Jfii
u
THE DAILY ALASKA EMPIRE
“ALL THE NEWS ALL THE TIME”
VOL. LXXVIII-, NO. 11,871
JUNEAU, ALASKA, FRIDAY, JULY 27, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
KETCHIKAN PULP MILL CONTRACT SIGNED
Air Search
Turns South
To Islands
Large Craft Heard
Over Craig; 16 Ships
In Air Today
The search for a Korean airlift
transport, missing since last Fri
day night on a flight from Van
couver to Elmendorf Field, swung
south today from Cape Spencer to
Include Southeast Alaska coastal is
lands.
The Canadian Pacific Airliner,
with 31 passengers and crew of sev
en, was last heard from when its
pilot made his routine check by
radio off Cape Spencer at 11:17
p.m. Friday, It was on the first
leg of a flight to Tokyo.
The southward search was inaug
urated as a result of a report by
three persons at Craig, who said
they had heard ‘‘what seemed to
be a' large plane” flying over Craig
at 12:30 o'clock Saturday morning.
They, said "they couldn’t under
stated ‘^'because Craig Is not on
a main airlane. The report was re
ceived through Alaska Coastal Air
ways to 17th U. S. Coast Guard
headquarters here yesterday.
Islands Included
A concerted search effort will be
made today to include Baranof.
Chichagof, Kuiu and Prince of Wal
es Islands, Coast Guard headquart
ers said. A Coast Guard plane bas
ed at^ Annette Island will join the
seart:R over Prince of Wales Island.
Lt. Col Wallace Walton, com
manding officer of Flight A, 10th
Rescue Squadron from Elmendorf
airbase, has arranged to utilize any
aircraft flying between MeChord
Field, Washington and Elmeadorf
Field to be routed to constitute an
aerial observation dragnet between
the two points.
Sorties will continue to be flown
today from Cape Spencer to Mon
tague Island at the mouth of Prince
William Sound. Yesterday four
Coast Guard cutters, the Cahoone,
Citrus, Bittersweet and Storis
combed offshore as far as 39 miles
into the Gulf of Alaska. All but
the Cahoone will be out today. The
Cahoone is returning to its home
port of Sitka to replenish food,
water, and fuel.
High Effectiveness
Yesterday's aerial operation in
volved 23 sorties which flew 136
hours over the area of ‘‘greatest
probability” in the Cape Spencer
to Prince William Sound region. It
was reported that 60 to 90 per
cent effectiveness was achieved.
Sixteen aircraft, including two
Royal Canadian Air Force Lancast
er bombers, were expected to be
in the air today. The weather re
port for today continued favorable
(Continued on Page Two)
TheWashinglon
Merry-Go-Round
By DREW PEARSON
(Copyright. 1931. By Bell Syndicate. Inc..
PpASHINGTON. — A grim pro
spect of fuel shortages this win
ter was presented to President
Truman in a sober, hour-long
meeting by Secretary of Interior
Oscar Chapman recently. Chap
man, who is no “wolf” crier, poin
ted out the following chances of
gas rationing and heatless days
this winter:
For oil and gasoline—Iranian
oil production, which supplies 5
per cent of the needs outside the
Iron Curtain, may be halted ior
weeks and even months. In addi
tion, Soviet agents are trying to
stir up trouble in other Near East
oil areas. Since the Neai East
supplies fuel for western European
defenses, the difference will have
to be made up from the Americas
—if Soviet agitation succeeds.
Chapman explained that the oil
industry could not increase dom
estic production unless it gets
more steel.
“We need 2,135,000 tons of steel
pipe," he said, “if we are going
to meet the increasing demands of
this country.”
Some 300,000 barrels of crude
oil production are already backed
up in the west Texa3-New Mex
ica basin for lack of pipe, the
(Continued on Page Four)
Seeks Throne
Prine Tallal, (above), the anti
British eldest son of murdered
King Abdullah of Jordan, was re
ported to be furious because his
younger brother Prince Naif, has
been named regent and apparent
successor to Jordan’s throne.
Tallal, 40, is In Switzerland under
medical care for a nervous dis
order. IP) Wirephoto.
