Daily Alaska Empire
Published every evening except Sunday by the
I MPIRE PRINTING COMPANY
Second > nrt Main Streets. Juneau. Alaska
HELEN TROY MONSEN .... President
DOROTHY TFOY 1 VQO - Vice-President
ELMER A FRIEND - Managing Editor
ALFRED ZENC.ER - Business Manager
Entered In the Post Office In Juneau as Second Class Matter.
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nee credited tn this paper and also the local news published
bore In
NATIONAL REPRESENTATIVES — Alaska Newspapers, 1411
dearth Avenue Bldg.. Seattle. Wash.
Thursday, October 26, 1950
HERBERT HOOVER EXPLAINS THE
STATE OF THE MINING INDUSTRY
In a statement prepared for Burt B. Brewster's
Mining Review, Herbert Hoover tells the state of the
non-ferrous mining industry in the Pacific and Moun
tain States.
Because the conditions to which Mr. Hoover points
in his statement pertain pertinently to Alaska's min
ing industry, we reprint it here.
Gold production, at one time one of Alaska’s
greatest resources, has fallen from about 28 million
dollars worth in 1941 to under 8 million dollars in
1949. The difficulties surrounding gold mining in
Alaska are similar to those outlined in Mr. Hoover's
statement.
And no town in Alaska is more aware of the in
jury resulting from the closing of mines than is
Juneau, with its once great Alaska Juneau mine
inoperative since 1944.
Here is Herbert Hoover’s statement from The
Mining Review:
The number of non-ferrous metal mines in the
Mountain and Pacific States has decreased from about
11,000 in 1935 to 2,300 in 1949.
This is an appalling degeneration in a vital part
of the national economy.
The reasons for this degeneration are common
knowledge to the whole industry. In the main they
are:
1. A considerable part of this degeneration has
thf result, ni national _PYpe.nriit.nre. taxation and
controls which undermine the supply of venture capital
and adventure enterprise in the nation as a whole.
The effect of these forces is even more violent to the
non-ferrrous mining industry than to any other.
2 "Hie whole structure of the industry is ignored
by lie powers that be. In the long view and in its
totals, this industry is a losing business. That is, the
total costs ol equipment, technical staff, labor and
supplies put into it is more than the total value of the
output. It is kepf going because it is a jackpot in
dustry, where the occasoinal winner keeps people
working at it. It is, therefore, an industry of the
utmost venture type.
3. The structure of the industry is roughly in
three parts.
First, is the prospector who makes the original
find. He must spend infinite hardship, time and
energy in the search.
Given a find—which is probably a 100-to-l shot
to lose—he is dependent upon the second stage, which
we may call the stage of the "preliminary operator”
who puts in some capital for further development and
equipment. He undertakes a probable 20-to-l shot,
i The third stage is where large capital is required
| for equipment, especially in large deposits of low grade
ore or of difficult metallurgy. Even this stage is prob
ably a 3-to-l shot to lose.
4. The average profitable life of even successful
ventures is definitely limited. The average is prob
ably not more than ten years happy days.
5. All along this line, stage by stage, taxation
and government regulations step in to do violence or
i to give discouragement. The “preliminary operator”
is throttled by the S.E.C. in securing capital which
has usually to be done by selling a stock interest in
a corporation.
If the "preliminary operator” develops a success
ful mine, then he is confronted with the voracious
double income and corporation tax, which may take
from 30 per cent to 80 per cent of his profits. The
depletion and depreciation allowances are, on the aver
age, too little to allow' the getting his money back..
Moreover, with his limited capital, he is not able to
undertake more than one shot at a time. Thus he
cannot write off his 19 bad shots against his one
success. Some of the larger companies do deal with
the prospector as they can write off their bad shots
against their good ones — but the large companies
do not take much initial risk. The sum total is that
the market for the prospector’s finds has so diminished
that he is becoming a scarce person.
6. The answer to all this is that A, the S.E.C.
should leave the prospector and the "preliminary op
erator” wholly alone in their seeking venture capital.
