THE DAILY ALASKA EMPIRE
! UALL THE NEWS ALL THE TIME'
VOL. LXXVI., NO. 11,683
JUNEAU, ALASKA, THURSDAY, DECEMBER 14, 1950
_MEMBER ASSOCIATED PRESS
PRICE TEN CENTS
Critical Allied Korea Beachhead Abandoned
$300,000,000
Bldg- Program
lnAlaskain'51
There will be a total Alaska con
struction program of approximately
$300,000,000 for next year, Kenneth
Kadow, chairman of the Alaska
Field Committee, said today upon
his return from a meeting in An
chorage last week. The amount will
be much larger if certain emer
gency funds now being considered,
are released.
Military and civilian construction
agencies met with Col. L. E. Sea
man, U. S. Army District Engineer,
and Kadow to outline the 1951 con
struction program for Alaska.
From information developed at
the session it appears that the use
of the DO (defense order) will be
drastically curtailed and perhaps
eliminated completely. Instead a
system of special directives will be
issued through claimant agencies,
of which there are many. These
will be used to break specific oot
tle necks as they occur.
These directives will not be trans
ferrable but will be available for
use on any project that has a di
rect or indirect bearing on the na
tional defense picture. The clam
ant agencies will be for the most
part, existing units of government
covering specialized fields, Kadow
said.
WEATHER REPORT
Temperatures tor 24-Hour Period
ending 8:20 o'clock tnis morning
In Juneau—Maximum, 40;
minimum, 33.
At Airport—Maximum, 38;
minimum, 33.
FORECAST
(Juneau and Vicinity)
Foggy tonight with lowest
temperature near 32 degrees.
Mostly cloudy Friday with
snow or rain by Friday after
noon. Highest temperature
33 degrees Friday.
PRECIPITATION
(Past 24 hours ending 7:30 a m. today
City of Juneau—.32 inches;
since Dec. 1 — 2.40 inches;
since July 1 — 35.64 inches.
At Airport — .11 inches;
since Dec. 1 — 1.56 inches;
since July — 24.68 inches.
STEAMER MOVEMENTS
Princess Norah from Vancouver
scheduled to arrive Saturday after
noon or evening.
Baranof scheduled to sail from
Seattle Friday.
Denali scheduled to arrive Sunday
morning enroute south.
The Washington
Merry-Go-Round
Copyright. 1950, by Bell Synoleate, lne.1
By DREW PEARSON
WASHINGTON — The White
House chef scored a great victory
for a bi-partisan foreign policy
at the President's luncheon for
Britain's Clement Attlee and Con
gressional leaders on the yacht
Williamsburg.
The atmosphere was somewhat
stiff until jolly Senator Alex Wiley,
ranking Republican on the Foreign
Relations Committee, spied the des
sert. Glowing with a huge smile,
he told Attlee:
"Mr. Prime Minister, you are pri
vileged to eat America’s choice des,
sert."
It was bleu cheese from Wis
consin. ,
Phony Air Raid
The Pentagon Building, home of
the Joint Chiefs of Staff, had an
other bombing scare last week. An
unidentified plane was picked up on
the radar screen along the Can
adian-Maine border.
At the first report some officers
at the Pentagon got so excited
that they actually called their wives
and told them to take their kids
■ and go down in the basement.
However, a jet interceptor flew up
and identified the plane as merely
an American C-47 coming in from
Labrador.
Lagging Airplane Production
Sherman’s realistic report had
an electrifying effect on the com
iContinued on Page Four)
Rebuilding
Jap Navy Is
'Naked Lie'
WASHINGTON, Dec. 14— (M- -The
State Department denounced as a
"naked lie” today a Moscow claim
that the United States and Japan
have taken the first steps to re
build the Japanese Army.
The Department, in a bristling
statement, said it looks as though
the Communist propaganda ma
chine is possibly preparing the way
to put into efiect the new alliance
between Russia and Communist
China.
Under terms of a Moscow Treaty,
Russia and Red China have pledged
joint military action against aggre
ssion by Japan or any power al
lied with Japan.
