Daily Alaska Empire
Published every evening except Sunday by the
EMPIRE PRINTING COMPANY
Second and Main Streets. Juneau Alaska
HELEN TROY MONSEN ... - President
DOROTHY TROY UNOO ... Vice-President
ELMER A FRIEND .... Managing Editor
Entered in the Post Office in Juneau as Second Class Matter.
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MEMBER OF ASSOCIATED PRESS
The Associated Press Is exclusively entitled to the use for
republlcatlon of all news dispatches credited to it or not other
wise credited in this paper and also the local news published
herein. _ __
NATIONAL REPRESENTATIVES — Alaska Newspapers, 1411
Fourth Avenue Bldg . Seattle, Wash._
Monday, May 28, 1951
DISCRIMINATORY LEGISLATION
Section 407 of the Department of Agriculture
Appropriation Bill for the fiscal year 1952 would limit
payment of the 25 per cent cost of living allowance to
persons recruited in continezztal United States while
denying it to resident Alaskans.
That this is discrimizzatory and unjust is apparent
at once. It would establish a vicious precedent of
tamdem pay rates for idczitical work—based zzot upozi
merit, *but upon the geographical origin of the enz
ployee. It would aggravate an already serious per
sonnel turnover problem azzd raise an economic bar
rier to' the recruitment of competent help within the
Territory.
It is manifestly unfair to contemplate, for ex
ample, two stenographers of like experience and ability,
performing idezitical duties in the same office at dif
ferent salary levels; yet, this is precisely the cozzdi
tion that will obtain if Section 407 is retained as a
part of the bill.
As an ecozromy measure, the proposal fails at
the outset. Much of the saving in salary expense
would be offset by the heavy expense involved in
stateside recruitment, transportation to the Territory
of newly hired employees and, in many cases, their
families and household effects. And at the termina
tion of their employment after a relatively brief
tenure, the added expense of returning these people
to the point of hire.
Let's have a look at the picture as it affects
the 101 regular employees of the Department of Agri
culture in the Territory. Fifty of these people—50
per cent—were hired in Alaska. These employees,
many of whom have been on the job for years, face
an immediate reduction ^n salary of twenty per cent.
Obviously, many of these people will be forced
to seek other employment. The mass exodus of these
employees, plus the low mefrale of those who might
choose to remain in order to protect their retirement
program will seriously impair the efficiency of the
department’s operations in Alaska.
And should this arbitrary limitation be applied to
the Department of Agriculture, it will necessarily be
extended to include all Federal employment in the
Territory, virtually excluding resident Alaskans from
these payrolls.
Aside from the effect upon the individuals in
volved, Section 407 will wreak irreparable damage on
the Territory's economy. The 20 per cent deciease
in purchasing power of so large an employee group
will be felt immediately by every business in the
Territory.
In Juneau alone, the Federal payroll for the fiscal
year 1950 amounted to more than $3,000,000. Assum
ing that half of this was paid to residents of the
Territory_the loss to the business community would
amount to $300,000. In Anchorage and Fairbanks,
where the population and the Federal payroll are
far greater, the loss to the merchants would be pro
portionately heavier.
The Juneau Chamber of Commerce has gone on
record as unanimously opposing Section 407 and urges
its members and their friends to express themselves
on the subject.
On “Lillie” Wars
(Chicago Tribune)
"My Lords, I entrust you, and I entreat the gov
ernment, not to forget that a great country like this
can have no such thing as a little war. They must
understand that if they enter on these operations
they must do it on such a scale, and in such a
manner, and with such determination as to the final
object as to make ti quite certain that these opera
tions will succeed, and that at the very earliest
possible period after the season opens.”-The Duke
of Wellington. January 10, 1838, before the British
House of Lords. _^_ __
The Washington
Merry-Go-Round
(Continued from Page One)
000 of the taxpayers’ money in 1935
with the obligation to pay it back
in 1944. Instead, the B. & O. ar
ranged a deal«4Mitft the RFC as a
collaborator, by which it went Into
receivership under the McLaughlin
act.
The Roosevelt cabinet member
was Jesse Jones, onetime secretary
of Commerce and Federal Loan
Administrator.
