THE DAILY ALASKA EMPIRE
"ALL TIIE NEWS ALL THE TIME*
VOL. LXXVI., NO. 11,759
JUNEAU, ALASKA, FRIDAY, MAR( f 16, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Desperate Reds Overwhelmed. A rtillery Duel
FUEL TAX
INCREASE
IS TABLED
By BOB DEARMOND
The House of Representatives by
almost unanimous voice vote this
morning tabled the bill increasing
the motor fuels tax a cent a gallon.
The tabling motion, which had
failed several times previously, came
after two amendments had been of
fered and debated.
A Ways and Means Committee
amendment would place the addi
tional fuel tax revenues in the gen
eral fund. An amendment by Rep.
Carlson would exempt marine sales
and sales to stationary engines and
off-road vehicles such as tractors
from the tax increase.
Neither amendment was adopted.
Carlson contended that the tax
works a hardship on the fishermen,
who are required to pay it whether
or not they receive a dime of return
for their expenses and efforts.
Rep. Kay, on the other hand,
claimed an exemption for fishermen
would make the tax discriminatory.
Rep. McCytcheon compared tax
payments/by fishermen with those
of the aviation industry.
"As an addition to their gross
expenses, this tax is unfair to the
fishermen,” Rep. Johnson contend
ed. "If the fishermen make money,,
it will be reflected in revenues from
the net income tax.”
The House also tabled a bill re- j
pealing the law making Indian and
Eskimo residents ineligible for cer
tain welfare benefits.
Bills Passed
Passed unanimously was H. B.
152, permitting the Tax Commis
sioner to require bond to assure
collection of ihe Territorial School
Tax by employers. Rep. McCutch
eon, author of the bill, said it is
aimed particularly against war con
struction contractors.
House Bill 120, redefining “sea
son wages credits’ in the Employ-,
ment Security Act, passed the House ,
by a 14-9 vote but was held over I
another day when Rep. Miscovich!
gave notice of his intention to re- |
consider.
House memorials seeking the i
dredging of the northern portion of I
Gastineau Channel and asking the
Board of Administration to unfreeze ^
the 1949 appropriation for aid to j
community hospitals were approved j
by the House, as was a joint reso- ,
lution providing $2,500 to pay the
expenses of legislative council on
the reorganization program.
Office Building
The bill to appropriate $165,000,
in addition to the $630,000 appro
priated in 1949, for the Territorial
office building in Juneau and $100,
000 for the purchase of building sites
at Anchorage and Fairbanks :Vrred
up some warm debate in the House
yesterday afternoon but the bill it
__ I
(Continued on Page Two) |
_ l
I
Merry-Go-Round!
By DREW PEARSON
(Copyright. 1991. oy Bell Syndicate. Inc.. |
(Ed. Note: Drew Pearson is on a.
flying tour of Europe and the i
Middle East, surveying the world j
situation.) j
ROME. — The most Important j
thing that every American is en- ^
titled to know about Marshal Plan
Aid to Europe is whether it is a |
temporary shot-in-arm which will
have to be repeated every so often j
to keep the patient alive or whether
it will really put Europe back on
its feet. In brief, the question is,
will Communism take over shortly
after we pull the Marshall Plan
props out from under Europe?
Italy may -C a good laboratory
in which ro answer this question,
partly because we have poured
American money into Italy ever
since the end of World War II,
partly because the Italian people
are reasonably well disposed toward,
the United States and partly be
cause Communism is taking a lick
ing here for which the Marshall
Plan is to a considerable degree!
responsible.
Basically the question of whetherj
Italy or any other Marshall Plan!
country can carry on after we leave
boils down to whether they can j
successfully institute internal re-1
forms sufficient to combat Com- ,
munism. balance their budgets and |
muster the courage to tax. In Italy,
this entire question has been the
(Continued on Page Four;
'Family' Greets Gl 'Father'
Smiling, laughing, Japanese orphans vie for the attention of Sgt
Hugh O'Reilly, Bronx member of the fighting Wolfhounds, as he
arrives at orphanage in Osaka to spend his seven-day "rest and
relaxation’’ leave with them after seven months in Korea. And
O'Reilly is just sa happy as the orphans as he sees what his regiment
has done to make them happy and healthy thorugh the two years
since it "adopted” a ramshackle place and turned it into a modern
home for them. (/PI Wirephoto.
OUTLOOK GOOD
NEW SAWMILL IN
CHANNEL AREA
Prospects for the installation of
a sawmill on Gastineau Channel by
the Nettleton Lumber Company of
Seal tie looked bright today when
it was disclosed that at least three
locations have been selected as be
ing suitable for a mill site.
