Oldest Newspaper In Alaska. “The News of the Dav In Pictures" Member of I he \ssoeiated Press
THE NOME NUGGET
VOL. 44. No. 89. NOME, ALASKA, FRIDAY, JULY 3, 1942 Per Copy 154
British Stop Invaders at El Alamein
New Price Fixing Formula Established For Alaska
To Start Induction of Class 1-B
To Release Fit Men Task Forces
WASHINGTON, July 3 (AP) — The Army an
nounced its intention of starting induction of regular
quotas of men placed in the deferred 1-B Selective Ser
vice class, because of minor physical defects. Begin
ning August 1, men with only one eye or complete deaf
ness in one ear, among others, will be inducted for
limited military service, provided they otherwise meet
requirements. They will be assigned for duty in corps
area service commands and in the W'ar Department
overhead organization, and thereby release almost an
equal number of fully qualified soldiers for service in
the task forces.
OPA Establishes Special Price
Fixing Formula For Alaska
WASHINGTON, July 2 (AP) — Declaring that Al
aska’s economic stability and security is being threat
ened by price increases, Price Administrator Hender
son is establishing a special price fixing formula for
the territory today, with maximums to cover all sales
and deliveries to Alaska purchasers of any commodity
not actually produced there. Henderson said special
treatment is necessary because of Alaska’s transporta
tion difficulties.
Under the formula retail, wholesale and distributors’
maximum prices must be based on direct cost plus
mark-up, which the seller included in his highest price
for the commodity involved, between the 7th and
December 6th, 1941. The OPA administrator in charge
of the territories and possessions is empowered to
make any adjustments necessary after the application
of this formula, and fix prices on items which the
formula fails to cover.
Henderson said the current commodity demand in
Alaska, resulting from wartime population increases,
“is out of all relation to the supply constantly avail
able, and prices have been steadily rising.”
! I
BRITISH REPORT
CRUSH FLANK OF
ROMMEL'S ARMY
Cairo, July 3 (API —
Counter attacking British
armored forces, smashing
at the flanks of the Axis
spearhead pointing at Alex
andria, are reported to
have crushed the general
assault on El Alamein and
| forced the invaders to re
. treat to the west. It is the
first reverse of Rommel’s
German and Italian army
since it surged across the
Egyptian border, follow-!
ing the canture of Tobruk
ion June 21. British head
quarters said the enemy
suffered sharp losses and
; declared that Imperial de
fense positions at El Ala
! mein, 65 miles from Alex
andria, are holding firm.
FIRST CONVICTION OF
TREASON BY JURY
IN NATION'S HISTORY
DETROIT. July 3 (AP) — Ger
i man bonn Max Stephan, aged 49.
I cafe operator, convicted of trea
son by a jury deliberating an
; hour and 23 minutes yesterday,
i accused of harboring Hans Peter
Krug. German fliers who escaped
from a Canadian prison camp.
Government attorneys said it
was the first such conviction in
; the nation's history. Federal
Judge Arthur Tuttle, will im
pose the penalty which could he
! execution.
ALASKA’S COASTAL
WATERS ZONE DAN
GEROUS NAVIGATION'
Anchorage, July 2 (AP)
— Gen. S. B. Buckner
proclaimed all the Alaska
coastal waters westward
from Cape St. Elias and ex
tending 20 miles off shore,
“a mobile zone dangerous 1
to navigation.” Vessels j
are warned to enter only
under N a v y direction.
The area extends from
longitude 144 degrees west
and includes all islands
within the 20-mile limit.
Si uthrastcrn Alaska is not
affected.
Allies Bomb Jap-IIeld
Dili Twice In One Night
Allied Headquarters in Aus
tri July 3 (AP) — A double
n: di‘ b rubing of Jap-held Dili,
PpDuguese Timor, concentrated
on enemy occupied buildings, the
wireless station and airdrome. It
was announced that two build
ings were hit directly a”d sev
eral fires statrted. A communi
que yesterday aLso announced
on attack on Dili which is 500
miles across the Timor Sea from
Darwin
FINAL BATTLE WILL
BE FOUGHT IN FRANCE
LONDON. July 3 (AP) — Gen
oral Charles DeOaulle, leader of
the Free French, told his country
men by radio, that the final bat
tle of the war “which decides
every thing" will be fought there
and urged them to prepare for it.
