OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS__
VOL. LIV No. 101 NOME, ALASKA, FRIDAY, AUGUST 22, 1952 Per Copy—15*
Oil Companies
Accused of Price
Discrimination
WASHINGTON, (/P>—’The Mu
tual Security Agency (MSA) in a
new report to* investigating sen
ators, has accused five U.S. oil
companies of heaping “an undue
burden ... on the American
taxpayer” for their own profit.
It named the five as Standard
Oil of New Jersey, Standard Oil
of California, Gulf Oil Co., Soc
ony - Vacuum Oil Co*, and the
Texas Co.
The report, requested by the
Senate Small Business Commit
tee’s monopoly subcommittee and
made public last night, accused
the five of “price discrimination
on a world - wide scale.” It said
they inflated the price of oil ship
ped from the Middle East to' Eu
ropean nations receiving Marshall
Plan aid.
The Justice Department, at
MSA’s request, already has filed
suit to recover 50 million dollars
from the five companies on
grounds of overcharges on bills
paid with foreign aid funds.
The companies, the report said,
charged the Europeans “exorbi
tant prices” for oil, far higher* than
they charged for deliveries to the
United States from the same Mid
dle Eastern fields.
“Because of this two-price sys
tem and the abnormally high
price charged in European mar
kets, an undue burden was placed
on the American taxpayer, who
was footing the bill for Marshall
Plan aid,” the committee said in
a prepared statement quoting
the report.
American and Swedish
Cargo Ships Collide in Fog
LONG BEACH, Calif., (JP) — j
The Swedish motorship Stratus
and the American steamship Coos
Bay collided in fog off the South
ern California coast early today,
but both reported no casualties.
Although part of the Coos Bay
crew took to liferafts, a Navy
crash boat which reached the
scene reported neither ship in
sinking condition although there
was a 15-foot hole in the port
side of the Coos Bay. Its engine
room was flooded.
The Stratus reported it would
stand by the Coos Bay until two
tugs arrive to take her in tow.
Then the Swedish vessel planned
to proceed under her own power
to the Los Angeles harbor, despite
a damaged bow.
Both ships are cargo craft. The
Coos Bay is a converted LST of
3.104 tons net and the Stratus is
listed as 3,505 tons.
• ...
i
PRISONER LEAVES JAIL FOR
ONE BUCK — THEN RETURNS
SITKA, {JP) — Arthur Neilson,
31, a trustee here, skipped jail
Wednesday.
He returned later in the day
with a fine buck deer on his
shoulder, checked in with the
police and apologized for not leav
ing a note telling of his plans.
Sitka police said Neilson is now
serving the balance of his 30-day
term in solitary confinement.
%
Two Persons Die, Three
Are Trapped By New
Quake In Bakersfield
BAKERSFIELD, Calif.. (/P) —
At least two persons were repor
ted killed and three others
trapped inside a crashing building
as a jarring earthquake hit this
town of 50,000 with a crash of
bricks today.
The two killed were in Lern’s
Department Store when the roof
fell in and the three trapped were
i in an equipment supply house.
Streets buckled and shoppers
swayed on their feet with many
injured. Ambulance sirens
screeched in all parts of the city.
Costof Living Index
Rises to 190.8 pet.
Of 1935-1939 Base
WASHINGTON, -(/P)—'The cost
of living as measured by the gov
ernment reached a new record
Wednesday, bringing a three cent
hourly pay hike to more than a
million auto workers.
The newest consumer’s price in
dex, reflecting the cost of food,
clothing, shelter and other con
sumer items as of July 15, moved
to 190.8 per cent of the 1935-1939
average.
It was 1.2 points higher than
the June index: and 5 per cent
higher than the level of January,
1951, when price and wage con
trols took effect.
The increase continued a steady
five months’ climb in the cost of
living for moderate income city
families.
The Bureau of Labor Statistics
(BLS), an arm of the Labor De
partment, publishes a cost of liv
ing index each month.
BLS said “a sharp rise” in food
prices was primarily responsible
for the higher overall living costs.
