THE DAILY ALASKA EMPIRE
“ALL THE HEWS ALL THE TIME’*
VOL. LXXVIII., NO. 11,855
JUNEAU, ALASKA, MONDAY, JULY 9, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Ridgway Warns That Peace Not ‘Guaranteedy
JOHNSTON WARNS
OF CHEAP DOLLAR
IF CONTROLS END
WASHINGTON, July 9 — Wt —
Eric Johnston told the nation today
to look for “a much cheaper dollar"
—worth perhaps 30 to 40 cents In
1039 terms — if economic fcontrols
are scrapped.
Declaring that the dollar is now
worth about 53 to 54 cents in 1936
value, Johnston said "my guess is
that it might be worth between 30
and 40 cents in 1939 purchasing
power, in 10 years, if you don't do
something about inflation."
Johnston ,in a copyrighted inter
view with the magazine U. S. News
and World Report, predicted a gov
ernment deficit this year of from
$5,000,000,000 to $7 000.000,000.
Under the present defense pro
gram, he estimated the cash deficit
in the budget would be "up to 20 or
25 billion” for the next fiscal year
beginning July 1, 1952.
Of the deficit he predicted for
this year, Johnston added:
“Now that isn't too great. Prob
ably we can live with it, provided
Congress gives us adequate con
trols — stronger, not weaker con
trols.”
Publication of the interview co
incided with the beginning of tenta
tive voting in the house on amend
ments to a bill which would extend
the present wage, price and other
economic controls.
Controversy over the controls
program has flared into a nation
wide political fight. The adminio
tration is bringing its heaviest ar
tillery to bear on an opposition
drive to cut controls sharply or d'
away with them altogether.
President Truman has asked for
increased powers over the nation’s
economy to speed the defense effon
and check ^inflation.
NORTH ATLANTIC
FORCES GETTING
FIRST AIR UNIT
WASHINGTON, July 9 — W
The first Air Force unit to be sent
to Gen. Dwight D. Eisenhower’.
North At .antic force in Europe wil’
soon be on its way.
Announcing this yesterday, the
Air Force identified the unit as the
433rd troop carrier wing, composed
of former air reserve squadrons from
Northern Ohio. It would includt
about 48 planes at full strength.
There are about 1.500 men in the
wing, which is equipped with 0119
troop carrier air craft. The plar.es
could be useful in helping increase
the mobility of the ground force;
in the North Atlantic Treaty Or
ganization (NATO) force being as
sembled by Eisenhower.
This is the second air reserve
troop unit to be sent overseas. The
Air Force announced last Tuesday
it is sending the 116th Fightei
Bomber wing — a National Guarc
unit equipped with F-84 jets tc
Japan in the near future.
The wing has taken part in exer
cises and maneuvers in many part;
of the United States. It was in “op
eration fire step" in Alaska last
April.
TheWashington
Merry-Go-Round
By DREW PEARSON
(Copyright, 1851, Df Bell Syndicate. Inc.
PTASHINGTON. — Two groups
of Senators and Congressmen lined
up on opposite sides of the fence
recently regarding one of the most
vital issues in the nation—oil and
education.
With the nation's schools in the
most deplorable condition in our
entire history, 18 members of the
House of Representatives judiciary
committee voted to turn the na
tion's tidelands oil over to three
states and their oil companies, in
stead of using the proceeds for edu
cational purposes.
On the other side of Congress, 11
Senators introduced a resolution
whereby the royalties from this oil
administered by the federal govern
ment. would go to aid the schools
and colleges of the entire nation.
The first group—the 18 members
of the judiciary committee—voted
secretly. Even behind tire closed
doors oi their committee they tried
to avoid a rollcall vote, and if it
(Continued on Page Four)
1*51 SOAP MX KHf
mm
iSSI
Best-Constructed Car Award for the coming Juneau Soap Box Derby
is this tool board offered by the Shell Oil Company. The board is
made to hang on the wall behind a work bench. Spring clips hold
the 19 tools in place.
