feels that the Legisla
ture, in this Reorganization Act, has
taken an extremely important and
historic step forward.
“The minutaes of the board’s first
meeting are available to the pub
lic.”
Comments on Act
In regard to the Reorganization
(Continued on Page Two)
The Washington
Merry-Go-Round
By DREW PEARSON
(Copyright. 1951. oy Bell Syndicate, Inc..
WASHINGTON.—Here are a few
facts not brought out during the
crime committee probe of the glam
our girl of the underworld, Vir
ginia Hill:
Miss Hill first broke into prom
inence among the gangsters when
she lived in the Chicago boarding
house where Chicago’s Joe Epstein,
then a student in accountancy, also
lived. Virginia, a restaurant wait
ress at that time, frequently
brought coffee and cakes to the
hungry Epstein. Later, when Epstein
got out of school, be became an
accountant for the underworld, also
began helping Miss Kill.
She became a runner for the un
derworld, carrying money between
racketeers in different cities. This,
was a precarious job. But Virginia
was smart enough to keep an in
timate diary locked in a vault with
a record of the various financial
transactions, and instructions that
(Continued on Page Four;
I
End of Red Supply Route
Two direct hits by napalm turn Red supply trains into roaring
infernos after strikes by U. S. B-26 bombers. The Allied airmen
spotted the trains on a main line runing between Wonsan and Pyong
yang in North Korea and promptly applied the torch. U. S. Air Force
Photo via (/Pi Wirephoto.
CRUSADE ON
CRIME GAINS
MOMENTUM
By Associated Press
The crusade against crime, spear
headed by the Kefauver Committee
and other agencies, gained momen
tum today as a National Protestant
group urged church action to
strengthen the country’s “moral
fibre.”
Hailing the official crackdown on
organized crime, the National Coun
cil of Churches of Christ in the
U.S.A., asked churches everywhere
to help halt the “moral delinquency
in our society.”
The council’s interim policy-mak
ing general board condemned "so
called ‘innocent forms' of gambling”
such as “legalized race track wagers,
lotteries, bingo and the like."
Swelling the national crime-bust
ing campaign was an order by New
York Gov. Thomas E. Dewey calling
for a grand jury investigation of
gambling at Saratoga Springs, N.
Y.. a racetrack spa.
Dewey also said he would set up
a state-wide crime commission to
study the responsibilities of the
state and local governments in law
enforcement.
In Washington, Republican mem
bers of the Senate Crime Probe
Committee were working to extend
the life of the committee, which
ends this Saturday.
Senators Wiley (R-Wis) and To
bey (R-NH) said they hope to get
committee-extension approval from
the Senate.
The committee’s chairman, Sen.
Kefauver (D-Tenn> says the com
mittee already has dug up enough
information on which to base legis
lation aimed at uprooting organ
ized crime.
SEATTLE VISITOR
D. M. Ward of Seattle is at the
Baranof Hotel.
STOCK QUOTATIONS
NEW YORK. March 29 — Closing
quotation of Alaska Juneau mine
stock today is 3, American Can
111 i, American Tel. and Tel. 153M:,
Anaconda 38 ,, Douglas Aircraft
9G'i, General Electric 54N, General
Motors 51 n, Goodyear 711 Kenne
cott 73"i, Libby McNeill and Libby
9. Northern Pacific 32TS, Standard
Oil of California 45',, Twentieth
Century Fox 21 Vi, U. S. Steel 41».
Pound $2.801,, Canadian Exchange
95.18 ^.
Sales today were 1,300,003 shares.
Averages today were as follows:
Industrials 246.90 rails 79.73, utili
ties 42,39.
PRESIDENT
OF FRANCE
OKEHS NAT.
Also Says French People
Will Defend Themselves
Against Aggression
WASHINGTON. March 29 —(iP)—
President Vincent Auriol of France
today pledged President Truman
“all out support” of the North At
lantic Treaty Organization. He also
said the French people are determ
ined “to defend themselves against
foreign aggression.”
Auriol and Mr. Truman had a
conference in the cabinet room of
the White House. Auriol spoke in
French and Mr. Truman in English
with interpreters translating their
remarks.
The White House announced, aft
erward :
“Remarks of the President of the
French Republic included a state
ment that the French people were
determined to defend themselves
against foreign aggression and that,
in this spirit, they were giving all
out support to the North Atlantic
Treaty Organization.”
President Auriol pledged his na
tion and its people will “do all
within our pow-er not only to resist
aggression, should it occur, but to
deter it and save the peace.”
He asserted any charge that the
French will not fight to repel ag
gression is “an insult as cruel as it
is unjust.”
