I
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS_
VOL. LIV No. 115 ; NOME, ALASKA, FRIDAY, SEPTEMBER 26, 1952 Per Copy—15<
Stevenson Will
Report On His
SuppleinentalFund
i By the Associated Press ^
Gov. Adlai Stevenson, who has
handled the issue gingerly so far,
promises to speak up about his
controversial fund for supple
menting salaries of Illinois State
officials.
The Democratic presidential
nominee said Friday he is con
tacting contributors to the fund,
for supplementing state salaries
under his administration, with a
view to making their names pub
lic. But he said he was having
trouble with his canvas because
there were “so many” donors. He
did not indicate when the names
might be made known.
Needled by Republicans to clear
up questions about his fund, as
GOP vice presidential candidate
Sen. Richard Nixon did his, Stev
* enson may take occasion on one
of his speeches to go deeper into
detail than he has todate.
He said the fund was no secret
but it would be a breach of faith
to name those who benefited from
it.
- The money, he said, was used
as gifts to a few appointed state
officials to help boost what he said
was inadequate salaries. He said
it enabled him to get competent
men who would not have taken
state jobs otherwise.
Top Republicans — including
Nixon, who faced a somewhat
similar problem earlier this week
—insist that explanation wasn’t
enough. They wanted to know
how big the fund was, who con
tributed, who got what.
Dropping for the moment the
red-hot argument over use of out
side funds by government offic
ials. Eisenhower launched a flank
attack on the Truman administra
tion’s defense policies in a Balti
more address last night.
The general told a tumultous
audience that he believes (1) uni
fication of the armed services is
^Continued on Page Two'
Not Much Hope For
Settlement In Iran’s
Latest Proposal
WASHINGTON, (A>) — United
States officials saw some hope to
day—but not very much—in Pre
mier Mossadegh’s latest proposal
for a settlement or his country’s
oil dispute with Britain.
The Iranian premier’s tough
talking note — he appeared to
imply his country might go Com
munist unless his demands were
met—was received here yesterday
addressed to President Truman.
It was in the form of a copy of
a detailed set of counter proposals
which he addressed initally to
British Prime Minister Churchill.
The message to the two western
leaders was considered tough in
three respects:
1. Mossadegh rejected as “in
equitable” a joint settlement plan
which Truman and Churchill
placed before him on Aug. 30.
2. He waved the apparent Com
munist threat.
3. He gave only 10 days from
today for an answer.
v' V’*' '4.*- * ■ a
I I
Japanese Observation Ship
Vanishes At Scene Of
Submarine Volcano
TOKYO, (/P) — Japanese au
thorities said Friday night either
a tidal wave or suction from an
underwater volcano must have
sunk a Japanese observation ship
which vanished Tuesday with 31
aboard.
Japanese coast guard boats and
U.S. Air Force planes found no
trace of the 210-ton No. 5 Kaiyo
Maru, which vanished Tuesday,
200 miles southeast of Tokyo. It
was on an inspection tour of the
Myojin Reefs, which r<
the ocean floor two wee]
a violent submarine ex'
The missing vessel ca:
scientists and a crew of
the seething cauldron
flame and ashes surrounding the
reefs.
The volcano erupten Tuesday
and again Friday, spewing rocks,
sand and ashes into the air.
Three search vessels were forced
back by the explosions.
Canadian Government To
Investigate Sinking of
Princess Kathleen
OTTAWA, (JP)—Transport Min
ister Chevrier has ordered a for
mal investigation into the loss of
the Pacific coastal cruise ship
Princess Kathleen in Alaskan
waters Sept. 7.
The Transport Department said
the investigation under the Can
ada Shipping Act probably will
be held in Vancouver in the near
future. Arrangements are being
made to appoint a commissioner
and nautical assessors to conduct
the probe.
The Princess Kathleen ran
aground near Point Lena and
later sank, but without loss of life
or injury to the more than 300
persons aboard.
Nine British Airmen
Snatched From Ice Cap
LONDON, (/P) — The British
Air Ministry said today a rescue
plane has snatched from a Green
land ice cap the last nine mem
bers of a bomber crew stranded
by a crash on Sept. 16.