One of the most interesting as
pects of the B. & O. case is that
forthright GOP Senator Tobey of
New Hampshire, then chairman of
the Banking and Currency Commit
tee, conducted an investigation of
the loan in 1947, but for some
strange reason a final report was
never published—even though the
Republicans were then in control
of Congress.
However, the facts are all on
record, both before a Federal Court
in Baltimore and in the files of the
Banking and Currency Committee.
Jesse Takes a Ride
They show that the Baltimore
and Ohio took Jesse Jones on a
private car to St. Louis while he
was returning to Texas for the
Christmas holidays in 1943, and on
this trip B. & O. vice-president
Russell Snodgrass suggested a plan
to put the railroad into receiver
ship. ' Snodgrass even wrote the
draft of a letter which he wanted
the RFC to send him—a letter
which would be the excuse for put
ting the railroad into a receiver
ship.
And Jesse Jones, sitting back in
the private B. & O. car, clicking
over the rails to St. Louis, obvious
ly agreed. For the letter was sent,
signed by one of Jones's RFC di
rectors, and the railroad thereafter
was able to postpone payment of
its huge $87,000,000 loan to Uncle
Sam.
At that time, the u. & u. was
making money. In fact, between
1939 and 1944, it cleared $110,000,
000 niet profit after taxes.
Siphoning Off Profits
Furthermore, the railroad delib
erately paid off $31,000,000 from
its net profits in 1943-44 to buy up
B. & O. bonds that- didn't mature
until between the vrars 1948 and
2000. The government loan mean
while matured in 1944. Yet the B.
& O. management siphoned off
money which could have reduced its
indebtedness to Uncle Sam, in or
der to pay private debts not due
until much later.
This diversion of money also was
done with consent of Jesse Jones,
despite the fact he was then charg
ed with protecting the best interests
of the United States government.
Putting these private debts ahead
of the government loan, commented
the Senate Banking and Currency
investigation, ‘"tended to minimize
the actual and prospective resour
ces of the B. & O. and thus served
to justify the receivership.
‘‘It seems fair to conclude,” the
the Senators added, "that without
straining, B & O. could have cut
its debt to RFC to about $25,000,000
had ft chosen to treat first things
first, and to meet its 1944 debt to
RFC from the resources it had
available.”
Par of this inside finagling be
tween Jesse Jones and the B. & O.
leaked out when Cassius Clay, a
former RFC official, joined the B.
& O. as solicitor, then became dis
gusted with what was going on and
supplied information to the Senate
Committee.
Clay’s Confidential Memo
It was Clay who wrote a con
fidential memo, dated Aug. 15, 1944,
telling of the Jesse Jones conver
sation on the private B. & O. car
at which the plot was hatched.
Clay, then general solicitor of the j
railroad, wrote to John Cornwell,!
a dhector and general counsel, as
follows:
“When Mr. Jesse H. Jones went
to Texas for the Christmas holi
i days, Mr. Snodgrass took him out
to St. Louis on one of the B. & O.
business cars for the purpose, so
I understand, of discussing the mat
ter with Mr. Jones. Not long there
after Mr. Snodgrass asked me to
come to his office to confer. He
said that in his view it was neces
sary for the company to resort to
the McLaughlin act in 1944-45,
particularly for the following rea
sons:
“(1) The fact that the McLaugh
I lin act expired on November 1, 1945,
and the uncertainty as to whether
it would be renewed by Congress.
“(2) The second reason which he
gave was expressed in this way: "if
we wait beyond 1944, we might
lose control of the situation.’
"With regard to point 1, I said
I that I was not impressed since it
| seemed to me that it was likely
I that the McLaughlin act would be
j extended regardless of what party
was in power after the next elec
tion. . . . with regard to point 2,
I said that I did not appreciate
that the control of the B. & O. was
involved. In expanding his remarks,
j Mr. Snodgrass said he meant af
I ter the election, Mr. Jesse Jones
! might leave the RFC and the RFC
might’ pass into hands that were
less friendly to the B. <S: O.”
Shortly afterward, Clay resigned
in disgust. He charged that the
petition for receivership was a
"fraud'’ and a “frame-up.”