Auto Steel
Cut Another
5 Percent
WASHINGTON, July 27, —(PI—
The government today ordered
another five per cent cut in steel
for passenger car production, ef
fective Oct. 1.
Auto output in the October
through-December quarter will be
cut to 60 per cent of the level of
the six months preceding the Ko
rean invasion. This will mean a
production of slightly over 1,100,
000 cars.
If the auto makers need it,
they'll be permitted to use some
foreign steel, too, so that they
can make the 1,100,000 quota, de
fense production administrator
Manly Fleischmann said.
The announcement came as
DPA issued steel, copper and al
uminum allocations for the final
quarter of the year Except for
consumer goods, production levels
will be about the same as in this
quarter, it was stated
Such consumer items as refrig
erators, washing machines and
household electrical appliances
will get about 65 per cent of their
pre-Korea tonnage. They get 70
per cent now.
Fleischmann said there’s no rea
son for the consumer to worry.
Elk Official
Wilfred C. Stump, Ketchikan at
torney, appointed as district
grand exalted ruler for the Elks
Alaska east district.
FROM BOSTON
Mr. and Mrs. R. E. Everest of
Boston, Mass, are registered at the
Gastineau Hotel.
Allies Held
Off 'KO' in
'Goed Faith'
WASHINGTON, July 27 — UP)—
The Army claimed today the Al
' lies had the Communists in Ko
1 rea “hanging on the ropes" last
j month but held off trying to deal
j a knockout punch in order to
show "good faith” in peace talks.
At the same time, the Army
officially accused the enemy ot
carrying out a "tremendous build
up” of troops, supplies and weap
ons at the front since the origin
al peace proposal was made June
23
In contrast, the Army said, one
United Nations combat unit was
pulled out of the battle area and
sent to Japan. The unit was not
identified.
The Army’s report was given
in an unusual on-the-record brief
ing for newsmen at the Pentagon.
Ordinarily, briefings of this nature
are held to give reporters back
ground information only but this
time the spokesman read a state
ment for publication.
Late in May, it said, the Allies
had just beaten off a major Chi
nese Communist drive in the
"most distastrous deieat-’ since
the Chinese entered the war last
November.
The Chinese were “driven back
in confusion,” the Army said, with
losses of more than 100,000 men.
The Allies were in a good pos
ition to follow through, the state
ment continued, but held up the
drive after agreeing to enter into
peace talks.
Cease-Fire Line
Drawn; Reds Ask
Adjournment
U.*f. ADVANCE HEADQUAR
TERS, Korea, July 27 —UPi— The
Allies told the Communists today
where they want to draw the
[cease-fire line in Korea—and why.
Vice Adm. C. Turner Joy, chief
United Nations delegate, explained
the Allied position In detail as
! negotiators got down to the meat
of armistice talks in their elev
enth meeting at Kaesong.
Admiral Joy talked 52 minutes.
He gave the Reds two' marked
military maps to picture his po
sition.
The five Communist generals
made no comment. Instead they
asked for and got, an adjourn
ment until 10 a.m. Saturday (4
p.m. Juneau time today).
The general understanding is
the United Nations is pressing for
a demilitarized zone roughly
along the present battle line. The
Communists want it along the
38th parallel.
Marshall
'Shocked'at
Letdown
WASHINGTON, July 27 ——
Secretary of Defense Marshall said
today he is “shocked’’ at the de
fensive let-down of the American
people since the Korean truce
negotiations.
In a plea to Senators, Mar
shall asked that Congress approve
the full $6,300,000,000 the admin
istration asks for foreign arms aid.
He said that if it came to a
choice It would be better to cut
funds for the United States’ own
armed services rather than trim
the money intended to strengthen
western European forces.
The program will provide “only
the essential military require
ments” in 1952 for Gen. Dwight
D. Eisenhower’s armies, Marshall
said, and stressed that the major
purpose” is to prevent another
war, not just to defend Europe in
case of war.
“The best ■ deterrent to war is
being prepared,” he said.
EXCURSION INLET
CANNERY TO OPERATE
Columbia River Packers new
high speed two-line cannery at
Excursion Inlet will be ready for
operation by August 6, Ansel J.
Wright, bookkeeper there, said to
I day. Most of the American Can
| Co. equipment is installed. The
i power house and a fish elevator
jare yet to be completed, he said.
