THE !
VOL, LIV No. 37 ==~ NOME, ALASKA, WEDNESDAY, MARCH26~T952 : 'Per Cppy—15<
$5 Billion In Taxes
Collected In Five
Days, March 17-21
' WASHINGTON, (/P) — Federal
taxes hit the American buyer so
hard last week, the U.S. Chamber
of Commerce reported today, that
“retailers in almost every line of
business are reporting sharply
dropping sales.”
Never has there been such a
drain on the American economy,
the chamber added.
Dr. George Cline Smith, direc
tor of the chamber’s government
economy program, said that dur
ing five days—March 17-21—the
treasury took in nearly $5,300,
000,000.
That was “more than all the
taxes collected during the entire
year of 1940,’* he added.
Ike Feels That Domestic
Politics are Cluttering Up
His International Role
»By the Associated Press)
In Nebraska, a state-wide news
paper poll found Eisenhower and
Taft, neither listed an next Tues
day’s presidential preference bal
lot, top choices of Nebraska Re
publicans.
The survey showed 42 per cent
for Eisenhower, 39 per cent for
Taft, eight per cent for Gen. Mac
rthur and seven per cent for Stas
sen.
Of these names, only Stassen’s
is on the ballot. Write-in drives
for Taft and Eisenhower are un
der way and a listed candidate
favors MacArthur.
In Illinois, in the April 8 pre
ference ballot, the GOP ballot
listed Taft, Stassen and Alvin
Bender of Chicago. Illinois law
permits write - ins and observers
were wondering how many there
would be.
In Paris, close associates of Ei
senhower said they believe the
general will ask to be relieved
soon so' he can return in May to
campaign for the GOP nomination.
They said he feels American
domestic politics are cluttering up
his role as an international com
mander. He may pick April 2,
when he reports publicly on Eu
ropean defense progress, to an
nounce his plans.
Gen. James A. O’Connor,
Builder Alaska Highway,
Dies of Heart Attack
LOS ANGELES, (/P) — Funeral
services for Brig. Gen. James A.
O’Connor, 66, who guided the
building of the Alaska Military
Highway and the famed Lido road
during World War II, will be con
ducted Friday at the Ft. Rose
crans military cemetery in San
Diego. He died Sunday of a heart
attack at his home here.
As head of the Northwest Ser
vice Command from 1942-44, he
supervised construction of the
highway from Dawson Creek, B.
C., to Fairbanks, Alaska. Trans
ferred to the China-Burma-India
theater as chief engineer, he
headed the team that built the
Lido road from Burma to China
after the Japanese took over con
trol of the Burma road. He retired
•__ _ _
Stassen and Warren Line
Up with Eisenhower In
Opposition To Taft
(By the Associate Priss)
Some of Gen. Eisenhower’s pol
itical opponents appear to* be lin
ing up on the general’s side
against Sen. Robert A. Taft in the
run for the Republican nomina
tion for President.
Harold E. Stassen, in a some
what surprising announcement
Tuesday, said he would split his
delegate strength in Wisconsin
with Eisenhower.
Taft backers called this announ
cement “an evidence of weak
ness.” They said it would bring
additional votes to their man.
Earlier, the backers of Califor
nia’s Gov. Earl Warren in Wis
consin said that the delegates War
ren wins in that state will go for
Eisenhower if it appears that
Warren cannot win the GOP nom
ination.
“Much More Frankness”
Displayed At Secret
Truce Negotiation Talks
MUNSAN, Korea, (JP) — Truce
negotiators displayed “much more
frankness” Wednesday in seeking
a compromise on exchanging pri
soners — one of the three key
issues blocking a Korean armis
tice — an Allied spokesman re
ported.
“Some slight progress” was
made behind the screen of a news
blackout, Brig. Gen. William P.
Nuchols said, “but they have not
gotten down to brass tacks.”
Simultaneously he disclosed a
change in the U. N. Command
strategy on the key to the dead
lock. The Allies have rephrased
their demand from “voluntary re
patriation” of prisoners to “no
forced repatriation.”,
“There is no fundamental dif
ference in the two concepts,”
Nuchols said, but the new term
might “be more palatable to the
enemy.”
