s
22 NOME
Per Copy—IV
U. S. Circuit Court of Appeals
Reverses Decision Alaska Court,
Validating Alaska Property Tax
< SAN FRANCISCO, (/P)—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. Circuit Court of Appeals yesterday.
The act calls for levy of a one^
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 owner, and
the Alaska-Juneau Gold Mining
i
Co., Judge Pratt issued an in
junction against collection of the
tax.
Yesterday’s Opinion by the high
er court followed the filing of ap
peal by Territory Tax Comm is
* j
• sioner 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 request for injunc
tion.
After the general property tax
was enacted by the 1949 Alaska
Legislature, the Territory’s Senate
Finance Committee estimated it
would raise about $2,500,000 for
the biennium.
k The main legal points on which
it was challenged were that it
Lacked uniformity in assessment
and evaluation, that taxpayers
living outside towns, under the
act, must indirectly share munici
pal tax burden and that the law
is “vague and self-contradictory.”
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 territorial 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
legislature.
It was a controversial issue dur
ing the 1951 legislative session, too.
Critics of the property tax have
contended that it would be too ex
pensive ito collect in Alaska; that
the areas are too vast, many pro
perties too isolated and property
records too sketchy.
Proponents argued in the Leg
islature that it would be readily
collected from such big properties
as canneries and big mining pro
perties, which have not been sub
ject to property taxes.
Critics have oontended that it
would cost as high as 50 per cent
or so of the tax revenues to get
assessments and make collections
from the vast areas of the terri
tory.
Opposition to the tax has been
I especially strong in the Second
and Fourth Divisions—the mining
divisions.
Legislators from those divisions
succeeded in getting a bill through
the 1951 House for repeal of the
property tax law. Parliamentary
>— -
maneuvering' delayed its trans
mission to the Senate, however,
and the Senate refused to consider
it because the deadline for receiv
ing House bills had passed.
Some 1951 legislators expressed
the opinion that if the property
tax law were upheld the addition
al amount of revenue it would
produce would put the territory
“over the hump” for 1951-52 and
forestall the possibility of a de
ficit.
River Water Rising
Despite Repeated
Bombing of Ice
FAIRBANKS, (/P)—Floodwaters
from the Yukon and Kuskokwim
rivers were reported threatening
riverbank communities late yes
terday despite repeated Air Force
bombings of ice jams blocking the
! streams.
An Air Force B-17 bomber and
jet fighters dropped 500-ponnd
bombs on the Yukon River in
> shuttle runs from the Ladd Air
I Force Base here and at Galena,
! 250 miles west of here.
A “Midnight Sun” bombing of
the Kuskokwim relieved the com
munity of Bethel, nea rthe mouth
of the river, of immediate danger
but later reports said floodwaters
were rising again.
The Air Force also reecived a
report of a new jam in the Kus
kokwim at the mouth of Johnson
River, ten miles downstream from
Bethel. The report said all native
villages in the area were threat
ened.
KOREAN SITUATION
(By the Associated Press)
FIGHTING FRONT—Commun
ist mass forces north of Seoul and
on central front for apparent re
newal of spring offensive. Eighth
army observers say Reds will at
tempt head-on smash at Seoul and
encircling move east of city. Chin
ese move down from 38th parallel
on central front to join 1,500 of
their comrades sighted near Kap
yong. Allied planes attack build
up areas and supply routes. En
counter unusually heavy anti
aircraft fire.
Rita Hayworth Establishes
Nevada Residence, Prepare
Divorce Prince Aly Kahn
GLENBROOK, Nevada, (JP) —
Glamorous Rita Hayworth has
taken up Nevada residence on
Lake Tahoe to prepare for legal
separation from Prince Aly Kahn.
She arrived quietly last evening
| to join her two children, Rebecca,
6, and Yasmin, who’ve been here
a week with servants.
The actress’ Reno attorney, Wil
liam Woodburg, Jr., said she
would seek a divorce or a separate
maintenance order.
Capt. Stanley Morgan
Of ACS Is Assigned
To Seattle Office
Capt. Pershing Tousley of the
ACS arrived this week to replace
Capt. Stan Morgan, who has been
assigned to ACS headquarters, in
Seattle.
Capt. Tousley has been with
ACS for about two and a half
years and has been in Anchorage
and Seattle. He will be joined by
his wife and small daughter soon.
Capt. Morgan has been in
charge of this area since 1943 and
has been in Second Diviison with
ACS for the past 25 years, having
first come to Barrow in 1926. His
experience throughout the division j
during this period of great change i
in communications and his knowl
edge of the divison and its pecu
liarities has placed, him in a po
sition of great responsibility.
Capt. Morgan has been very
active in community affairs and
is a real Alaskan ait heart, with
the interests of the far north al
ways with him. He will join his
wife in Seattle where his married
daughter also resides.
Yukon Ice Moved
Out At 11:06 p.m.
Tuesday, May 8th
DAWSON, Y.T., (/P)—The shrill
blast of sirens Tuesday night her
alded the start of the spring ice
breakup on the Yukon River.
Because the ice began moving
at 11:06 p.m., only three minutes
away from their guess of 11:03
p.m., two laundry workers, Kai
Kerteen and Jennie Monk will
attend the Yukon Ball and be
given $3,500.
Guessing when the ice will
begin moving has been a favorite
spring sport at this historic town
since gold rush days.
$3,500 was raised for the Alaska
Crippled Children’s Association.
No Foundation
Reports Acheson
Leaving Cabinet
WASHINGTON, (#)—President
Truman said Thursday there is no
foundation in fact to reports that
Secretary of State Acheson may
leave office within a few months.
The President also described
Secretary Marshall’s testimony on
the MacArthur ouster as the exact
truth, word foi* word.
