ms NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. L. No. 94 NOME, ALASKA, FRIDAY, AUGUST 6. 1948 PER COPY 15^
NEWS IN BRIEF
WASHINGTON, (£>)—Assistant
secretary of the interior William
Warne will leave by plane Sun
day for a 2-week visit in Alaska.
Warne will preside at the or
ganization meeting of the interior
department’s Alaska field com
mittee at Anchorage next Tues
day. He will be accompanied by
H. Rex Lee assistant director of
the department’s division of ter- \
ritories.
SEATTLE, (JP) — A fifth suit,
was filed yesterday as an after
math of the Nov. 29 crash of an
Alaska Airlines plane at the Seat
tle-Tacoma airport with a loss of
nine lives.
Mrs. Kay Lathanan former
school teacher, filed the suit, ask
ing $41,860 for injuries and burns.
The newest suit brought the to
tal sought from the airline, as a
result of the crash, to $257,121.
WASHINGTON, (/P)—President
Truman said yesterday he was
hopeful for peace and hopeful the
atomic weapon eventually will be
outlawed.
Mr. Truman declined to com
ment on diplomatic negotiations
in Moscow. He said, however,
when asked about the world out
look that he was always hopeful
for peace.
- —
COLORADO SPRINGS. Colo.
(/P)—Col. Leslie G. Mulzer, wing
commander of Smoky Hill air
force base at Salina, Kans., has !
assumed temporary command of j
the 15th air force headquarters in
Colorado Springs. Mulzer suc
ceeds Maj. Gen. Leon W. Johnson,
who left Mohday to take com
* mand of B-29 bomb groups sta
tioned in England.
He formerly was commanding
officer of the Alaska service base
command at Elmendorf Field.
WASHINGTON, (/P)—President
Truman laughed yesterday at an
assertion by acting chairman
Mundt <R.-S.D.> of the House un
American activities committee
that a Communist spy ring “is
operating in Washington right !
|
now.”
The President, asked about
Mundt’s assertion at his news
* conference, laughed and said it’s
in his mind, I think.
SEATTLE, (/P)—Alaska Yukon
pioneers and ladies of the Golden i
North will hold their annual pic
nic at Woodland Park Sunday.
Plans for the annual reunion com- ;
memorating the 1898 gold rush i
will be discussed, northerji chief
Ed Wilkinson announced.
The reunion will be held in
Vancouver, B. C., on Aug. 12-15.
The Sourdough special is Ijring
ing delegates from Los Angeles,
San Francisco and Oakland areas,
and is expected to arrive in here
next Wednesday on its way to
Vancouver.
SEATTLE, (/P) — Any fears of
private barge operators that the
Alaska Railroad might be going
* into the water freight shipping
business on its own were dispell
ed Wednesday.
J. P. Johnson, general manager
of the railroad, made it clear that
Truman Flays
Congress For
Inactivities j
WASHINGTON, (/P)—President
Truman yesterday accused the
80th Congress of concocting “fee
ble compromises” on his anti-in
flation program. He called on the
Republican leadership to recon
sider plans to quit soon.
In a formal statement read to
his news conference, Mr. Truman
said:
“There is still time for the Con
gress to fulfill its responsibilities
to the American people. Our peo
ple will not be satisfied with the
feeble compromises that appar
ently are being concocted.”
Mr. Truman said it now ap
pears that the Republican-con
trolled Congress is determined to
take no effective action “to curb
high prices and to protect the av
erage American citizen against
the certain prospect of increased
living costs.”
He said the Republican leader
ship has decided Congress “will
not be allowed to consider really
effective measures to stop high
prices.”
The president accused Rep.
Wolcott (R.-Mich.), chairman of
the House banking committee, of
refusing a request for three cab
(Continued on Page Five)
U. S. Demands
Use Of Danube
(By Alex H. Singleton)
BELGRADE, <£>)—'The United
States demanded yesterday a full
share for the western powers in
control of Danube river shipping.