When people buy their mining stocks they know that
they are taking a risk and do not need a guardian.
The S.E.C. does. The S.E.C. does not seem interested
in Reno and Las Vegas which gambles produce no
national wealth. ' B. The prospector and the “pre
liminary operator" should be allowed to average their
losses with their successes over a long retrospective
period—say 10'years. C. They should be given not a
depletion and depreciation allowance, but a total free
dom from taxes until they get their capital back.
After this, they should join the ranks of taxpayers.
7. Even the large companies need more deple
tion and depreciation allowances, as the average life
of a given mine is too short for recovery of develop
ment and equipment within the present allowances.
I believe if the present level of taxes and controls
had been in operation for the past fifty years, there
would scarcely be two dozen large producers in action
today. This risky business is built up largely out of
plowing in the profits. But the Government by double
taxation takes from 30 per cent to 80 per cent from
a successful enterprise.
8. There are otner uy-products of all this lack
of intelligence in taxation and regulatino. The pros
pector and the “preliminary” production is coming
mainly from the large companies. However, they
must constantly get new mines to replace the ex
hausted ones, and with the crowding out of the
prospector and the “preliminary operator.” the com
panies are being starved for such new sources of ore.
Today we realize the prophecies which many of
us in the industry made fifteen years ago. Some 80 |
i per Cent of the number of mines have disappeared
! m this 15 years. We are being driven to imports for
our metals. And parallel, our Government is giving
subsidies under the Marshall Plan to develop foreign
mines.
The national consequence of all this is the min
ing industry is seeking government subsidies in some
form. But can government subsidies re-create the
prospector and the "preliminary operator?” His is
not the sort of spirit that can be created by bu
reauracy.
A wither of 80 per cent in the number of units
in a vital industry in 15 years should be some shock
to the nation.
The Washington
Merry-Go-Round
(Continued from Page One)
under a new court decree, now pays
nothing.
Yet the man who now aspires to
sit in the halls of Congress plays
himself up in his campaign literat
ure as a great famliy man, and
quotes his stepchildren who have
been with him only since May
as saying: "We live with Jack and
know what kind of a person he is
at home. We know he is a profes
sional man, not a professional poli
tician."
Query—When you bring another
man's children into politics, just
how political can you get?
No Wartime Production Plan
The inside story has never Peer
told of the shocking inefficiencj
and neglect that forced Huberi
Howard out as chairman of th<
Munitions Board. Meanwhile, Presi
dent Truman has let six weeks gc
by without appointing a new chair
man to clean up the mess.
The public doesn't realize it, bu
the Munitions Board is just as vi
tal to production planning as th<
joint chiefs of staff are to mili
tary planning. The board is res
ponsible for charting the nation’;
industrial needs and stockpilini
rubber, tin quinine, manganese anc
other materials regarding which w
were caught short at Pearl Harbor
Yet the tragic fact is that Korei
found our stockpiles dangerousl;
low and with no production blue
print at all for the future. Evei
to this day, the Munitions Boar<
hasn’t come up with a single plai
or estimate to guide wartime pro
duction.
This nearly resulted in disaste
a week before the Inchon land
ing, when the Air Force almost rai
out of aviation gasoline. The manu
faoturers were supposed to keep ;
30-day supply on hand in the Fa
Hast, but had no production goa
u> guide tin in. As a result, the sup
ply ran dry on September 6, am
our 11;. , es were nearly grounded or
the eve of the Inchon landing A
gasoline shipment arrived in the
nick of time, but the supply drop
ped dangerously low again while
our troops were storming Seoul.
Meanwhile, the producers hastily
adjusted their production gears and
stepped up the flow of aviation
gas.
Big Producer’s Have Board's Ear
The Munitions Board also per
mitted the nation’s wool supply
to dwindle so low that the Army
i is short of wool to clothe its troops
for the severe Korean winter. As a
result, the kpvemment is now
frantically bidding for wool on the
Australian market. The irony is
that the Agriculture Department
had plenty of wool last year but
couldn't get the Munitions Board
to take it over for stockpiling.