The Department's statement was
aimed at a Soviet Tass news
agency dispatch datelined Shang
hai and published in the Moscow
newspaper Pravda. Russia also has
made the charge that the United
States is rearming Japan in formal
protests submitted to the 13-natfon
Far Eastern Commission.
Alaska Salmon Ind.
Signs 19S1 Union
Contract; Increase
Alaska Salmon Industry, Inc., an
nounced the signing today of a 1951
contract with the southesat Alaska
Resident Cannery Workers’ Union
(AFL). It carries a 12'- per cent
wage increase from 1950 scales.
Officials said it covers about 2.000
Alaska residents.
A spokesman said the increase
applies to the season guarantee also.
He said the scale for most of the
workers has been $1.54 an hour,
with $1.74 for overtime and $1.94
for so-called “penalty-time."
It is the first of several contracts
currently under negotiations be
tween packers and various unions.
It was negotiated with Pete Neilsen
of Sitka and Kenneth Bowman of
Juneau as union representatives.
BAGGAGE DRILL FOR
AIR PASSENGERS IS
CONTINUED TODAY
Bad weather continued to cause
airline officials and passengers to
wring their hands and go through
baggage drill today.
At press time a Pacific Northern
Airlines plane was poised for flight
at Yakutat should the fog lift long
enough to continue to Juneau.
Pan American’s northbound flight
from Seattle left this morning
and will overnight at Annette. It
was doubtful if the Fairbanks
southbound flight would get out
of Whitehorse today, and passeng
ers hoping to fly south today were
talking to themselves at the Juneau
airport.
A non-scheduled Arctic-Pacific
plane from Seattle was unable to
land at Annette this morning, con
tinued on to Juneau arriving at
7:25 but could not land and finally
went on to Fairbanks. This was the
plane residents heard roaring over
head for nearly half an hour.
JUDGES NAMED FOR
CHAMBER CHRISTMAS
DECORATIONS CONTEST
Dr. John Clements, chairman of
the Juneau Chamber of Commerce
Christmas decorations committee
announced judges today.
Judges of the downtown window
displays will be Mrs. Helen Monson,
J. P. Christenson and Dr. Clements.
For residences: O. F. Benecke, Dr.
11. J. Montgomery and Willis Booth.
Judging will take place December
I 22 between 6 and 10 p.m.
_
FROM TACOMA
S. R. Kelly of Tacoma is regis
tered at the Baranof Hotel.
SKAGWAY VISITOR
Mrs. Manvil Olason of Skagway
j is stopping at the Gastineau Hotel.
FROM SITKA
Don Van Buren of Sitka is stop
ping at the Hotel Juneau.
$20,105,600
Is Considered
For Alaska
WASHINGTON, Dec. 14 — W —
The House Armed Services Com
mittee met in closed session today
to consider authorizations for mil
itary public works projects totalling
$1,658,718,000.
Many of the items are highly
secret and little identification was
given in the bill introduced by
Chairman Vinson (D-Ga).
It is understood that money to
j start work on the highest priority
I projects is contained in the $16,844,- ;
I COO,000 emergency request for mil- i
itary funds now before the House i
Appropriations Committee,
Vinson’s bill does disclose that
authorization is sought for $66,987,- !
000 to speed up work on the Air j
Force's aircraft control and warning
system.
This is commonly referred to as
“the radar screen,” the objective of
which is to warn of approaching
enemy planes.
The Army is seeking a total of
| $383,396,000 of which $291,760,800 to
| be spent in the United States and
I $91,636,100 outside the continental
! limits.
| The largest overseas amount, $20,
105,600, would be used in Alaska.
SUCCESOR TO
CHANDLER NOW
BEHTC SOUGHT
Baseball Commissioner
Refuses to Take Lump
Sum to Resign
By JOE REICHLER
ST. PETERSBURG, Fla., Dec. 14
—W—Major League club owners
appointed a four-man committee
today to search for a new commis- i
sioner to replace A. B. (Happy)
Chandler, who again vowed that he
would not resign.
The committee, composed of two
men from the National and tw'o,
from the American League, was in- 1
structed to begin screening candi- ]
dates immediately and endeavor to 1
bring back a report to the owners
at their meeting next February.