JAP NAVY TROUNCED; MIDWAY DEFENSE LINE PROVES STRENGTH
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TASMANIA_(J ° _ M'LES AT equator
The six-month mark in the war found a U. S. Fleet, h ased on a strengthened Midway Island, smashing a
strong Japanese naval force. The battered Japs fled; but official Washington forsaw a new attempt to break
defense arc based on Dutch Harbor, Midway and Pearl Harbor, and along the Australian supply route. Diag
onally shaded area indicates what Japan held when it stabbed at Pearl Harbor last Dec. 7. Dotted area in
dicates how Nippon overran territory south since the n. Dotted wedges are where Japs, by plane or sub
marine, have gotten past defense lines to hit at Dutch Harbor, Pearl Harbor and the California coast, Aus
tralia and Ceylon. But Allied Nations defenses hold Burma borders, and ther has been forked lightning in
Allied attacks: Jimmy, Doolittle and his fliers bombed Tokyo; Marcus Island was struck; the Navy smashed
* at the Gilbert and Marshall Islands and turned back t he Japs off northeast Australia. Allied fliers pound the
Solomons, Timor and Rangoon.
No Confirmation German
Claims With 15 to 20
Miles of Alexandria
BERN. July 3 (AP) — Berlin
dispatches late today said Ger
man and Italian troops are with
in 15 to 20 miles from Alexan
i dria, the battle of F.1 Alamein is
already regarded as won, and the
| Grtiish are retreating on the Nile
! Delta. There w s no substantia
| tion of those reports from any
j other source and nothing to this
edict was broadcast over the
Axis radio to the United Stabs
FIGHTING BATTLE
OF EGYPT IN
SANI) STORM
i London, July 2 (AP) —
Fighting the battle of
Egypt in a sandstorm, the
British announced the re
pulse of powerful Axis
armored infantry attacks
at Ef Alamein, 70 miles
west of Alexandria, hut
the Germans and Italians
asserted they seized Draz.
a coastal village, and are
pursuing the British head
long toward the Nile Delta,
Ail sources agreed on the
intensity of the conflict hut
on nothing else.
“The results are not un
favorable to us.” British
headquarters at Cairo de
clared, reporting the battle
continued all day yester
day. The armored forces
of Rommel are acknowledg
ed to have made a tempor
ary break in an undefend
ied locality, only to he driv
en out again by British col
unmns.
GERMANS CLAIM 185
MILE BREAK-THRU
RUSSIAN FRONT
Berlin, July 3 (AP) —
German and other Axis
troops have broken thru
the Russian front along
nearly 185 miles, the high
command announced. The
communique did not locate
the section of the front in
volved.
Of the fighting in the
Sevastopol region, it said
50.000 prisoners were tak
en; and 21 tanks, 503 field
guns and 662 grenade
throwers captured or de
stroyed.
RED ARMY REPORTS
BITTER FIGHTING
AT SEVASTOPOL
Moscow, July 2 (AP) —•
The Pied Army reported at
noon that bitter fighting is
continuing at Sevastopol.
Dispatches telegraphed
yesterday to the Red Star
said that German assault
troops carried battle
to the city itself. Red
Star’s accounts pictured
heavily superior numbers
of Nazi forces rolling slow'
ly forward against the
staunch defenders of the
Crimean base. The situa
tion of the last Soviet
stronghold in the Crimea
was described as “extreme
ly tense and difficult."
Two successive Russian
communiques ignored Ger
man claims to have captur
ed Sevastopol.
Churchill Wins Vote of Confidence
But Sketches Dark Picture of War
LONDON, July 2 (AP) — Churchill won an over
whelming vote of confidence in the House of Commons
after he gravely assessed the Allied position in the
Mediterranean and Middle East war zones as neat
disaster. Hope for victory, he pinned on “the very
considerable” reinforcements now in progress. The
vote of 475 to 25, a parliamentary victory, came at the
end of a speech an hour and twenty-eight minutes long.
Churchill staunchly defended his direction of the
war. as the best possible under the circumstances. He
sketched a dark picture of the battle in Egypt, and said
it has developed into a “recession of our hopes and
prospects in the Middle East and Mediterranean, un
equalled since the fall of France.” To this he added,
without elaboration, the statement that “At any mo
ment we may receive news of grave importance.”
Churchill’s somber portrayal of the war in Africa
was relieved only by his statement that “very con
siderable” reinforcements have reached or are “ap
proaching” the battlefield.
Tremendous cheering greeted the announcement of
the vote which squelched the most serious challenge
yet made to Churchill’s premiership, the opposition
vote being the highest since he took office on May
tenth, 1942.
Major strengthening of the battered Army athwart
the Axis path to the Nile Delta, Alexandria, and the
Suez Canal, is the basis for Churchill’s statement: “I
don’t consider the struggle in any way decided.”
Churchill said the balance of naval power in the
Pacific “has been altered in our favor by the brilliant
victories of the U. S. Navy and Air Force” over the
Japanese at Coral Sea and Midway. He declared that.
“These splendid American achievements have not re
ceived the attention they deserve from these islands.”