THE DAILY ALASKA EMPIRE
S “ALL TUE NEWS ALL THE TIME”
VOL. LXXVI., NO. 11,688
JUNEAU, ALASKA, WEDNESDAY, DECEMBER 20, 1950
MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Swarming Reds Checked in Beachhead A ttack
CEILING ON
WAGES IS
PROMISED
Government to Match Na
tionwide Honor Sys
tem by Industry
WASHINGTON, Dec. 20 — (/PI —
The government today promised a
voluntary wage ceiling formula “as
soon as possible” to match the na
tionwide honor system price control
newly put into effect for all in
dustry.
The Economic Stabilization
Agency summoned into a meeting
here the management and union
leaders of more than 1.000.000 auto
workers for talks which may pro
vide a clue to the coming wage re
straints on all labor.
The agency meantime hoped for
a wave of voluntary price rollbacks
—mostly at the mill, mine and fac
tory level—in accordance with its
price-profits formula announced
last night.
But if compliance does not come
voluntarily, ESA Administrator Alan
Valentine warned, compulsory price
ceilings will be clamped on and the
standards may be “more rigorous”
than those now set forth.
There was ample indication that
ESA considers the voluntary for
mula a stop-gap. If it restrains
inflation until March, the infant
agency may be ready to enforce
mandatory controls wherever
needed.
Criticizes “Freeze”
Rowland Jones, Jr., President of
the American Retail Federation,
criticized the voluntary "freeze” an
nouncement as “vague in some as
pects” and said it raised "serious
questions of theory and policy
which must await further investi
gation and clarification.”
Jones said in a statement that
some of the suggested principles, if
they became part of a mandatory
price control system, “could raise
obstacles to the end-objective of
increased production and efficient
distribution.”
Two Republican Senators, mean
while, charged that stabilization
officials ignored the intent of Con
gress in taking price control action
without parallel action on wages at
the same time.
The Senators, Bricker of Ohio
and Capehart of Indiana, said Con
gress made it plain during debate
on the Defense Production Act
earlier this year that price and
wage action should be taken simul
taneously if taken at all.
Bricker and Capehart likewise
expressed doubt that a voluntary
price freeze would do much good.
STEAMER MOVEMENTS
Denali scheduled to sail from Se
attle Friday.
Princess Norah scheduled to sail
from Vancouver December 30.
Baranof from west scheduled to
arrive Sunday morning southbound.
The Washington
Merry - Go - Round
Copyright, ltoc, by Bell Synalcste, Inc.!
By DREW PEARSON
l^ASHINGTON—A unique back
stage difference of opinion has de
veloped between two of the most
important policy-makers in the
Cabinet—Secretary of State Ache
son and Secretary of Defense Mar
shall—over hostilities in the Orient.
The difference is that Acheson.
accused by Republicans of being
an appeaser, is far more belliger
ent than Marshall, a military man.
Marshall's view—and it's shared
by other military men—is that we
must let no hysterical cries from
Congress or irresponsible military
actions in Asia embroil us in war.
What Marshall and his military
staff fear is that some sudden move
by us may convince the Russians
we are about to attack, thereby
causing them to move first.
Our best intelliigence is that
Russia does not want a major war,
though she could be stampeded
into one.
Therefore, Secretary Marshall, in
meetings of the Cabinet and the
National Security Council, has
pleaded for calmness. He has also
warned General MacArthur against
(.Continued on Page Pour)
She Has Your Number
Patricia Neal, lovely Warner Bros, star of “Operations Pacific”
shows one of Alaska’s 1951 automobile license plates. The new
plate has blue numerals on a yellow background. The plates are
now for sale in Alaska.
UNIONS ASK
PROTECTION
C. OF L RISE;
WASHINGTON, Dec, 20 — OP) —
Union labor demanded today that
any government wage controls plan
to allow for pay increases to match
rises in the cost of living.