Three other men had been pick
ed up by a ski plane from the
U.S. Greenland Air Base of Thule
two days ago. Bad weather de
layed the rescue of the others.
The airmen — British and one
American—were marooned when
their Hastings bomber crumpled a
wing soon after making a supply
drop to a British expedition which
plans to winter on the ice cap.
Whittier Man Found On
Kodiak Island After
Being Missing 20 Days
KODIAK, (/P) — A lone and
weakened Whittier boat operator,
adrift for 11 days and reported
overdue for 20, was found on a
Kodiak Island beach Thursday—
down to his last four potatoes.
Tom Eley, 58, was found near
a cave by two duck hunters. Ex
cept for his weakened condition,
he was reported OJC.
Eley said he ran into trouble
when the engine of his 36-foot
midget tug Popeye II quit off
Cape Resurrection, south of Sew
ard.
Sec. Acheson and
Eisenhower Tangle
Over Korea Blame
WASHINGTON, (/P)—Secretary
of State Acheson said Friday that
Gen. Eisenhower as Army chief
of staff prior to the Korean war
supported an American defense
line in the Par East which did not
include Korea.
Eisenhower last Monday at
tacked an Acheson speech of Jan
uary, 1950, as helping bring on
the war five months later. Ache
son replied today that Eisenhower
“tortures the facts.” He accused
the Republican presidential candi
date of misquoting him and mis
representing his views.
At a news conference Acheson
counter-attacked Eisenhower di
rectly and by name and sought to
drive home two points:
1. He said the Pacific defense
line which he defined in his 1950
speech was “developed by our
military authorities” and while it
*
did not include Korea, Eisen
hower’s opinion as chief-of-staff
was “wholly in accordance with
the statement I made.”
2. The defense of Korea, Ache
son said, like that of other Asian
countries was not a responsibility
for the United States alone but for
the whole United Nations. He said
he warned in January, 1950, that
should an attack occur on any of
those areas beyond the American
defense line the defense would
rest upon the United Nations.
«
Acheson declared that Eisen
hower in his speech at Cincinnati
Monday “left out that warning”
and was thus able to discuss the
Korean situation as if the warn
ing had not been given and “as if
his own government rather than
the aggressor bore the guilt for
Korea’s tragedy.”
Second Division Board
Of Equalization Adjourns
The Second Division Board of
Assessment and Equalization with
George R. Goshow as chairman,
and board members Aarnout Cas
tel and Bert Bell, wound up the
three-day session Thursday, after
several hearings relative to pro
perty tax matters.
Much emphasis was placed on
granting tax exemptions when
ever warranted. The board went
on record favoring tax exemp
tions to all new industrial enter
prises in Alaska, especially those
connected with the national de
fense effort, like the mining of tin,
effort, like the mining of tin,
tungsten, bismuth and pitchblende
(uranium) ores, and made recom
mendations to that effect to the
Tax Commissioner.
In regard to other matters
which came before the Board, the
re-establishment of the Territor
ial Assessor’s Office at Nome was
likewise recommended. With the
aid of several interested parties
and civic organizations, concrete
measures were undertaken to
eventually bring U.S. Land Office
records back to Nome, thus cor
recting a situation which in the
past year or so has brought much
inconvenience to the mining and
business people of the Second
Division.
, - • . i
m
$300,000 In Canadian Gold
Disappears Under Very
Mysterious Cirumstances
TORONTO, Canada, (JP) — A
nation-wide alarm was out Fri
day for nearly a half ton of gold,
valued at about $300,000, which
vanished after it was placed in ap
unguarded, padlocked cargo shed
at nearby Malton Airport Ter
minal.
Police said they believed the
gold had been stolen but there
appeared to be some question as
to where the theft might have
taken place. Officials were close
mouthed about details of both the
disappearance and the subsequent
investigation.
If the bullion had been stolen,
it was Canada’s third major gold
theft in four months.
Packed in six boxes weighing a
total of 848 pounds, the gold ap
parently vanished late Wednes
day. Police were not called in,
however, until Thursday morn
ing.
