m NOME NUGGET
__OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS _
Vol. LII. No. 31 NOME, ALASKA, WEDNESDAY, MARCH 15, 1950 Per Copy—15c
NEWS IN BRIEF
SEATTLE, (/P)—As an alterna
tive to statehood, would Alaska
possibly be interested in becom
ing a northern annex of Montana?
The Post-Intelligencer's Wash
ington, D. C., correspondent said
Senator Ecton (R.-Mont.) made the
hazy suggestion Monday.
The correspondent quoted Ec
ton as saying that, if statehood is
not achieved, a Montana-Alaska
fusion would be more logical than
any other. (The dispatch didn't
clarify whether any other fusions
have been proposed).
Ecton said the natural overland
route to Alaska is through the
"trough” extending northw a r d
from Montana to the Territory. Te
added that extensive commerce al
ready is moving through it.
PRAGUE, Czechoslovakia (/P)—
Foreign minister Vlado Clemen
tis has resigned. Deputy Premier
Viliam Siroky has been named as
his successor.
The official announcement to
day gave no reason for the resig
nation of Clementis, a communist
journalist and lawyer who suc
ceeded the late Jan Masaryk as
foreign minister in March, 1948.
(The resignation came on the
heels of reports that a wholesale
purge is imminent in the ranks of
the Czech communist party on
charges of Titoism. It gave rise to
speculation that Clementis would
be brought to trial on charges
that he had not been faithful to
the brand of communism demand
ed by Soviet Russia as opposed to
the “independent” communism of
Premier Marshal Tito of Yugo
slavia^.
WASHINGTON, (/P)-Two New
York House Republicans dipped
into the red <ink> today to drama
tize their opposition to deficit
spending by the government.
Reps. Cole and Kilburn said
they will sign all their letters in
red—until the government starts
living within its income.
A stamped explanation accom
panies each signature. It reads:
“This letter is signed in red to
remind you and me that our gov
ernment spends more than it gets.
It must end, else we face national
ruin.”
FAIRBANKS, (A3) — After two
weeks on the police force, Edward
Best, 33, made an involuntary trip
to the federal jail today.
Best, also known as Basil Best,
was arraigned yesterday on a
charge of passing bad checks at
New Meadows, Idaho, last Decem
ber.
He joined the police force here
March 1. He said he formerly had
been in police work at Deer Park,
Wash., and Hermiston, Ore.
Bail was set at $1,500.
. KETCHIKAN, (A3)—By a two
to-one margin voters okayed a
city one per cent sales tax yester
day. The vote was 816 to 404.
The sales tax will be earmark
ed for public works to match fed
eral grants. It becomes effective
April 1.
• —— ■
NEW YORK (/P)—Federal pros
(Continued on Page Three)
U. S. Promises
“Limited Aid'* To
Asiatic Countries
SAN FRANCISCO, (^—Secre
tary of State Acheson today prom
, ised Asia's non-communist coun
tries limited assistance in their
struggle to resis ^Soviet-commun
ist imperialism” in the Far East.
The assistance would cover mil
itary, financial and technical aid.
The limitations Acheson speci
fied are that “the aid we extend
j must be of a kind appropriate to
I the particular situation; it must
be fitted into the responsibilities
of others, and it must be within
the prudent capabilities of our
own resources.”
At the same time Acheson said
the Chinese people will be headed
for “grave trouble” if their com
munist rulers lead them into “ag
gressive or subversive adventures”
against neighboring countries.
Declaring that the Reds may
use China as a base for new
thrusts, Acheson said they would
violate the United Nations charter
and “would violate the peace
(Continued on Page Three>
j Gruelling Reports
On Conditions
In Alaska
(By Vern Haugland)
| l(/P) Special Washington Service)
WASHINGTON, (fl5) — Alaska’s
Governor said yesterday the Ter
ritorial Legislature wrote an
“epoch-making chapter” last year
in setting up a basic tax system.
Several of the “largest absentee
j corporations affected” thereupon
obtained injunctions against col
lection of the new levies, Gov. Er
nest Gruening said in his annual
report to the secretary of the in
terior.
“Because of this and the open
invitation is comprised to other
taxpayers to flaunt the new laws,
Territorial tax collections imme
diateley suffered,” Gruening said.
(‘However, the first court battle
went in favor of the Territory,
when the U. S. District court in
Juneau upheld the legality of the
Territorial income tax.”
The 19th Territorial Legislature,
in a 77-day session early in 1949,
adopted an income tax equivalent
to 10 per cent of the federal in
come tax, a 1 per cent property
tax, and a business-license tax.
Gruening said these were basic
measures long recommended by
him, since Alaska previously had
onyl a “patchwork of miscellane
ous taxes,” and in 1947-48 deriv
ed almost 30 per cent of its rev
enue, of $2,209,500, from an ex
cise tax on liquor.
Governor Gruening said the
19th legislature “wrote a record
or legislative achievement un
equalled since the first Legisla
ture assembled in 1913.”
“What the 19th Legislature ac
complished, apart from acting to
provide income to support the vi
tal public services, was to make
a beginning of plowing back a
small fraction of the wealth that
for eight decades has been, is bc
(Continued on Page Two)
Kej>. Gore States
G. S. A. Program
“Most Impractical’’
—
(By Charles D. Walkins
<(/P) Special Washington Servicc
WASHINGTON, (^P)-The gen
eral Services Administration has
asked the House appropriations
committee for $12,000,000 cash
and contract authorization of $13,
000,000 to carry forward Alaska’s
public works program during the
1951 fiscal year starting Juyl 1. i
In testimony made public yes
j terday officials of General Serv
ices said that $4,000,000 of the
cash would be used to pay con
tract authority granted for this
year.