A united labor policy committee,
headed by AFL President William
Green and CIO President Philip
Murray, took this request to Presi
dent Truman even as the Economic
Stabilization Agency worked on a
wage formula to go along with the
voluntary price control system an
nounced last night.
Members of the group said they
also asked new legislation to per
I mit great controls over foods prices
I and rents.
They gave reporters a statement
which made these main points as to
wages:
1. Any wage stabilization policy
must permit adjustment of wage
rates to make up for increases in
the cost of living and “must recog
nize existing collective bargaining
agreements which themselves assure
stability,”
2. The policy also should provide
for correction of substandard wages
and adjustments of inequities in
[ existing wage rates within or be
I tween industries. “Wage stabiliza
I tion must not become wage freez
I ing,” the committee said.
3. Overtime payments for pre
mium work now protected by col
lective bargaining agreements or
existing law, that is work over 40
hours a week in the case of law,
“must continue to be held invio
late.”
There was a chance this meeting
W'ould produce some clue to ESA’s
planned wage restraints on all
labor.
Family of Bing
Crosby is Going
On Air Tonight
HOLLYWOOD, Dec, 20—<fll—The
! Bing Crosby family, en masse, will
be on the Ol’ Groaner’s CBS radio
show tonight.
Mrs. Crosby, the former Dixie Lee,
decided to break her 15-year re
tirement and appear in a special
Christmas program with Bing and
their four sons, Gary, Dennis, Phil
lip and Lindsay.
The boys have appeared fre
I quently.
SITKA VISITORS'
Mr. and Mrs. H. E. Schaefer of
j Sitka are registered at the Baranof
j Hotel.
DREHM IS
INDICTED,
FUND CASE
Congressman Charged with
Illegally Getting Money
from Office Staff
WASHINGTON, Dec. 20 — W -
A Federal Grand Jury today in
dicted Rep. Brehm (R-Ohio) on
seven charges of illegally getting
money from two of his office em
ployees for use in his successful
re-election campaign.
The indictment, returned in dis
trict court,“listed the employees as
Clar# Soliday and Emma S. Craven
Brehm, from Logan, Ohio, has
been a member of the House since
1942. He is 58 years old.
He was graduated from Ohio
State University in 1917 with a de
gree in dental surgery.
Learning of the jury action,
Brehm issued the following state
ment at his office:
“Now maybe we can get the facts
on the record. This is the only way
I know to clear the good name of
all concerned. I have never at any
time or place or under any circum
stances committeed a criminal act.”
Brehm is the third member of the
House to face federal charges in
recent years.
J. Parnell Thomas, former Re
publican from New Jersey, was re
leased from prison last September
after serving eight and a half
months for padding his office pay
roll.
Andrew J. May, who was con
victed of conspiracy and bribery in
war munitions dealings while a
Representative from Kentucky, also
was released last September. He had
served nine months and 13 days.
STOCK QUOTATIONS
NEW YORK, Dec. 20 — Closing
quotation of Alaska Juneau mine
stock today is 2'i, American Can
93 ,. American Tel. and Tel. 150'4,
Anaconda 38%, Douglas Aircraft
9211, General Electric 49, General
Motors 45 i. Goodyear 63%, Kenne
cott 75’ h, Libby McNeill and Libby
9. Northern Pacific 33 . Standard
Oil of California 83%, Twentieth
Century Fox 21, U.S. Steel 42%,
Pound $2.80, Canadian Exchange
94.50.
Sales today were 3,500,000 shares.
Averages today are as follows: in
dustrials 231.20, rails 77.74, utilities
38.97.
SEATTLE GUEST
Catherine H. Nelson of Seattle is
stopping at the Baranof Hotel.
I
$3,000,000
Discrepancy
Is Disclosed
Senator-Elect Engstrom
Finds Additional Deficit
in Estimated Revenues
Senator-elect Elton E. Engstrom
today called attention to a dis
crepancy of $3,000,000 in the antici
pated revenues of the Territory for
the 1951-53 biennium as listed in
the Report of the Territorial Board
of Budget.