The French chief of state spoke
for his country in an address pre
pared for a National Press club
luncheon.
FOREST SERVICE MAKES
CHANGES IN PERSONNEL
Changes in personnel were- an
nounced at the U. S. Forest Service
regional office today.
Glen Kirkham has been appoint
ed to the post of property and sup
ply clerk in the regional office re
placing Ed Sweeney. Rodger Pegues
will replace Kirkham as property
and supply clerk for the Admiralty
Division. Mrs. Walter Johnson has
been appointed to the payroll di
vision of the fiscal department.
Ed Sweeney has been appointed
procurement officer for the Office
of Price Stabilization and said today
he will take over his new duties
Monday, April 2.
CAA MAN HERE
Walter Berklund with the CAA at
Anchorage is stopping at the
Gnstineau Hotel.
HUGE VOLUME
FOOD PRICES
WILL BE CUT
New Method of Controls
Announced by OPS-De
creases Not Increases
WASHINGTON, March 29 — Iff—
The nation’s retail and wholesale
grocers today set about shifting a
huge volume of food items — cost
ing the public $20,000,000,000 a year
—to a new method of price controls
They are under government orders
to complete the transfer between
April 5 and April 30.
The Office of Price Stabilization
(OPS) announced three regulations
last night, putting about CO per
cent of all foods under fived “mark
up" percentages which the agency
said are those in effect before the
Korean outbreak. A grocer adds the
“mark-up” percentage to his cost in
order to determine his ceiling price.
What It Means
Here is what the new system
means to the country:
First it means a great many up
and down movements in food prices,
depending on the store, the locality,
and the kind of food. Price Director
Michael V. DiSalle said “We are
sure that there will be more de
creases than increases.” That was
cheerful news for the housewife,
but DiSalle added that "a large
part" of the net reduction in prices
may be cancelled out if farm prices
continue to move up.
Under present law, the wholesale
and retail prices of most food
products, must be allowed to rise
when necessary to reflect higher
farm nrices.
Ceiling Prices
Second, the new system means
that DiSalle's OPS now has paved
the way for definite dollars-and
j cents ceiling prices, figured by the
district OPS offices and posted on
big charts in the stores.
OPS officials said this was “the
, single most important aspect’’ of
last night’s action.
The three regulations cover
canned goods, baby foods, flour, co
coa, coffee, tea, breakfast cereals,
shortening, frozen foods, crackers,
jams and jellies, syrups, and many
other items.
They do not cover fresh meats,
fresh fruits, fresh vegetables, sugar,
milk, bread, ice cream, candy, soft
drinks, or alcoholic beverages.
PULP MILL SITE
ROAD, KETCHIKAN
IS RECOMMENDED
Army Engineers Also Give
Approval to Waterway
Project at Sitka
PORTLAND, Ore., March 29.—t?)
—Aimv engineers have recom
mended a $1,113.6C0 navigation
channel to a pulp mill site near
Ketchikan—if and when such a mill
is “definitely assured.”
O. E. Walsh, North Pacific Divi
sion engineer, announced the ap
proval of this proposed project and
two others near Sitka.
The Ketchikan project would in
clude dredging a channel 70 feet
i wide and 12 feet deep through seven
I shoal areas between El Capitan Pas
sage and Shakan Strait. The en
gineers' recommendation specified
it should not be undertaken unless
a pulp mill is assured at Ketchikan
or “such other locality in that
area as will require use of the pro
posal improvement.”
One Sitka project calls for dredg
ing and rock removal to provide a
channel 2C0 feet wide and 24 feet
deep through Whitestone Narrows
at an estimated cost of $176,000.
The other would provide a small
boat anchorage by dredging the
Forest Service basin and its ap
proaches to 10 feet at a cost of
$32,560.
The recommendations merely
“find justification” for the projects.
They are sent to the Board of
| Engineers for Rivers and Harbors
I in Washington. Actual construction
| would await authorization by Con
gress.
Acheson Addresses Foreign Ministers
Secretary of State Dean Acheson (at rostrum) urges foreign ministers of the American republics to take
immediate action to meet a menace posed by international communism. His was the keynote speech of ;
the first regular session of ministers* conference in Washington, I). C. UP) W'irephoto.
U. S. ATOM
SPY TRIAL
CONVICTS 3
NE W YORK, March 29 —tfl—Two
men and a woman were convicted
today of passing wartime atomic
secrets to Russia in the first atom
spy trial in the United States.
The jury returned its verdict at
11 a.m. EST, after seven hours and
18 minutes of deliberation.
The convicted defendants, who i
could receive the death penalty, are j
Julius Rosenberg, 34-year-old elec- |
trical engineer; his diminutive, dark
haired wife, Ethel, 35, and Radar
Expert Morton Sobell, 33.