She accused Russia of trying to
impose a monopoly by the com
munist states of eastern Europe.
U. S. ambassador Cavendish
Cannon ^placed before the 11-na
tion Danube conference the
American plan for the river. But
first he denounced a Russian pro
posal, introduced previously, as
giving Russia and all her neigh
bors “special privileges” in Eu
rope’s most important waterway.
The American plan would pro
vide for a Danube commission of
11 nations: Austria, Bulgaria,
Czechoslovakia, Hungary, Ro
mania, The Ukraine, Russia, Yugo
slavia, France, The United States
and Britain. Under the Soviet
plan, the membership would be
limited to the Danube countries,
excluding Austria until a peace
treaty is signed.
The American proposal would
give Germany a seat when that
country gets a peace treaty “or
before that time” if agreement
con be reached by other members
of the commission.
barges purchased by the Alaska
Railroad recently were acquired
strictly for use in any shipping
emergency that might arise dur
ing the railroad’s 48-million dol
lar rebuilding program.
Johnson flew back to Anchor
age yesterday.
International News
At A Glance —
(By The Associated Press)
Western power diplomats talk
ed together again in Moscow yes
terday but guarded closely the
secret of what Prime Minister
Stalin told them Monday. Reli
able sources in the Russian cap
ital said there is a good chance ;
o fsome sort of agreement be
tween the western powers and
Russia, but did not specify its na- ,
ture.
BERLIN
The U. S. and Britain increased
the air service to Berlin, which
the Russians blockaded by land
in June. U. S. and British planes
hauled in more than 3,000 tons
Wednesday, compared with the
8.000 to 10,000 tons which used to
reach the city daily by train at a
small fraction of the cost.
LAKE SUCCESS
Israel complained to the secur
ity council that Britain is holding
11.000 Jews in Cyprus. Count
Folke Bernadotte, U. N. mediator
for Palestine, said help must be
extended quickly to the 300,000
Arab refugees from Palestine. He
said the Jews are taking over
*
their houses in Jaffa and Haifa
(Continued on Page Three)
Israel Seeks Peace
Talks With Arabs
I _
TEL AVIV, Israel, (/P)—Israel’s
| government asked Count Folke
Bernadotte yesterday to transmit
its invitation to the Arab nations
for peace talks.
Bernadotte is the United Na
tions mediator for Palestine.
It was the first move by the
new Jewish state to arrange a
peace treaty conference.
Foreign minister Moshe Sher
tok talked with the mediator
three hours and then told him:
“I approach you as mediator
officially, on behalf of the pro
visional government of Israel, to
transmit to the belligerent powers
an invitation to meet the provi
sional government for peace ne
gotiations.”
Air Force Inspects
Aleutian Islands
ANCHORAGE, (/P)—A party of
U. S. air force officers will leave
for an inspection of air bases in
Alaska and the Aleutian Islands.
The group includes Lt. Gen.
Jimmy Doolittle of the air force
reserve, Maj. Gen. Earl Part
ridge, director of training and re
quirements and deputy chief of
staff, and Col. W. C. Morse, chief
of armanrtent and euipment under
General Partridge.
Also with the party is Father
Gerald Yates, dean of political
science at Georgetown University
Washington, D. C.
For General Doolittle, the trip
to Alaska is a return to his for
mer home. Thirty-four years ago
he lived at Nome and Seward.
Hiss Denies
Being Communist |
WASHINGTON, f/P) — Alger
Hiss, former state department of
ficial, testified under oath yester
day that “I am not and never
have been a member of the com
munist party.”
Hiss put in his official denial to
the House un-American activi
ties committee.
Two days ago, the committee
heard Whittaker Chamber, who
called himself a former commun- !
ist, testify that Hiss was part of
a “red underground” in Washing
ton before the war.