“The Budget report shows a deficit
of $567,561.28 and to this should be
added $3,000,000 more,” Mr. Eng
strom said.
“The report of the Board of Bud
get reached me Monday. On exami
nation of the Department of Taxa
tion statement of anticipated reve
nues for the forthcoming biennium
I find a deficit erro of $3,000,000,”
said the Senator-elect today.
“X first noticed this discrepancy
because I am in the fish business. In
the Department of Taxation’s esti
mate of revenue for the biennium
April 1. 1951 to March 31. 1953, there
are two entries of $3,000,000 each.
One is for “Fish Processors and
Raw Fish.” Then there is listed a
“license tax for salmon canneries.”
Both are shown to yield revenues of
$3,000,000—each.
"As a fresh fish broker, I knew
that figure shown was too high.
“I talked personally with Mr.
Mullaney, the Tax Commissioner,
and he admitted the error in the
figures furnished the Board of Bud
get by the Tax Department,” Mr.
Engstrom said.
Mr. Engstrom called the atten
tion of the reporter to the fact that
the deficit as he disclosed it today,
amounts to a little over $3,500,000
and that the total appropriation
bill of the 1939 Legislature amounted
to $3,511,510, for the 1939-40 bien
nium.
CONTROLS
ON RENTS
EXTENDED
WASHINGTON, Dec. 20 — <jT> —
President Truman today signed le
gislation extending existing rent
controls to March 31. 1951.
The 90-day extension was voted
by Congress at Mr. Truman's re
quest. The idea is to give the in
coming Congress time to review the
national housing picture in the
light of changed conditions created
by the defense emergency.
Without the interim extension,
rent controls would have expired
Dec. 31 except in those communi
ties acting to retain them until;
June 30.
The extension signed by Mr. Tru
man also simplifies decontrol pro
cedure.
It provides that a municipality
may abolish controls by a simple
resolution of its city council. This
provision stemmed from a decontrol
controversy arising out of an action
of the Los Angeles City Council.
WEATHER REPORT
Temperatures for 24-Hour Period
ending 6:20 o'clock this morning
In Juneau—Maximum, 40;
minimum, 29.
At Airport—Maximum, 35;
minimum, 24.
forecast
(Juneau and Vicinity)
Mixed snow and rain to
night becoming mostly inter
mittent rain Thursday. Low
temperature tonight near 34
and high Thursday near 38.
PRECIPITATION
(Past 24 hours ending 7:30 a m today
City of Juneau—0.01 inches;
since Dec. 1 — 2.54 inches;
since July 1—35.78 inches.
At Airport — 0.03 inches;
since Dec. 1 — 1.88 inches;
since July 1—25.00 inches.
• ••••••••
KETCHIKAN VISITOR
George Bobner of Ketchikan is
| stopping at the Gastineau Hotel.
OPPOSE !
TROOPS,
EUROPE
Congress Wants More In
formation Before Send
ing Soldiers Abroad
WASHINGTON, Dec. 20 — (A1) —
Opposition arose in Congress today
to any speedy transfer of additional
American ground troops to Europe.
President Truman's announce
ment that more U.S. soldiers will be
sent across the Atlantic as soon as
possible brought demands from law
makers for:
1— Detailed information on other
nations’ troop pledges to the new
combined Western European De
fense Force; and
2— Assurances that the United
States will not be stripped of mili
tary reserves at home.
Senators of both parties said Sec
retary of State Acheson and Secre
tary of the Army Pace will be
called on by Congressional com
mittees to report on these points
immediately after their return from
the Brussels conference.
The 12 Foreign Ministers of the
Atlantic Pact Nations have agreed
to try to assemble under the com
mand of Gen. Dwight D. Eisenhower
a 1,000,000-man force by the end
of 1953 to guard Western Europe
against possible Soviet aggression.
