THE DAILY ALASKA EMPIRE
' nALL THE NEWS ALL THE TIME*
VOL. LXXVI.. NO. 11,771
JUNEAU, ALASKA, FRIDAY, MARC H 30, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Major Korean Counterattack Opened by Reds
STATEHOOD PRIZE — Rep. H. A. Patten (center) ot Arizona shows 49-star U. S. flag
inade by a Navajo Indian 75 years ago to Joseph Farrington (left), Hawaiian delegate, and Alaska
delegate fi. L Bartlett. He promised flag to delegate whose territory first becomes a state.
BUSINESS MEN
ATTEND MEETING,
PRICE CONTROLS
About 75 Juneau business men
attended a meeting at the high
school last night to hear a dis
cussion on the new price-control
regulation. They heard Stanley
Friese, business analyst for the Ter
ritorial office of the Cilice of Price
Stabilization, explain in detail the
precedure requh ;U to comply with
the act.
Friese gave a brief outline of flit
conditions wnich led up to the in
auguration of a price-freeze pro
gram. He told of the many regula
tions which were first drafted as
stop-gap ineasui’efe and from which
tlie present Regulation 9 was evolv
ed. Regulation 9 applies to all whole
salers and retailors in the Territory
of Alaska.
Emphasis was placed upon estab
lishing base period records. The
base period was the period Decem
ber 19-January and each retailer v
required to establish the highest
price at which he sold articles dur
ing this period. No article may be
sold henceforth at a higher price
unless the direct cost to the mer
chant goes up. In this event, only
the actual dollar-and-cent increase
may be passed on to the customer
This, Friese said, is the real sub
stance of ftegulation 9.
Most of the evening was spent' hi
clarifying ways and means to arrivp
at a system of keeping records to
comply with the law. A cpiestion
and-answer period followed Friese’s
presentation.
Meetings will be held later for
specific businesses, F. G. Hanford,
Territorial director, said today.
There are about 20,000,000 acres
of forest land in New Mexico.
The Washington
Merry - Go - Round
By DREW PEARSON
(Conyrletit. 1951. oy Bell Syndicate, lac..
ASHINGTON.—Here are a few
don't know it, but the slot-machine
boys put on a terrific lobbying drive
right under the noses of capitol hill
solons to defeat the Preston Bill
regulating slot-machines. The lobby
even listed certain members of Con
gress to be contacted.
Operation of the slot-machine
lobby gives a slight indication of the
pressures exerted to kill the Kefau
ver crime probe.
In the case of the slot-machine
bill, representatives of seven lead
ing slot-machine manufacturers
met secretly in the Chicago offices
of the O. D. Jennings Co., in order
to plan their wire-pulling cam
paign. They were out to kill legis
lation introduced by Congressman
Prince Preston, Jr., of Georgia, for j
the regulation of slot machines j
shipped across state lines. A con
fidential copy of the secret min
utes of this meeting has been ob
tained and revealing excerpts fol
low:
‘‘Reliable Congressmen”
‘‘Herb Jones (of the Bally Man
(Continued on Page Four)
FIVE PER CENT
SALES TAX IS
ASKED BY CED
WASHINGTON, March 30 — (#1—
A 5 percent national retail sales
tax and a $6,000,000,000 slash in
government spending were among
steps proposed by the Committee
for Economic Development to
achieve a balanced and adequate
federal fiscal program.
In addition to a $10,000,000,000 tax
increase- as soon as possible, the
businessmen's research group sug
gested tight restrictions on expan
sion of bank credit, and a national
program to encourage private sav
ings.
"This program, fully carried out,"
it said, "would yield a cash sur
plus of two to three billion dollars
in fiscal 1952. Thus it maintains
the anti-inflationary influence of
the budget but would not rely ex
clusively upon higher taxes to do
this. At the same time, it would
greatly strengthen the defense
the defense has been weakest —
against inflation at the points where
namely control of the expansion
of credit and the promotion of
savings.”
The program was developed .and
put, forward by the research aud
policy committee of the business
research organization, and released
by CED chairman Marion B. Fol
treasurer of Eastman Kodiak
Co., Rochester, N. Y.
The committee’s "emergency tax
program” calls for raising an addi
tional $5,250,000,000 from excise
taxes, including the sales tax; $3,
850,000,000 more from individua;
income taxpayers, and $1,000,000,
ooq more 'l(rom corpotrations b>
means of a “defense profits tax,’
with profits above $25,000 taxed at
50 per cent instead of the present
47 per cent. No change was recom
mended in the present excess profits
tax on corporations.
