bill reaches its final form.
He said positively there is no
chance of the bill getting any far
ther during the special session. He
said the bill aroused so much con
troversy that the best approach
will be to have the committee
write a complete new bill.
Numerous Southeastern Alaska
groups opposed the four per cent
tax proposal on the grounds it
would divert fish and business to
Prince Rupert.
Rep. Marc Jensen. Douglas
Democrat who introduced the bill,
has proposed reducing the sug
gested tax to two per cent, which
would be about four-tenths of a
cent a pound. Hope said any re
written bill should provide for
taxing cold-storage salmon, which
he said would not be involved in
the Prince Rupert diversion threat.
FILE SUIT TO RECOVER COST
OF "GRUENING" ROAD
JUNEAU, (/P)—A suit filed in
•federal court asks re urn to the
Alaska treasury of money spent
for a road near Eagle River,
which, the complaint alleges was
used solely to serve the privately
owned summer home of Governor
Gruening.
Filed by John M. Holzworth,
Fairbanks, the complaint names
Governor Gruening, Territorial
treasurer Oscar Olson and Terri
torial highway engineer Frank
Metcalf. It asks the return of
$2,935.
Former Territorial highway en
gineer Leonard Smith declined to
build the road earlier.
The defendants did not com
ment.
%
Rose Silverman, owner of the
Trading Post, returned on Sun
day’s Pan American from a trip
to California to visit her daughter
who is attending Stanford Uni
versity.
She states that the trip was cold
and snowing throughout her visit.
The oldest sport in the United
States is lacrosse, played by the
Indians as far back as the 17th
century.
International News
At A Glance —
• Continued from Page One)
tiators 1 on Rhodes reached an
agreement, it was believed, by
which the Jews would free the
3,000 trapped Egyptians at Faluja.
Asrael and Egypt already have
pledged to take no offensive ac
tion and to respect each other’s
national security during the arm
istice talks.
Winston Churchill levelled his
oratorical guns on the British la
bor government policy in Pales
tine—policy called hostile to Is
rael. Foreign secretary Bevin
faced a movement within his own
party for an ouster. British flights
along the Egyptian border, Bri’ish
occupation of the Trans-Jordan
port of Aqaba and the British
charge that Israel got arms from
Communist Szechoslovakia were
the main topics for debate.
American officials got ready for
strong argument from the French
and British over the U. S. plan to
keep some 150 German plants in
tact though the plants are marked
for reparations. The U. S. position
is" that the plants will speed the
European recovery program.
Race riots between Negroes and
Indians in Durban, South Africa,
finally were put down by 1,400
i troops af er 100 persons were
killed.
Four former Greek t premiers
recommended that Alexander Dio
medes, a retired banker and lib
eral, head Greece’s government.
Air accidents in Scotland and
the South Atlantic seemed to have
taken a heavy toll of lives. All 20
Americans aboard a superfortress
were believed to have died in the
desolate Scottish mountains. The
fate of a like number aboard a
British airliner lost Monday in the
South Altnaitc was not yet defin
ite.
Wednesday, January 19, 1949
Nationalist China asked the con
quering communists today for a
1 cease fire and immediate peace
THE
NOME NUGGET
Announces
SPECIAL
DAILY COVERAGE
Throughout the
Legislative Session in Juneau
Bv Janies Hutcheson
J
Special Correspondent for
THE ASSOCIATED PRESS
KEEP POSTED ON WHAT THE SECOND
DIVISION DELEGATION IS DOING FOR
YOU IN JUNEAU.
negotiations. The armies of Presi
dent Chiang Kai-Shek have been
battered so thoroughly, it seemed
unlikely they could offer much
more than token battle.
The action was by the executive
Yuan which is controlled by Chi
ung. It may negotiate for peace
but the legislative Yuan must ap
prove its decisions.
•‘The government, in deference
to the general wishes of the peo
ple for an early realization of
peace, hereby makes known its de
sire for both government and
communist forces to cease fire un
conditionally and immediately ask
for both sides to appoint delegates
to s'art peace negotiations,” the
executive Yuan said in a state
ment.
Whether the communists, aflush
with triumph after triumph over
Chiang’s inept generals and troops,
would agree to talk peace remain
ed to be seen. The answer seemed
to lie in how tired the commun
ists might be from capturing Man
i churia arid virtually all north
China.
Communist leader Mao Tse
Tung issued a radio ultimatum
las*, week calling in effect for total
surrender of the Chiang govern
ment.
China has been conquered many
i limes in the past and invariably
has swallowed her conquerors.
Many in Washington and other
world capitals have expressed be
lief the communists never can ac
tually take control of the docile
peasants and coolies who are indi
vidualists and form the great bulk
of the population.
Foreign diplomats in Nanking
! were informed that the Chiang
! government will start moving
! south to Canton Friday. Most em
bassies wanted to stay at Nanking,
: which is in immediate peril of
peril of capture by the commun
ists. The older capital of Peiping
is surrounded by Reds and sep
erate peace talks are on there.
A British government source
said Britain will recognize Israel
if the United States joins in a Bri
tish plan to guarantee peace in the
Middle East.