President Truman told a news
conference yesterday he will know
today—but won’t make the infor
matton public—how many Ameri
can troops eventually will be in
volved.
There has been speculation that
five to 10 or more divisions may be
sent to Europe in addition to the
approximately 100,000 men already
there.
Senator George tD-Ga), a mem
ber of the Foreign Relations Com
mittee. told a reporter he thinks
Congress will want to know before
a single soldier climbs aboard a
transport just what Western Euro
pean nations propose to do about
helping defend themselves.
PROTECTION
OF WESTERN
WORLD PLAN
i
West Germany May Ask
for Greater Part in Int.
Military Proposal
BRUSSELS, Belgium, Dec. 20—
—West Germans made it clear to
the Big Three today that they
want more than they have been
offered, in return for taking part
in an international military organi- j
aztion to protect the western world.
The Atlantic Council decision will
go before the West German govern
ment soon, and the Germans likely
will drive a sharp bargain.
Bonn dispatches said the three
Allied High Commissioners for Ger
many probably would meet tomor
row with Konrad Adenauer, the
West German Republic’s Chancel
lor (Premier), to inform him of
the results of the conference which
placed Gen. Dwight D. Eisenhower
at the head of a projected interna
tional army of 1,000,000, to include
German units.
Members of Adenauer’s own dom
inant party, the Christian Demo
crats, predicted negotiations over
Germany’s role in the western army
would be long drawn-out. A press
statement issued by the party said
it would be some time before the
federal government would be able
to take a definite stand.
Here in Brussels, where the 12
member nations of the Atlantic
Pact reached their historic deci
sions yesterday, it was reported that
the Germans might be offered rep
resentation on Gen. Elsenhower’s
staff, but would not be allowed
either a Foreign Ministry or a De
fense Mirflstry of their own—at least
not for the time being.
The Atlantic Pact nations are the
United States, Canada. Britain,
France, Belgium, The Netherlands,
Luxembourg, Denmark, Italy, Por
tugal, Iceland and Norway.
Warships Blast Reds
’ Ell STATUTf MllfS
Bombardment by U. N. warships, augmented by IT. S. battleship j
Missouri, and field artillery (bomb burstsi kept at bay masses of
lied Chinese infantry pressing against IT. N.’s tiny beachhead at ,
Ilunnam (sawtooth line), in northeast Korea. An estimated 2a,001
Chinese were at the beaehhead rim with another estimated 7.r>.(hi0
moving up from the west and northwest (open arrows)., IIP) Wire
photo.
Sabre Jets Win Praise
Four F-8G Sabre jets fly a tight formation in a training flight over
the California desert. Four planes of the same type won the praise
of Aliied air men with a victory over four Itussian-built jets in a
five-minute aerial dogfight over North Korea. One Kcd plane was
shot down and the others lied to the sanctuary of the Manchurian
border. The Sabres arc the world’s fastest planes. C. S. Air Force
Photo via iffi Wirephoto.
OIL CARGO LOST j
IN ALASKA IS
CAUSE OF SUIT
—
PORTLAND, Oregon, Dec. 20-Wl
—A $307,415 suit, claiminR loss of
an oil cargo, was filed in federal
court here today by Oceanic Fish
eries Company, Inc., Seattle, against!
Kotzebue Oil Sales, Inc., an Alaskan
concern.
Oceanic claimed In the suit that!
Kotzebue, under contract to carry
oil from Alaska to Seattle, dis- j
patched the oil aboard the barge
Arctic Chief, towed by the tug John
Michael. The towline broke and
the entire cargo—including 223,700
gallons of herring oil, 19,000 gallons
of salmon oil and 190,000 gallons of
condensed fish soluble—was lost,
the complaint charged.
The loss occurred Nov. 26 this I
year, the suit charged.