PRESIDENT
ASKS GERMAN
PEACE TREATY
WASHINGTON. July 9 — —
President Truman asked Congress
today to end the state of war be
tween the United States and Ger
many. He said that unfortunately
Russia had made a final peace set
tlement impossible at this time.
Mr. Truman’s action was part of
a coordinated mo\ e by the western
Allies. The French cabinet approved
a decree to the same end although
tt was not clear whewira n »as in
fective immediately or must await
the formation of a new cabinet in
the next few days.
Foreign secretary Herbert Morri
son announced to the House of
Commons that Britain’s state of war
with Germany was ended as from
today.
End Stale of War
Three members of the British
Commonwealth — acting in advance
— ended their state of war with the
Germnns. They were Australia, New
Zealand and South Africa. New Zea
land also announced the end of it?
state of war with Austria.
The move was of major import
ance in the east-west battle for the
minds and support of the German
people.
It also had some practical advan
tages for the Germans although it
will not end the occupation by the
western powers.
With the state of war at an end.
Germans will be able to travel or'
do business in the United States as
nationals of a friendly government
rather than as enemy aliens.
Also Germans will be able to bring
suits in U. S. courts.
Asks for Resolution
Specifically. Mr. Truman asked
that Congress adopt a resolution de
claring the state of war with Ger
many shall be terminated at such
date as the President proclaims.
This country has been in a state
of war with Germany since Dec. 11,
1941.
The President’s request was made
in identical letters to the presiding
officers of the Senate and House
Vice President Barkley and Speaker
Rayburn.
The communication hit repeated
ly at Russia, thus ^emphasizing the
psychological importance of the
move.
Wants German Control
Mr. Truman said the western Al
lies had sought to build up a freely
elected German government and
return to the German people “an
increasing degree of control over
their affairs.”
He continued:
“Unfortunately for all of us, how
ever, and especially for the people
of Germany, Soviet Russia has
actively prevented the growth of a
representive democratic government
in a-unified Germany, and has thus
made impossible for the time being
the arrangement of a final peace
settlement. The Soviet effort lias
been, instead, to cut the eastern
third of Germany away from the
rest of the country and to develop
it as a province of the new Soviet
empire.”
FROM SEATTLE
Col. and Mrs. Earl Landruth of
Seattle are registered at the Bar
anof Hotel.
Juneau Icecap
Tourist Feature,
Says Dr. Moore
The Juneau Icecap is a coming
tourist attraction, said Dr. Terris
Moore, president of the University
of Alaska, today.
“The time is not far off,” he
said, "when this icefield will be a
real tourist attraction. It is easily
accessible by plane, and, coupled
with the most sublime scenery, of
fers an ideal location for summer
skiing.”
Dr. Moore is especially interested
in the tourist as an economic fac
tor.
Maynard Miller, field director of
the luneau Icecap Research Pro
ja.i.'dmuy piane horn ivew
York on Saturday and was flown to
camp 10 on the icefield by Dr.
Moore. Dr. Moore will remain with
the group at the camp for a few
days to aid in establishing a new
camp.
He made four ski-plane landings
Sunday on the icefield carrying
equipment and men to the new
campsite. The new cgmp is on the
surface of the icefield at an ap
proximate altitude of 6,000 feet and
is on the Llewellyn-Taku divide.
Frederick Small, glaciologist, and
Charles R. Wilson, surveyor, were
taken to the new camp with sup
plies for three weeks. It is believed
that snow and ice conditions on this
spot will qffer new * opportunities
for comparative studies. Frederick
A. Milan, leader of the field party,
is a student at the University of
Alaska.
“I am happy to cooperate,” said
Dr. Moore, "because I feel that the
university should be of the greatest
assistance in furthering the devel
opment of the Territory.”
FROM ELFIN COVE
Mrs. Walter Larson of Elfin Cove
is stopping at the Baranof hotel.