NEWBOULDS TRAVEL
Major Eric Newbould of the Sal
vation Army, accompanied by Mrs.
Newbould, left on the Princess
Norah to attend an annual Salva
tion Army Congress in San Fran
cisco. It will be conducted by John
Allen, chief of the staff from Lon
don, England. Twelve delegates
from Alaska will attend. Others
will go from western states, Hawaii
and the Philippines.
OFF FOR EUROPE
Mr. and Mrs. B. D. Stewart left
on the Princess Norah on the first
lap of a vacation trip which will
take them to- Europe. They will
sail April 9 from New York for
London and then will go_ to Scot
land and later make a motor tour
of France, Germany and Austria.
In New York they will be joined
by Mr. Stewart’s daughter, Mrs.
Mary Fellows and small daughter i
Anne, who will accompany them
overseas.
The family expects to be gone
about a year.
FINANCES IN
GOOD SHAPE,
YEAR'S END
WASHINGTON, March 30 — W—
The first balanced budget in three
years and — better still — the sec
ond biggest surplus in history is
virtually in the bag for fiscal 1951,
now just tlirce months from its
end.
Some government officials said
privately today fiscal 1951 shows
signs of ending June 30 in a sur
plus approximating $2,700,000,000—
the size of the deficit President Tru
man predicted for this year in mid
January.
That indicates a whopping $5.
000,000,002 or more improvement in
the budget outlook in the short
.space of less than three months.
Combining to produce this phe
nomenal turnabout are (1) a flood
of tax receipts far greater than ex
pectations and (2) lighter than ex
pected expenditures, chiefly due to
lagging deliveries on orders for
military supplies.
The same factors give promise of
cutting perhaps as much as $3,000,
003,000 off the $16,500,000,000 de
ficit forecast by President Truman
in January for fiscal 1952, starting
next July 1, some government of
ficials believe.
That is likely to mean the ad
ministration's tax program will find
the going harder than ever in Con
gress, which has taken no action
thus far on even the first part of a
two-round tax increase President
Truman suggested for this year.
• WEATHER REPORT •
• Temperature for 24-Hcur Period •
• ending 6:20 o'clock tills morning •
I • In Juneau — Maximum, •
• 45; minimum, 30. •
• At Airport — Maximum, •
• 44; minimum, 31. •
• •
• FORECAST •
• Cloudy with intermittent •
• rain tonight and Saturday. •
• Lowest temperature tonight •
• near 35 degrees. Highest •
; • Saturday near 40. •
! • •
• precipitation •
• (Past 24 hour? ending 7:20 a.m. today •
i • City of Juneau—.02 inches; •
! • Since March 1—7.01 inches; •
j • Since July 1 — 57.91 inches •
• At Airport — Trace; •
• Since March 1 — 3.78 inches; •
• Since July i—36.26 inches. ®
• STEAMER MOVEMENTS L
Denali scheduled to sail from
Seattle late this afternoon.
Princess Norah scheduled to sail
from Vancouver 8 p.m., April 4.
Baranof scheduled tc arrive from
Westward Sunday morning south
bound.
Mrs. Mary Do^an, well-known
Juneau pioneer woman, returned
home on the Princess Norah this
morning from Skagway. Mrs.
Doo ran was visiting her daughter,
Sister Mary Raphael, who is in a
Skagway orphanage.
HOLLIDAY IS
AWARDED TOP
MOVIE PRIZE
HOLLYWOOD, March 30 —<«—
Judy Holliday, the junk dealer’s
squeaky-voiced babe In “Born Yes
terday,” won the Academy Award
last night from two mature ac
tresses, Gloria Swanson and Bette
Davis.
Jose Ferrer was given the top
male Oscar for his swaggering per
formance as the bulbnoscd
"Cyranode Bergerac.” For the
first time in motion picture acad
emy history, neither winner was
present. Both Miss Holliday and
Ferrer are in New York.
Statuettes for the best supporting
roles in 1950 were bestowed on Jose
phine Hull, the flittering sister in
“Harvey,” and George Sanders,
acid-tongued critic of “All About
Eve.”
"All About Eve” captured honors
for the best film of 1950, winning
five other awards as wrell.
