THE EMPIRE
*ALb!THE*WPS.ALL THE TIMET
VOL. LXXVIII., NO. 11,807
JUNEAU, ALASKA, FRIDAY, MAY 11, 1951
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Alaska Property Tax Upheld By Circuit Court
REVEAL NOTE
TRUMAN SENT
MacARTHUR
WASHINGTON, May 11 — IjW —
President Truman told Gen. Douglas
MacArthur last Jan. 13 that Korean
war policy must be designed to keep
the support of Allies whom "we
would desperately need" in case of
war with Russia.
This was contained in a message
sent by the President as a follow
up to a set of 16 possible courses of
action the Joint Chiefs of Staff had
dispatched to MacArthur the previ
ous day.
The text of the President’s mes
sage, in paraphrased form, was read
by Secretary of Defense Marshall
to Senate committees inquiring into
MacArthur’s dismissal as Far East
ern commander.
At the outset, the President said
his telegram "was not to be taken
in any sense as a directive.” He
added that "its purpose is to give
you something of what is in our
minds regarding the political fac
tors.”
Consolidation UN
At one place the Presidential
message read:
“Our courses of action at this
time should be such as -to consoli
date the great majority of the
United Nations. This majority is
not rjerely part of the organiza
tion but is also the nations Whom
we would desperately need to count
on as Allies in the event the Soviet
Union moves against us.”
Sen. Hickenlooper had suggested
the United State: was risking a
V'W v r
to a western European defense force.
He wanted to know why "a similar
calculated risk" was refused in the
Far East — meaning why not adopt
the MacArthur program of step
ping up the war against China?
Press for Message
Since Marshall first referred earl
ier in the hearings to the Presi
dent’s Jan. 13 message, some mem
bers of the Senate committees had
pressed to get the text.
They contended the communica
tion was of major importance in re
lation to the question of how much
information was given to MacAr
thur as to the thinking and decisions
of Washington policy-makers.
The President told MacArthur
that “in the worst case, it would
be important that if we must with
draw from Korea, it is clear to the
world that that course is forced
upon us by military necessity and
that we shall not accept the result
politically or militarily until the ag
gression has been rectified.
Then Mr. Truman said:
“In reaching a final decision about
Korea, I shall have to give con
stant thought to the main threat
from the Soviet Union and to the
need for rapid expansion of our
Armed Forces to meet this danger.”
Thanks MacArthur
In concluding his message, Mr.
Truman told MacArthur:
“The entire nation is grateful for
your splendid leadership in the dif
ficult struggle in Korea and for the
superb performance of your forces
under the most difficult circum
stances.”
Kir. Truman’s communication to
MacArthur also said:
“Further, pending the buildup of
(Continued on Page Two)
The Washington
Merry-Go-Round
By DREW PEARSON
(Coon-lint. l»6l. o» Bell Syndicate. Inc..
H^ASHINGTON. — Secretary of
the Treasury Snyder has now ap
pointed an A-l man, J. B. Dunlap,
to head the special tax squad prob
ing underworld income-tax returns.
Here is one tax return he might
take a special look at—that of
Chicago’s Erminio John Capone,
brother of A1 Capone.
John has quite a free and easy
way of making out his income-tax
return—so free and easy that the
average businessman would be
locked up if he operated the same
way.
In 1949, for instance, Capone re
ported a total income of $23,135,
which he said came from “miscel
laneous” sources. In 1948 his in
come was $20,150, also from ‘‘mis
cellaneous.’’ In 1946 he reported
(Continued on Page Four)
Earthquake Survivors Flee Town
j Residents of Jucuapa, El Salvador who survived the series of earthquakes which virtually destroyed
their town, flee the scene of destruction. An estimated 1,000 persons were killed and thousands more
injured by the quakes that rocked southeastern sections of El Salvador (ff) Wirephoto.
LIQUOR TAX
TO BE UPPED;
COMOiffi
»-- ■ J*
WASHINGTON, May 11 —JzF) —
The House Ways and Means com*
j mittee today tentatively approved
a $250,000,000 increase in Federal
taxes on liquor, beer and wine.