Oceanic also filed an attachment
against the tug Sergeant H. L. Wal
lace and its equipment. The tug,
berthed at Swan Island, belongs
to Kotzebue, the Seattle firm
claimed.
29 FLY WITH PACIFIC
NORTHERN TUESDAY
Twelve travelers left Juneau yes
terday on Pacific Northern Airlines
and 17 arrived here from Anchor
age.
To Anchorage: Dr. R. L. Smith,
Paul Sutton, Steve Kir. D. J. Weh
ler, M. Nelson, Andrew Johnson,
Emnond Polejewski. Bruce Baptic,
John McCormick, Robert Jones and
William Black.
To Cordova: Otto Elfstrom.
Prom Anchorage: A. McCormick,
W. Smith, S'. Thomas, Gus Swan
son, A. Van Burcn, J. Vanderweel,
M. Snodderly, V. O. Mount. Col.
John Noyes, Alice Riley, George
Tapley, Sid Lundwal, M P. Mull
aney, and M. M. Flint.
JIM NORDALE IS NOW
HOME FOR C HRISTMAS
Jim Nordale. son of Mrs. Kather
ine Nordale of Juneau, arrived here
this week to spend the Christ
mas holidays with his mother and
his sister Mary. He is a student
at St. Martins near Lacey, Wash.
RED FORCES
HELD BACK
BY GUNFIRE
Allies Making Desperate
Attempt to Escape from
Dwindling Beachhead
(By the Associated Press)
Thundering guns from ships and
shore held back Communist forces
pressing on the tiny Hungnam
beachhead today while the Allied
withdrawal in northeast. Korea was
proceeding according to plan.
General MacArthur's headquar
ters in Tokyo announced a new
form of censorship asking that new
dispatches and photographs be sub
mitted for security screening and
clearance by military authorities.
The order went into immediate ef
fect. Previously there had been
only voluntary censorship on the
part of correspondents covering
the war.
Beachhead Shrinks
The shrinking Hungnam beach
head was brilliantly illuminated by
star shells from warships in the
harbor. Doughboys now hold a rela
tively small slice of land only a few
miles square in area around the
harbor.
A total of 25,000 enemy troop 1 ■
pushing against fhe line with an
other 75.000 ready to move up. Cor
respondents reported a force of
8,000 North Koreans in new uni
forms hre fighting on the east arc
of the perimeter where the mam
pressure is being exerted b\ i he
Reds.
Hordes Creep Closer
Their small penetrations were
quickly repulsed with the aid of
artillery and naval gunfire and
hard-hitting carrier based plane:.
‘ But there was no way of tolling
how long the United Nations forces
could hold off the hordes creeping
ever closer to the Allied toehold on
the beach.
MaJ. Gen. Edward M. Aljr.ond,
commander of the 10th Corps, said
he was satisfied with the bat Me
waged by his men and their naval
surface and "flying artillery” sup
port. ,
Nearby Yonpo airfield was aban
doned preventing evacuation of
wounded by air. But the wounded
were rushed to the water's edge in
jeeps and taken in small craft to
a waiting hospital ship offshore.
West Korea Front
United Nations forces in west
Korea fought minor engagements
with North Koreans around parallel
38. Most of the fighting was near
Chunchon, 45 miles northeast of
Seoul and 10 miles south of the
border.
General MacArthur’s communique
said: "It is evident from the indica
tions of North Korean corps organi
zation that a very large buildup of
Korean Communist forces has been
and is in progress. A potential of
at least 15‘ divisions, possibly con
siderably more, is planned, as evi
denced by the existence of at least
five, and possibly more, North Ko
rean corps organizations, a head
quarters unit indicative of planning
for sizeable formations.”
FCC AUDITOR HERE
C. T. Manning Federal Communi
cations Commission auditor from
Anchorage, is stopping at the Hotel
Juneau.
O SHOP PI NS DAYS
mt misTMAs