His disclosure came after a sec
ond group of staff o’fficers cleared
the decks for tackling the sole key
issue remaining before it — whe
ther Russia should help super
vise the truce.
Chinese Businessmen
Suicide In Wake of Red
Anti-Corruption Drive
HONG KONG, (JP)—'The inde
pendent Chinese newspaper Wah
Kiu Yat Po today said in a dis
patch datelined Canton that at
least 200 businessmen and shop
owners killed themselves in the
first five weeks of the Red China
government’s anti-corruption cam
paign.
In that period, which began
Jan. 20, the paper said, 38,000 per
sons were charged with bribery,
tax evasion and profiteering.
Those who killed themselves,
he dispatch continued, left such
nodes as:
“I cannot longer live in an at
mosphere of injustice amidst
which black is called white and
w’i'e is called black,” or
is be:ter to be dead.”
The dispatch said that this
un ’ :he Reds issued informal
"hdespread warnings against
$300,000 Asked
To Add 50 Alaska
Deputy Marshals
t * ■
WASHINGTON, (/P) —Attorney
General McGrath, who says he
“always lives in fear of what is
going to happen up there,” wants
Congress to give him $300,000 to
add 50 deputy marshals to his
staff in Alaska.
Even those, however, will not
solve Alaska’s law enforcement
problems, the Attorney General
told the House Appropriations
Committee in testimony released
Monday.
“ ... In my opinion there
is really no solution for that until
we decide to face it head on and
establish a really adequate con
stabulary for the Territory of
Alaska,” McGrath declared.
His request for additional de
puties was supported by Justice
Department officials, Delegate
Bartlett, and the American Social
Hygiene Association.
Bartlett said the number of de
puties has increased from only
48 to 56 since 1933 ., despite a
population growth of from 59,000
■to 135,000 persons.
S. A. Andretta, administrative
assistant Attorney General, said a
department training officer act
ually had recommended that 100
deputies be added in the terri
tory, but that the request was
halved because of the difficulty
of getting good men to take the
jobs.
Areas around Anchorage and
(Continued on Page Two)
Alaska Fisheries Board
Asks Alaskan Be Included
On Governing Board of
Japan Fishing Agreement
JUNEAU, (A5)—The American
Canadian-Japanese fisheries ag
reement was approved by the
Alaska Fisheries Board Tuesday
but a request was made for an
Alaskan on the governing board.
An official statement as the
fisheries group went into its an
nual meeting said:
“The Alaska Fisheries Board
can see no reason to change its
approval of the Japanese, Can
adian and American fisheries
agreement.”
Opposition, the statement said,
comes from those who are not
fully informed and from those
who “refuse to face realistically
the fact that Japan, whether we
like it or not, is once more a
sovereign nation with all the
rights of other nations to free
dom of the seas.”
In addition to the request that
an Alaskan be appointed to the
agreement’s governing board, the
group also recommended that ef
forts be made to include species
of fish other than salmon, hali
but and herring under its pro
tective measures.
Casualties Reach 106,794
WASHINGTON, (A5) — An
nounced U.S. battle casualties in
Korea reached 106,794 today, an
increase of 123 since last week.
This was the smallest weekly
33 since the start of the Korean
0 « _ ! , . ,*
Mayor-Elect Pomeroy of
Seattle To Make “Good
Neighbor” Tour of Alaska
SEATTLE, (jP) — Mayor-elect
Allen Pomeroy announced Mon
day that he will leave Friday by
boat on a “good neighbor” tour of
Alaska cities. He said he hoped to
make contacts that will help
Seattle-Alaska relations and es
tablish closer cooperation between
the two areas.
Pomeroy said that while the
three-week trip will be a “com
bined vacation and business mis
sion, he intended to spend much
•time with business friends and
city officials of the territory. It
also will afford, he said, “a rest
needed after a long, hard cam
paign.”
Key men in the Pomeroy cam
paign and their wives also will
make the tour.
The group plans to visit Ketchi
kan, Juneau, Sitka and Anchor
age.