'G.L Supreme Court' Meets
Members of the newly constituted II.S. Court of Military Justice, highest court of appeal under military
law, meet in Washington for their first session. Th ?y are (left to right) (JVorge W. I.atimer, former
justice of the Supreme Court of It ah; Chief Judge Robert E. Quinn, former Rhode Island governor,
and Paul W. Brosman, dean of Tulane l aw School, iff) Wirephoto.
Alaska Should Settle
Down, Thinks Trade
Association Man
Meeting Tonight
May Bring Earlier
Fishing Season
Southeast Alaska's pink salmon
season may be opened earlier than
the regular August C date.
A meeting will be held In Pish
and Wildlife Service office, room
430 of the Federal buildtng tonight
at 8 p.m., to which packers, trol
lers, seiners and anyone interest
ed in the fishing industry and
general public are invited.
Surveys of various districts show
ail encouraging escapement of
pink salmon. already, in the
streams. Fort Frederick and Ten
akee have had an excellent es
capement of both pinks .and
chums. Many "jumpers'' in Trn
akee Ilnlet indicate mtare fish
coming in.
Both the Service and the sal
mon industry have been carrying
out extensive aerial surveys the
past few days. Observers predict
an unusually good salmon season
in Southeast Alaska, probably ex
ceeding the 1949 run.
Trollers arc experiencing an un
usually good year. One cannery
in Pelican, canning troll-caught
fish, reports from, half to three
times more cohoes than last year.
On July 5, it packed 746 cases of
cohoes as compared to 427 in 1950
on July 22, it put up 15,836 cases
as compared with 3,431 on the
same day last year. Pinks they
reported far ahead of last year’s
pack.
Clarence Rhode, regional direc
tor, attributed ttye unusual troll
situation to later opening and
shorter fishing seasons the past
five years, which gave incidental
protection to both red and cohoe
salmon.
Ship Movements
Aleutian scheduled southbound
early Sunday.
Alaska northbound due Satur
day afternoon or evening.
Freighter Sailors Splice leaves
Seattle today.
Baranof scheduled northbound
from Seattle today.
Princess Norah due northbound
tomorrow afternoon, southbound on
Tuesday.
Princess Louise due northbound
Tuesday.
VISITOR FROM HAINES
H. C. Bradshaw, Haines business
man, is stopping at the Baranoi
Hotel.
■* SEATTLE. July 27, —HU— It’s
time for Alaska to quit booming
and settle down to a pioneer at
titude of toil and sweat.
This was the opinion of L. A.
Colby, president of the Pacific
Northwest Trade Association, who
stopped here yesterday after a
three-week visit to Alaska cham
bers of commerce which belong to
the Association.
Alaska's gold and defense con
struction booms have been a good
thing from the standpoint of popu
lating the territory, Colby said,
but Alaska should now think of
more permanent things.
“I was Impressed by the vast
amount of apparently unusablr
land in the Territory," he said,
"but I believe Alaska could go a
long way toward self-sufficiency
by adopting a program of agricul
ture with crops adapted to local
and climatic conditions
‘•People going to Alaska to get
what they can and then get out
are not those who will give the
Territory a permanent economy.
It takes the pioneer qualities of
hard work and perserverance to
successfully produce in Alaska.
But experience has shown it ran
be done.
"Once Alaska is self-sufficient
in certain aspects, extra dollars
will be available for the purchase
outside of items which arc impos
sible to produce there.”
Colby was accompanied on his
tour by 1> C. Knapp, executive
secretary of the Pacific North
west Trade Association's Seattle
office, and by his son Conrad, 11.
His home office is in Missoula,
Mont.
Sid Thompson
Recommended for
Marshaiship
Sidney J. Thompson, of Juneau,
was recommended today for the
appointment of U. S. Marshal for
the First Division, according to an
Associated Press dispatch from
Washington, D. C.
The Marshal’s office was left
vacant by the death of William T.
Mahoney last fall.
Thompson has been deputy mar
shall tn the Juneau office since
1940.