M. L. Nelson, mechanical super
intendent for the company, said
this morning that suitable sites for
a sawmill installation have been
found on both the Juneau and
Douglas sides of the Channel and
two sites are available in the nearby
area.
Final determination for the loca
tion of a sawmill will be deter
mined by the company after reports
on their findings have been turned
in by Nelson and Benjamin Gard
ner, company secretary, who has
been looking over possible sites in
the southern districts. Gardner has
returned to Seattle. Nelson plans
to leave Juneau today by Par
American World Airways plane.
"The cooperation of the residents
and city officials of Juneau and
Douglas and Forest Service officials
in assisting me to find a sawmill
site in this locality has been highly
pleasing," Mc-lson said today.
He said his company will make
immediate announcement of the
location for the sawmill installation
as scon as it has been determined.
Engineers will be sent out to make
the preliminary surveys and con
struction work will start as early as
arrangements can be made.
STEAMER MOVEMENTS
Princess Norah from Vancouver
scheduled to arrive Saturday after
noon or evening.
Denali scheduled to sail from
Seattle 4 p.m. today.
Baranof scheduled to arrive Sun
day noon, southbound.
m
• WEATHER REPORT
• Temperature for Si-Hour Period
• ending 6:20 o cluck tljs morning
o In Juneau — Maximum,
• 36; minimum, 15.
• At Airport — Maximum,
• 33; minimum, 11.
•
• FORECAST
• Cloudy with intermittent
• snow tonight and Saturday.
• Slowly rising temperature.
• Low tonight near 26 and
• high Saturday near 32.
•
• PRECIPITATION
• (Past 24 hours ending 7:30 a m. today
• City of Juneau — Trace;
• Since March 1 — 1.06 inches;
• Since July 1 — 51.95 inches.
• At Airport — None;
• Since March 1 —.81 inches;
• Since July 1 — 33.19 inches.
NEW PLANT !
FORJUNEAU
IS POSSIBLE
The possibility of a plywood plant j
for Juneau is more than a rumor,
Thomas A. Morgan, president of
the Columbia Lumber Co., revealed
I in a letter to the Juneau Chamber
of Commerce this week.
Morgan indicated that plans were
fairly well advanced and that with
the right cooperation it might easily
become a reality in 1952.
“For your information, wish to
advise that we purchased a con
trolling interest in the Juneau Lum
ber Mill,” the letter read, “with the
thought in mind that a part of this
property would be used for our pro
posed plywood plant. There is am
ple space for both the sawmill and
the plywood plant on this property.
“An application has been filed
for a Certificate of Necessity, in or
der to assure us of obtaining the
machinery and equipment necessary
for this plant. It will also give us
adequate funds for the financing of
the project.
‘Some plywood construction ex
perts are working on a layout at the
present time, and will soon have
these figures available for us, giving
complete data as to machinery,
equipment, and the cost of the com
piece insiBuauuii.
Seeks Block of Timber
“I might also add that we have
filed an application with the U. S.
Forest Service for the purchase of
the Kosiusko block of timber, lo
cated adjacent to Edna Bay, This
is the best stand of high grade tim
ber in Southeast Alaska, and one
that wi!' provide a supply of veneer
quality logs which will be needed
for the Juneau plant.
‘■This application has been pend
ing since early last summer, and
was renewed again recently, with p
request that the installation of this
plywood project would depend upon
the Kosiusko timber. Therefore, the
success of our efforts to establish
this plant will depend largely upon
the action of the Forest Service in
handling this block of timber. If
they elect to withhold it from sale,
we would very likely cancel out our
plans for the plymood plant, as it is
unlikely that an adequate supply of
high quality veneer logs could be
obtained from present sources.
"Mr. Frank Heintzleman, of the
! Forest Service, is now in Washing
j ion and it may be that he will have
the authority to proceed with this
project upon his return. At any
rate, we are hoping that this will
be true, and that no further delay
in the planning for the plywood
mill will be encountered.”
---
FROM MISSOURI
Myrtle E. Ronsson of Kirkwood, i
i Mo., is a guest at the Baranof hotel, j
I 1
SEN. SNIDER
COMES BACK;
CHALLENGED
Sen. Heinie Snider returned from
his “walk" yesterday afternoon.
The “Wandering Wasillan” re
turned for the afternoon session
after his morning walkout in protest
against a Senata-approved bill
granting a general pay increase to
Territorial officials and employes.
His case was not forgotten though.
Sen. R. M. MacKenzie (D-Ketchi
kan) challenged Snider’s right to a
Senate seat on the grounds the
Wasilla Republican was ineligible to
election as a Federal employe of the
Alaska Road Commission.
