THE DAILY ALASKA EMPIRE
"ALL THE NEWS ALL THE TIME*
VOL. LXXV., NO. 11,611
JUNEAU, ALASKA, WEDNESDAY, SEPTEMBER 20, 1950
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
- ■ ■ —
TAX BILL
SHUFFLE
IS MADE
Compromise Reached Be
tween House-Senate
Breaking Deadlock
WASHINGTON. Sept. 20 — OB — j
A compromise $4,700,000,000 tax
boosting bill was approved by a
Senate-House conference committee.
This opened the way for Congress
to send the bill to President Truman
by Friday night—and for Congress
to recess this weekend until after
the November elections.
The conferees approved the com
promise by breaking a deadlock
through this action:
1. They threw out a 10 percent
withholding levy on corporation
dividends, which they had approved
only yesterday. This was intended
to collect about $190,000,000 a year
from persons who fail to pay in
come taxes on dividends they re
ceive.
2. They eliminated a controversial
provision in the bill, inserted by the
Senate, dealing with the taxation j
of family business partnerships. j
3. Did an about-face on another ;
issue dealing with the taxation of
life insurance companies. Today the
conferees agreed that the companies
should be taxed $122,000,000 on their
investment income, for the years
1949 and 1950. Yesterday they had
said the tax should be $176,000,000
dating back to cover 1948, 1949 and
1950.
4. Knocked out a Senate bill pro
vision that would have provided
capital gains tax treatment, instead
of higher personal income tax
rates, to income of persons selling
or leasing oil rights. This had been
one of the principal items in dispute.
No change was made in the most
important provisions of the measure,
providing for increase of almost
$3,000,000,000 a year in personal in
come taxes, and $1,500,000,000 a year
additional taxes for corporations.
STOCK QUOTATIONS
NEW YORK, Sept. 20 — Closing
quotation of Alaska Juneau mine
stock today is 2%, American Can 99,
Anaconda 34%, Curtiss-Wright 9%,
International Harvester 31, Kenne
cott 64%, New York Central 16%,
Northern Pacific 24%, U.S. Steel
38%. Pound $2.80%.
Sales today were 2,100,000 shafes.
Averages today are as follows: in
dustrials 224.33, rails 66.12, utilities
39.59.
FROM NEW YORK CITY
Mr. and Mrs. D. J. Sargent of
New York City are now guests at
the Baranof Hotel.
rhe Washington
Merry-Go-Round
(Copyright, 1MO, hr MU Syndicate. Inc.)
By DREW PEARSON
Washington—'when George
Washington and the founding fath
ers first tried to make a go of this
nation against the British, not
many of them knew much about
Korea. Nor did they dream that
some day their descendants would
be fighting Communism all the
way from Indo-China to Italy.
However, some of the ideas which
the founding fathers hatched are
directly applicable to Korea, Indo
China, and the rest of the world
today.
Roy Norr, the publicist who made
the American Tobacco Company
cry “uncle” in the famous “reach
for a Lucky instead of a sweet
campaign, has been doing import
ant research on this point and
reminds me that, when the British
imported Hessian troops to do
their fighting, George Washington
decided to undermine them with
propaganda. Only Washington used
more high-brow words than “pro
paganda,” namely “exciting a spirit
of disaffection and desertion.”
Anyway, Washington appointed
a committee of propaganda experts,
including the three top men in the
would-be nation—Thomas Jefferson,
John Adams, and Benjamin Frank
lin. And they devised a plan where
by Congress offered every Hessian
who would desert the British 50
acres of free land.
In short, the Hessians were in
t. Continued on Page Pour)
Plan to Call Up Statehood
Bills in Senate Before End
Of Week; Statements Made
BULLETIN — WASHINGTON,
Sept. 20—(PI—Senator Lucas (D
111), the Senate majority leader
said today there is no prospect of
final action on Hawaii and Alaska
Statehood before Congress quits
this weekend.
Lucas told reporters after a
meeting of the Senate Democratic
Policy Committee that an effort
will be made, however, to make
the Alaska statehood bill the “un
finished business” of the Senate
if Congress recesses until Nov.
27 as planned.