“Fragrant” Deal
Another interesting letter in the
B. & O. files was written by Snod
grass exactly four days before the
B. & O. filed its second receivership
petition in district court in Balti
more in July 1945. The letter wras
written to Arthur Dean, special
counsel for the railroad in hand
ling the receivership. It read:
"Dear Arthur: I am enclosing a
copy of a plant and of J,he bud
which we grafted on it with a view
to producing a flower, lily white
in color, bold in design and seduc
tive in fragrance, instead of the
burs and beggar lice which the
plant was intended to bear.”
Though written in parables, the
letter apparently referred to the
impending petition. It would seem
that Snodgrass was describing the
fictitious bankruptcy as "bold in
design," yet "producing a flower,
lily white in color. . . and seductive
in fragrance.”
Under testimony, Snodgrass ad
mitted that he was not a botanist
and had written the letter in “hy
perbole." Presumably vice-presl
dent Snodgrass felt that the deal
he was putting across was so care
fully camouflaged that it would
have a fragrant odor to the pub
lic, not the nauseating smell which
it deserved if all the facts were pub
fished.
This is only a part of the history
of the second largest loan ih RFC
history, which has been gathering
dust in RFC files, and which new
*f«sC director Symington now must
wrestle with. More on this amazing
operation will follow soon.
KOREAPEACE
FEELERS ARE
FALSE, MALIK
UNITED NATIONS, N. Y., May
28 — [ff\— Russia’s Jacob A. Malik
said today through a spokesman
that reports of Russian peace feeler
to the United States are "completely
groundless."
The comment of the chief Soviet
^delegate to the UN came several
days after reports were published
here that the Russians wre inter
ested in talking about ending the
Korean conflict along the 38th
Parallel and had made overtures to
American delegates.
Asked if the Russian denial of
peace moves applied to one part
of the reports or to all, the spokes
man said the denial was meant to
j apply “fully.”
May 28
•
Jerry Hill
Trudy Ellis
Edward Chester
Mrs. Sigurd Walther
Sandy Holden
Joanne Erwin
Marie Nelson
Frank Weiberg
COMMUNITY EVENTS
TODAY
At 8 p.m.—Rebekah Drill Team
practice, IOOF hall.
At 8 p.m. — American Legion post
meets in Dugout.
At 7 p.m. — WCTU meeting and
potluck dinner at Northern Light
Presbyterian church.
From 7 to 9 p.m. — Pan American
World Airways free showing
"Wings of Scandinavia" Baranof
lobby.
May 23
At 9 to 12 noon — AWVS warm
clothing drive. Make deliveries to
Red Cross rooms, Shattuck build
ing today through Friday.
At noon — Rotary Club, Baranof.
At 8 p.m. — CDA meeting in parish
hall.
At 8 p.m. — Odd Fellows meet in
IOOF hall.
May 30
At 10:45 a.m. — Memorial Day
parade.
At 8 p.m. — Elks lodge.
May 31
At noon — Chamber of Commerce
meets at Baranof.
June 1
At 9:30 p.m. — First series of sum
mer square dances given in parish
hall.
June 4
At noon — Lions club, Baranof.
AMERICAN MOTHER
OF 1950 VISITOR
AT TERR. MUSEUM
The American Mother for 19130,
Mrs. Henry Roe-Cloud of West
! i inn. Oregon, was a visitor at the
; Territorial Museum Saturday.
| Mrs. Roe-Cloud has just arrived
in Juneau from Sitka where she
delivered the Commencement ad
dress to the graduating class of Mt.
Edgecumbe vocational high school
May -18. She flew from Houston,
Texas, where she was a delegate
to the National Convention of the
I General Federation of Women’s
■Clubs, to keep the Commencement
engagement at Mt. Edgecumbe.
Mrs. Roe-Cloud is national chair
man of GPWC on Indian affairs.
While in Sitka she was guest
speaker at the Sitka Women’s Club,
Chamber of Commerce, Alumni As
sociation of Sheldon Jackson school
and at many other functions. She
expects to return south on the next
trip of the Princess Louise.
GEORGE WOODS DIES
Word was received at U. S. Coast;
Guard headquarters here last night
that George Woods has passed away
on his fishing vessel, Igo, at 9 p.m.
The information came from Bill
Woods, skipper of the Harry Jr., a
son of George Woods. The Coast
Guard transmitted the information
to the U. S. Marshal's office and
I to U. S. Commissioner Gordon
j Gray. Authority was requested to
transport the body to Klawock.