Dr. MacKenzie said if Snider had
not been elected former Senator
Vic Rivers would have been and
the Democrats would have had a
working majority in the Senate. He
suggested the Senate should accept
Snider’s "resignation” and seat Riv
ers for the 1953 session, if not next,
week.
Snider retorted that he worked
for the Road Commission only dur
ing the summer months, never after
election, and was only a day laborer.
He insisted the law did not apply
to him.
One Sport Licensed
The Senate voted to license one
sport yesterday but failed to outlaw
another.
The Senate voted 13-1 to impose a
license on sports fishing, but the
vote on a House-approved bill out
lawing the private use of fireworks
in the Territory was 8-7, one shy of
the necessary majority.
The Senate also passed a compre
hensive new Alaska banking code
but returned it to the House with
numerous banker-sponsored amend
ments.
The upper chamber’s 13-0 vote
completed legislative action on a
bill to remove the governor from
the Fisheries Experimental Com
mission.
Among the eight House "bins pass
ed by the Senate was one to allow
teachers to continue to teach in the
States after forced retirement on
Alaska retirement pay at the age
of 60.
The Senate also approved a House
joint memorial by Rep. J. S. Mac
Kinnon (R-Juneau) asking Con
gress to settle Alaska’s aboriginal
claims to end uncertainty and open
(Continued on Page Eight)
WANTSRFC
ABOLISHED;
USCC PLEA
WASHINGTON, March 16 —UH—
Directors of the U. S. Chamber of
Commerce called today for abolition
of the RFC.
The 45-member board of the busi
ness organization adopted a resolu
tion saying:
“Facts disclosed by the Fulbright
Subcommittee have created uncer
tainty and distrust concerning RFC
procedure. Engaged as we are in
a national mobilization effort, we
can not afford to have the integrity
or general moral level of the Gov
ernment or any of its agencies sub
ject to question.”
Senator Fulbright (D-Ark) heads
a Senate Banking Subcommittee
which has been investigating RFC
lending. The group has charged
that some directors of the RFC
have yielded to influence in mak
ing loans.
As a result of the committee’s
disclosures, considerable sentiment
has built up in Congress for killing
the RFC.
Fulbright himself has taken the
stand that the agency should be
continued but reorganized and
"cleaned" up.
Some Congress members also ar
gue the RFC is a big help to small
business and ought to be continued
for that reason.
There is a dispute in the Senate
also as to whether the Fulbright
Committee should continue its RFC
investigation. Fulbright has said he
wants to bring tiie inquiry to an
early end, but Republicans in par
ticular are calling for its continu
ation.
One Big Reason UN Forces Advancing
. - . __... ■■■ ■ . ««W)UaMHIIMVSTOWI&tlfflll—5»*V
An eight-inch gun, manned by First Calvary Division troopers, has just fired a round against the enemy
on the west central front in Korea (Mar. 8). This big gun fires a 200-pound projectile 10 miles and has
been very effective, iff! Wircphoto.
Air Drop Aids U. N. Offensive
Cargo parachutes carrying ammunition and supplies drop toward UN
lines in the Wonju-Koksu areas where muddy roads made it impos
sible to supply the troops by motor transport. It was disclosed (Feb.
24) that air force flying box cars have dropped 735 tons of supplies
to keep the Allied offensive rolling in central Korea. U. S. Air Force
photo via radio from Tokyo and (ff) Wirephoto.
FRENCH GUARD U. S. PLANES - French
acmored car crew keeps on alert as U. S. escort carrier Windham
Bay (background! arrives at Saigon, Indochina, with U. S. plane*
and military supplies for French forces fighting Vietminh.
FREEZE SHIP
TAX BILL IS |
PASSED, 14-1
A bill to quadruple the tax on
freezer ships and other types of
floating cold storage units won 14
to 1 approval of the Senate today.
The bill proposes a 4 per cent raw
fish value tax on such floating oper
ations in Alaska waters. All cold
storage operators are now subject
to a 1 per cent tax on raw fish
value. The 1 per cent levy would
continue for shore storage plants.
The bill was introduced by three
First Division senators — Anita
Garnick, Dr. R. M. MacKenzie and
Elton Engstrom.
The senators said the higher tax
for the increasing number of float
ing operators is justified because of
the advantages they have over
shore plants from the standpoint of
property taxes and other angles.
The big bugaboo that was raised,
however, is whether courts might
hold that the one-to-four differ
ential is invalid under the organic
act provision that “all taxes shall I
be uniform on the same class of sub
jects”
Attorney General Gerald Williams
demurred from issuing an opinion
on the question until he could study
it further.
williams aid qisciose, nowever,
that he is pessimistic about the ex
pected finding of the circuit court,
of appeals on the non-resident fish
ermen’s license issue.