Chambers, now a senior editor
of Time magazine, testified he
tried to get Hiss to break with
the communists and had called at
Hiss’s home. Hiss said that to his
knowledge he never had laid eyes
on Chambers but he would “like
j to do so.”
House Passes
Anti-Inflation Bill
_
WASHINGTON. </P)—1The Sen
ate banking committee approved
' today two principal changes in
the Republican anti-inflation bill
passed by the House yesterday.
The committee struck out a
House provision calling for a
boost in federal reserve bank gold
reserves, which secretary of the
treasury Snyder and federal re
serve officials said would do noth
ing to stop inflation.
The House had approved reserve
increases of 1 and 3 per cent re
spectively on time and demand
deposits. The Senate committee
raised the figures to 2 and 5 per
cent. President Truman had
asked for 10 and 4 per cent.
The committee also approved
the reimposition of restrictions on
installment buying which the
House had voted. It changed the
effective date however, from next
March 15 to June 30.
Yellow River On
Flood In China
NANKING, (/P)—Flood waters
of the Yellow river drowned
nearly 3,500 persons and left 400,
000 homeless in the rich north
Honan province, official reports
released here today said.
The water conservation com
mission said reports from North
Honan magistrates described the ;
flood the worst in 100 years. More
than 1,000,000 fertile acres were
flooded. (Frequently preliminary
reports of this nature are exag
gerated as to casualties).
Nine districts north of Cheng
hsien were reportedly flooded
when the dikes of the Tsinho, a
tributary of the Yellow river, col
lapsed.
It was feared here that com
munist military operations in
areas north of Chenghsien, which
is held by government forces,
might hamper aid to the flood
victims. Communist forces are op
erating within a few miles of the
city.
Communist Probe
Just ‘Red Herring’
Says Truman
WASHINGTON, (/P)—President
Truman flung a “red herring”
charge yesterday at Congress
members busy probing into al
leged communist infiltration of
the government and “spying”
during the war.
He said the Senate and House
hearings are intended to divert
attention from lack of Congres
sional action to combat inflation,
and are (1) slandering people, and
(2) turning up no information not
already known to the FBI.
Mr. Truman loosed his attack
on the Congressional hearings at
a news conference. His remarks
were in response to questions.
When a reporter asked whether
he did not think the American
public is entitled to the informa
tion being produced by the hear
| ings, he said there was nothing
i new and that a lot of people have
been slandered.
At the Capitol, the Congres
sional investigators were talking
of widening their inquiry.
Rep. Rankin (D.-Miss.) proposed
that the House un-American ac
tivities committee call in Henry
A. Wallace for questioning. He
said it appeared that communists
got into “key positions” in the
commerce department while Wal
lace headed it. Acting chairman
Mundt <R.-S. D.) said the ques
tion of subpoenaeing Wallace
would be considered at a closed
committee session.
Rep. McDowell <R.-Pa.) told
the committee that there was
much more to the communist
story than has been brought out.
“As chairman of a special sub
committee,” he said, “I can re
veal at the very height of atomic
research in 1943 two shipments
of uranium compound were made
to Russia after tremendous pres
sure on all phases of our govern
ment from known Russian agents
and others who had worked them
selves into positions of import
ance.”
One shipment was of 300
(Continued on Page Eight)
B-29*s Reach Home
More Leave
TUCSON, Ariz. (/P)—2 globe
girdling B-29’s—the first to fly
around the world—landed at their
home base, Davis-Monthan field
today. They made the trip in 15
days, in 10 hops, but en route, a
third superfort went down in a
crash near Aden, southern Arabia,
in which 17 of the 18 men aboard
were killed.
Earlier today, Davis-Monthan
sent off eight planes of the 20th
squadron, on a 6,000-mile flight
to Lakenheath, England. Each of
these B-29’s carried about 18 men
base operations reported.
Two other squadrons are sched
uled to make the England trip,
with the next take-off scheduled
for tomorrow. A third squadron
leaves Sunday.