PETERSBURG VISITORS
Roxanne L. Swenson and Norma
Tengjord of Petersburg are stop
ping at the Baranof Hotel.
SEATTLE VISITOR
W. A. Rasmussen of Seattle b
registered at the Baranof Hotel.
, ACROSS
L Extent of
volume
6. Food fish
8. Public vehicles
i 12. Encourage
13. Commotion
| 14, To the
sheltered
side
15. Federal prison
17. Flesh food
IS. Withdraw
19. Raises
21. Destructive
rodent
22. Correlative of
neither
23. Fastenings
2t». Steadfast
30. Atmosphere
81. Apodal fish
22. Relating to
measurement
86. Pertaining to
humanity
39. Macaw
40. FUta
41. Machine for
forming
44. Hunting ?
expedition
48. Sacred
Buddhist •
language /
49. Limpid
61. Otherwise
52. Period
53. River duck
54. Portal
65. Attempt
66. Celtic _ ^
I AP Ntwiftotur**
Solution of Saturday's Pu^zl*
DOWN
1. Volcanic crater
2. Competent
3. Denomination
4. Steps
5. Signs of
omission
6. Room in a
harem
7. Groups of
twelve
8. Photographic
machine
9. Fish sauce
10. Thrash
11. Places
16. Snare
20. Decay
23. Eccentric
rotating
co
24. Rtv.ii ,
25. Dexterity
27. Wagt-r
2S. Meadow
1 c t t't a house
;;5. F. I. f.g fe ;Q
3o. Flour cover; iff
1. so
"7. Fi t • Ip !d right
3b. Disprove
41. Hurried •'
42. Lu mi nous
circle
43. In addition
45. Genus of
maples
46. N.ui w ir ' ti
47. Unoccupied
50. Go astray
20 YEARS AGO the empire ji
MAY 28, 1931
j me: K. Wheeler, druggist and jewelry store operator from Pcters
bur was in town on business. He reported that while business con
ditions were somewhat quiet in Petersburg, everything was on a sound
ba i and people of the town were not unduly depressed. He purchased
a s fountain from the Arcade Cafe and will ship it to Petersburg.
V
Twenty-five of Mrs. Charles Sey’s friends surprised her with a
birthday party at her home in Juneau. Five tables of bridge were
played during the afternoon. Mrs. Charles Sey won high prize and
Ali James Sey consolation. Her friends presented the honor guest
with a waffle iron.
Three students were graduating from St. Ann’s high school this’
term. They were Leonard E. Forrest, Lucille Norton and Mabel Ritter.
Alt. r ms and communion for the entire study body, the graduate
wei> to be wests at breakfast at St. Ann’s Hospital.
Declaring that it is the Babbitts of the world who make such things
a h'ool and education possible on a wide scale, R. E. Robertson wel
, ..mt d graduates of Juneau High School and the Parochial School as
gU' ; of the Chamber of Commerce luncheon. Graduating from the
public school were; Dorothy Bakke, Alice Merritt, Mary VanderLeest,
t, i - i Jackson, Mary Simpkins, Muriel Jarman, Masie Rogers, Edna
Ricndeau, Edward Powers, Arnold Hildre, Edward Rodenberg, Billy
8 ks. William Rodenberg, Robert Hurley, and Edwin Laurie. From
th Parochial School: Lucille Norton, Mabel Ritter and Leonard Forrest.
With a large attendance from Juneau and Douglas, Perseverance
L: dge of the Reebkahs initiated 12 members at Odd Fellows Hall. They
w re: Gilbert Vos, Joe Rizzardo, Olaf Eikland, M. J. Metcalf, Oscar
Jensen', Jack Turkovich, John Green, Harry Kinney, Albert Norman.
Donald Skuse, John Meyers and Benedick Lowell.
Weather: High, 54; low, 48; rain.
j Daily Lessons in English w. l. cordon
WORDS OFTEN MISUSED: Do not say, "He is ambitious for ap
plause." Say, "ambitious OF applause.”
OFTEN MISPRONOUNCED: Influence and influenza. Accent IN
FLUENCE on first syllable, and INFLUENZA on the third syllable.
OFTEN MISSPELLED: Propagate; observe the PA, and not PO.
SYNONYMS: Special, specific, particular, Individual, concrete.