STOCK QUOTATIONS
NEW YORK, July 9 — Closing
quotation of American Can today
is 10912, American Tel. and Tel
154%, Anaconda 39, Douglas Air
craft 441 j, General Electric 55, Gen
eral Motors 49%, Goodyear 82%.
Kennecott 73, Libby, McNeill and
Libby 8%, Northern Pacific 37%.
Standard Oil of California 46%,
Twentieth Century Fox 18, U. S.
Steel 39%, Pound $2.80%, Canadian
Exchange 94.06ti.
Sales today were 1,110,000 shares.
Averages today were as follows:
Industrials 250.65, rails 75.74, utili
ties 42.96.
•
• WEATHER FORECAST
• Temperature for 24-Hour Period
i ending 6:20 o’clock this morning
•
• In Juneau — Maximum,
• 73; minimum, 52.
• At Airport — Maximum,
• 76; minimum, 47.
•
• FORECAST
• Continued fair tonight and
• Tuesday. Lowest' tempera
• ture tonight 52 degrees. High
• est Tuesday around 80.
•
• PRECIPITATION
• (Past 24 hours ending 7:30 a m. today
• City of Juneau — None.
• Since July 1 — 04 inches.
• At Airport — None.
• Since July 1 — 04 inches.
Aeronautics Board
Hit for Non-Sked
'Death Sentencing'
WASHINGTON, July 9 — I* —
Congressional committee has urged
in a report that the Civil Aero
nautics Board (CAB> reasses its en
tire approach to air transport. It
insinuated the board is subservient
to the big, certified air lines.
The report, compiled by the Sen
ate Small Business committee, said
the CAB might also study the use
of subsidies for the big lines which
have provided only an "almost lux
ury-type service.”
The findings are a ragult of a CAB
order last March 2, limiting the 50
odd non-scheduled lines to three
flights a month over major traffic
segments and eight flights between
all other points.
The nonscheduled lines said the
order would drive most of them out
of passenger business. But any
more regularized flights would put
the nonskeds into flying regular
routes, contrary to CAB law, the
body argued.
The committee said it believed the
proposed ruling would be a death
sentence for Irregular air carriers,
which, it added, had made a major
contribution to air transport and
"have managed to survive since 1948
in spite of constant harassment.”
COMMANDER COCKE
SPEAKS AT LIONS
CLUB THIS NOON
American Legion National Com
mander Erie Cocke, Jr., was guest
speaker at a regular luncheon meet
ing of the jfuneau Ron* club today
at the Baranof hotel.
In his around-the-world trip,
Cocke said that there was much in
terest in the MacArthur hearings
and especially In South America,
the people failed to grasp how there
could be open discussion of the Is
sues involved. "They catft under
stand the workings of our system of
| democracy.” he tsaid. ■ ’ • •
He told of the desire of the peo
ples of the world to become Ameri
can citizens and illustrated by an
incident of a 7-year-old boy in
Paris who came up for his toy in
the Tide of Toys distribution. The
lad had stumps for arms and had
been raised in an orphanage. He
wanted a jigsaw puzzle of the United
State, Cocke said. When asked why,
the boy replied that he wanted to
learn how to put a map of America
agether.
Where would you rather go
leaven or America?” Cocke asked.
Without hesitation the boy re
ilied, "America first. Heaven can
.ait" _
At the same time the Paris Com
munist press requested a picture of
iommander Cocke handing a gun,
ank or other war toy to a French
hild When the photographer
sarned that no war toys were in
he selection he didn’t want the
He pointed out Communist infil
ration tactics throughout the world
nd declared that the United States
rould have a democracy as long as
we fight for it.’
The commander declared that
Americans were watching with vital
oterest the result of the Korean
.eace talks and said that we should
iot settle for less than the origins
oals of Korean unification an<* Prev
ention of a global Predicted
hat more troops would be shipped
o Europe and troops would go to
ran, that selective service ®nd c1™'
in defense would be part of o
ational structure for a long tim
to come. ^ „0„c
He had high praise for Formosans
and for the American occupation o
Japan. _ ,
Post Commander Vern Harris 1
troduced th? speaker.