The recommended appointment
made by Delegate E. L. Bartlett,
and carrying the endorsement of
Howard Lyng, Democratic National
Committeeman for Alaska, has been
presented to Attorney Oeneral How -
ard McGrath,
Rollbacks
To Pre-Korea
Levels Yoled
Final Decision on
Non-Farm Produce
Considered Today
WASHINGTON, July 27, — M—
Senate-House conferees voted tent
atively early today to permit price
rollbacks on non-farm commodities
to levels which prevailed just be
fore the Korean war—provided cer
tain cost increases are taken into
account.
The tentative decision came near
the end of an all-night session of
the conference committee, which
agreed to extend economic control
legislation through next June.
. The extension measure cover
wage, price, rent and other emer
gency curbs.
l-inal Decision
Senator Maybank (D-S. C.) the
joint committee chairman, told re
porters the group will meet again
Inter today to make a final decis
ion regarding the non-farm roll
back provision. He said a few othei
provisions also will come up for a
final vote then,
The legislation would keep intact
the ten per cent beef price roll
back already in effect, but would
bar additional price cutbacks foi
that commodity. The price admin
istration planned two more reduc
tions, each 414 per cent.
In its tentative form, the com
promise extension bill fell far short
of the kind of controls legislation
President Truman has requested
The separate bills passed earlier by
the Senate and House were minus
most of the additional controls
authority which the president
sought.
Credit Controls
The conferees also approved more
liberal consun^r credit controls
than the Federal Reserve Bank
Board now has ‘in effect, covering
the installment purchase of new and
used cars automobiles and such
household Items ns radios and tel
evision sets.
The administration won at least
one victory when the conferees
agreed to permit rent rollbacks tc
levels whieh prevailed just before
the Korean war. In newly desig
nated critical defense areas.
Final Votes
The compromise bill produced by
the Senate-House conference com
mittee must go back to both cham
bers for final votes before going to
Mr. Truman to besigned into law.
The conference committee is
working under the gun. Controls
| legislation expires July 31 unless
$40 Million Cellulose
Plant at Ward's Cove to
Produce 525 Tons Daily
--——-—H
Signing Contract
Culminates Efforts
01 Heinlzleman
Signing of the contract today
between the Ketchikan Pulp and
Paper Company and the Forest
Service culminates the 30-year ef
fort of one man
That man is B. Frank Helntzle
man.
Since 1918 when he first came
to Alaska he has seen Alaska's
possibilities for the production of
pulp and paper and has inter
viewed dozens of prospective pro
ducers over the years.
Graduating from the *<*hool of 1
Forestry at Yale in 1910, Heintzle
man joined the Forest Service and
was stationed in Oregon until
1918 when he was sent to Alaska ;
| to cut spruce for plane manufac
I lure during World War 1.
He became assistant regional
forester in 1921 and in 1937 was
made regional forester.
The Ketchikan Pulp and Paper
Company creates a new and per
manent industry for the Territory.
| Trees will be harvested unuer ,
scientific management to use, and!
yet protect, Alaska’s forests, he ex- ,
plained. The sale of timber to |
the Ketchikan Pulp end Paper
Company is the largest ever made ,
by the Forest Service, that agency I
said today. K is sufficient to fur -
nlsh a 52b-ton daily capacity
50 years.
Of the efforts he has spark
plugged the past many years,
Helntzleman said today i
“I am gratified to know the
contract has been signed and the
project is installed because of its
tremendous importance to the ec
onomy of Southeast Alaska and
! the Territory ns a whole.”
Bartlett Urges
Timberlands
Development
WASHINGTON, July 27, —P—
Delegate Bartlett (D-Alaska) urg
ed development of Alaskan timbei
landu today as a source of pulpwood
to help overcome the worldwide
newsprint shortage.
Testifying before a House Inter
state Commerce subcommittee,
Bartlett said the defense esta
blishment had frequently urged a
build-up of the Alaskan economy
for closer supply sources. The sub
committee is making a general in
quiry into the newsprint situation.
Rep. Wolvcrton (R-N. J.), rank
ing GOP committee member, sug
gested federal tax concessions
might encourage Industrial expan
sion in Alaska.
Large stands of virgin timber In
Southeast Alaska are under control
of the Department of Agriculture.
However, the department’s forest
regulations require processing at
the source, which private Industry
has contended would be uneco
nomical in a competitive market.