The committee also has been em
powered to offer a $75,000 a year
salary to Chandler’s successor. That
amounts to a $10,000 increase over
the salary paid to the present com- j
missioner.
A club president who asked his
name not be used, said the majority
of the club owners voiced their;
preference for a man having no
connection with baseball. That man
also must be a “universally respect
ed person possessing a judicial
mind,” he added.
This would tend to eliminate such
heretofore outstanding candidates
as Ford Frick, President of the Na
tional League; George Trautman,
head of the minors, and Warren
Giles, President of the Cincinnati
Reds.
Although neither league has made
public its committee, it is believed
that Del Webb, Vice President of
the New York Yankees, and Billy
Evans, general manager of the De
troit Tigers, are the American
League pair while Lou Perini, Bos
ton Braves President, and Giles
represent the National.
It was learned Chandler was of
fered a cash payment of $100,000
at Tuesday’s joint session if he
would resign. That represents $15,
000 more than the amount he would
make at his $65,000 a year salary
if he stayed on the remaining 16‘1
months. His contract expires May
1, 1952.
STOCK QUOTATIONS
NEW YORK. Dec. 14 — Closing
quotation of Alaska Juneau mine
stock today is 21 i. American Can
93*", American Tel. & Tel. 149%,
Anaconda 36 V Douglas Aircraft 86,
General Electric 47'i, General Mo
tors 44 V Goodyear 59 V Kennecott
73'i, Libby, McNeill & Libby 8%.
Northern Pacific 28%>, Standard Oil
of California 81V Twentieth Cen
tury Fox 19%, U. S. Steel 39, Pound
$2.80, Canadian Exchange 95.18 i.
Sales today were 2,660,000 shares.
Averages today are as follows:
; industrials 225.89. rails 72.78, util
| ities 38 95.
WAGE-PRICE
CONTROLS IS
URGE,TRUMAN
Congressional Group Is
Hopeful for Nafional
Emergency Declaring
WASHINGTON, Dec. 14 — UP) —
President Truman discussed home
front mobilization with a second
Congressional group today and was
urged by several of the legislators
to go ahead with wage-price con
trols.
There was no word as to whether
Mr. Truman has made up his mind
about that, but Senator Maybank
(D-SC) said he was "hopeful” the
President will declare a national
emergency and put into effect
swiftly “whatever wage-price con
trols can be administratively hand
led.”
Rep. Walter (D-Pa) said he came
away from a subsequent White
House conference with the impres
sion that Mr. Truman will proclaim
a national emergency tomorrow but
has reached “no firm decision” as
to when and how price controls will
be used.
Senator Tobey (R-NH) told re
porters he had advised “all out”
controls.
“This is one of the darkest hours
in the history of this nation and
the world.” Tobey said.
Maybank is chairman of the Sen
ate Banking Committee which
handles controls legislation. Tobey
is the top Republican on the com
mittee.
Attending today’s White House
conference were the leaders of the
Senate and House Banking Com
mittees, the Senate-House Econ
omic Committee, and the Atomic
Committee. Key administration of
ficials concerned with economic
matters also were present.
It was the second such meeting
that Mr. Truman has held pre
liminary to reporting to the Amer
ican people in a radio address at
7:30 p.m. (PST) tomorrow on what
steps the government will take to
meet the world crisis and the in
creasing threat of world war three.
SECURITY
BLOCKOUT
IS PLACED
(By Associated Press)
A security blackout has beem
placed by the Allied Military Com
mand on the general situation in
northeast Korea, along with a gen
eral tightening up on military in
formation throughout Korea.
There is still no formal censor
ship, but correspondents have *jeen
handed a list of "suggestions.”
These include the admonition that
no information be given concern
ing planned activities or moves in
progress, and that no reports of
activities or locations of friendly
forces be made except in terms of
divisions, units or separate forces,
and then only when such forces
are in firm contact with the enemy.
Headquarters spokesmen have
declined to make any further pub
lishable statements on the ground
that such explanatory details might
jeopardize security.
BABY CLOTHING NEEUF.I) FOR
CHILD IN ORTHOPEDIC WARD
The orthopedic ward at Mt. Edge
cumbe Hospital is in need of cloth
ing for a small baby, according to a
request received by Mrs. John Mc
Cormick, Alaska Crippled Child
ren’s Association President in Ju
neau.