British policy on Palestine ap
peared to be undergoing a drastic
change. The labor government has
been accused «of endangering its
relations with the United States.
It is a target of the Conservative
opposition and of dissidents with
in its own ranks.
Foreign secretary Bevin told
Parliament yesterday the British
will free Jews interned on Cyprus.
He endorsed strongly peace nego
tiations now in progress betwen
Israel and Egypt. Optimism pre
vailed over the talks, now in the
critical stage, with the boundaries
o fthe Negev desert of southern
Palestine at stake.'Tel Aviv re
ported peace talks with Lebanon
probably will start soon. There
have been feelers of peace talks
with Trans-Jordan and Yemen.
The United States was reported
that it could round up enough
round up enough votes to force
through the United Nations a plan
for settling the Dutch-Indonesian
dispute. The scheme calls for pro
gressive withdrawal of Dutch
troops from Republican territory.
Red Romania sentenced 15 of 17
former cabinet ministers to prison
terms of two to ten years for al
leged war crimes. Two were set
free.
Old Themistokles Soph o u 1 i s
went through the familiar motions
of trying to form another Greek
cabinet.
A score of American warships
and 80 plants looked over Atlan
tic expanses for a British airliner,
lost Monday on a Bermuda-Jamai
ca flight with 20 aboard.
Income Tax Bill
Before Special
Session In Juneau
• Continued from Page One1
the deduction of the tux payable
hereunder to the Territory.
• 2> A tax equal to ten per cent
of that portion of the total income
tax payable under the provisions
of the Internal Revenue Code, as
computed without the benefit of
deduction of tax payable hereun
der to the Territory, that gross re
ceipts derived from sources with
in the Territory, payroll and value
of tangible property located in the
Territory, bears t othe total gross
receipts from sources within and
without the Territory, payroll and
value of tangible property within
and without the Territory.
(a) DETERMINATION OF
GROSS RECEIPTS. Gross receipts
from sources within the Territory
shall consist of interest, rents, roy
alties, gains, dividends, all other
ncome, and gross incomn received
or derived in connection with
property owned or a business or
trade carried on and salaries,
wages and fees for personal serv
ices performed within the Terri
tory. Income received or derived
from sales wherever made of
goods, wares and merchandise
manufactured or originating in the
Territory shall be considered to be
a part of gross receipts from sour
ces within the Territory.
<b» DETERMINATION OF
PROPERTY AND PAYROLL
FACTORS FOR FREIGHT AND
PASSENGER CARRIERS. The
value of vessels operating on the
high seas and compensation of em
ployees engaged in opera*ing such
vessels shall be apportioned to the
Territory in the ratio which the
number of days spent in ports
within the Territory bears to the
total number of days spent in
ports within and without the Ter
ritory. The value of aircraft and
automotive vehicles operating as
freight and passenger carriers
from, to and within the Territory
and compensation of employees
: engaged in such operations, shall
j be apportioned to the Territory in
i the ratio which the number of
days during which such services
are rendered within the Territory
bears to the total number of days
during which such services are
rendered withni and without the
Territory.
<c> APPORTIO N M E N T OF
TAX BY TAX COMMISSION
ER. If the taxpayer, upon pe
tition to the Tax Commis
sioner, as provided in Section
13 of this Act, conclusively
demonstrates that because of other
factors, the method of allocation
hereinabove provided, results in a
larger tax than in equity and good
conscience he should have been
•equired to pay, then the tax shall
be determined, allocated and jp
por ioned under such processes
and formulas as the Tax Commis
s'oner shall provide, and the Tax
Commissioner may promulga t e
proper apportionment rules and
and regulations conformable with
this Act for general application in
similar cases. In the case of two or
more organizations trades or busi
nesses owned or controlled direct
ly or indirectly by the same inter
ests, the Tax Commissioner is au
thorized to distribute, apportion,
I or all >cate the tax where such ac
■ tion is necessary to prevent eva
, ion of payment.
B. EMPLOYEES. There is here
i by levied upon and there shall be
collected from every employee (in
cluding persons referred to in sub
jection <C> of Section 1621 of the
i
Internal Revenue Code* whose
sole income in Alaska during the
taxable year consists of wages or
! salary, a tax in the amount of ten
, per cent of the tax deducted and
i withheld under the provisions of
| sub-chapter <D>, Chapter 9,*of the
Internal Revenue Code, which tax
: is to be withheld by the employer
under the provisions of Section 8
of this Act. The word “employer”
includes all Territorial depart
ments, agencies and institutions
and political subdivisions; Provid
, ed, that the foregoing language of
! this subsection shall not apply to
Federal employees or others not
subject to the withholding provi
I sions of this Act, but such persons
'hall be liable under the general
rule set forth in Section 5, and
must file returns and make pay
' ment accordingly.
TOURIST
CLASS
(FROM ANCHORAGE)
• AIRLINE SEATS .
• 3 FLIGHTS WEEKLY
t
DAILY FIRST CLASS SERVICE
*92 ONEWAY * *165 ROUND TRIP
All farts sub/tcl to lax
Information and Reservations
ARCTIC ALASKA TRAVEL SERVICE
C. Dewey Anderson
ORTHWEST
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