It was a stunning victory for Miss
Holliday. In her second important
picture, the shapely New Yorker
captured the honors away from the
highly touted performances of Miss
Swanson in “Sunset Boulevard" and
Miss Davis in “All About Eve.”
Other important awards: Motion
Picture Story, "Panic in the Streets”
by Edna and Edward Anhalt; Story
and Screenplay (by same writers) —
"Sunset Boulevard,” Charles Brack
ett, Billy Wilder and D. M. Marsh
man, Jr.; Irving Thalberg Memorial
for high-quality production, Darryl
Zanuck of 20th Century-Fox; best
musical score, "Sunset Boulevard,”
Franz Waxman; best song, “Mona
Lisa,” by Mack David, All Hoffman i
and Jerry Livingston, from "Cap-1
tain Carey, USA.”
BIG FIGHT WAGED
OVER TROOPS FOR
EUROPE MEASURE
1 WASHINGTON, March 30 —M—
I Senator Wherry (R-Neb) asserted
j today that plans to send additional
! ground troops to Europe are delay
1 ing the buildup of vital American
j Air forces.
! Wherry scheduled a Senate speech
| against the troops-to-Europe resolu
: tions as Senator McFarland <D
| Ariz),, predicted to reporters that
| the administration will defeat ef
! forts to send them back to com
| mittees.
j , *T think we have the votes to
j beat the recommittal motion,” said
McFarland, the Democratic leader.
The Senate will begin voting Mon
j day on the issues involved.
Pending resolutions would put the
' Senate and Congress on record as
i approving the dispatch of four more
j divisions to Europe but would call
| on the President to give Congress
: a voice in future troop commit
t ments. Mr. Truman has said he does
1 not need authority from Congress
to deploy troops, but will consult it.
MISS SMITH HONORED
BY CO-WORKERS AT
LUNCHEON THURSDAY
i
Complimentary to Miss Harriet
Smith of the Alaska Department!
of Health, who is leaving Alaska ]
to make her home in the states,
office staff fellow workers gave a
luncheon Thursday noon in the
| Terrace Room of the Baranof Hotel,
i Places were laid for 25 guests at
I the beautifully appointed table,
j which was decorated with bowls of
i spring ilowers and tapers,
j Dr. C. Earl Albrecht, Commission
1 er of Health, expressed his appre
I ciation and that of the staff mcm
| bers for Miss Smith’s loyal service
to the department in the nearly
j five years she has been with it.
The honored guest was then pre
sented with a farewell gift of a
beautiful nugget pendant on a gold
chain and nugget earrings to match.
Miss Smith will leave Juneau
April 10 on the steampship Princess
Norah. She is returning to her
home in San Diego, Calif., where
she will visit with her family while
making deiinite plans for her future.
Alaska Standard, tanker for
Standard Oil docked last night on
a routine delivery trip and sailed
early this morning.
Presidential Smile
French President Vincent Auriol (center) and Mme. Auriol smile broadly aboard the liner lie de France
on arrival in New York — the first French chief executive ever to visit the United States. At left is
Grover Whale, representing New York’s Mayor Vincent Impellitteri. <ff) Wirephoto.
TRUMAN HAS
BIG SECRET;
KEEPING IT
WASHINGTON, March 30 ——
President Truman’s announcement
that he has decided what he is going
to do in 1952 ieft lawmakers dis
agreeing today on whether he will
run again.
Mr. Truman told a White House
news conference yesterday he has
made a decision but is keeping it to
himself until he is ready to let the
secret out.
The way he said it and the firm
ness .with which h^, Indicated the
decision had tfteri inade, led some
influential Democratic politicians
to believe tlidt, as b'r'now.The Pres-'
ident won’t be a candidate for re
election next year.
Republicans in Congress seemed
generally to think that they have
Mr. Truman's political goose cooked.
Only a few of them believed he
will run again.
However, Senator Murray (D
Mont) told a reporter “these daily
attacks on the President are likely
to boomerang like they did in 1948.”
ERIC JOHNSTON MAY
ASK CONGRESS FOR
HELP ON WAGE BD.
WASHINGTON, March 30—!#)—
Economic stabilizer Eric Johnston
may ask Congress to help him get
the wage stabilization board going
again unless management and labor
shake hands on his peace proposal
in the next few days.