Guests were John Greeny, Luth
eran minister; Webb Trimble of the
Alaska Public Works, and Allan
Marcum, administrative assistant of
the Alaska National Guard.
Jack Gucker and Bill Ray, Fourth
of July committee chairmen, re
ported on the float and booth at
the Fun Zone. They received ap
plause from the club for their work.
FROM CANAL ZONE
Dr. and Mrs. J. H. Hittson ar
rived here yesterday from Seattle
on PAA and are stopping at the
Baranof Hotel. They are from An
con, Canal Zone
BRITAIN MAY ASK
U N HELP IN IRAN
LONDON. July 9 -r Foreign Secre
tary Herbert Morrison said today
Britain is 'considering'' asking the
UN security council to order Iran
to keep her hands off the British
run oil industry,
Morrison told the House of Com
mons this course might, be followed
if Iran positively rejected the rec
ommendation of the International
Court of Justice to allow the Anglo
Iranian Oil company to continue oil
producing operations pending a ne
gotiated settlement of the British
Iranlan dispute.
Iran announced today she was re
jecting the ruling of the court —
and apparently any other rulings
the International Court might make.
However Morrison told the House
the Iranian attitude on the ruling
"is still obscure.”
Britain has formally accepted the
ruling.
TRUMAN OFFERS HELP
WASHINGTON, July 9 — IjPI —
President Truman offered today to
send Averell Harrlman to Iran to
help try for a settlement of that
country's oil dispute with the Brit
ish government.
Mr. Truman said the conflict
threatens "a collapse of oil oper
ations” which would be 'a disaster.'
He declared that "the time avail
able is running out.”
Harriman Is foreign affairs ad
viser to the President.
Mr. Truman made his offer in a
message to Iranian Prime Minister
Mohammed Mossadegh. The Iran
ian chief wrote him two weeks ago
asking American support for Iran's
nationalization of its oil resources.
The President said in his reply:
“Volt know of our sympathetic in
tro*1 In thie country in Iran's de
sire to control its national resources.
From this point of view we were
happy to see the British govern
ment has on Its part accepted the
principle of nationalization."
CIVIL ENGINEER
OFFICIALS DUE TO
VISIT IN JUNEAU
Gail Hathaway, of Washington.
D C., president of the American So
ciety of Civil Engineers, and Walter
L. Ryan, director of the Alaska and
Seattle region, are arriving in Jun
eau July 23 and will remain in town
over the day following.
Before coming to Juneau they arc
visiting Anchorage and Fairbanks.
A dinner is pelng planned foi
them here with all members of the
Society of Civil Engineers invited
It is being planned for the evening
of July 23, time and place to be an
nounced later.
Purpose of the visitors’ trip thru
Alaakk is to organize Alaska local
chapters of their organization and
all engineers interested in Joining
or attending the banquet, shoulc
contact George Tapley, chief of the
engineering department of the ARC
Hathaway is special assistant tc
the Chief of Engineers, Corps of
Engineers, U. A. Army.
CONNECTICUT VISITORS
Mr. and Mrs. B. A. Copp of Old
Lyme, Conn, are guests at the Bar
anof Hotel.
MISS LAMBERT HERE
Helen Lambert of Sacramento,
California, stopped in Juneau of
the weekend and likes it so well she
has decided to remain here, she
said.
Ship Movements
Aleutian from Seattle in port this
afternoon.
Prince George from Vancouver
due in port this afternoon.
Princess Lonlse from Vancouver
scheduled to arrive tomorrow after
noon.
Chilcotin scheduled to sail from
Vancouver tonight.
Alaska' scheduled to sail from
Seattle Wednesday.
Princess Kathleen scheduled to
sail from Vancouver Wednesday.