WASHINGTON, Sept. 20—(AT—'The
Senate had the assurance of Sen
ator O’Mahoney (D-Wyo) today
that the Alaska and Hawaii state
hood bills will be called up for
Senate consideration before Sat
urday.
O’Mahoney, the chairman of the
Senate Interior Committee which
recommended Senate passage of the
House-passed bills, told the Sen
ate last night that he will make:
a motion to take up the bills if the
Senate majority leadership does
not.
Senator McFarland (D-Ariz), act
ing majority leader in the tempor
ary absence of Senator Lucas (D
111), said the bills are on the
program agreed upon by the Demo
cratic Policy Committee.
He indicated, however, that the
measures will be called up after the
Senate acts on the conference re-j
ports on the tax bill and the sub- j
versive activities bill.
Senator Magnuson (D-Wash) j
agreed with O’Mahoney that the I
Senate should not adjourn with-1
out acting on the statehood bills.!
He said he favored a Senate recess
until after the November election,
rather than sine die adjournment.
Magnuson suggested that "if we
decide to recess it might be a very
proper thing to make the Hawai
ian and Alaskan statehood bills
the unfinished business and then,
when we return at the end of the
recess, pass the bills.”
Senator Wherry (R-Neb), the
Senate Republican leader said some
Republican Senators do not Want
Congress to adjourn and want the
statehood bills considered. He de
clared “there is no use” trying
to finish Senate business by Sat
urday night.
Letters Received
O’Mahoney also told the Senate
of letters he had received from
Assistant Secretary of State Jack K.
McFall and retiring Secretary of
Defense Louis Johnson. !
In response to O’Mahoney’s re-;
quest for State Department views,
McFall wrote the Senator:
. .The Department believes
that the Korean situation has in
creased the urgency for favorable
action on these bills.”
McFall said, too, that the situa
tion on Korea has “rendered more
compelling the reasons for Alaska
and Hawaii statehood set forth by
him in a letter to O'Mahoney last
April.
Johnson's Views
Johnson wrote O'Mahoney: 1
"I have nothing to add to the
views I have previously expressed
on this subject, other than to say
that recent events in the Pacific
seem to me to give added point
and emphasis to the statements
contained in my letter (to O’Ma
honey) of April 18.”
With Congress shooting at ad
journment or recess by the end of
the week, O’Mahoney said "it would
be a tragedy” if the bills were
not acted upon before the law
makers go home or later this
year in the event of a recess.
He said Congress should not even
consider adjourning, a move which
probably would kill the bills.
Time for Action
Senator Magnuson, agreeing with
O'Mahoney, argued the time has
come for action. Magnuson said
the bills will be called up demand
ing a “yes or no” answer on the
issue, Magnuson said that If the
reply of the leaders is “no” then
O’Mahoney would be Justified in
moving to call up both measures.
"If it is necessary for me to
make the motion, then I will make
it,” O’Mahoney commented.
Senator Wherry, emphasizing
that “I’m not saying we should
or shouldn’t” bring up the state
hood issue now. urged a swift de
cision.
Magnuson said he would be will
| ing to consider a compromise
which would bring a Congressional
recess Saturday, with the Senate
to return after the elections and
consider statehood among other
issues.
Senator Morse <R-Ore), an Al
askan statehood backer, told the
Senate:
"Our lack of adequate defenses
in Alaska and the cansequent
threat to security would never have
come to pass’’ if Alaska was a
full fledged state, represented in
both the Senate and House.
Opposing Statehood
[ And, in another development
Delegate Bartlett of Alaska said
several telephone calls opposing
Alaskan statehood were made yes
terday from Seattle by persons iden
tified as being connected with Al
askan fishing interests.
He said he had been told the
calls were made to Senators asking
them to vote against the statehood
bill.
Bartlett told reporters that the |
. phone calls “seem to be a last des
I perate effort to block statehood for
• the territory. I think that it will
help the cause of statehood because
it again brings out that the sal
mon fishing industry is doing every
thing in its power to block state
hood.”
Bartlett declined to identify the
Senators who received the calls
from Seattle.