Mr. Truman also .told a news
conference:
Reports he will reoall William
O’Dwyer as ambassador to Mex
ico, likewise are rumors, with no
foundation in fact.
He is backing completely Price
Administrator Michael DiSalle’s
meat price control order.
DiSalle’s order has brought a,
flood of protests from packers and
others.
Commenting on the protests,
Mr. Truman said it was the same
old fight. He added: When you
tread on somebody’s toes, he’s
going to scream.
A woman reporter wanted to
know how it would be possible
to unify Korea if the Chinese
Reds are not driven out.
Mr. Truman .told her if she
could answer that question, she
would be a genius.
»
* • ' *
Mother’s Day Tea
In Honor Of
Mrs. M. J. Walsh
The Alaska Mother of 1951 tea
being planned for Mother’s -Day,
(from three until five o’clock at the
Pioneer Hall, honoring Mrs. M.
J. Walsh is ito be an outstanding
event of the spring season.
Judge J. Kehoe has been ap
pointed by Governor Ernest
Gruening to present a citation to
Mrs. Walsh and Mayor Charles D.
Jones will represent the City of
Nome. They will be in the re
ceiving line with members of the
Walsh family, Mr. and Mrs. M.
J. Walsh, Mr. and Mrs. James
Walsh, Mr. and Mrs. Pearse
Walsh, and Anne Walsh. Officers
of the three women’s groups will
participate: Mrs. Eric Hay, for the
Beta Sigma Phi, Mrs. Pearse
Walsh, president of Pioneer Wom
en, Mrs. Boyd Harwood, vice
| president *Home Arts Club.
Committees in charge of the
event are composed of members
of 'the Pioneer Women, Beta Sig
ma Phi and Home Arts Club. In
charge of decorations and service
are Karen Baldwin, Irma Clark
and Ruth McLean; refreshments,
Martha Craift, Mary Roell and
Ellen Waldheim; program, Emily
Boucher, Terry Fisher and Mar
garet O’Leary; guest book, Ade
laide Ulrich, Phyllis Roell, Eileen
Uttech.
Taking part in the program
throughout the afternoon are Bob
Maloy, Helen Russell, Irma Jeanne
Loomis, Opal Peterson, Cpl. Barks
dale White, Mrs. Luther Dunbar,
! and the Senior Girl Scouts.
Unrecognized Korean War
Excludes Returned Vets
From VA Benefits
WASHINGTON, \{/P)—President
Truman -said today veterans of
the Korean fighting should be
given every benefit made avail
able by the government to* vet
erans of other wars.
He said it was up to Congress
! to change -the law under whioh
hospitalization was denied by the
Veterans Administration to a Ko
rean veteran for a non service
connected disability.
David R. Arellano, Jr., 21, of
Tucson, Ariz., was denied admit
tance there Wednesday to a VA
hospital. He was then taken to
Pima County Hospital and oper
ated on for a throat cancer. Arel
lano is a former Marine bazooka
j squad member, discharged after
Korean service.
VA officials said they could do
nothing about the case because the
Korean conflict has not been of
ficially recognized as a war.
Enemy Casualties In Korea
Through April 30, 893,662
WASHINGTON, (JP) — Enemy
casualties in Korea through April
30 totalled 893,662, the army esti
mated today.
This represented an increase of
68,102 over the figure released
thrcrugh April 21.
A spokesman said he could not
give U.N. casualties for the same
period.
Enemy battle casualties are esti
mated at 620,660. Non-battle cas
ualties were placed at 125,880.
John Hudert, ABC District
Engineer Is Transferred
To Juneau Headquarters '
John M. Cooley arrived this
week to replace John Hudert as
District Engineer for the Alaska
Road Commission.
Mr. Cooley has been with the
Road Commission in the Fair
banks area since 1934, except for
four years during which time he
served with the Marines as a
First Lieutenan t at I wo Jima. He
is well qualified to take over the
work here, having forked in var
ious phases of the Alaska Road
Commission work such as survey
ing, construction engineer in Fair
banks, and more recently as assist
ant chief of surveys from the
Juneau office.
Mr. Cooley has two degrees
from the University of Alaska,
a Bachelor of Science and a Bach
elor of Civil Engineering.
Mr. Cooley expects to have his
family here with him soon, when
suitable quarters have been found.
Mr. Hudert, who has been here
since 1945 when he came from the
Fairbanks area, and who has been
in Alaska since 1943 when he
came with the Public Roads Ad
ministration and worked as resi
dent engineer on the Alcan High
way, has been transferred to ARC
headquarters in Juneau and plans
to leave with his family next
month.
_ - . ___^
Marshall Reads
Truman Message
To Mac Arthur
WASHINGTON, (#>)—President
i Truman told Gen. MacAnthur last
January that Korean war policy
must be designed to keep the sup
port of allies whom 11 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
previous day.
The text of the President’s mes
sage, in paraphrased form, was
read by Secretary of Defense Mar
shall to Senate Committees in
quiring into MacArthur’s dismissal
as Par Eastern commander.
Ait the outset, the President said
-his telegram “was not to be taken
in any sense as a directive.” He
added that “it’s purpose is ta give
you something of what is in our
minds regarding the political fac
tors.”
Earlier, Marshall told the sen
ators the risk of war with Russia
in the Far East is “more acute by
far” than the hazard of Soviet
intervention in Western Europe.
This estimate of 'the compara
tive risks was given in response
to a question from Senator Hick
enlooper.
Hickenlooper had suggested the
United States was risking a clash
with Russia by sending troops to
a Western European defense force.
He wanted to know why “a sim
ilar calculated risk” was refused
in the Far East — meaning why
not adopt the MacArthur program
of stepping up the war against
China.