2S£ NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMRER ASSOCIATED PRESS
VOL~XLIX. No. 50. ■ NOME.~ALASKA, FRIDAY,~PRIL~ 25, 1947 PER COPY—15c
NEWS IN BRIEF
SAN FRANCISCO, (/Pi—A sci
entific expedition will sail from
San Francisco for the Philippines
next month on a three-year job to
revive and modernize the war
» wrecked Philippines fisheries in
dustry. More than a score of lead
ing scientists, headed by Hugh W.
Terhune, wartime co-ordinator of
fisheries and halibut allocation of
ficer at Seattle, are due to leave
around mid-May in two special
vessels for exploratory work in
waters around and adjacent to the
islands.
PHILADELPHIA. (/P)—-Franklin
Institute reported it recorded a
"moderate quake" at 8:43 . a.m.
(Nome time) yesterday 3.150 miles
from Philadelphia, and likely in
Alaska between Seward and Jun
eau.
— —■ ■ -■-- 9
SEATTLE. (/P)_ The office of
Dr. Howard Coombs at the Uni
versity of Washington said today
an earthquake of "moderate in
tensity" was recorded some lime
yesterday on the seismograph, but
exact time and direction were not
obtained. The office explained that
Dr. Coombs and his assistant were
ill and unable to make readings.
NEW YORK. I/P)—Willa Cather,
Pulitzer prize-winning novelist,
died of a cerebral hemorrhage late
yesterday at the age of 70.
Her works included “My An
tonia” <1918>, “Death Comes for
The Archbishop” <1927>, and her
last, “Sapphira and the Slave
Girl” (1940). The Pulitzer award
was given for “one of ours” in
1923.
JUNEAU, I/P)—The second an
nual encampment of Alaska’s Vet
m erans of Foreign Wars will be held
in Juneau April 27-28-29. An es
timated 300 delegates are expected
from all parts of Alaska. Maj. Gen.
Howard Craig, commandant of the
Alaska military department, is
scheduled to be the No. 1 guest.
Officers will be elected the final
day- _.
JUNEAU, (/P) — The Juneau
chamber of commerce yesterday
endorsed the proposed amendment
of the Merchant Marine act to al
low Alaska-bound freight to be
carried in Canadian ships after ar
rival at Vancouver or Prince Ru
pert, B. C. Congessional Delegate
Bartlett is the author of a bill for
the change.
JERUSALEM, P) — Bombs
( blasted a police billet, in a suburb
of the all-Jewish city of Tel Aviv
today, leaving at least two persons
dead and seven missing.
British troops of the first infan
try division, alerted against a
“blood for blood” reign of violence
threatened by the Jewish under
ground unit, Irgun Zvai Leumi,
surrounded Tel Aviv as rescue
workers dug in the debris of the
\ billet at Sarona.
WASHINGTON, (/P)—'The Sen
ate yesterday confirmed the nom
ination of George W. Folta at U. S.
District judge for Division No. 1,
in Alaska. 0
Must Await Report
From Marshall
On Conference
MOSCOW, CP) — Secretary of
State George C. Marshall winged
tlirougn European skies toward
home today to report to the Amer
ican people on big four negotia
tions which broke up last night in
almost complete disagreement on
the major issues involved in con
cluding peace trea* es for Austria
and Germany.
“I am sorry that we did not
make more progress,” Marshall
said just before boarding the four
engine plane which is scheduled to
set him down in Washington to
morrow night, “but I imagine that
as we look back in the days ahead
we will see that much more was
done than we realized at the time.”
Marshall said he was not certain
when he would make his ladio
report, but that it probably would
be some time after Sunday night.
WASHINGTON, CP) — Legisla
tors called today for a first hand
report on American-Russian rela
tions from Gen. George C. Ma
shall.
Reports circulated on Capitol
Hill that Dean Acheson, who as
undersecretary has shouldered
state department burdens at home
since Marshall left Washington
more than six weeks ago, has in
sisted anew that he be relieved of
his duties soon to return to private
law practice.
If Acheson steps out in the next
month or two, Robert Lovett, for
mer assistant secretary of war for
air and a close associate of Ma
shali, is regarded as a possible suc
cessor.