In the orthopedic war at present
are 62 children, one elderly man
and the small baby for whom the
clothing is needed.
If whoever may have discard
ed baby clothing available will
telephone Mrs. McCormick, 547,
she will make arrangements to
send the garments to Mt. Edge
cumbe.
BILL VANCE HERE
William Vance of the Alaska
Communications System at Skag
way is at the Gastineau Hotel.
I
New DM Administration
Is Set Up in Alaska for
Local Aid; Outline Plans
About half a dozen applications
have been made locally under the
new Defense Minerals Administra
tion, according to S. H. Lorain,
Regional Director of the Brueau -of
Mines.
Lorain and William S. Twenhofel,
of the U. S. Geological Survey Of
fice. were appointed as the Alaska
f eld team of the new DMA. They
recently attended a staff meeting
of the Defense Minerals Adminis
tration in Washington. D. C.
Financing of mining operations
for strategic defense minerals may
be obtained through capital loans
McCarthy,
PEARSON IN
PUNCHsour
Incident Between Senator,
Columnist Reported
At Private Party
WASHINGTON, Dec. 14 — UP) —
Physical violence erupted between
Senator Joe McCarthy and colum
nist Drew Pearson the other night.
»he two had different versions and
the only acknowledged witness
wasn’t talking.
McCarthy, the Republican sen
ator from Wisconsin, promised to
tell his colleagues something about
Pearson today. But he said he
wouldn’t talk about their encounter.
The two are not buddies. Mc
Carthy has been conducting a
months-long campaign against
what he calls Communist influences
in the State Department and else
where. Pearson has written and
broadcast critically of the senator.
The incident occurred—the ac
counts jibed in this, at least—at the
swank Sulgrave Club on Tuesday
night. Another columnist and ra
dio commentator. Fulton Lewis, Jr.,
broadcast the first public account
of it last night.
The pertinent post-fight quotes:
McCarthy: I smacked him with
my open hand and knocked him
down on his hips. I didn’t punch
him.”
Pearson: “The senator kicked me
twice in the groin, as usual he hit
below the belt. But his pugilistic
powers are about as ineffective as
his Senate speeches. I was not
hurt.”
Pearson said the encounter ended
when Senator Richard M. Nixon,
California Republican, intervened.
McCarthy said Nixon saw the fracas
but didn’t separate them.
Said Nixon: “I have no comment
except that this incident occurred
at a private party.”
Physically, the two aren’t badly
matched although McCarthy has
the edge in age, weight and—if ap
pearances aren’t deceiving — in
strength.
Pearson is tall and rangy. He
observed his'53rd birthday yester
day. A Marine in World War II,
McCarthy is several inches shorter
but stockier. He is 41.
WAR PLANT
BUILDUP
DEMANDED
WASHINGTON, Dec. 14— (At—A
rapid build-up of the nation’s war
plants is essential to meet the
serious threat "of a global conflict.
Secretary of Defense Marshall has
tpld Congress.
Whether an all-out shooting war
might erupt within the next few
months was described by Marshall
as “very hard to answer.”
He said this country Is doing all
it can to avoid full-scale hostilities,
but, he added, “We realize that ah
all-out war can be Initiated by a
single word from the other side,”
guaranteed by the Federal Gov
ernment. It Is preferred that the
money be obtained from private
sources but, in case of necessity,
may be obtained through the Re
construction Finance Corporation,”
said Lorain.
The Defense Minerals Adminis
tration cannot make loans or con
clude purchase contracts itself. The
function of the DMA in regard to
loans is to certify to the RFC as
to their necessity for national de
fense.
Far Alaska Producers
Another way for production to be
made possible for Alaskan produc
ers is through purchase contracts
with government subsidized prices
over and above current quotations,
according to Lorain. As for pur
chase contracts, these will be cer
tified to the General Services Ad
ministration after the Defense Min
erals Administration has carried
| out the preliminary negotiation.