Anti-Commie
Bill Is Pased,
Lower House
Provides for Peacetime
Regulation, Wartime
Internment of Reds
; _
WASHINGTON, Sept. 20 — —
Disregardingr the chance of a Presi
dential veto, the House today passed
a subversives control bill calling for
peacetime registration of Com
munists and wartime internment of '
potential spies and saboteurs.
Agreeing to a Senate-House com
promise on conflicting versions of
| the bill, the House sent it back to
I the Senate for expected speedy
• concurrence.
‘ By completing Congressional ac
I tion at once, the Senate could send
| the bill to the White House in time
for President Truman to act on it
! before Congress begins a hoped-for
adjournment or recess this week
end.
Should President Truman decide
to veto it, today’s top-heavy vote
made it almost certain that the
House would over-ride it by the
necessary two-thirds vote.
The bill is one of three measures
standing between Congress and a
vacation.
FROM SEATTLE
Jerry Noonan of Seattle is a
guest at the Baranof Hotel. G. A.
Griffin of Seattle, is also registered
rat the Baranof.
WEATHER REPORT
Temperatures tor 24-Hour Period
ending 6:20 o'clock this morning
In Juneau—Maximum. 57;
minimum, 49.
At Airport—Maximum, 57;
minimum, 49.
FORECAST
(lanean and Vicinity)
Variable cloudiness with
light rain showers tonight
and Thursday. Lowest tem
perature tonight near 50 de
grees. Highest Thursday near
57.
PRECIPITATION
(Past 24 hours ending 7:30 a.m. today
City of Juneau—1.49 inches;
since Sept; 1 — 6.22 inches;
since July 1—17.28 Inches.
At Airport — 0.85 inches;
since Sept. 1 — 3.66 inches;
since July 1—15.66 Inches.
'SEATTLE IRON
CURTAIN' NOW
PLANE ISSUE
Portland Makes Protest
Regarding No Airline
from There to Alaska
_
PORTLAND, Ore. Sept. 20——
Seattle is using the Civil Aeron
autics Board as a stooge to hold-,
the city's grip on trade with Al
aska, the Portland City Aviation
Qommission was told yesterday.
The commission agreed there
was a ‘‘Seattle Iron Curtain."
Marshall N. Dana, Journal edit-j
orial page editor, said Seattle was
resisting Portland’s efforts- to get;
a direct air route to the Territory;
airlines running from Portland to
Seattle oppose it—"Dog in the
manger,” he called it; and the CAB
is delaying decision.
Dana and other speakers said
there was inconvenience in travel
ing by air to Alaska from Portland
because of the plane-change and
trip from the Seattle-Tacoma air
port to Boeing Field.
The direct route has been asked
by Alaska and Pacific Northern \
Airlines. A CAB examiner reported !
unfavorably on it early this year, j
The board itself has not acted.
The commission decided to wire 1
the CAB, urging a favorable de-1
cision “ending the Seattle Iron
Curtain.”
MATTHEWS i
TO RESIGN,
REPORT NOW
l
Harold Stassen Also Re-!
ported to Be in Line for |
Secretary of Navy
— i
SPOKANE, Wash., Sept. 20—(,4>>— |
The Spokesman-Review says Navy
Secretary Francis Matthews "is ex
pected to resign shortly” and that
the job has already been offered to
Harold Stassen, the Republican
Presidential aspirant.
Stassen is reported to be con
i sidering the offer from President
Truman, the paper said.
The Review quoted an unnamed
“prominent figure in the business
world” who it said has just returned
here from meetings in Washington,
D.C., and New York.
In Washington. Presidential Sec- j
retary Charles G. Ross was asked I
whether Stassen was coming into j
the government and told reporters: j
“To the best of my knowledge and
belief he is not.”
i
THIBD PARTY CLAIM IS
CONTINUED INDEFINITELY
A case involving ownership of 85
cases of canned salmon was brought
before Judge George W. Folta this
morning in District Court.
Originally, James Cole had
brought suit against Sam and Maud
Asp, co-partners doing business as
the Salt Sea Fisheries of Tenakee.
The property was attached after a
previous hearing several months ago
and a re-delivery bond filed.