The rate on whiskey and other
hard liquor would rise from $9 to
$10.50 per hundred proof gallon.
Beer, now taxed at $8 a barrel,
would pay $9.
The increase on wine would vary
from a 2-cent-a-gallon hike on light
wines to a 25-cent increase on those
containing more than 22 per cent
alcohol.
Champagne and other naturally
fermented sparkling wines would be
taxed at 17 cents a half pint in
stead of the .present 15 cents.
In each case, the rate increase was
less than the administration had
proposed. The treasury had recom
mended raising the tax on> hard
liquor to $12 a gallon and on beer
to $12 a barrel.
MOUNTS
SENTENCED
TO 5 YEARS
NEW YORK, May 11 —W—James
J. Moran, close associate of former
Mayor William O’Dwyer, was sent
enced today to a maximum five
years in prison and fined $2,000 on
a charge of giving perjured testi
mony before the U. S. Senate Crime
committee.
Moran, a former deputy fire com
missioner, told the crime committee
he met Louis Weber, Brooklyn num
bers racketeer, about a half dozen
times over a period of several yeais.
But witnesses at Moran’s trial in
Federal Court testified that Weber
had visited Moran at least 111 times
at his fire department office.
Moran, 49, refused to testify at
his trial. A jury found him guilty
on Thursday.
The conviction was the first hej£
growing out of testimony before the
crime committee.
Moran was appointed to a $15,000
a-year lifetime post as a water com
missioner by O’Dwyer shortly before
the mayor resigned last year to be
come ambassador to Mexico. But
after testifying before the crime
committee he resigned under pres
sure from Mayor Vincent Impel
litteri.
E. D. KNOLL HERE
Everett D. Knoll of the Seattle
Packing Co. of Seattle, is staying
at the Baranof Hotel.
WEDS
. ... "•••.. JiB.i
Maj. Gen. Arthur Riehl Wilson,
retired, of Oroville, Calif., and his
bride, the former Ellen Kormann
Arends of Frankfurt, Germany,
leaves Christ Church chapel in
Frankfurt following their wed
ding. They will reside in Cali
fornia where Wilson owns the'Mt.
Ida olive orchards at Oroville.
Stars and Stripes photo via UP)
Wirephoto.
Flood Waters,
Alaska Rivers,
Threatening
FAIRBANKS, Alaska, May 11 —(/PI
Flood waters from the Yukon and
Kuskokwim rivers were reported
threatening river bank communi
ties late yesterday despite repeated
air force bombings of icejams block
ing the streams.
An Air Force B-17 bomber and
jet fighter planes dropped 500-pound
bombs on the Yukon river in shuttle
runs from the Ladd Air Force base
here and at Galena 250 miles west
of here.
A “Midnight Sun” bombing of the
Kuskokwim relieved the community
of Bethel, near the mouth of the
river, of immediate danger but
later reports said flood waters were
rising again.
The Air Force also received a re
port of a new jam in the Kusko
kwim at the mouth of Johnson river
10 miles downstream from Bethel.
The report said all native villages
h the area were threatened.
KETCHIKAN VISITORS
Mr. and Mrs. John E. Ross of
Ketchikan, are stopping at the Gas
ineau Hotel.
MIDWEST IS
EASY BOMB
TARGET NOW
' CHICAGO, Mav 11 —W—Adm.
William H. P. Blandy, retired, says
the Midwest would be an easier atoni
bomb target for Russian pilots than
eastern cities.
He said in a talk prepared for the
executives’ club that east coast cities
are better protected by potential
fighter interception from out-lying
bases than Midwest cities. He said:
"The middle west could be reach
ed over the North Polar regions and
Canada, vast portions of which are
unprotected wasteland. By such a
' route, Murmansk is only 3,600 miles
I from Chicago, whereas a souped up
B-29, such as the Russians are
known to have, can do 4,400 miles."