Anxious not to get caught short
] of cotton, for uniforms, the Ag
riculture Department asked the Mu
nitions Board in August what its
needs would be,
1 No answer was received for more
l than 30 days, then a note came
back from the Munitions Board
advising that the man in charge
j of the cotton problem was out o
town. Desperately, the Agriculture
I Department made its own estimate
e by going over the Board's heai
i and getting figures direct from th
1 armed services.
e One trouble with the Munition
: Board is that it listens to the bi
produceis, which want to use rai
i materials in normal civilian pro
. duction, and not have them stock
i piled for emergencies instead. Fo
example, the Munitions Board ha
■ been lulled by the giant Aluminun
i Company of America and, as a re
l suit, has done virtually nothin
' about stockpiling precious alumin
urn. Yet in case of total war, 9
percent of our aluminum outpu
would be used up by the military
■ leaving civilians almost none.
One reason for the Board’s in
efficiency is that it has inheritei
1 too many castaways from the thre
military services. When the Boar
I called upon the armed forces fo
personnel, it didn’t get any top nter
l But Chairman Hubert Howard, a
coal company executive didn't se
| a model for efficiency. That’s why
President Truman gave Stuart Syrrr
j ington over-all mobilization powers
J and, later, demanded Howard's re
signation At the time he ordered
; Howard's resignation, the President
‘ remarked to White House aides.
I “That, right after I appointed him,
he went to Europe for four
months.”
TWO FROM SEATTLE
Eugene v. Erwin and E. Z. How
ard, both of Seattle are in Juneau
on business. They are staying at the
Baranof Hotel.
I _
i • •
• October 26 •
• •
! • Allen Shattuck •
• Mrs. George Messerschmidt •
j • Mrs. Bud Nance •
1 • E. F. Clements •
• Jackie Lee •
• Ann Furness •
• John Floberg •
• Florence Zimmerman •
• Doris Samples •
• •••••••••a
COMMUNITY EVENTS
T O D A Y
At 6 p.m.—Tnku Toastmasters meet
in Gold Room, Baranof.
At 7 p.m.—J6int Veterans Affairs
Committee in CIO Hall.
At 8 p.m.—DeMolay Mothers Club
meets in Blue Room, Scottish Rite
Temple.
At 8 p.m.—Legion of Moose meets.
At 8 p.m.—Yacht, Club meeting,
Baranof.
A i 8 p.m —Embiem Club meets LJks
Lodge rooms.
At 8:45 p.m.—Juneau Singers re
hearsal, Methodist church.
October 27
At noon—Soroptimist, meet in Ter
race Room. Baranof.
At 8 p.m.— Pioneers and auxiliary
meet in IOOF Hall.
At 9 p.m.—Moose Lodge picture un
veiling, Moose Club.
October 28
At 8 p.m.—Rainbow Girls Hallo
we’en carnival, Scottish Rite
Temple.
At 10 p.m.—Fall dance by Douglas
Fire Department, Eagles Hall.
At 10 p.m.—Ladies night, cabaret
dance, informal, in Elks ballroom
for Elks and ladies only.
October 29
At 8 p.m.—Ship, Shank and Shutter
club meets at IOOF Hall.
October 30
At noon—Lions Club, Baranof.
At 7:30 p.m.—Juneau City Band
practice in Grade School Audi
torium.
At 7:45 p.m.—Civil Defense Coun
cil meets in City Council Cham
bers.
At 8 p.m.—Hq. and Service Co.,
208th Inf. Bn. (Sep.) Alaska Na
tional Guard, drill, National
Guard Armory.
At 8 p.m.—American Legion post
meets in Dugout.
October 31
At noon—Rotary Club, Baranof.
At 8:30 p.m. — Community Center
Night for Adults at Teen Age
Club.
November 1
At noon—Kiwanis Club, Baranof.
At 8 p.m.—Elks Lodge.
November 2
At noon—Chamber of Commerce,
Baranof.