Johnston held a two and one half
hour meeting yesterday with the
labor chiefs, but it brought no evi
dent change in the situation.
Big issue in the way of agreement
is; whether c newdy created 18-man
wage stabilization board represent
ing labor, industry and the public
should handle disputes not involv
ing money questions.
FARM PRICES TAKE
FIRST DROP "SINCE
KOREA" IS REPORT
—
WASHINGTON, March 30 —(if)—
A drop of nearly 1 per cent in aver
age prices of farm products during
the last month was reported today
by the government.
It was the first break in a rising
trend that had sent farm prices up
26 per cent since outbreak of the
war in Korea.
Reporting the slight drop, the
Agriculture Department said food
grains, dairy products, hogs and
truck crops eased off between mid
February and mid-March.
The declines for these commodi
ties more than offset increases for
poultry and eggs, cotton and cotton
seed, meat animals other than hogs,
and wool.
Khainyk
Is Here
To Stay
MOSCOW, March 30 —<«— The
Soviet farm periodical Socialist
Agriculture says the khainyk is
here to stay. ’
You didn’t know it was here at
all?
Neither did most other persons
until Socialist Agriculture reported
last night that there are more than
10,000 khainyks on collective farms
in the Buryat Mongol Soviet Repub
lic of North Central Asia. Reported
ly they are very accomplished and
versatile, indeed.
The khainyk is a brand new farm
animal. It is a cross between the
Tibetan yak and ordinary Soviet
cattle.
This is what the khainyk, ac
cording to Socialist Agriculture, can
do:
It can spend all winter on the
range, even in the severe Siberian
climate, it can find its own forage
under the snow. It can protect it
self easily against wolves — Just a
few can protect a whole herd of
ordinary cattle against whole wolf
packs.
One khainyk hitched to a sled
or cart can haul more than a ton
of freight over a large distance.
Two or three can take a heavily
laden truck over a mountain pass.
Furthermore, the khainyk is do
cile and easily trained in harness.
MINERS STRIKE
AT HEALY RIVER;
COAL IS SHORT
FAIRBANKS, Alaska, March 30.—
—Officials of the Healy River
Coal Corporation said today the
firm’s miners had left their Jobs
in a pay increase demand.
They said the strike, which
started Tuesday night, may cause a
coal shortage in Fairbanks within a
few days. Private coasumers are
being limited to one ton per order.
Hospitals and the steam and power
plants are being given the first cail I
on existing supplies.
The officials said the strike was
in violation of the contract signed
last September. They also said the
company is unable to raise wages
because of wage stabilization board
regulations
The officials said the union is
asking a $2 per day raise across
the board and other benefits, in
cluding payment of 30 cents for
each ton of mined coal into the
United Mine Workers Union Wel
fare Fund.
FWS VESSEL DUE IN
KETCHIKAN LAST NIGHT
The Fish stad Wildlife Service
vessel Sablefish, delayed by incle
ment weather between Seattle and
Ketchikan, was due to arrive at the
latter port last night, according to
advices received at the local re
gional FWS office.
AIR ATTACK,
IF ANY, OYER
U. S. POLAR
WASHINGTON, March 30 — (AT—
Civil Defense Administrator Millard
Caldwell has told a Congressional
Committee that any air attack on
this country probably would come
across the Polar regions to strike
first at the Northwest and the in
dustrial Northwest,
A House Appropriations Commit
tee report made public today alst
quoted Caldwell as having described
as “critical target areas" Washing
ton, Baltimore, Richmond, Atlanta,
Birmingham and St. Louis. He re
ferred to Chicago, Seattle, Portland
San Francisco, St. Paul and Los
Angeles as other likely objectives oi j
enemy attack.
Committee Qhairman Cannon (D
Mo) said General Hoyt S. Vanden
berg, Air Force chief of staff, told
the committee “at least 70 per cent"
of an attacking Air Force would be
able to reach U. S. targets.
This testimony was given during
secret committee hearings on the
Defense Agencies’ requests for
money.
BOB SCHOETTLER
NAMED TO INTL.
SALMON GROUP
WASHINGTON, March 30 —<>Pt—
Robert J. Schoettler, Washington
State Department of Fisheries di
rector. was named today by Presi
dent Truman as United States mem
ber of the International Pacific
Salmon Fisheries Commission.
Schoettler succeeds the late Alvin
(Swede) Anderson as a member of
the International Commission. He
said the position always has been
filled by the Washington Fisheries
Department head.