The six boxes of precious metal
were part of a shipment of 10 in
transit to Montreal. Only four of
the ten, containing about $150,000
worth of biillion, were checked in
at the final destination.
Communist Peace
Offensive to Start
This Weekend
By WILLIAM L. RYAN
AP Foreign News Analyst
Opening barrages of a gigantic
world Communist peace offensive
will be fired this weekend. The
thunder of the propaganda guns
will mark the first phase of a
new Soviet tactical assault upon
the United States.
From about 30 countries—those
in Asia and those such as Canada
and Latin America bordering the
Pacific — delegates have assem
bled in Peiping, capital of Com
munist China to do the bidding of
the Moscow-Peiping a4is in this
latest campaign.
The countries “represented by
the Communist-inspired delegates
have a population of more than a
billion and a half people and
cover two - thirds of the earth’s
surface. Some countries, such as
Australia and Japan have for
bidden passports to prospective
delegates.
There is little doubt that the
offensive is tied in with the de
cision of Moscow to summon an
all-union Congress of the Soviet
Communist party Oct. 5, the first
such Congress in 13 years. The
peace congresses and the Soviet
party congress all clearly are part
of the Soviet grand strategy in
the cold war.
The major attack is in Asia.
One goal is the expulsion of Am
erican influence through damage
to American prestige. In the fu
ture are plans for domination of
the Middle East, Africa and South
and Central America. This is a
long-range program which is un
derway now, among whose aims
is the engendering of economic
crises in the west, and particular
ly in the United States. It looks
toward cheap Soviet victory.
Capt. Kenner Not
Too Hopeful For
Coast Guard Here
“We hear on the radio and see
in the news reels the wonderful
job the Coast Guard is doing and
we know it to be one of the most
vital branches of the armed serv
ices, and we place no less vital
value on the lives of OUR people
or the cargo of OUR supply ships
than do those whose shores proud
ly display the ensign of the U.S.
Coast Guard,” stated Ted Duffield
at the U. S. Coast Guard hearing
held last evening in the U. S.
Court Room before Capt. W. W.
Kenner and the U.S.C.G. investi
gating board.
Chairman Larry Galvin called
on several representatives of the
city to state their views on the
urgent need for the re-establish*
ment of a station here. ,
Mayor Jones and Chief of Po
lice Glass, in plain, direct lan
guage, laid out the facts that in
experienced people and lack of
proper equipment jeopardize not
only the lives of those whom they
are trying tor save, but may result
in loss of life while trying to save
others. “Proper patrol and experi
enced authority” is needed to di
vert disaster in the future,” said
Glass.
JJ. Dillon of the Alaska Steam
' ship Co., speaking for his com
pany, as well as the small indiv
idual boat owners, stressed the
need for necessary reports on the
sea and ice conditions for seamen
which the Coast Guard should
supply just as the U.S. Weather
Bureau supplies the airships that
fly. He showed that developments
in this area indicate an increase
of commerce makes the need
more urgent than ever before.
It was the firm conviction of
both Chief of Police Glass and
Major Bronson of CAP that the
10 lives lost in the past two years
would have been saved had there
(Continued on Page Three*
Trygve Lie Will Step
Down As Secretary Gen.
Of U. N. Feb. 1, 1954
UNITED NATIONS, N.Y., (fl>)
— Secretary General Trygve Lie
has decided to step down from his
$40,000-a-year United Nations
post on Feb. 1, 1954, at the end
of a three-year extension of his
term and retire to Norway. Some
day he would like to be prime
minister of Norway.
When he leaves, he will get a
lifetime pension of $10,000 a year,
but he cannot hold public office
until he has been away from the
U.N. for five years. Lie is now 56
years old.
Lie’s intentions came to the fore
as U.N. officials studied a draft
of a staff reorganization scheme
which would abolish the posts of
eight assistant secretaries general,
each paid $22,000 annually, and
would create three deputy secre
taries general, each at a consider
ably higher salary.
Lie was said to have described
this plan as his “last will and
testament.” He is known to be
extremely anxious to have the
secretariat staff on a sound foot
ing before he leaves.