Meantime, the Asps defaulted and j
Sigmund Einstoss entered a third- i
party claim. He was called to tes- I
tify this morning, subpoenaed by,
Cole’s attorney, M. E. Monagle as j
an adverse witness.
William L. Paul, Jr., who had rep
resented Sam and Maud Asp, and
withdrawn, was in court as Ein
stoss’ attorney.
The case was continued indef
initely.
At press time, nothing was sched
uled in District Court for tomorrow.
Motion calendar is set for 10 a m.,
Friday.
STEAMER MOVEMENTS
Denali scheduled to sail from Se
attle Saturday.
Princess Louise scheduled to sail
from Vancouver, September 27.
Alaska from west scheduled south
bound sometime Monday.
On the Road to Seoul
I
Amtracs of the First Battalion, 5tli Regiment of the First Marine Division, roll through the streets of
Inchon, Korea, as a building burns in the background, the result of a pre-landing bombardment and
air attack. OP) Wirephoto by Army Radio.
PLAN TO DEFEAT
AGGRESSION PUT
UP BY ACHESON
Secretary of Slate Wants
Police Patrol, Also
Military Forces
NEW YORK, Sept. 20—MB—Sec
retary of State Acheson laid before
the U.N. Assembly today an Ameri
can program to combat aggression
anywhere in the world, including a
provision for a peace patrol and
military forces to back up United
Nations decisions.
He also suggested that the Assem
bly organize itself so it can meet
“upon 24 hours notice” to act on
any breach of the peace on which
the veto-bound Security Council
cannot act. This would apply in any
subsequent case similar to the pre
sent Korean war.
Giving a major outline of United
States policy in the U.N., Acheson
said a world organization with teeth
to back up its decisions might deter
the realists in the Kremlin from
seeking the piece-meal dismember
ment of the non-Soviet world.
“If this does not occur, the in
crease in our defensive strength
shall be the means of ensuring oui
survival and protecting the essentia,
values of our societies,” he declared
Acheson proposed that the For
mosa question should be placed on
the Assembly agenda as a mattei
"of special and urgent importance.’
Formosa now is the last stronghold
of the Chinese Nationalists. Its
waters now are being patrolled by
American Naval units on orders oi
President Truman to prevent ths
spread of the Korean conflic,
throughout the Orient. The Secre
tary of State said the United States
government believes the "problem oi
Formosa and the nearly 8.000,000
people who inhabit it should not
be settled by force.”
LAST RUES TOMORROW
FOR MR. NORMAN KELLY
Elks ritualistic funeral services
will be held tomorrow at 2 p.m. in
the chapel of the Charles W. Carter
Mortuary for Norman Kelly, well
known Elks Lodge lounge attendant
who died in Vancouver, B.C., re
cently.
Pallbearers will be R. A. Hollings
worth. Frank D. McGill, Kenneth
Junge, James DeMers, Clifford Nor
denson and Gene Lockridge. Ernest
Ehler will sing.
Mr. Kelly’s remains will be in
terred in the Elks’ Rest at Ever
green Cemetery.
Mrs. Kelly has suggested that
friends who wish may send contri- I
buttons to the Cancer Society, post
office box 422, Juneau, for research
work.
'
FROM SALEM. ORE.
Russell E. Pratt of Salem, Ore., is
a guest at the Baranof Hotel.
■ i
Marines Advance; Inchon
First Division Leathernecks advance single file through a street in
Inchon. Korea, as they expand bridgehead established by landing on
west coast near Seoul. Men ate members of the First Battalion, 5tb
Regiment of the First Marine Division. U. S. Army Radiophoto via
Iff) Wirephoto.
MARSHALL IS
SKY. DEFENSE
WASHINGTON, Sept. 20 — OP) —
The Senate today confirmed Gen
eral George C. Marshall’s appoint
ment as Secretary of Defense.
The vote on confirmation was 57
to 11.
Marshall, a five-star General who
was the Army’s Chief of Staff dur
ing World War II and later served
as Secretary of State, succeeds
Louis Johnson.
There remains for Marshall only
„he formal oath-taking.'