The prosecution did not ask for
the death penalty, however, during
‘ the summation. .
The jury had weighed the fate
of the three defendants for one
hour aixj two minutes today utter
being locked up for the night, at
12:40 this morning.
The trio was accused'of red tying
atom secrets to an international
Red spy ring headed by Klaus, Fuchs
until 'his arrest in England early
last year. The secrets, the govern
ment contended, included drawings
of the atpm bomb dropped on Na
gasaki, Japan, in 1945.
The government’s star witness in
the sensational case was- David
Greenglass, brother of Ethel Rosen
berg. Greenglass, who pleaded
guilty to the espionage indictment,
is awaiting sentence for his part
in the plot.
only Mrs. Rosenberg snowed any
sign of emotion as the verdicts
! were announced. She shook her
head slightly, then stared grimly
at the floor of the couriroom.
Sobell and Rosenberg sat calmly
in their chairs, staring intently
at the jurors.
Federal Judge Irving R. Kauf
man, after congratulating the jur
ors and extending “deep gratitude”
| for their services, said:
"I must say as an individual that
I cannot be happy because it is a
sad day for America."
Turning to the defendants, the
jurist said:
"That citizens should-lend them
selves to the destruction of their
own country by the most destructive
weapon known is so shocking that
I can’t find words to describe the
I loathsome offense.”
He then fived April 5 for im
j position of sentences.
STEAMER MOVEMENTS
Denali scheduled to sail from
Seattle 4 p.m. Friday.
Princess Norah scheduled to ar
rive from Skagway at 8 a m. Friday
sailing south one hour later at 9.
Baranof scheduled to arrive from
I Westward Sunday morning south
| bound.
i
Budget May
Increase by
Ten Billion
WASHINGTON, March 29 — W—
Price Increases and program re
visions may add $10,000,000,000 to
the defense' budget for the next
fiscal year, Rep. Mahon iD-Texas»
said today.
Instead of the $60,000.000,000 mil
itary budget foreseen by President
Truman in January, Mahon said,
the outlay needed for defense will
be closer to $70,000,000,000.
Mahon is chairman of the House
Appropriations Subcommittee which
handles the defense budget.
But while the 1952 budget may be
$10,000,000,000 more than had been
expected, he fold newsmen, Con
gress may bo able to get by the
balance of this fiscal year on $3,
bfiO,000,000 less than had beer, indi
cated.
The present fiscal year ends on
June 30 and indications have been
that an extra $10,000,000,000 would
be requested for 'military purposes
before then,
--- i
I
FITZPATRICK BACK !
Larry Fitzpatrick, master of the
halibuter Ruby has returned irom
Seattle and plans to leave soon to
go blackcod fishing in outside
waters.
Other fishermen leaving to go,
blackcodding are Dan Twlet on the
Solar, Norman DeRoux on the
Ocean Cape, Orin Addelman on the
Dolores J„ and Jack Crowley on
the Lassie.
Tom Ness of the Emma and Ole
Westby of the Pelican are both ill
in a Seattle hospital and may not
be able to fish this season as
planned.
• ••••••••••
• •
• WEATHER REPORT •
• Temperature for 84-Hour Period •
• ending 8:20 o'clock this morning •
• In Juneau — Maximum, •
• 38; minimum, 29. •
• At Airport — Maximum. •
• 37; minimum, 27. •
• •
• FORECAST •
• Increasing cloudiness to- •
• night becoming mostly cloudy •
• with occasional light rain •
• Friday. Lowest temperature • ,
• tonight near 34 deg. Highest •
• Friday near 40. •
• •
• PRECIPITATION •
• (Past 24 hours ending 7:30 a m. today •
• City of Juneau—.24 inches; •
• Since March 1—6:99 inches; •
• Since July 1 — 57.89 inches. •
• At Airport — .17 Inches; •
• Since March 1 — 3.78 inches; •
• Since July 1—36.26 inches. •
• •••••••»•*
SKINNER TELLS j
WHY RATES ARE
GOING TO RISE
Steamship Official fijves
Cost Figures at Chamber
of Commerce Meet
D. E. Skinner, vice president and
manager of the Alaska Steamship
Company, effectively justified the
need for increased freight rates to
Alaska in a talk to members of
the Juneau Chamber of Commerce
at a regular meeting in the Earanof
Hotel this noon.