Coastguardsman Who
Jumped Ship 3 Miles
Off Shore Returns to Duty
LONG BEACH, Calif., (JP) —
The Coast Guard has cast a sym
pathetic eye upon the plight of
Buren C. Wimp, whose duty to
his wife, an expectant mother,
overcame his duty to his ship.
Boastwain’s Mate 3/C Wimp
jumped overboard three miles off
Point Conception last Feb. 10. He
swam for two hours before a
passing ship picked him up and
brought him to shore.
Wimp, who was convicted by a
court martial of desertion, ex
plained his wife, Mary Lou, 18,
was an expectant mother and was
ill. He had been turned down on
his request for shore duty and
assigned to the Pont-Chartrain,
bound for Alaskan waters. Mrs.
/
Wimp later lost her expected
child.
A board of review in Washing
ton found Wimp innocent of de
sertion, but guilty of absence
without leave for one day. The
penalty was set at three days of
hard labor. Wimp, serving a six
months hard labor sentence since
April 29, was released and his
rank restored.
Wimp got what he wanted, too.
Today he is on regular shore duty
in nearby San Pedro.
Organization Of
Alaska Air Guard
To Start Sept. First
JUNEAU, (JP) —Announcement
was made this date by Colonel L.
L. Johnson, adjutant general of
the Alaska National Guard, that
organization of the first Air Na
tional Guard units in the terri
tory would start on September
first of this year. The 8»144th Air
Base Squadron will be organized
in Anchorage, Alaska, and head
quarters, Alaska Air National
Guard will be formed at Juneau.
Further information regarding
enlistments and initial organiza-*
tion will be announced prior td
the date of formation.
Several full-time positions will
be available to member of the Air
Guard after organization has been
accomplished.
Colonel Johnson expressed
gratification at the tremendous
response of personnel interested
in the Air National Guard. Quer
ies were received from all parts
of the territory, individual and
community response played a
large part in convincing the Na
tional Guard Bureau and Dept,
of the Air Force that Alaska was
ready for an air national guard
organization. With the addition of
an air arm to the already organ
ized army National Guard, an
other large step has been com
pleted in Alaska’s defense plan.
German Jet Pilots
Will Receive Training
In Britain and U. S.
BONN, Germany, (^P)—German
pilots for the projected European
Army will be trained in the
United States and England, es
pecially in handling the latest
type jet fighters, officials in the
Federal Reserve Commission said
today.
The British and Americans are
also expected to train the new
German army officers in the han
dling of new weapons.
Concrete plans for this train
ing are to be worked out by of
ficials of the six-nation European
defense community in Paris in
the fall.
The Germans will start recruit
ing soldiers and fliers only after
the federal parliament ratifies the
EDC treaty for rearmament.
U.N. Planes Continue To
Smash Korean Targets
SEOUL, (JP) — U.N. fighter
bombers Friday smashed Com
munist targets all across the Ko
rean peninsula. U.S. Sabre jets
damaged two Russian-built MIGs.
On the ground, Allied soldiers
repulsed two light Red assaults.
Twelve B-26 bombers staged a
daylight raid on a Communist
supply area at Anak, near the 38th
parallel in western Korea.
On the east coast, Allied planes
demolished five large warehouse
buildings near Wonsan, the Air
Force said.
The new claims "bf damage to
two MIGs brought to 28 the num
ber of Red jets damaged during
August — in addition to 26 shot
down and two others probably
destroyed.
13-Year-Old Boy Drowns
While Trying Save Cousin
In Lake Washington
SEATTLE, </P) — Two young
cousins, one of them the son of
an Alaska project foreman,
drowned' Thursday after a raft
upset in Lake Washington.
The victims were Donnie Mab
bott, 13, Seattle, and Tommy Haw
linson, 9, of Ellensburg.
The father, Don Mabbot, Sr.,
arrived by airplane from Anchor
age. He is superitendent of car
penters at a housing project.
The two boys and one of Don
nie’s younger brothers ventured
onto the raft while on a berry
picking trip. The tragedy occur
red about 30 feet from shore.