/
85 NEW FIGHTERS
LAND IN GERMANY
FRANKFURT, Germany, Sept, 20
The U. S. Air Force in Germany
was bolstered today by the arrival
of 85 new F-84 Jet fighter planes
from the United States. Four more
are en route, flying the great
circle route via England.
These are the newest and fastest
jet fighters now In use by the
U. S. Air Force.
Pretty Girl
Takes Life
HOOKSATT, N. H. Sept. 20—tfl—
County authorities expressed the
belief today that pretty Helen Mac
lolek, 25, secretary of Dr. Her
mann N. Sander, was a suicide.
The body of the young woman,
who was a key character witness
for Dr. Sander in his world famous
murder trial last March, was found
yesterday in a deeply wooded ra
vine near her Hooksatt home—24
hours after she disappeared.
County Solicitor Raymond K.
Perkins said the young woman's
death had "all the ear-marks of a
suicide.”
SOROPTIMIST CLUB
TO MEET FRIDAY
The Soroptimist Club will have
their weekly luncheon at the Bara
nof on Friday at which time Alice
Schnee and Laura MacMillan will
present their reports of the Sorop
timist Convention held in Seattle
in July.
'marines in
BIG ACTION;
CROSS HAN
_
Fall of Commie Held Capi
tal Expected-Warships
and Planes Bomb Reds
(By the Associated Press)
The capture of Seoul by forcei
of a tank-led 40.000-man Allied lib
eration army appeared imminent
today. U.S. Marines spearheading
the attack, stormed across the Han
river in thousands.
One Marine column was stabbed
toward the heart of Seoul after
swarming across the river barrier
eight miles downstream. They made
the crossing at dawn after being re
pulsed once in darkness.
Another column was preparing to
cross at the suburbs of Yanghwa
and Youngdungpo, Just a mile
away from the capital city of
1.000,000 the Communists took from
the South Koreans nearly three
months ago.
Red Reinforcements
But the Reds were pouring fresh
reinforcements of men and equip
ment into the city and there were
signs a major battle was in progress.
Observers said Allied forces suf
fered their heaviest casualties of
the Inchon invasion in the ap
proaches to Seoul.
Allied airmen using Superforts
and fighter planes gave support to
the attack by plastering communl
1 cation lines within a 108-mile radius
of Seoul. Their aim was to prevent
the Communists from bringing in
reinforcements from any direction.
Allied planes swooped in to attack
enemy vehicles disguised as hay
stacks near SuWon, 20 miles south
of Seoul.
Warships In Action
U.S. warships, including the bat
tleship Missouri, poured a thunder
ous fire at Communist positions on
the northeast bank of the Han. The
Mighty Mo had steamed around
from the east coast after laying
down fire to enable South Koreans
to capture Pohang.
In Washington the Army an
nounced that South Korean Marines
stormed ashore at Samchok on the
east cost opposite Seoul and estab
lished a beachhead. The landing
was made several days ago.
Samchok is the eastern terminus
of a railway connecting that city
with Seoul. It lies 106 airlines miles
from Pohang. The landing appar
ently is to cut off Communist re
inforcements to both Seoul and the
Allled-held southeast perimeter.
400-Yard Beachhead
Reaching the Seoul side of the
river the Marines quickly extended
their 400-yard beachhead. They
(Continued on Page Two)
26 NAVY
MEN DIE
IN (RASH
Transport Plane Plunges
Into Pacific-Explo
sion Follows
PEARL HARBOR. Sept. 20——
Twenty-six NaVy men were killed
yesterday In the crash of a four
engine transport plane bound for
the Korean airlift—it was one of
the worst such Navy disasters in the
Pacific.
Debris-strewn waters outside
Kwajaleln lagoon were searched for
the bodies today. Four have been
recovered.
The Navy R6D transport, carrying
19 passengers and seven crewmen,
was enroute from Hawaii to Join
the aerial supply operation for the
new Allied beachhead near Seoul.
It plunged into the water and ex
ploded at 7:18 am., a few moments
after taking off. Most of the men
probably were still fastened in their
seats with safety belts. The RSD is
the Navy version of the C-M.
‘•We have no hope of finding any
survivors," said a Navy spokesman
here.