JAPAN OCCUPATION
HEADQUARTERS NOT
MOVING TO OKINAWA
f. .uj I >
TOKYO, May 11 —lift— Rumors
that the occupation would end im
mediately ahcf' general headquar
ters would be moved to Okinawa
circulated in Tokyo tonight but a
high officer said they were without
foundation.
Brig. Gen. G. V. Keyser, execu
tive for administrative affairs, said:
“I can only issue a general de
niel that anything unusual is going
on. There is and has been a grad
ual reduction of personnel.”
Brown Purchases
Controlling Slock
In Anchorage News
SEATTLE, May 11 Editor
Norman Brown’s purchase of con
trolling interest in the Anchorage
Daily News is reported in the cur
rent issue of Editor and Publisher,
Hhe newspaper trade magazine.
The story, under an Anchorage
dateline, said Brown has purchased
25,000 shares of stock from Harry
Hill, president of the Northern
Publishing Co. Hill is one of the
directors of the Lathrop Co.
The News has been a daily since
1948.
HUNTERS HERE
J. E. McDonald and H. D. Mc
Donald of Seattle, bear hunters
from Seattle are staying at the
Gastineau Hotel.
FROM TULSEQUAH
Thomas G. Emery and Ray C.
Brown of Tulsequah are registered
at the Baranof Hotel. _
RENEWAL OF
RED ATTACK
INDICATED
Ominous Signs of Com
munist Chinese Forces
Is Now Reported
By Associated Press
There were ominous signs today
that Communist Chinese forces are
about ready for a renewal of their
spring offensive in Korea.
AP Correspondent Robert Eunson.
in a report from 8th Army head
quarters, said:
"The buildups by the Reds north
of Seoul and east of Kapyong con
firmed field commanders’ beliefs
that the Reds’ next drive would
come in two moves: a headon smash
on Seoul and encirling moves east
of the city.”
Another field dispatch from the
East Central front quoted Allied of
ficers as saying the Reds might
launch a diversionary attack at a
third point, on the Hwachon-Chun
chon axis.
UN Forces Dig In
While the UN forces dug In on
the West front to meet the expect
ed Red offensive, South Koreans
pushed ahead three miles on the
East front behind withdrawing Com
munists. One infantry company
marched into Inje. north of the 38th
Parallel without firing a shot. Al
lied officers said there was evidence
of- a general Red withdrawal on the
i extreme East front between Yfcnggu
[ and Inje.
Red Patrols Prowl
j Elsewhere, Communist patrols
| were on the prowl, feeling out Al
lied strength while Allied outposts
got set to meet an assault. They
sandbagged their positions, built
booby traps and strung barbed wire.
Chinese moved down from the
38th Parallel on the Central front
into the no-man's land separating
the main forces of both warring
sides. They joined 1,500 of their
comrades sighted near Kapyong.
| about 32 miles northeast of Seoul.
[ North Koreans were slipping be
tween the mountains north of Seoul
in a considerable movement. It was
part of a 6.000-man force routed
earlier by UN action or an entire
ly new force filtering in from the
north. ’
Planes Smash On
' Allied planes smashed at Red
| buildup areas and supply routes.
1 Superforts blasted air strips at Sarl
1 won and Slnmqk on the supply
j route leading from Pyongyang,
j North Korean capital. It was the
l seventh consecutive day of raids de
signed to thwart a possible Red air
offensive.
SIX RED HUKS
SENTENCED TO
DEATH, MANILA
MANILA, May 11 — UT>— Five
leaders of the Philippines Commun
ist party and a field commander of
the Communist-led Hukbalahap
Guerrilla Army today were sent
enced to death. They were con
victed of plotting rebellion.
Judge Oscar Castelo sentenced the
six after a six-month trial. In all,
29 persons were tried on charges of
rebellion, murder and arson.
Castelo issued life sentences for
nine defendants. Eleven got lesser
penalties. Three were acquitted.
