Investors In Alaska
Are Warned To
Beware Of Fraud
OLYMPIA, (£> — Washington
may be a prime target for fraudu
lent investment schemes involv
ing Alaskan natural resources,
Mrs. Louise Taylor, State License
Director, said Tuesday.
She said her department is
currently studying ways to tight
en up the state’s “blue sky latvs”
that are designed to protect in
vestors.
“The recent Congressional ac
tion admitting Alaska to state
hood has precipitated a rash of
speculative sales promotions on
her natural resources,” Mrs. Tay
lor reported at Gov. Rosellini’s
monthly cabinet meeting.
She said one national finan
cial expert has predicted that
many of the promotions will be
fraudulent.
The license director urged po
tential investors to check with
the Securities Division of her de
partment before laying their
cash on the line.
“We can’t guarantee there is
oil or gas on a certain piece of
property, but we#can investigate
the integrity of companies put
ting out stock issues,” she said.
LOCAL CAP SQUADRON
AIDS SEARCH FOR PLANE
The local CAP Squadron di
rected a search all day Saturday
and Sunday for Bjid Priest and
his three passengers who were
lost after leaving Kobuk. The
passengers were the three maga
zine salesmen, two girls and a
boy who had been in Nome last
week.
Dusty Rhodes with Bill Erick
son searched, in the Rhodes plane
accompanied by Bill Caudill,
CAP squadron coriunander of Ga
lena with observer Joe Cook.
Also assisting from Galena
were Dick Forsgren and Harold
Perkins both of the CAA.
The plane was located late
Sunday by a C-123 of the military
on the Selawik River south of
Kotebue and gas was flown to
them by USAF helicopter.
As near as could be ascertained
bad weather took the plane off
• its course while enroute from
Kobuk to Hughes.
Local commander of CAP Dusty
Rhodes states that 45 flight hours
were logged for CAP in the
search.
Legal Blanks at The Nugget office
-JL
Laundry Operator
Charges Payoffs
Were For Hoffa
WASHINGTON, UP — A former
Detroit laundry operator swore
Tuesday that payoffs he under
stood would go to Teamsters boss
James R. Hoffa averted a
threatened strike in 1949.
William H. Miller told the Sen
ate Rackets Investigating Com
mittee he personally turned over
$450 to an official of an organi
zation "of laundry firms of labor
peace in the Detroit laundry in
dustry.
Hoffa, now the Teamsters In
ternational president, was Mid
west boss of the union at that
time.
Hoffa was a witness before the
Senate committee, and was asked
to step aside while Miller testi
fied.
The Teamsters president, who
had just denied much recollection
of anything having to do with
the negotiations in the 1949 labor
dispute, sat silently at the wit
ness table in the big, crowded
hearing room as Miller gave his
testimony.
Miller,; who said he now runs
Bill Miller’s Hotel and restaurant
at Watersmeet, Mich., said - he
was in the laundry business in
1949.
Miller said he cannot of his
own knowledge swear that any
of the money ever, did go to
Hoffa.
He said John Meisner, secre
tary of a laundry firms’ associa
tion, collected the money and
that he had been told previously
the money had been demanded
by Hoffa as a payoff.
“I don’t know if it’s true,”
Miller said at one point. Under
questioning by the committee’s
chairman, Sen. John L. McClel
lan (D-Ark), Miller said no one
ever told him since then that the
money went to anyone other than
Hoffa.
When Hoffa took the witness
chair, he was told he was going
to be questioned at length about
his alleged associations with
gangsters.
McClellan said in an opening
statement that this questioning
might extend for weeks, off and
on. He said the committee’s
record is replete with testimonj
linking Hoffa’s name with the
underworld.
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Action Sought On
Merchant Marine
And Fishing Bills
WASHINGTON, (£>—Rep. Thor
Tollefson (R-Wash) wants to see
Congress act on four pieces of
Merchant Marine and fishing leg
islation before it winds up for the
year.
Tollefson, ranking Republican
on the House Merchant Marine
and Fisheries Committee, hopes
to obtain agreement from Chair
man Herbert C. Bonner (D-NC) to
hold hearings on the proposals in
the next few days.
The chief ones would authorize
payment of construction differ
entials on fishing vessels and
would increase the fisheries loan
fund used by fishermen to finance
construction, repair or equipping
their vessels.
The construction differential
would offset the added costs fish
ermen must pay for new vessels
as the result of requirements that
fishing craft must be built in U.S.'
yards. The added cost, roughly
one third more than comparable
vessels built in foreign yards, has
added to the competitive problem
of New England fishermen and
West Coast tuna operators.
Tollefson said he hopes the
House also will act on a Senate
passed bill which would author- j
ize payment of $10 a ton for un
livered dogfish sharks or 10 cents
a pound for dogfish shark livers
as a means of ridding northwest
salmon waters of the predator.
Action also should be had, he
said, on a bill to relieve such ship- i
ping firms as Alaska Steamship
Co. and Matson Navigation Co.
from the added expense of print
ing their full tariff contract on
each bill of lading or passenger
ticket.
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Seaton Asks Legislation
To Protect Investors
In Oil, Gas Lands
WASHINGTON, UP) — Secre
tary of Interior Seaton announced
today he has asked Congress to
prohibit the subdivision of fed
eral oil and gas leaseholds into
leases covering less than 640
acres, with certain exceptions.
Seaton said the proposal would
protect unwary investors against
misleading advertising promo
tions which imply that one can
strike it rich by speculating in a
subdivided lease covering a
small holding, usually 40 acres.
Seaton said he had suggested
legislative safeguards in a letter
to House Speaker Sam Rayburn.
He added that a necessary excep
tion would be where the entire
acreage of an existing valid lease
is less than 640 acres.
“Other exceptions would be
where there is evidence that ex
ploration or development will
actually be undertaken in the
assigned area,” he said.
Seaton recalled that he warned
investors last April to be caut
ious over advertisements solicit
ing investment in oil and gas
leases on federal land. At that
time he said the department was
considering recommending legis
lation.
Hiroshima was hit by an
atomic bomb on August 6, 1945,
during World War II.
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