m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LI. NoT 4NOME, ALASKA. MONDAY, JANUARY 10. 1949Per Copy—15c
NEWS IN BRIEF
LONDON. </P) — King George,
suffering from a grave leg ail
ment, went lo his country estate
Saturday to continue a convales
cence which his doctors have call
ed satisfactory.
LOS ANGELES, </P) — George
Randolph Hearst, 43, has sued his
third wife for divorce or annul
ment of their marriage.
He is the eldest son of publisher
William Randolph Hearst.
Mrs. Sally Alvarez Kirkman
Hearst, 38, caused him “such men
tal and physical suffering” he is
unable to live with her, Hearst
said in a superior court complaint
Friday.
TORONTO. (Ah —George Tru
man, who once flew around the
world, took off Saturday with a
load of snowballs for Miami.
Friday night the Sasketchewan
born flier said he had decided not
to take the snowballs because he
had read there were blizzards in
Florida.
But someone must have told him
different. He had a lot of snow
balls aboard when he took off air
port officials said.
RENO, Nev. (/P) — Four new
earthquakes, two of them with ‘a
ncise "like a rumbling explosion"
were reported in Verdi, nine miles
west of Reno Friday night. At
least one was fell sharply in Reno,
but there were no reports of dam
age in either city.
The Reno vicinity was shaken
by a long series of earth shocks,
beginning Dec. 27 and continuing
more than a week.
TOKYO, i/P)—Nearly four years
after American troops took the is
land, two Japanese machine gun
ners surrendered Thursday on Iwo 1
JLma, the army "announced Satur
day.
They were clean and well-fed,
each had a recent haircut. They
were wearing warm American
uniforms, including fatigue sweat
ers and GI shoes.
They lived on food stolen from i
the Americans and canned what
they didn’t eat. They were sent to I
Guam for interrogation before be
ing repatriated to Japan.
I
_ i
MONTREAL, Que., (^P) — Now
that the Santa Claus season is
past, they’re talking about an idea
of raising reindeer for meat on a
commercial basis in Canada’s
northland.
Dr. Jacques Rousseau of the
Montreal botannical gardens said
meat producing herds could be
developed in the Northern Ungava
Bay country of Quebec within five
years. How’s the meat?
“They are good eating,” he said,
“but reindeer are not built like
cows and the steaks are thin.”
SAN FRANCISCO, (/P) — The
Chinese communist radio said to
day that all government troops en
circled south of Suchow “were
completely wiped out by 10 o’clock
this morning.”
Last reports from nationalist
source! estimated the troops un
der Gen. Tu Li-Ming at between
150,000 and 250,000 men. Red es
In ter nation,! News
At A Glance —
• By The Associated Press'
Monday, January 10. 1948
B :tain concentrated troops and
warships in the Mediterranean to
day while her cabinet apparently
was considering the Palestine
problem and how far she would
go in a show of force in the tense
Middle East.
For the second time, Israel turn
ed back a British protest against
the downing of five British air
craft over the Egyptian border
area Fridya and retorted with her
own protest against the landing of
Briii-h ‘roops at Aqaba, Trans
jordan port of the Red Sea.
Britain’s protest reserved the
right to demand compensation for
the lost planes and to “all possible
subsequent action.” British gov
ernment sources said the next
step may be a demand to the
United Nations security council
that Israeli troops stay within
their boundaries and that the Is
rael government pay for the five
.planes.
Israel rejected the British pro
test because it was not addressed
to the Israeli government. Britain
does not recognize Israel. In turn
the Israelis protested to the United
Nations that the presence of Bri
tish troops at Aqaba “can have no
purpose but to threaten Israel’s
territory in the southern part of
the Negev.
An Israeli military spokesman
said at least two of the Brtiish
planes were shot down Friday
over Israeli territory.
In Cairo an Egyptian foreign of
fice spokesman said Egypt has not
asked Britain for assistance under
:he 1936-British-Egyptian treaty.
Egypt will go on with schedqled
armistice talks to end the Pales
tine war, spokesmen said.