BROWNIE TROOP NO. 3
TO PARTY ON SATURDAY
Several visitors attended the re
cent meeting of Brownie Troop No.
3. Mrs. Robert Thorne and Mrs.
Eric Newbould were present as
members of the Soroptimist Club
which is the sponsor of this troop.
Other guests were Mrs. Sterling
Sears and Mrs. Richard Irby. They
are members of the troop commit
tee and assisted with the Christmas
sewing project.
The Brownies spent the first part
of the hour sewing on their dolls’
wardrobes. During the remainder of
the meeting they planned the com
bined Hallowe’en-Anniversary Party
for Saturday.
SAN FRANCISCANS HERE
Germain Buiche and J. R. Rob
ertson of San Francisco are at the
Baranof Hotel.
ACROSS
1. Ingredient of
varnish
4. Small engine
9. Trunk of a
felled tree
12. Self
13. Kscape
artfully
14. Brazilian
parrot
15. Tiki-like fish
ir>. Deserters
’ 18. Unconcealed
* 20. Solid water
21. Money
penalties
* 23. Fastens firmly
4 27. Dill
2S. Meadow mice
l 29. That man
t 30. Hair pad
* 3A Bargains
»
32. Bovine animal
33. Article
34. Measures of
capacity
35. Abrading tool
36. Sandy wastes
SS. Provide food
39. Exist
40. Mohammedan
judge
41. Pertaining to
moving
conveyances
45. The letter Z
48. Turkish name
49. Movement
50. Age
51. Flap
52. Building lots
53. Novel
DOWN
1. Side of a
triangle
Solution of Yesterday’s Puzzlo
2. Turkish com
mander
3. Inferior crown
4. Small lakes
5. Baking
chamber
6. Make into
leather
7. Poem
8. Systems of
government
0. Oppressed
10. Seaweed
11. Aeriform fluid
17. Top cards
10. Caress
21. Unit of
electrical f
22. Emapi'yaCUy
23. Outer gar
ments
24. Mearurcs of
M length
% Oai in
26. Drain
2$. Outlet
31. Addresses
32. Member of a
republic
34. Per i;yi fairy
35. Pacing
fashion
37. Ea Indian
title
38. Form of 1
„ diversion
40. Source of 1
sugar }
41. Large tub
42. Old musical
note
43. Sw ;rs canton
44. Allow
40. lu foie
47. Black bird j*
^J
20 YEARS AGO the empire j
——».— ... »——*
OCTOBER 26, 1930
Nick Bez. canneryman, and James L. Freeburn were in Juneau on
able to leave St. Ann's Hospital.
Nick Bez, canneryman, and James L. Freeburn were in Juneac on
business stopping at the Gastineau Hotel. Other guests there included
T. Brastad, N. Kaurn and William Fromholtz.
Miss Miriam McBride, daughter of Mr. and Mrs. J. C. McBride,
went to Seattle starting a visit of several weeks in the States.
Harry Olds returned on the Admiral Farragut after a short vaca
tion in Seattle.
| --
Frances Orsen, eighth grade student, was one of nine national first
j prize winners in the “Our States Project” contest conducted by Current
j Events, a publication in general use among all United States public
j Schools. Her subject was “Airplanes in Alaska.”
| ' :
Gordon's advertised dance sets (panties and bloomers in lace em
i broidery trim—pink, peach or green) for $1.
- a !
Halibut prices dropped to 6.20 cents and 3 cents a pound. Among
i vessels unloading fish were the schooners Coolidge, Capt. Benjamin
Melver; Celtic, Capt. B. J. Edwards; Bonanza, Capt. p. A. Stead;
Tahoma, Capt. W. Pierce, and Norland, Capt. Thomas Sandvik; also
the gasboat Celtic, Capt. Henry Moy.
Weather: High, 45; low, 39; rain.
;—;-;-7—7 “ ji
j Daily Lessons in English w. l. cordon j
WORDS OFTEN MISUSED: Do not confuse EXPLICIT (distinctly j
stated; plain in language) with IMPLICIT (fairly to be understood,'
though not expressed).