Committee members sharply
questioned them on the general
community facilities program for
Alaska, pointing out that large
: sums were being asked for towns
with small population.
P. F. Seward, commissioner of
community facilities, told the
committee its criticism was based
on what Alaskan communities
said they wanted.
"That does not indicatee in any
sense the approval of the admin
istrator or any one else in Gener
al Services,” Seward soid. “You
spoke a moment ago of Fairbanks.
(Continued on Page Three)
State Dept Gave
WASHINGTON, (/P) — Senator
McCarthy (R.-Wis.) charged yes
terday that the state department
gave a high post to a former Span
ish Republican, army officer, Gus
tavo Duran, although U. S. army
reports labelled him a Russian
agent.
Continuing to detail to a Senate
investigating commitee his con
tention that the department has
employed poor security risks, Mc
Carthy also said that:
Dr. Horlovv Shapley, American
delegate to a United Nations com
mission, has been affiliated with
at least 36 communist-front or
ganizations.
A reported sexual pervert who
he did not identify—had been “al
lowed to resign” from the state
department in 1948 and now is
employed by the Central Intelli
gence Administration at $12,000 a
year.
He has heard reports that John
Stewart Service, American consul
at Calcutta was considered a bad
security rick by the loyalty appeal
board of the civil service commis
sion in a decision reached last
March 3. McCarthy asked the Sen
(Continued on Page Two)
Nome Girl Seoul Troops Observe
National Girl Scout Week
The Girl Scouts of Nome are helping to celebrate National Girl
Scout Week with special attention being focused onthe Founder,
Juliet Low.
Nome’s troops have grown these past few months to include four
troops. Most of the girls are in the picture taken last Friday at school.
Senior Troop includes the following: Katherine Bjornstad, June
Dunbar. Juanita Fagerstrom, Ruth Fagerstrom, Shirlce Fricke, Joan
Longley, Mary Louise Lyle, Alice Miller, Donna Miller. Leader, Mrs.
Dorothy Gallagher. Assistant Leader, Ilene Harwood.
Senior Intermediate—Moreen Hudert, Dorthea Hudert, Lucy Ann
Fagerstrom, Jerry Fagerstrom, Christine Blatchford, Donna Lyle,
Carolyn Glavinovich, Karon Fricke, Lois Ann Gifford. Leader, Mrs.
Carl Glavinovich.
Junior Intermediate—Sadie Bell, Carolyn Beltz, Wanda Beltz, Di
anne Boucher, Mary Jeanne Boucher, Elizabeth Fricke, Suzanne Gal
loway, Helen Glavinovich, Andrea Hudert, Christine Hudert, Star
Hunt, Carolyn Hyndman, Corinne Jacobson, Vivian Jenkins, Madeline
Mogg, Edith Morton, Arlene Muller, Teresa Norbert, Sigrid Olsen,
Rose Pierce, Helen Sahlin, Barbara Trigg. Margaret Willoya. Leader,
Mrs. Joy Galloway.
Brownies—Bonnie Lou Moyer, Patricia Short, Helen Reader, Carol
Ann Newman, Mary J. Swanberg, Vivian Larsen, Angeline Bahnke,
Alice Glavinovich, Jeanne Gallagher, Janet Muller, Frances Longley, ]
Suzanne Fagerstrom, Charleen Hudgins, Gretchen Fricke, Jeannie
Mogg, Ruth Glavinovich, Betty Cavota, Carol Tanner. Leader Mrs.
Lud Urick.
News of the \\ oriel
At A Glance - - -
Tuesday. March 14, 1950
(By The Associated Press*
The strong Conservative opposi
tion in the British House of Com
mons today challenged the wobbly
Labor government on overspend
ing budget.
It will be the third straight test
of voting strength in Parliament
since Labor won the February
elections with a slim margin of
Commons votes.
The Labor government yester
day had to round up every avail
able member and bring some from
their sick-beds to beat down a
Tory challenge on the Labor
housing policy. Labor came
through with a 25-vote majority.
The challenge comes after a
Conservative motion that deplores
"the failure of the chancellor of
the exchequer to enforce his own
instructions to government de
partments not to overspend so ex
tensively their estimates for the
current year.”
All the Conservative attacks
have been on major issues on
which the Labor government
would fall if it did not win.
Political observers in Britain
has forecast another election not
later than autumn. Winston Chur
chill’s Conservatives have used
' the weapon of unrelenting attack
ever since the new House met.
Nearly 1,000 communists staged
I a demonstration today at Hanover
in the British zone of Germany.
Twenty communists were arrest
ed.
The trouble started when a Bri
tish officer arrived outside the
plant of an outlawed communist
newspaper. He had orders to im
pound the plant because four of
the newspaper’* editors were con
victed of endangeing the security
of the Allied occupation forces.
A strong guard force was read
ied in Paris today to prevent any
outbreak of violence in the French
National Assembly. Debate is
opening on American arms aid to
France. Last week communist
members staged a three-day at
tack on an anti-sabotage bill
which finally passed after many
fishfights and filibuster delays.
Now the assembly is asked to
approve the arms aid program
whereby France will receive near
ly $500,000,000 of the billion-dol
lar credit accorded by the United
States to Atlantic Pact countries.
In Seoul, President Svngman
Rhee of the South Korean repub
lic has won his fight to keep con
trol of his own cabinet.
Wednesday. March 15. 1950
There was a short breather for
the hard pressed British Laborites
in Parliament today after they re
pelled a Conservative motion
charging extravagance, 308 to 289.
It even looked as if the Labor
ites, who only hold a slim margin
of six votes over the Parliament,
may weather the storm for some
little time, barring unforeseen ac
cidents.
The next major test is expected
to come in the budget debate. Tho
Conservative challenges so far
have been based on the speech
(Continued on Page Four)