Bartlett said there would be great
advantages In having pulp and
newsprint mills in southeastern Al
aska.
Slock Quotations
NEW YORK. July 27, —lift—Clos
ing quotation of Alaska Juneau
mine stock today is 2Ji, American
Can 112, American Tel. & Tel
157Anaconda 42'*, Douglas Air
craft 49 General Electric 55
General Motors 431 •. Goodyear
f 88tm, Kennecott 70, Libby, McNeil
& Libby 8:S, Northern Pacific
49.%, standard Oil of California 49.
Twentieth Century Fox 197*, U. S.
Steel 40 Pound 2.80-1 16, Can
adian Exchange 94.43”;.
Sales today were 1,450,000 shares.
Averages today were ns follows
industrials 250.23, rails 81.69, util
ities 44.81.
extended anew as is or unless the
committee whips together a bill
which can get two-house approval
before midnight Tuesday.
•
i Alaska’s first big year-round In
dustry was assured today with word
from Regional Forester B. Frank
Helntzleman that a contract has
been signed In Washington, D. C.,
between the Forest Service and the
Ketchikan Pulp and Paper Co.
Helntzleman, regional forester
here, said he was Informed of these
terms:
The Forest Service contract re
quired a financial showing of $40,
000,000. This was done with pri
vate money.
The company under the contract
will be given 7,500,000,000 board
feet of timber, mostly on the north
end of Prince of Wales Island, west
of Ketchikan. A 50-year rotation
plan for a perpetual crop is called
for. It is the largest sale ever made
by the Forest Service.
The cdhtract says the company
must produce 300 tons daily, and
within 10 years. 525 tons. The com
pany must be In production by Aug.
2, 1954, which means construction
of its proposed plant at Ward's
Cove, six and a half miles north
of Ketchikan, will probably start
this fall or winter, he said.
High grade rayon, cellophane, and
nitro-celllilose will be produced, but
no paper.
Two ‘Parents
The venture is backed by the
parent Puget Sound Pulp and Tim
ber Co., of Bellingham, Wash., and
the American Viscose Corp., of
Philadelphia. The; latter, largest
rayon producer in the nation, has
eight rayon plants In the East.
Th* ti'lton reported by HeMale
man prompted Southeastern Alask
ans to observe that the way Is now
clear for other pulp producers to
move in. They predict that other
lumber plants, milling Alaska cedar
and other fine woods unsuitable for
pulp, will move to Ketchikan event
ually.
The new plant will employ 600
men, with another 600 in the woods
for year-round cutting. The firm
may use railroad car-ferries to take
the pulp to Prince Rupert, B. C.,
south of here, thence East by rail.
No Pollution
"The operation provides secur
ity against pollution of salmon
streams," Heintzlcman snld.
He said he understood a magnes
ium oxide process would be used
to recover chemicals and burn waste
for electric power.
The "industrial incentive" clause
of the Territorial property tax act
wus adjusted by Tax Commissioner
M. P. Mullaney so only one-fyalf
of the true valuation will be reck
oned.
Board of Equalization members
Peter Wood and Ernest Parsons,
explained that the Ketchikan school
district would make the assessment,
with the tax commission levying
on that figure.
One of the major features of the
agreement is provision for conserv
ation of the area's natural resources.
This Includes handling of the tim
ber on a sustained yield cutting
plan, safeguarding the salmon
spawning streams, prevention of
pollution and preservation of scen
ic values.
Cutting Contract
The sale was made on the basis
of a 50-year cutting contract which
expires June 30, 2004. The company
agreed to pay 85 cents a hundred
cubic feet for timber cut for man
(Cuntinued on Page Two)
WEATHER FORECAST
Temperature for 24-Hour Period
ending 6:20 o'clock this morning
In Juneau — Maximum,
68; minimum, 54.
At Airport — Maximum,
74; minimum, 50
FORECAST
Juneau and vicinity: In
creasing cloudiness tonight
with lowest temperature
about 53. Mostly cloudy Sat
urday with occasional light
rain. Highest Saturday near
64.
PRECIPITATION
(Past 24 hours ending 1:30 a m. today
City of Juneau — .00 inches;
Since July 1 — 4.02 inches;
At Airport — .00 inches;
Since July 1 — 2.28 inches.