Donnie died a hero’s death.
Neither of the other boys could
swim, so Donnie took his brother
ashore and drowned after swim
ming out again and failing to find
Tommy.
Stalin’s Successor
Will be Named by
Communists Oct. 5
WASHINGTON, (/P) — A solid
clue pointing to Russia’s next
ruler may emerge from the full
dress meeting of the Communist
party congress in Moscow Oct. 5.
And American diplomats will
not be surprised if tough, 50-year
old Georgi Malenkov steps up as
Josef Stalin’s personal choice as
next Russian prime minister.
In fact, some suspect Stalin’s
aim in staking the whole affair
may be to give a formal, open
hint as to who the next boss
should be.
This may be Stalin’s way, they
believe, of lessening the possibil
ity of a bloody struggle for power
within the Communist high com
mand after he dies.
Until they have more time to
analyze Moscow’s announcement
of the calling of the first Com
munist congress since <1939, Am
erican diplomats say their view is
a theory rather than a considered
opinion. But here is what they
think:
Stalin’s heir apparent will be
the man who is chosen to be
chairman of the new presidium,
to be organized at the meeting to
replace the Politburo.
Anyone picked for this job
would automatically be proclaim
ed publicly as the most important
Communist in Russia next to
Stalin.
It is entirely possible that Stalin
himself will be designated chair
man of the hew presidium. But,
if so, why for the first time since
*1925 is he not to give the main
address to the congress, the re
port of the central committee.
This is a sort of State of the
Union speech summing up Com
munist stewardship of the Soviet
Union since the last congress met.
In this case it will cover a 13-year
period and will be especially im
portant.
Malenkov, a Communist party
wheel who worked his way up
from the ranks like Stalin, is now
scheduled to give this report, the
most important thing on the
agenda.
New Immigration
Law Would Screen
Alaska Travelers
mount mckinley park, '
Alaska, (JP) — Representatives of
Chambers of Commerce from Al
aska and the Pacific Northwest
were converging here Friday for
the All-Alaska Chamber of Com
merce which had preliminary ses
sions Thursday.
Delegates were agog with ru
mors that representatives of the
Aluminum Company of America
would be here to make an an
nouncement concerning a pro
posed aluminum and power de
velopment for Skagway, Alaska.
At the first meeting yesterday a
new law which would require
Alaskans to pass through immi
gration the same as aliens when
traveling to and from the States,
was discussed. According to in- ^
formation received by representa
tives to this convention, the act,
known as Public Law 414, would
become effective in December of
this year. It would require all
travelers from the territories to
the United States, to be screened
by immigration authorities. (An
immigration official at Seattle
said it is part of the McCarran
Immigration Act.)
William Stump, Ketchikan at
torney, termed the law ridiculous.
“I think the founding fathers
meant to treat all territories as
part of America,” he said.
Jim Chadwick, secretary of the
Alaska Visitors’ Association, also
condemned the law as a detri
ment to the tourist trade. One
delegate asked “if Alaska would
be eligible for Marshall plan aid
when it is lumped with the for
eign nations.”
John L. Lewis Gives
Formal Notice Coal
Contracts Expire Sept. 30
WASHINGTON, (£>) —Govern
ment officials said Friday that
John L. Lewis has given formal
notice that his contracts with the
coal industry will expire at the
end of September. This set up the
possibility of a nation-wide coal
strike at that time.
The Taft-Hartley Labor Act re
quires that the government be in
formed of a labor dispute at least
30 days before the work contract
expires.
Lewis, president of the United
Mine Workers Union, gave fed
eral mediators the required notice
that contracts with both the soft
and hard coal industry will run
out then, these officials said.
This could—as it has done be
fore—precede a strike providing
no agreement on a new contract
is reached by the end of Septem
ber.
Lewis has been negotiating off
and on since July 24 with Harry
M. Moses, president of the Bitu
minous Coal Operator Association,
and Joseph E. Moody, president of
the Southern Coal Producers As
sociation.
Sixty days notice is required
before the expiring contracts be
tween the UMW and the industry
can be ended.