Valdez Youth, Trapped
In Quickstand, Is
Dramatically Rescued
VALDEZ, (A>) — A 16-year-old
high school youth, trapped in mud
and quicksand on the Valdez
tidal mudflats until the rising
waters reached his chin,, was
pulled to safety by five men Mon
day night.
The youth, Bob Seward, col
lapsed aboard a small boat after
his rescue. He was hospitalized
• >
and was recovering Tuesday.
Seward and Melvin Tate, an
other youth, were walking on the
mudflats west of Valdez when one
of Seward’s legs was caught in
the quicksand. The two worked
for an hour without success and,
with the tide rising, Tate finally
ran for help. _
When a rescue party arrived,
the youth was submerged in water
to his waist. Finally a rope was
fastened around him, and he was
pulled by brute force from his
trap.
Whittaker Chambers
Testifies Before
Federal Grand Jury
NEW YORK, (jP) — A surprise
federal grand jury appearance by
Whittaker Chambers has set off
reports at a new spy inquiry.
Chambers, one-time Commun
ist courier and principal witness
against Alger Hiss, was closeted
with the jury for 80 minutes
Tuesday.
He wouldn’t say afterward
what it was about except for
“matters which were familiar to
me.”
Reports that a new espionage
probe was under way could not
be confirmed and U.S. Attorney
Myles J. Lane would not com
ment.
Chambers testified at the Hiss
trial that the former State De
partment aid gave him depart
mental secrets for a pre-war So
viet spy ring.
Hiss, convicted of perjury for
denying Chambers’ story, is serv
ing a five-year federal prison
term, but has petitioned for a new
$800,000 Ransom
Paid To Reds For
12 Americans
WASHINGTON, (/P)—The gov
/ * • "
eminent has disclosed payment of
$800,000 to Communist China for
release of 12 Americans, eight of
whom still are prisoners.
The details were released by
the Treasury after Sen. Kncfwland
(R-Calif) said on the Senate floor
Tuesday the administration has
permitted private payment of “ex
tortion and blackmail” to the
Reds.
Elting Arnold, Foreign Assets
administrator, said the Treasury
approved the payments after
friends of the 12 in this country
made urgent requests to do so and
certified that the payments repre
sented legitimate debts. The State
Department also approved, he
added.
Since this case, Arnold said, a
new policy had been adopted that
such payments will not be allowed
until the American involved are
set free in non-Communist areas
such as Hong Kong.
Bridges, GOP Senate
Leader, To Appear Before
House Tax Probers /
WASHINGTON, <yP) — Senator
Bridges of New Hampshire, Re
publican Senate leader, will ap
pear before House tax scandal in
vestigators tomorrow to explain
his interest in the seven million
dollar tax case of a Baltimore
liquor dealer.
Rep. King (D-Calif), chairman
of a House Ways and Means sub
committee investigating the Inter
nal Revenue Bureau, announced
that Bridges had sent word that
he wanted to be heard.
The tax case is that of Hyman
’Harvey Klein.
Core of the dispute, still unset
tled, is Klein’s five-million-plus
profit on a $1,000 investment in
imported Canadian whisky during
1944-46.
Klein declared the profit a
“capital gain”—limiting taxes to
25 per cent compared with up to
90 per cent levied regularly on
income—when he sold his inter
est in a series of tax exempt for
eign corporations.
Klein testified he paid $1,200,
000 in taxes, only to face jeopardy
tax assessments totaling more
than seven millions.
Confidential Internal Revenue
records, produced by the commit
tee, showed that Bridges on at
least five occasions telephoned or
conferred with officials about the
case.
Sen. McCarthy Files Suit
Against Sen. Benton For
Two Milion Dollars
WASHINGTON, (/P)—Sen. Me
Carthy (R-Wis) today filed a two
million dollar suit against Sen.
Benton (D-Conn), accusing him of
“libel, slander and conspiracy” to
seek the ouster of McCarthy from
the Senate.
The suit is based on Benton’s
assertions last September that Mc
Carthy committed perjury, fraud
and calculated deceit of the Am
erican people in pressing his
charges that Communists haxr*
.