Baranof scheduled to sail from
Seattle Friday.
Princess Norah scheduled to arrive
from Skagway at 8 a.m. tomorrow
sailing south one hour later at 9
a m.
General in a Hurry
Grim-faced, Gen. Matthew B. Rideway, Supreme Allied Commander,
jumps the steps as he leaves his headquarters in the Oai Ichl Bldg.,
In Tokyo, after proposing a meeting with Communist leaders. Both
sides arranged for the safety of each other’s emissaries to a pre
liminary meeting at Kaesong, south of the 38th Parallel. An
unidentified aide aceompanies the general. I/Pl Wirephoto.
Alaska Line, Radio Union
i
Well, Australia's
Freezing Even If We
Aren't, If Says Here
SYDNEY. July 9 — M4— South
eastern Australia had its coldest day
of the winter today Snow fell in
the highlands and icy winds swept
Sydney. Temperature in the snow
country fell to 25 degrees. It was
45 in Sydney.
COL. NOYES WILL
SERVE IN STATES
A. F. Ghiglione, chief engineer of
the Alaska Road Commission, was
at his desk this morning in his of
fice after a trip to San Francisco
and Washington, D.C.
He accompanied Col. John R.
Noyes, former road commissioner, to
Washington and reports that, due
to Mrs. Noyes’ illness, the Colonel
has had a change in Army orders.
On his being recalled to 'the Army
a short time ago, it was announced
his assignment would be in Korea,
but he will now be given ^ station
in the States.
Mrs. Noyes, Ghiglione said, is still
confined to a hospital at Oneida,
N.. Y.
MARINER SCOUTS
THANK ASSISTANTS
Mrs. Ray Hagerup, leader of Mari
ner Scout Troop 10, today expressed
her gratitude to those who helped
make the group's Fourth of July
float a success. It depicted the value
of the blood bank.
Those assisting were Linda Ellis
and Charlotte Carroll as nurses;
Larry Carroll, Bobby Dilg and Son
ny Wruck as patients; Johnny Giss
berg as doctor, and Steve Feist who
drove the truck. Mrs. George Clark
made the costumes and assisted in
decorating the float, Mrs. Hagerup
said.
FROM WALLA WALLA
Mrs. Ethel Harris with Anna and
Richard Harris, of Walla Walla,
Washington, are stopping at the
Baranof Hotel.
FROM PETERSBURG
E. E. Sarff of Petersburg Is at
the Baranof Hotel.
FROM SITKA
Hal Graves and daughter from
Sitka are at the Baranof hotel.
1
SAN FRANCISCO, July 9 —1*1—
A National Labor Relations Board
examiner ruled Saturday that the
Alaska Steamship Co. and the
American Radio Association (CIOi
were in violation of the law in the
dismissal of Horace W. Underwood
as a radioman.
Trial Examiner A. Bruce Hunt
recommended to the board that the
company be ordered to reinstate Un
derwood.
He also recommended that he be
reimbursed for lost income from the
time the steamer Alaska was re
turned to service after Oct. 15, 1950
The recommendation would pro
vide for the union and the company
to share in the reimbursement lia
bility.
He concluded that the firm dis
criminated against Underwood under
pressure from the union because he
was not a union member. Hunt held
the action to be an unfair labor
practice under the Taft-Hartley
Act.
Underwood had been a radio
operator on the steamship Alaska.
The examiner recommended that
the company be ordered to cease en
couraging membership in the unior.
or in any other labor organization,
by refusing to employ, or discrim
inating against, any person because
of non-membership.
He recommended that the union
be ordered to cease causing the
company to discriminate against
any person for his failure to belong
to the radio association.
SEATTLE JOURNALIST
IS JUNEAU VISITOR
To do research in the Territorial
Library and Museum for a book.
Miss Lois Kitchener of Seattle ar
rived on Pan American Airway:
Sunday.