WORD STUDY: “Use a word three times and it is yours.” Let us
increase our vocabulary by mastering one word each day. Today’s word:
DERELICTION; failure in duty. (Pronounce der-e-lik-shun, accent
third syllable). 'The soldier was guilty of total dereliction.”
j MODERN EI! Q U EITE Roberta lee ]
Q. When playing golf and there Is a foursome ahead of you. are you
supposed to wait until they take their second shots before you drive off?
A. In the case of experts who have driven down the fairway, it is
proper for you to drive after they have executed their second shots. But
(jn any event, you should always Wait until you are certain your drive
won’t interfere with their play.
Q. What should the father of the bride do after he has performed
the rite of giving her away?
A. He takes his place next to his wife, at the end of the first pew
on the left of the church.
Q. Is it improper for a girl to use perfume, or even cologne and
toilet water, in an office?
A. If it is strong enough to “shout” itself at others, it should bo
avoided.
LOOK and LEARN A. C. GORDON |
X. who have been the only two Presidents of the U. S. to be elected
from states west of the Mississippi River?
2. What city was the capital of the American Confederacy at the
time of Lee’s surrender?
3. Who is author of Proverbs in the Bible?
4. When are one’s “salad days”?
5. For what, in English- money, is a “bob” the slang term?
ANSWERS:
1. Herbert Hoover and Harry Truman.
2. Richmond, Va.
3. Solomon.
4. Days of youthful inexperience.
5. Shilling. x
MRS. J. BURNETT
mb a paid-up subscriber to THE L/AILY ALASKA
EMPIRE Is invited to be our guest THIS EVENING
Present this coupon to the box office of the
CAPITOL THEATRE
and receive TWO TICKETS to see:
"BORN YESTERDAY"
Federal Tax—-12c Paid by the Theatre
Phone 14-YELLOW CAB CO.-Phone 22
and an insured cab WILL CALL FOR YOU and
RETURN YOU to your home with our compliments.
WATCH THIS SPACE—Your Name May Appear!
Oldest Bank in Alaska
1891—Over Half a Century of Banking—1951
The B. M. Behrends
Bank
Safety Deposit
Boxes for Bent
COMMERCIAL SAVINGS
Weather at
Alaska Points
Weather conditions and temper
atures at various Alaska points
also on the Pacific Coast, at 4:30
a.m., 120‘h Meridian Time, and
released by the Weather Bureau
are as follows:
Anchorage . 40—Partly Cloudy
Annette Island . 45—Partly Cloudy
Barrow . 20—Snow
Bethel .. 50—Cloudy
Cordova . 34—Partly Cloudy
Dawson . 39—Partly Cloudy
Edmonton . 39—Cloudy
Fairbanks . 49—Partly Cloudy
Haines . 49—Cloudy
Havre . 54—Partly Cloudy
Vuneau . 43—Cloudy
Kodiak . 30—Fog
Kotzebue . 33—Partly Cloudy
McGrath . 44—Cloudy
Nome - .. 47—Rain
Northway . 39—Rain Showers
Petersburg . 40—Partly Cloudy
Portland . 4G—Drizzle
Prince George .. 36—Partly Cloudy
Seattle . 43—Partly Cloudy
Sitka . 46—Cloudy
Whitehorse . 38—Rain
Vakutat . 45—Drizzle
MEMORIAL DAY TALK
GIVEN BY DRUXMAN
AT LIONS MEETING
A Memorial Day talk was given
by active Legionnaire Robert Drtfx
man qt a regular meeting of the
Lions Mub at the Esranof hotel
Monday noon. Druxman stressed the
powers of education and proper ex
ample in overcoming the evil forces
in the world causing wars.
Ed Chester, retiring chairman of
the swimming pool committee rec
ommended that the Lion swimming
pool fund be turned over hi th cisj
to buy a chlorinatr.r wV th would
assist in raising the temperature of
the pool. The fund amounts to ap
proximately $2 000. The cost of in
stallation to the chy would Lc about
another $2,000.
After discussion it w.i voted to
send postcards to all fund contrib
utors and those objecting to using
I the money in this way, to f t re
funds. The original idea was t.o in
stall a heating unit which was found
to be too expensive to operate.
President Jerry Williams paid a
farewell tribute to Chester for his
I active work in the Juneau club,
i .since this was his last meeting be
I fore Ms departure for Boston where
he will assume command of a Coast
Guard vessel.