I "It is to be emphasized that RFC
loans will not be granted indis
criminately but will be given con
sideration at Washington, D. G.,
levels," said Lorain. "Granting of
the loan will be governed by the
national need for the particular
metal or mineral under considera
tion and by the relative cost In
manpower and materials per Unit
of mineral expected to be recover
ed.”
Government subsidies may tend
to offset the cost differential which
in many cases have been prohib
itive to development of Alaska
mining operations,
DMA Intentions
It is the intent of the DMA that
expansion of production shall be
facilitated as much as possible
through ordinary business chan
nels. Government guarantee of
loans or direct government loans
can be resorted to If regular busi
ness loans are not obtainable.
The government will negotiate
purchasing contracts or make loans
only if these methods appear to
be necessary to place into industrial
channels additional quantities of
critical metals and minerals.
The lack of risk capital has been
one of the chief detriments to the
development of Alaskan mining, ac
cording to Lorain.
“It has been especially difficult
to obtain risk capital. Through
the provisions of this act, there
is the guaranteed return of risk
capital,” he said. "This is made
possible by obtaining government
guaiantee of a private loan for
mining work.”
Chief Attention
Chief consideration will be givezi
to those metals and minerals that
are critical and strategic. Palling
in this list for primary considera
tion are: antimony, asbestos (spin
ning grade), beryllium, chromite,
cobalt, columbium-tantalum, copper,
corundum, fluorspar, graphite (cru
cible flake), manganese, mica, talc
(steatite), tin, tungsten, and zinc.
This list will be expanded, cur
tailed or modified in accordance
with changing national defense re
quirements.
Copper deposits on tide level on
the Gulf oi Alaska and in south
east Alaska may receive special
consideration. The most promising
tin deposits on the North American
continent are on the Seward Pen
insula in the vicinity of Tin City.
Yielding Promise
Projects to be approved by the
Defense Minerals Administration
must, in its judgment, show definite
promise of yielding material of ac
ceptable grade, physical character,
and specifications in amounts that
will significantly improve the min
eral supply position for national
defense.
Also, commitments for assistance
ih developing and mining mineral
deposits will be made only when
the necessary processing plants,
water supply, and access roads ex
ist or when simultaneous commit
ments are made to assure they will
be provided If necessary.
Although policies and final de
cisions of the Defense Minerals
Administration will be made in
Washington, D. C„ the organization
will use personnel and facilities of
the Bureau of Mines and Geologi
cal Survey for field examinations.
Field teams have been established
on a regional basis corresponding
with the regional organization of
the Bureau of Mines.
ALL-OUT AIR
BATTLE NOW
LOOMS, KOREA
Indications Are Communist
Forces Planning Big
Assault
WASHINGTON, Dec. 14—6T>—An
Air Force spokesman said today
there are indications the Commu
nist air force is starting to wage all
out air war in Korea.
He said that increased enemy Jet
fighter activities during the last
few days suggests “the enemy may
now intend to exploit fully his air
potential concommitantly with his
ground successes."
"The pattern now unfolded,” he
added, “may reveal a steady in
creasing tempo of air activity ns
additional aircraft become avail
able from Communist China or the
Soviet Union.”
Air Fire Exchanged
A dispatch from Korea today said
24 Russian-made Mig-15 jet fight
ers and four American Jet Shooting
Stars exchanged fire near Sinuiju
in Northwest Korea. None of the
American planes was reported dam
aged. The U. 3. pilots said one
Communist plane was hit.
The United Nations forces in Ko
rea might be particularly vulner
able to air attack in their present
positions—concentrated in relatively
sm&ll areas, especially in the north
east where they have only a small
beachhead around the port of
Hungnam.
The Air Force spokesman’s sug
gestion that the Communists arc
planning all-out air war was made
at the Pentagon’s regular briefing
for reporters.
Reds Stepping Up
He noted that from the begin
ning of the Korean fighting, until
about Nov. 1, the enemy air strength
did little.
Until the step-up in Red air force
; action, there was almost no com
parison between United Nations
and Communist air activity. The
spokesman said that from June 25
through Dec. 8 only 506 sorties were
known to have been flown by the
Communists.
A sortie is one flight by one plane.