RITA HAYWORTH IN
NEVADA PREPARING
HER DIVORCE CASE
GLENBROOK. Nev. May 11 —W
—Glamorous Rita Hayworth has
taken up Nevada residence on Lake
Tahoe to prepare for legal separa
tion from Prince Aly Khan.
She arrived quietly last evening
to Join her two children, Rebecca,
6, and Yasmin, who have been here
a week with servants.
The actress’ Reno attorney, Wil
liam Woodburg, Jf„ said she would
seek a divorce or a separate main
tenance order.
Ballyhoo "Atomikit"
I
Models Pat McGowan (left) and Carlene Taliaferro lend a hand, in I
Washington, to publicize the “Atomiklt,' a collection of first aid j
articles Intended for use in case of an atomic bomb attack. Iff) Wire- I
photo. v.
BIG PLANE
IS MISSING;
IS MYSTERY
SPOKANE, Wash., May 11 —W—
An Air Force C-47 transport plane,
only six miles from a landing, sud
denly lost radio contact with the
field today. Two hours later it still
hadn't been located.
A pilot and co-pilot were aboard.
A search plane from Fairchild Air
Force base here took off to investi
gate. Sheriff’s officers and the
state patrol started a search.
The transport was six miles north
northwest of Fairchild and was
about to start a ground control ap
proach (radar) landing. At 9:45 a.m.
PST it broke off radio contact. The
search plane took off at 11:25 a m.
The ceiling was 800 feet visibility
10 miles.
McChord Air Force base at Ta
coma said the plane was on a flight
from there to Fairchild.
a STOCK QUOTATIONS
NEW YORK, May 11 — Closing!
quotation of Alaska Juneau mine
stock today is 2%, American Can
HI1,4, American Tel. and Tel. 155%,
Anaconda 43%, Douglas Aircraft
101, General Electric 55%, General
Motors 51%, Goodyear 76%, Kenne
cott 76%, Libby, McNeill and Libby
9%, Northern Pacific 38%, Stand
ard Oil of California 48%, Twentieth
Century Fox 20%, U. S. Steel 44,
Pound $2.80%, Canadian Exchange
94.31%.
Sales today were 1,640,000 shares.
Averages today were as follows:
Industrials 258.52, rails 83.20, utili
ties 42.36.
• •
• WEATHER REPORT •
• Temperature for 24-Hour Period •
• ending 8:20 o'clock this morning •
• In Juneau — Maximum, •
• 63; minimum, 43. •
• At Airport — Maximum, •
• 61; minimum, 39. •
• FORECAST •
• Partly cloudy tonight and •
• Saturday. Lowest tempera- •
• ture tonight near 44. High- •
• est Saturday near 65. •
• PRECIPITATION •
• (Past 84 hours ending 7:30 a m. today •
• City of Juneau — None; •
• Since May 1 — .39 inches; •
• Since July 1 — 68.40 inches. •
• At Airport — Trace; •
• Since May 1 — .23 inches; •
• Since July 1 — 39.50 inches. •
* *4 «' t * ‘ ' **'. - ■ 1
REPUBLICAN
GOVERNORS
TALK OUT
_ t
Tell Colleagues Just What;
to Be Done to Win j
Next Election
TVLSA, Okla., May 11 —M—Re
publican governors told their party
colleagues today not to count on
what they labeled as "corruption”
in the Truman administration to
win the 1952 presidential race.
Instead, Gov. Edward F. Am of
Kansas asserted that to win the
presidency for the first time since
1928 the Republicans must begin
now to establish their own “clear
cut diplomatic and military policy
in Korea and elsewhere around the
world."
At the same time, Rep. Page
Belcher (R-Okla) told a GOP Na
tional committee session, expected
to pick Chicago and the week of
July 21, 1952, as the site and time
for the party presidential nominat
ing convention, that Gen. Douglas
MacArthur's dismissal had aroused
the country.
"Much as the American people
resented the dismissal of General
MacArthur,” Belcher said, "I think
it was but the final . traw that
caused a blow-off of steam that has
been generating in their minds for
months.”