President Truman fended off
questions about the Moscow meet
ing at his news conference yester
day, telling reporters to await Mar
shall’s report.
But members of the Senate for
1 eign relations committee, with four
Balkan peace treaties pending be
fore them, indicated they want
more detail than they believe Mar
shall will feel free to provide in
' any public address.
_
Congress Headache
To Alaskans
- .1
((/P) Special Washington Service*
WASHINGTON (/P)—A member
i of the Alaskan Territorial Senate
urged a House committee Wednes
day to give Alaska statehood, tell
ing it that “Congress is a headache
to us.”
Don Carlos Brownell, mayor of
Seward for several terms and a
member of the Territoial Senate,
said that lack of statehood led to
irresponsibility on the part of
Alaskans toward government.
“We feel we are tied to the apron
strings of% Uncle Sam,” Brownell
said, “and if anything goes wrong
we just wait for Uncle Sam to cor
rect it.”
Welch Pogue, former chairman
of the civil aeronautics board,
urged the sub-committee of the
! House public lands committee to
(Continued on Page Five)
Statehood Hearing
Completed; No
Action Taken
V. ASHINGTON, i/P) — Hearings
on statehood for Alaska ended yes
terday with indications no action
will be taken on pending legisla
tion until committee members visit
Alaska in the summer.
Gov. Ernest Gruening, the last
witness) said:
“My conviction is not only that
statehood for Alaska is desirable
and necessary at this time, but
only through statehood wili Alaska
be developed as a strategical place
in the defense and economy of our
country.
Chairman Crawford <R.-Mich.>,
of the territories committee con
sidered introducing measures to
give Alaska immediate discussion
in Congress without saying what
action the committee might take.
Delegate Bartlett told a reporter
he thought action will be delayed
until the committee members visit
the Territory.
“I believe the Territorial affairs
of our government have been badly
handled,” Govenor Gruening said
“and the residents of our Territo
ries hurt.”
He told the committee that the
Territory is largely at the mercy of
the interior department and that
changes in administrators and in
secretaries of the interior always
brought decided changes in hand
ling of the Territory’s affairs and
“some have stifled development
and checked progress” of the Ter
ritory.
He declared that Alaskans have
no voice in their affairs but that
with two Senators and a Represen
tative they would be represented
when changes are proposed.
He said the Territory has been
discriminated against in not being
given a share-in federal highway
funds; in not getting its propor-1
tionate share of agriculture exper
iment station funds or its share of I
forest reserve funds and land grant
college money.
He said air transportation had
not been developed there as well
as in the States.
He reviewed “notoriously high”
shipping rates, saying Alaskans
pay freight bills on their supplies
amounting to $8,000,000 a year. He
said this sum may be doubled un
der proposals of shipping compan
i
les.
The Governor said the extra cost
of Statehood would be $7,000,000,
and that the Territory can pay
double that amount if necessary.
He said that defense of the Terri
tory would be better provided un
der statehood. He added that if the
armed forces had followed the ad
vice of Alaskans and former Dele
gate Anthony Dimond, the Japan
ese would never have been able to
land on Kiska and Attu islands. He
said Dimond had urged a $100,
000,000 appropriation to defend
Alaska but the navy had said $10,
000,000 would do.
Byron E. Cowart, staff officer in
Alaska during the war, urged the
committee to provide adequate de
fense in the Territory and said he
believed it would be done better
under statehood.
Steamship Lines
Ask 33 Percent
Kate Hike
WASHINGTON, f/P)—Charles D.
Morgan, counsel for the Alaska
Transportation Co. said today the
maritime commission has approved
contracts with three steamship
impames serving Alaska for in
auguration of a temporary ship
ping service to the Territory.
Tiie companies have filed new
tariffs calling for a 35 per cent in
crease in freight and passenger
rates.
They hope to be able to start the
new service early in June or soon
er. It will replace a government
operated service begun during the
war. It is expected to con‘inue for
about 18 months pending action bv
Congress on the Alaskan shipping
problem.
Morgan said the contracts pro
vide the commission will furnish
government-owned ships to the
companies at nominal charter hire.