Miss Kitchener is in charge ol
advertising and publicity for Skyway
Luggage, national manufacturing
company with headquarters in Seat
tle. A University of Washington
journalism graduate. Miss Kitchener
is wellknown in the northwest for
her radio and newspaper work. She
will be in Juneau about two weeks.
FAIRBANKS VISITORS
Mr. and Mrs. E. Conway of Fair
banks are at the Baranof Hotel.
TO TAKU LODGE
Mr. and Mrs. John Treanor of
Visalia, Caffiornia .stopped over |
night at the Baranof Hotel and
left today for Taku Lodge.
TALKS START
TONIGHT;HOPE
NOT TOO HIGH
General Frankly Worried
on Outcome; Air
War Goes On !
By Associated Press
Gen. Matthew B. Ridgway warned
last night there was no real guar*
antee that peace in Korea will come
from the armistice negotiations
opening tomorrow in Kaesong.
With the start of cease-fire talks •
only hours away. Rldgway«aid:
"Whether there is to be good faith
or not is only to be judged by per
formance, and we haven’t come to
the performance stage . . . Agree
ment on an armistice must precede
a cessation of hostilities.”
The supreme commander was ad
dressing correspondents on news
coverage of the full scale negotia
tions. The corresn'- tents have de
manded western press representa
tion at the hd rlc event.
Ridgway indl ■<! there would be
no western nee. *n at tomorrows
session — but ■1 'here might be
at later s -sslot*
May ClU'ne Delegates
He disclosed that he personally
selected the five UN peace envoys
and that he reserved the right “to
change the delegates at any time.”
T! e Peiping radio in a broadcast
le» Monday night gave a bare re
t, of the preliminary meeting and
■Id 'representatives will now start
or Kuegoi to attend the meeting
w .hh begins on the tenth."
It did not say whether they act
ually hud started.
Tm .ted report was attributed
l i “a correspondent of the Korean
Cei r .1 Telegraph agency” at Pyong
yang.
Earlier Monday Ridgwgy flew to
Seoul from Tokyo with three of his
envoys. Shortly thereafter they trav
elled by light planes to the advanced
"peace camp” near Munsan, where
thp other two members of the dele
gation were waiting.
Ridgway gave his envoys their
final instructions, then returned to
Seoul.
The peace camp is only a few
minutes by air from Kaesong, the
ancient capital where an end may
be found for the Korean war, now
In its 55th week.
Begin Late Today
The talks probably will begin
about 10 a.m. Tuesday (5 p.m. to
day, PDT).
Vice Adm. C. Turner Joy, chief
Allied delegate, will confer with
Ridgway at the end of each day’s
session. Joy is commander, U. S.
Naval Forces in Korean waters.
Other Allied representatives are
MaJ. Gen. L. C. Craigie, U.S. Air
Force; MaJ. Gen. Henry I. Hodes,
deputy chief of staff, U.S. Eighth
Army; Rear Adm. Arleigh A. (31
knots) Burke, U.S. Navy, and Gen.
Paik Sun Vup, Republic of Korea
Army.
Meantime, in the air war, F-8G
Sabre jets destroyed one Russian
made MIG-15 Monday. Three others
were shot down and two damaged
Sunday.
UN military leaders took no
chances along the front. They rea
soned that until a definite agree
ment is reached to stop the shoot
ing, the best course is to keep hit
ting away at the enemy.
At Eighth Army headquarters,
everyone went about business as
usual, but there was a feeling of
?lation and hope.
DEWEY VISITS KOREA
A FRONTLINE COMMAND POST,
KOREA. July 9 —(if)—- Thomas E.
Dewey toured the frontlines of
Korea today.
Wearing Army khaki, combat boots
and a green field cap. the New York
governor hopped between command
posts and advance positions on the
West, Central and East-Central
fronts.
At some points Dewey was north
of the 38th Parallel, old political
boundary between North and South
Korea.
On the Western and East-Central
fronts he flew over Red territory.
Allied artillery was firing when he
arrived on the Western front.