During the same time the Ameri
can Far Eastern Air Force flew ap
proximately 72,000 sorties, not in
cluding sorties flown by Navy and
Marine planes based on aircraft
carriers. The grand total of sorties
by the United Nations forces prob
ably was well over 100,000 the
spokesman said.
LETTER ON
STATEHOOD
BY TRUMAN
|
HONOLULU, Dec. 14—i*—Presi
dent Truman has written, a letter
saying “I can’t for the life of me
see why the southerners would
take the attitude they do” in op
posing- the Hawaii and Alaska
statehood bills.
The letter was written Nov. 20
to Edward Burke, legal counsel for
the Hawaii statehood commission
and former Nebraska Senator.
It was released by the statehood
[ commission.
The President’s letter, in reply
to one from Burke, said in part:
“I am glad you liked the message
on statehood from Hawaii and Al
aska. I can’t for the life of me
see why the southerners would
take the attitude they do when
these two territories are of such
vital importance to the national
defense. If Alaska is properly de
veloped, it will support seven or
eight million people in luxury.”
VACATION IN CHICAGO
Miss Rosemary Doogan is on va
cation from her position with
the Territorial Department of Tax
ation and plans to visit in Chicago
for two weeks with Mr. and Mrs.
Harold Kling. Mrs. Kling is the
former Marilyn McAlister of Ju
| neau and a schoolmate of Miss
j Doogan.
I
PULL BACK
FROM ORO
UNDERWAY
Ten Chinese Divisions Ex
pected to Make Attack,
Drive Allies Into Sea
(By Associated Press)
Allied forces in the shrinking
Hungnam beachhead — last UN
tions toehold in northeast Korea—
today abandoned the .town of Oro
and began big demolitions on the
outskirts of their menaced perim
iter.
Oro, six miles from Hamhung,
caught fire during pre-dawn fight
ing with elements of an estimat
ed 100,00 Communist troops ordered
by North Korean Premier Kim 11
Sung to drive United Nations forces
into the sea.
Field officers expected a sharp
fight soon.
A security blackout settled over
the general picture in the critical
perimeter wherein 60,000 men of
the UN 10th Corps have been as
sembled after withdrawing from
widely scattered sectors oi north
east Korea.
Pressure by Reds
A corps spokesman said an es
timated 10 Chinese divisions were
putting pressure on the slender
beachhead from three directions. A
Chinese division numbers between
8,000 to 10,000 men.
The heaviest force was. reported
moving through the Suchong Val
ley north of Hamhung. This is evi
dently the force that attacked at
Oro. Associated Press photographer
Max Desfor, with frontline Puerto
Rican troops, said engineers blast
ed three spans of a 500-foot con
crete bridge south of Oro before
leaving. They also demolished a
railroad bridge.
Reds Riddled
• Tanks and planes riddled the
attacking Reds in the early morn
ing action. An estimated 200 Com
munist dead were left behind.
Other Chinese troops were mov
ing on the beachhead from west of
Hamhung-Koto road, the bloody
retreat trail from Chungjin Res
ervoir blazed by the U, S. Marines
and Doughboys. A third enemy
force was reported swinging down
from the Northeastern coastal road,
still well to the right Hank of the
defense perimeter.
Reds Wear Parkas
Chinese dressed in captured Am
erican parka uniforms yesterday
made a preliminary probing attack
in company strength on the shrink
ing beachhead. The attack was re
pulsed.
The perimeter is being defended
by elements of three American and
two Korean divisions plus British
and Puerto Rican elements. Car
rier-based Marine and Naval fight
er-bombers and long range Naval
guns held back the attacking Chin
ese.
Air Fight
In northwest Korea, near Sinu
iji, four American jet planes at
tacked 24 Soviet built Jets in the
biggest aerial battle of the war.
The American Shooting Stars
were escorting an unarmed recon
naissance plane near the Man
churian border when they sighted
the enemy jets taking off irom the
Antung airstrip in Manchuria. The
Americans saw the unarmed plane
safely on its way and then turned
back to have a pop at the enemy.
No American planes were damaged
but their pilots said a hit was scor
ed on one enemy plane.
There were only small engag
ments on the west front north of
Seoul where the Eighth Army is
holding a d flense line.
q SHOPPING DAYS
o till CHRISTMAS.