Tiie commission will pay the in
surance on them.
The operators will agree to furn
ish “economical and efficient”
service but will not start it until
the new rates become effective.
The operators are to receive ten
per cent of the profits before taxes
and assume all losses. On any prof
its over that amount the commis
sion will deduct the cost of insur
ance and it and the company will
divide the remainder, 75 per cent
going to the government and 25
per cent to the operators.
The Alaska Steamship Co. will
be allotted 17 vessels, four or five
company owned; The Alaska
Transportation Co., three: two gov
ernment owned; and the Northland
Transportation Co., five: all gov
ernment owned.
Morgan said the commission no
(Cuntinued on Page ^ive
If Hawaii Is Slate
Alaska Should Be
(By Harrison Humphries)
<</P) Special Washington Service)
WASHINGTON, (/P)—Chairman
Leo E. Allen (R.-Ill.), predicted
today that the House rules com
mitee would approve statehood for
Hawaii.
“That is my personal feeling,”
he told a reporter.
Allen denied a suggestion of
Democratic origin that the Repub
lican leadership of the House is
opposed to consideration of the
statehood bill.
“There is absolutely no disposi
tion on the part of Speaker Martin
<R.-Mass.>, or Rep. Halleck (R
Ind, majority leader), to delay con
sideration of this bill,” Allen as
serted.
“They want to thing about it,”
he said, “in relation to the possible
admission of Alaska.”
Allen suggested it would be “bad
for morale” to admit Hawaii as a
State and then deny statehood to
Alaska for any reason.
Delegate Farrington of Hawaii
has appealed for the consideration
of Hawaiian statehood on its own
merits.
Debt, Taxes, Both
Can Be Reduced
WASHINGTON, i/P>-^John Wm.
] lanes, former undersecretary of
;he treasury, said today the nation
t ...Id have both tax reduction and
cieot reduction if Congress pro
ceeds with its “present plan” of
s.jsh.ng President Truman's 1948
budget.
He urged, in a statement to the
Senate finance committee, that the
income tax reduction bill already
passed by the House be enacted
speedily.
Hanes was one of the first ad
vocates on an income tax cut in
vited to testify before the commit
tee which has devoted two days to
hearing government officials criti
cize the bill.
Hanes told the committee: "The
general feeling that the (federal)
debt must be reduced during this
period of prosperous business is
most wholesome. I heartily agree.
But to attempt to pay off debt
without relieving the taxpayer of
at least a part of his excessive bur
den is wrong. It will defeat the
very purpose we are trying to
achieve.”
Hanes startled capital tax ex
perts April 9 when he predicted in
a letter to the finance committee
that the gc^ernment would find it
self with a surplus of three billion
to four billion dollars at the close
of the current fiscal year.
He referred to his estimates to
day and noted they varied sharply
from official estimates. He re
called that in January the Presi
dent predicted a $2,300,000,000
deficit by June 30; that secretary
of the treasury Snyder was "equal
ly pessimistic but has gradually
upped his figures," and on Tues
day "conceded” that a "surplus of
$1,250,000,000 was in prospect.”
Arguing that the tax cut provid
ed in the House bill will not be in
i flationary, Hanes said;
“It is true that people will have
more to spend if their taxes are
cut. On the other hand, the govern
ment will have less to spend by
the same amount. . . . People will
be spending their own money for
a change, instead of having the
government spend it for them ”
Endorsing proposed reductions
in the bill—ranging from 10 to 30
per nent—Hanes said the measure
should be considered as one pro
viding needed relief but not as a
pei-manent revenue bill, which
, could be worked out in a "thor
'Continued on Page Five'
I
- -
Terrv McGovern
Dies In Seattle
SEATTLE. (/P)—Foster L. (Ter
ry* McGovern, 50, prominent Seat
tle banker and civic leader, died in
a Seattle hospital Wednesday night
without regaining consciousness
1 after an operation.
McGovern, who was born and
schooled in Tacoma, was assistant
vice president of the National
Bank of Commerce and manager of
its Alaska department. He joined
the bank in 1945 after 17 years
with the Seattle Chamber of Com
merce.