Labor Unions Hold
Alaska Meetings
JUNEAU, (#*)—Rival labor or- J
ganizations will hold their Terri
torial conventions in Alaska start
ing today, the AFL at Sitka and
the CIO at Juneau.
Taxation, statehood, child labor
laws and the elimination of expe- ■
rience ratings were among discus
sion topics due at Sitka. Lou Tay
lor of Fairbanks is president.
Delegates from 42 CIO locals
will be at the Juneau meeting.
Chris Hennings, executive secre
tary, said the four-day convention
would consider ways and means
of stabilizing the shipping indus
try and talk over proposals for
presentation ‘ to the legislature.
timates a few hours ago cut the
size of the force down to 130,000
troops.
The communist radio said the
big big battle to end the long and
costly Suchow struggle began at
3 p.m. on Jan. 6.
At one time 1,000000 combatants
were reported engaged in the Su
chow struggle.
The communist broadcast was
heard by the Associated Press in
San <Francisco.
Vote For President
Deadlocks Special
Session Senate
(By James Hutcheson)
Saturday, January 8, 1949
JUNEAU, (/P)—The Alaska Ter
ritorial Senate, still deadlocked
after eight votes in an attempt to
elect a president, arranged a Sat
urday meeting in efforts to get the
special session fully under way.
The House, meantime, after or
ganizing and electing a speaker
the opening day Thursday, was in
recess over the week-end. The
lirst Democratic taxation bills, in
cluding income tax and property
tax measures, were introduced as
ways and means committee bills
Friday and promptly referred
back to that committee.
Rep. Stan McCutcheon, Anchor
age Democrat, is temporary com
mittee chairman.
Written by Atty. Gen. Ralph J.
Rivers’ office, the income tax
measure would provide an income
I tax on a basis of 10 per cent of
what is paid the federal govern
ment.
The property tax would provide
for taxes “upon all real property
i and improvements and personal
property, at a rate of two percent
of the true and full value thereof.”
Attorney general Rivers said the
property tax provision that half
would be remitted for local school
use, and would allow municipali
ties to reduce their own school
! levies and thereby keep the total
levies against property in towns
and cities at three per cent or less.
The income tax bill specfiicallv
mentions airlines, trucklines and
their employees, placing them in
the same category as shipboard
workers. It also provides for em
ployers withholding from pay
checks, similar to federal laws.
Both measures would provide
fines or jail sentences for willful
violations. The property tax bill
provides specifically for appeals !
from assessors’ rulings to the divi
sion assessment board and from
there to the courts.
Permanent Alaska reside n t s
would receive special income tax
credit exemptions, amounting to a
maximum of $45.
Leaders said the strategy now
adopted by the Democrats would
(Continued on Page Two)
URGE RAIL LINK TO ALASKA
AS DEFENSE MEASURE
VANCOUVER, B. C., (A*) — A
Seattle power executive has urged
the Board of Trade here to put an
extensive effort behind the con
struction of a railway link be
tween Vancouver and Alaska.
L. A. Williams, vice-president of
the Puget Sound Power and Light
company of Seattle, told the board
Friday that Alaska, from a mili
tary standpoint, is of “vital im
portance” to both countries.
“It can either be the frontier
take-off point for missions which
we might have in mind,” he said,
“or the take-off point for missions
to destroy our cities if it is lost to
an enemy.”
He said close co-operation be
tween Canada and the United
States on the railway “is of para
mount imnnHanro in tVinao timoc ”
Truman Hands
Record Budget
To Congress
(By The Associated Press'
Year ending June 30, 1949
Income (under
present tax laws' $39,580,000,000
Outgo $40,180,000,000
Deficit 600,000,000
Year-end Debt 8251.569,000,000
Year ending June 30. 1950
Income (under
present tax laws' $40,985,000,000
Outgo ' $41,858,000,000
Deficit 873.000,000
Year-end Debt $251,925,000,000
(By Charles Molonvi
WASHINGTON, (/P)—President
Truman today handed Congress a
record $41,858,000,000 peace-time
budget—half of it to wage the cold
war with Russia.