Schoettler was named acting fish
eries director at the time of Ander
son’s death last October. His ap
pointment was confirmed by the
State Senate at its recent regular
session.
The commission was formed to
oversee the joint Canadian-United
States regulations for sockeye sal
mon and to supervise attempts to
restore Fraser River runs through
the Hellgate barrier developments.
Other United States members are
A1 Day, chief of the Federal Fish
and Wildlife Service and Ed Allen,
Seattle attorney. There are three
Canadian members.
Schoettler, who Is 49, was a fish
erman and engaged in the fishing
business for several years. He was
also the first manager of the Bar
anof. During the war he served in
the U. S. Navy.
VISITORS LEAVE
Mr. and Mrs. H. Strand and sons
David and Kenny, who have been
visiting Dr. and Mrs. J. O. Rude
here since last Sunday, left on the
Princess Norah for Vancouver.
COMMIES '
STRIKING "
IN FORCE
American Big Guns Stop
Reds in One Area, How
ever - Fresh Troops
By Associated Press
Chinese Communists opened a
major Korean counterattack for
the first time in six weeks today.
American big guns stopped the Reds
dead in their tracks in the moun
tainous Uijongbu front but the fury
of Communist attacks forced Allied
troops to give ground at several
other points in the neighborhood of
the 38th Parellel.
The Communists threw their
counterattack at Allied forces on the' i
Western front. Doughboys spotted
he Chinese moving along a moun
.ain trail north of Uijongbu and
forced them back with heavy ar
tillery.
The Americans seized a command
ng hill with a hand-grenade at
;ack. There was bitter close-range
fighting in this Western sector.
Patrol clashes flared all along the
Korean front. The Reds moved 30,
000 fresh troops into front lines on
a 60-mile sector.
Now that the United Nations
troops have reached the 38th Par
allel there was mounting evidence
that the Communists had ended
their six-weeks-old withdrawal and
were mounting heavy reinforce
ments aimed at turning the tide
of battle.
The U. S. Eighth Army command
saya tfc.* Beds can at any moment
throw In nine rested or fresh Army
corps — some 270.000 men. If they
io, It will be their most potent of*
tensive of the war.
AP Correspondent Leif Ericksoa
reported that Lt. Gen. Matthew B.
Ridgway's Eighth Army Is in tha
best position of the war to hold its
own against the expected Red on'
slaught.
One thing might deter the Reds—
i raging smallpox, typhus and ty
phoid epidemic reported in North
Korea. An informed military source
in Tokyo said soldiers and civilians
in Red Korea are dying of disease
by the thousands.
Casualties ol Red
Forces, Korean War,
Is Placed al 7(0,300
WASHINGTON, March 30 —(ifl—
The Army today estimated Com
munist Chinese and North Korean
iasiialt:?s in Korea were 760,300
through March 22.
This figure represents an increase
of 136,300 since the last estimate
of enemy losses was reported Feb. 20.
The total is made up of 543,000
battle casualties, 76,000 non-battle
casualties and 141,300 Red prisoners
taken by UN forces.
The Army estimated the Chinese
Red battle casualties at 260,000 and
their non-battle losses at 31,000. By
actual count, 139,000 North Koreans
have been captured and 2,300 Chi
nese have been taken prisoner.
STOCK QUOTATIONS
NEW YORK. March 30 — Closing
quotation of Alaska Juneau mine
stock today is*3, American Can 110%,
American Tel. and Tel. 154, Ana
I conda 39, General Electric 54%,
I General Motors 52‘4. Goodyear 72'i, *
Kennecott 73%, Libby, McNeill and
Libby 9Vi, Northern Pacific 327i,
Standard Oil of California 45%,
Twentieth Century Fox 21'4, U. S.
Steel 41%, Pound $2.80'i, Canadian
Exchange 95.25.
Sales today were 1,150,000 shares.
Averages today were as follows:
Industrials 248.53, rails 80.61, utili
ties 42.32.
NEW ORGAN INSTALLED
IN LUTHERAN CHURCH
A new Hammond organ was in
stalled in the Lutheran church dur
ing the past week and will be used
for the first time at the worship
Sunday morning.
The organ has been secured by
the congregation in observance of
its 25th anniversary which will be
celebrated with a special dedication
service on Wednesday evening,
April 11.