OFTEN MISPRONOUNCED: Adept (adjective). Accent second syl
lable.
OFTEN MISSPELLED: Symmetrical; observe the two M’s.
SYNONYMS: Feasible, suitable, practicable, workable.
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: j
INCAPACITY; lack of ability. “The leader's incapacity proved a big!
handicap to the company.”
MODERN ETIQUETTE ROBERTA LEE j |
— -——-—,— -—.——~~~
Q. Is it good manners for a girl to ask her escort for a cigarette?
A. Yes, this is quite all right. An attentive escort should, of course,
make such a request unnecessary, but should he be forgetful enough,
it is perfectly proper for the girl to make the request.
Q. When invited to a friend’s home for a weekend visit, is it all
right for a guest to take his dog along?
A. Most certainly not, unless, of course, the dog also has been
invited.
Q. At a widow's second marriage, her first husband being deceased,
should she invite the family of her first husband?
A. Yes indeed, if the relationship has always been pleasant. And
furthermore, these people should make every effort to attend.
_ ' I
LOOK and LEARN A. C. GORDON I'j
■ »»<<■■ '-»*■*•* >*******■>*■>* * rrrrti
1. What is the most important, as well as the most practical, of all
chemical compound substances?
2. On what islands are there found the largest number of fur
seals?
3. Who was the first English Duke of Windsor?
4. What is the fluid the liver secretes called?
5. What orchestral instrument in its literal translation means
“small”?
ANSWERS:
1. Water.
2. The Pribilof Islands, off the coast of Alaska.
3. Edward VIII, when he abdicated his throne, became the first
Duke of Windsor.
4 Bile.
5. Piccolo. ,
Christmas Cards
at The Empire j
* nin in i i «
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as a paid-up subscriber lo THE 1/AIL Y ALASKA
EMPIRE is invited to be our guest THIS EVENING
Present this coupon to the box office of the
CAPITOL THEATBE
and receive TWO TICKETS to see:
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Federal lax—12c Paid by the Theatre
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and an insured cab WILL CALL FOR YOU and
RETURN YOU to your home with our compliments.
WATCH THIS SPACE—Your Name May Appear!
1 *■ — ■ ———■—■—
/
Oldest Bank in Alaska
1891—Over Half a Century of Banking—1950
The B. 9L Behrends
Bank
Safety Deposit
Boxes for Rent
COMMERCIAL SAVINGS
Weather at
Alaska Points
Weather conditions ana temper
atures at various Alaska points
also on the Pacific Coast, at 4:30
a.m., 120th Meridian Time, and
released by the Weather Bureau
are as follows:
Anchorage . 36—Snow
Annette Island . 37—Cloudy
Barrow ... 20—S'now
Bethel . 29—Cloudy
Cordova . 22—Partly Cloudy
Dawson .. 22—Snow
Edmonton 39—Cloudy
Fairbanks . 16—Cloudy
Haines .. 30—Cloudy
Havre . 49—Cloudy
Juneau Airport . 32—Cloudy
Kodiak .,. 35—Drizzle
Kctzebue . 21—Cloudy
McGrath . 12—Cloudy
Northway . 22—Snow
Petersburg . 33—Cloudy
Portland .. 42—Cloudy
Prince George 33—Cloudy
Seattle 41—Rain
Sitka . 34—Cloudy
Whitehorse 18—Cloudy
Yakutat . 33—Cloudy
Boyer, SSandard Oi!
Exec, Appointed Head
Atomic Energy Com.
(By Associated Press)
President Truman has nominat
ed a new general manager for the
Atomic Energy Commission. Subject
to Senate confirmation, Standard
Gil Company executive Marion W.
Boyer will take over November 1 in
the huge job that includes develop
ment of the hydrogen bomb. He will
succeed Carroll Wilson, who resign
ed last August after a dispute with
AEC Chairman Gordon Dean.