And he warned that the price of
bulwarking freedom in the world
is going higher still.
The spending program Mr. Tru
man proposed for the 12 months
beginning next July 1 is $1,678.
000,000 higher than this year’s—
also a peacetime record.
Still to come is the cost of re
arming Western Europe—a step
the President said he will propose
before the year is out. to boost the
(Continued on Pagt four'
i
New Taxes Certain
For Territorv
J
JUNEAU, (TP)—Most legislators
at the special session express the
opinion that new taxation appears
a certainty but there is consider
able difference of opinion over the
type of taxation.
While the governor’s message
j was postponed from this morning
! because the Senate remains unor
ganized, the House ways and
means committee is due to start
j intensive consideration of the first
of two bills for income and gen
eral property taxes.
Income and property tax bills
are supported by Democratic or
ganization on the argument they
(Continued on Page Seven»
Truman Making
Cabinet Changes
WASHINGTON, </P) — Senate
approval of Dean C. Acheson as
secretary of state was forecast
Saturday by Senator Connally (D.
Tex.) despite a marked Republican
coolness.
Connally told reporters the Sen
ate foreign relations committee—
organizing tomorrow under his
chairmanship—will set a date for
Acheson and James E. Webb to ap
pear personally.
Catching Capitol Hill largely by
surprise. President Truman Fri
day named Acheson as secretary
of state and moved Webb from his
post % as budget director to that of
undersecretary of state, after re
luctantly accepting the resigna
tions of secretary of state Marshall
and his chief aide, Robert M. Lov
ett.
The move was regarded in Con
Many Dead In
States* Blizzards
•By The Associated Press*
The western and mountain
plains States, slowly recovering
from a three-day severe blizzard,
Saturday braced for a fresh on
slaught of snow, wind and sub
zero weather.
A new storm roared out of cen
tral Canada into Montana. Wyo
ming and North Dakota and head
ed for sections in Colorado, Ne
braska and South Dakota. This is
the same general area which was
paralyzed earlier this week by the
winter season’s worst weather.
Twenty persons lost their lives
in the blizzard and thousands
were marooned in autos and trains
which were stalled by the huge
snow drifts over the plains. How
ever, the federal weather bureau
said they did not expect as severe
a storm as the previous blizzard.
The new snow and cold was ex
pected to halt the snow plow oper
ations in some of the areas. Early
Saturday snowplows sma shed
i through huge drifts in the vicinity
of Rapid City, S. D., and rescued
71 motorists who had been strand
ed for five days in Wickesville, S.
(Continued on Page Eight)
Jews Shoot Down
Five RAF Planes
'By The Associated Press'
Britain accused Israel Saturday
of shooting down five RAF planes
in “unprovoked attacks” by Jew
ish filers Friday over Egyptian
soil near the Palestine border.
The Jews said they shot down
five planes around Rafa and that
four appeared to be British and
1 the fifth Egyptian.
An Israeli military spokesman
asserted the planes were on armed
reconnaissance and that some in
fact carried wing bombs.
Britain is allied to Egypt and
Trans-Jordan in mutual assistance
pacts. She announced the dispatch
of British troops to Aqaba, the
Trans-Jordan Red Sea port close
to the scene of recent Palestine
fighting.
Britain alerted her aircraft to
“regard as hostile any Jewish air
craft” discovered in the future
over Egypt. Foreign secretary Er
nest Bevin stuck close to his desk,
(Continued on Page Five'
China Seeks Aid In.
Mediations Over
Civil War
NANKING, (A5)—A usually re
liable source said Saturday the
Chinese government had asked the
United States, French and British
governments to attempt to medi
ate the civil war.
Ambassadors for the three pow
ers here were asked to relay the
request to their governments, this
source said.
The three ambassadors were
called to the foreign office by for
eign minister VVu Te-Chen late
Saturday. None of the three nor
foreign officials would comment
. i •