Chester will represent the Juneau
club at the International Lions con
vention in Atlantic City next month.
Norman Sommers made announce
ment regarding the Lions-Rotary
softball game to be played at 7 p.m.
June 11. The game will spotlight
; the opening of the Salvation Army
fund drive and a silver offering will
: be taken up during the game for the
l fund. The Kiwanians will provide
game officials. Joe Werner will run
the game. Stan Grummett will be
in charge of equipment. Peter Wood
will handle publicity. Dr. William
Whitehead will head a stunt com
mittee.
Guests were George Opostol, as
sistant attorney general, John
Greeny and C. W. Peters.
LES BONA HERE
Lester M. Bona of the West
Coast Grocery Co. of Tacoma is at
the Baranof Hotel.
FROM CRAIG
Gil Reese of Craig is at the Bar
anof Hotel.
STEVENS’
LADIES’—MISSES’
READY-TO-WEAR
Seward Street Near Third
The Charles W. Carter
Mortuary
Fourth and Franklin Sts.
PHONE 136
Caslers Men's Wear
McGregor Sportswear
Stetson and Mallory Hats
Arrow Shirts and Underwear
Allen Edmonds Shoes
Skyway Luggage
BOTANY
"500"
CLOTHES
NUNN-RUSH SHOES
STETSON HATS
Quality Work Clothing
FRED HENNING
Complete Outfitter for Men
SHAFFER’S
SANITARY MEAT
FOR BETTER MEATS
13—PHONES—49
Free Delivery
MOUNT JUNEAU LODGE NO. 147
SECOND and FOURTH
Monday of each month
in Scottish Rite Temple
beginning at 7:30 p. m.
Wm. A. Chipperfield,
Worshipful Master:
JAMES W. LEIVERS, Secretary.
0 B.P.O.ELKS
| Meeting every Wednesday at 8
! P.M. Visiting brothers welcome.
I LE ROY WEST, Exalted Ruler.
: W. H. BIGGS, Secretary.
f ■'
Moose Lodge No. 700
Regular Meetings Every Friday
Governor—
LOREN CARD
Secretary—
WALTER R. HERMANSEN
V. ... - . 1.1 ■ /
" vTfTw!
Taku Posl No. 5559
Meeting every Thursday in
the C'.I.O. Hall at 8:00 p.m.
—-——***—1—■—*■«——■—
t
Brownie's Liquor Store
Phene 103 139 So. Franklin
P. O. Box 2508
l_>
J. A. Durgin Company, Inc.
Accounting Auditing Tax Work
Room 3, Valentine Building
JUNEAU, ALASKA
P. O. Box 642 Telephone 919
—EMPIRE WANT ADS PAY—
"The Rexall Store"
Your Reliable Pharmacists
BUTLER-MAURO
DRUG CO.
Alaska Music Supply
Arthur M. Uggcn, Manager
Pianos—Musical Instrument*
and Supplies
Phone 206 Second and Seward
Card Beverage Co.
Wholesale 805 10th St.
PHONE 216—DAY or NIGnT
for MIXERS or SODA POP
The Alaskan Hotel
Newly Renovated Rooms
at Reasonable Rates
PHONE SINGLE O
THOMAS HARDWARE
and FURNITURE CO.
PHONE 555
PAINTS-OILS
Builders’ and Shelf
HARDWARE
Remington Typewriters
SOLD and SERVICED by
J. B. Burford Co.
“Our Doorstep Is Worn by
Satisfied Customers”
FORD AGENCY
(Authorized Dealers)
GREASES — GAS — OIL
Juneau Motor Co.
Foot of Main Street
MAKE
JUNEAU DAIRIES
DELICIOUS ICE CREAM
a daily habit—ask for it by name
Juneau Dairies, Inc.
HOME GROCERY
Phones 146 and 342
Home Liquor Store—Tel. 699
American Meat — Phone 36
To Banish “Blue Monday”
To give you more freedom
from work — TRY
9
Alaska Laundry *
H. S. GRAVES
The Clothing Man
LEVI’S OVERALLS
' for Boys
BLACKWELL’S
CABINET SHOP
117 Main St. Phone 772
High Quality Cabinet Work
for nome, Office or Store