Demos Declare
Phiiiy GOP Using
Strong-Arm Tadics
(By Associated Press)
Senate investigators are looking
into complaints that the Republican
Party is using “strong-arm” tactics
in Philadelphia. The charges have
been brought by a group of four
Democrats. A Senate subcommittee
on privileges may hold open hear
ings on the charges.
FROM KETCHIKAN
B. R. Aikins of Ketchikan is
registered at the Baranof Hotel.
FROM SEATTLE
Mr. and Mrs. R. Tralle of Seattle
are registered at the Baranof Hotel.
OWENS HERE
A. E. Owens of Barge is at the
Baranof Hotel.
V. F. W.
Taku Post No. 5559
Meeting every Thursday in
the C.I.O. Hall at 8:00 p.m.
The Erwin Feed Co,
J Oifice in Case tot Grocer?
Thune 7*4
HAY, GRAIN, COAL
and STORAGE
STEVENS’
LADIES’—MISSES’
READY-TO-WEAR
Beward Street Near Third
The Charles W. Carter
Mortuary
fourth and Franklin Bte.
PHONE 138
Casler's Men's Wear
McGregor Sportswear
Stetson and MaUory Hats
Arrow Shirts and Underwear
Allen Edmonds Shoes
Skyway Luggage
BOTANY
"500"
CLOTHES
NUNN-BUSH SHOES
STETSON HATS
Quality Work Clothing
FRED HENNING
Complete Outfitter tor Men
SHATTER’S
SANITARY HEAT,
rOR BETTES MEATS
IS—PHONES—4»
pres DellTtry
MOUNT JUNEAU LODGE >U. 14:
SECOND and FOURTH Q
Monday of each month iY\
tn Scottish Rite Temple -
beginning at 7:S0 p. «h
Carson A. Lawrence,
Worshipful Master;
JAMES W. LEIVERS, Secretary.
© B.P. 0. ELKS
Meeting every Wednesday at 8
P.M. Visiting brothers welcome.
WALLIS S. GEORGE, Exalted
Ruler. W. H. BIGGS, Secretary.
r — - --■>
Noose Lodge No. 700
Regular Meetings Each Friday
Governor—
ARNOLD L .FRANCIS
Secretary—
WALTER R. HERMANSEN
- - ' -
t
Brownie's Liquor Store
PiMM <N in B*. Ft aa kite
P a Box UN
timHaauaHHiMi
"The Rexall Store"
Tour Reliable Pharnwlata
BUTLER-MAURO
DRUG CO.
Alaska Music Supply
Arthur M. Uggen, Manager
Plano*—Musical Instrument*
and Supplies
..Phone 206 ..Second and Seward.
GENERAL PAINTS
and WALLPAPER
Idea! Fain! Store
Phone 649 Fred W. Wendt
Card Beverage Co.
Wholesale 805 10th St.
PHONE 216—DAT *r NIGHT
for MIXERS er SODA POP
The Alaskan Hotel
Newly Renovated Room*
at Reasonable Rate*
PHONE SINGLE O
PHONE 665
Thomas Hardware Co.
FAINTS - OILS
Builder*’ and Shelf
HARDWARE
Remington Typewriters
SOLD and SERVICED by
J. B. Burford Co.
“Our Doorstep la Worn by
Satisfied Customer*”
FORD AGENCY
(Authorised Dealer*
i CREASES — GAS - OK
Juneau Motor Co.
Foot of Math Street
MAKE
JUNEAU DAIRIES
DELICIOUS ICE CREAM
a dally habit—aak for tt by name
Juneau Dairies, Inc.
Chrysler Marine Engines
MACHINE SHOP
Marine Hardware
Chas. G. Warner Co.
HOME GROCERY
Phones 146 and 342
Home Liquor Store—TeL 699
American Meat — Phone 38
To Banish “Bine Monday”
To give you more freedom
from work — TRY
Alaska Laundry
H. S. GRAVES
The Clothing Man
LEVI’S OVERALLS
for Boys
BLACKWELL’S
CABINET SHOP
117 Main St. Phone 771
Hi*h Quality Cabinet Warfc
fer Heme, Office qr Stare