He gave a detailed report of what
has happened since December, 1948,
when the company announced its
objective of maintaining freight
rates without an increase. He cited
economy measures that have been
instituted and said: “Despite our
endeavor to hold the line, rising
casts have defeated our plans. Dur
ing 1949 our net result was $60,000
in the red. Last year, 1950, resulted
in a $17,000 profit. Considering the
approximate $14,000,000 gross rev
enue each year it is obvious that
the operation cannot be considered
financially sound. In short, it will
be necessary for us to ask for in
creased freight rates to Southeast
Alaska which will increase revenues
about 20' per cent.
Look At Cost
• Lot's look at the cost of govern
ment in the Territory of Alaska.
I„ has increased about 95 per cent,
in the period since 1947, excluding
special appropriations of an emer
gency nature."
The steamship man pointed out
that cargo-working costs had risen
to the point where they consume
77.73 per cent of the revenue dollar
in fc>. E. Alaska trade and 59.58 per
cent in S. W. Alaska trade. These
include all charges pertinent to
loading and unloading cargo, he
said.
Freighter crew costs, which com
prise about 25 per cent of our ex
pense, have increased approximately
76 per cent since 1947. During this
time where there was no rate in-,
creases in the general Alaska trade,1
rates advanced about 22 per cent
in the Hawaiian Island trade. West
ern railroads received a 37.5 per
cent increase with a further in
crease of 2 per cent in the west
and 4 per cent in the east effec
tive April 1.
Kates to S. E. Alaska
The rate increases filed for will
apply only to points in S. E. Alaska,
Skinner said. "It is our intention
to make our operations self-sustain
ing by areas. No area shouTd sub
sidize another area just as no pro
duct should subsidize another pro
duct. It may be claimed by our
critics, and we have them, that we
are ignoring K. W. Alaska because
iContijiuc.1 op rage E’.-ht)
OFFENSIVE ,
INDICATED,
RED FORCES
Hardest Action in Weeks
Takes Place Western
Front-Push to 38th
By Associated Press
Chinese Communist troops clung
tenaciously to a foothold south of
the 38th Parallel today while Red
China spurned General MacArthur’s
offer to talk peace for Korea.
The Red Chinese made stiff de
fensive stands Just south of the
border along the Western and Cen
tral fronts. The signs mounted that
the Communists were preparing a
spring offensive timed to coincide
with seasonal rains hampering Al
lied henvy equipment.
On the Western front Thursday,
the Chinese Communists fought
their hardest action in several
weeks. Firing from dug in posi
tions, they all but stopped the Al
lied advance.
Grenade Tossing
During the night, grenade tossing
Reds drove American troops off a
1,000-foot crest north of Uijongbu.
But the Reds mysteriously withdrew
and American troops reoccupied the
crest at dawn.
A strong Red stand In Central
Korea repulsed American patrols on
a seven mile-long front. The Com
munists are fighting halfway be
tween the border and Chunchon,
which is eight miles south of the
38th Parallel.
Push Made
On the east coast, South Korean
troops have pushed six miles north
of the Parallel.
Anticipation ol a possible Com
munist drive on the Central front
was heightened by MacArthur's
Thursday communique which said,
"the pattern of vehicular movement
In enemy areas Indicates a contin
ued effort to support a strong con
centration behind the Central
front.”
Pyongyang Bombed
U. S. B-59s bombed airfields
around the Red capitol of Pyong
yang for the second day.
On the international scene, west
ern sources were encouraged today
by Russia’s new proposals at Paris
for a Big Four foreign ministers
meeting.
A scheduled meeting of the dep
uty foreign ministers was delayed
until tomorrow while the west
studied the latest move by Soviet
Deputy Foreign Minister Andrei
Gromyko.
Gromyko’s latest proposal agreed
for the first time to include “the
level of armaments” of the Big
Four on the agenda. At the same
time, Russia continued to demand
a discussion of arms reduction by
the four powers.
TO PWE
FIRING ON
TOURISTS
BERLIN, March 29 —1»—U. S.
and Russian authorities arranged
tentatively to meet late today to
discuss the firing by East German
Communist police yesterday on a
sightseeing convoy of 73 Americans
in Berlin’s Potsdamer Platz,
MaJ. Gen. Lemuel Mathewson, U.
S. commandant, asked for the meet
ing with Sergei Dengin, head of the
Soviet Control Commission for East
Berlin, to register a formal protest.
American officials said the issue
at s;take is »he right of Allieu per
sonnel to travel with safety in four
power Berlin, including the Russian
sector.
The East police opened fire on
a convoy of American Army busses
carrying tourists, including women
and children, on a regularly sched
uled sightseeing tour of the city.
Three shots punctured one of the
busses but no one was hit.
MARGARET COLLINS HERE
Margaret Collins, trader from
Yakutat. is stopping at the
Gastineau Hotel.