SOME MEAT
PRICES CUT
12 CENTS
WASHINGTON. May 11 — 1*1 —
The government today cut the re
tail ceiling prices of some chuck
steaks and pot roasts by about 12
cents a pound and of unboned rump
roast by 5 to 6 cents a pound.
The Office of Price Stabilization
took the action in a series of amend
ments to the beef price orders. An
addition to the retail orders puts a
ceiling price of 50 to 57 cents a
pound on beef tongues, depending
on the type and location of a store.
These changes will be effective
next Monday along with all of the
I other ceiling prices on retail cuts.
DECISION OF
JUDGE PRATT
IS REVERSED
Levy of One Per Cent Sus
tained-May Be Taken
to High Court
SAN FRANCTSCO, May 11 —1*1—
A decision of the District Court of
the Territory of Alaska, holding the
Alaska Property Tax of 1949 invalid,
was reversed by the Ninth U. S. Cir
cuit Court of Appeals yesterday.
The act calls for levy of a 1 per
cent tax on all property, real and
personal, in the Territory.
Federal District Judge Harry E.
Pratt ruled at Fairbanks August 1,
1950, that the act was invalid under
Territorial-law, except for, a section
relating to tax on boats.
On petition of Luther C. Hess,
Fairbanks property owrfcr, and the
Alaska-Juneau Gold Mining Co.,
Judge Pratt issued an injunction
against collection of tha tax.
Yesterday’s opinion by the higher
court followed the filing of appeal
by Territory Tax Commissioner M.
P. Mullaney.
The appeals court directed Judge
Pratt to dismiss the action. Their
opinion implied that relief for Hess
and the gold company would lie in
a suit of protest rather than a re
quest for injunction.
After the General Property Tax
was enacted by the 1949 Alaska
Legislature, the Territory’s Senate
Finance committee estimated it
would rafse about $2,500,000 for the
biennium.
The main legal points on which
it was challenged were that it lacks
uniformity in assessment and valua
tion, that taxpayers living outside
towns under the act must indirectly
share municipal tax burden and that
the law is "vague and self-contra
dictory.”
A main point of challenge was a
provision that collections in cities
would revert to the cities in lieu
of the municipal property tax. That
was enacted into the law to prevent
residents having to pay the Territor
ial property tax on top of a local
property tax.
The tax was one of the features
of the “Basic Tax Program” long
advocated by Governor Gruening
prior to enactment by the 1949 Leg
islature.
controversial issue
It was a controversial issue dur
ing the 1961 Legislative, too.
Critics of the property tax have
contended that it would be too ex
pensive to collect in Alaska; that
the areas are too vast, many proper
ties too isolated and property rec
ords too sketchy.
Proponents argued in the Legis
lature that it would be readily col
lected from such big properties as
canneries and big mining proper
ties. which have not been subject to
property taxes.
Critics have contended that it
would cost as high as 50 per cent or
so of the tax revenues to get assess
ments and make collections from
the vast areas of the Territory.
Opposition to the tax has beer,
especially strong in the second and
fourth divisions — the mining di
visions.
Legislators from those divisions
succeeded in getting a bill through
the 1951 House for repeal of the
Property Tax Law. Parliamentary
maneuvering delayed its transmis
sion to the Senate, however, and the
Senate refused to consider it be
cause the deadline for receiving
Hous bills had passed.
Some 1951 legislators expressed
the opinion that if the property tax
law were upheld the additional
amount of revenue it would produce
Attorney H. L. Faulkner said to
day he must await a full report of
the circuit court before deciding
whether to carry the case to the
United States supreme court.
STEAMER MOVEMENTS
Denali from Seattle scheduled to
arrive sometime Monday morning.
Princess Louise scheduled to sail
from Vancouver May 16.
Baranof from westward scheduled
southbound Sunday morning.
H. F Keeler of Seattle is stop
ping at the Gastineau Hotel.
»