Steve McCutcheon suggested that
the proposed new tax should stand
up in court on the basis of past de
cisions on the resident and non
resident license issue; that It is
mainly a matter of degree.
Williams replied that in view of
recent court decisions, and in view
of the circuit court judges’ com
ments from the bench, the point on
which the case hinges appears to be
the differential in the cost of col
lecting the non-resident tax. Wil
liams said the judges indicated a
tolerance of a non-resident differ
ential "but only so much more as Is
represented in collecting from
them.”
Sen. .’ohn Butrovich broke in;
“We’ve lost the bill then, haven’t
we? Hadn’t we better get ready to
make refunds?”
Williams, smiling, evaded the di
rect question with the reply:
“I might say I’m not too happy
about the situation.”
Engstrom ventured an opinion
that “we have a different type of
operation here than the non-resi
dent fishermen, and I think it
should go through all right. I don’t
think we would be sticking our neck
out too far.”
So the Senate voted 14 to 1 to
stick h — with McCutcheon the
lone senator voting to hold it in.
The Senate spent most of the
rest of the morning in discussions
on whether to receive a number of
House bills under suspension of the
rules.
REDS BEATEN
FIFTY TO ONE
SHELL BATTLE
By Associated Press
American troops overwhelmed
desperate Rods in a rotting artillery
duel on the Korean war front to
j day and then crashed ahead for new
| gains.
The Reds threw their heaviest ar
! tillery fire of the war.
Americans answered with a bar
rage that out-thundered the Reds,
50 shells to one.
The drive carried an American
division onto high ground north of
Hongchon, an important road hub
20 miles south of Parallel 38.
Reds Halt Retreat
Earlier Friday the Reds abruptly
halted their eight-day retreat on
the Central front. They turned on
the Allies with their heaviest ar
tillery barrage yet.
Then came the roaring American
echo.
UN warplanes joined in the blast
ing with rockets, fire-bombs and
machine guns.
New Defense Line
The new Communist defense line
stretches across Korea for 30 miles,
Just below the Chinese Reds’ field
headquarters at Chunchon.
Just before the Reds turned to
stand before the advancing Allied
forces, they gave up the road Junc
tion of Hongchon, 20 miles south
of the Parallel that divides North
and South Korea. UN troops, rid
ing tanks, drove into the town un
der only small arms fire. The town
that held 40,000 Red troops a week
ago was all but deserted.
Red Casualties
U. S. Eighth Army headquarters
estimated that 1,580 Communist
troops were killed or wounded
Thursday — making the total 172,
000 since Jan. 25, when the Allies
began to push north.
The Communist defense line was
under attuck from the U. S. 24th
and 25th Infantry Divisions from
Hongchon west.
East of the battle-wrecked South
Korean capltol of Seoul, the U. S.
Third Division pushed forward.
Northwest of the Republican capitol,
South Korean troops withdrew after
meeting Red patrols.
Meanwhile, Oeneral MacArthur
has cautioned President Syngman
Rhee of the Republic of Korea
against returning immediately to
Seoul with his government. The UN
commander messaged I^hee that the
Reds had not suffered a decisive
defeat in their withdrawal.
KEPNER MAY
COME, TESTIFY
ON DEFENSE
Lt. Gen. William Kepner has
notified both Houses of the Alaska
Legislature he would "gladly accept”
an Invitation to appear to speak on
Civilian Defense problems, i(, the
Defense Department approves.
Kepner, commanding general of
the Alaska command, declared how
ever, "X cannot appear in any de
gree as lobbying for or against any
pending bills of the Legislature."
Two senators who opposed invit
ing the general expressed the opin
ion he would actually be lobbying
for the $1,100,000 Civilian Defense
Bill.
The Senate decided to go ahead
on the bill, without waiting for the
general’s arrival, but to ask him to
come if he can by March 20, at the
latest.
STOCK QUOTATIONS
NEW YORK, March 18 — Closing
quotation of Alaska Juneau mine
stock today is 3'4» American Can
107Vi, American Tel. and Tel. 154>i,
Anaconda 41, Douglas Aircraft 96M!,
General Electric 54 V*, General Mot
ors524i, Goodyear 72'i, Kennecott
73, Ubby, McNeil and Ubby 9Vi,
Northern Pacific 34 V», Twentieth
Century Fox 22 V», U. S. Steel 43,
Pound $2.80'», Canadian Exchange
95.58 V4.
Sales today were 1,660,000 shares.
Averages today were as follows:
Industrials 248.69, rails 82 68. uttli