221 NOME NUGGET
OBDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS_
VOL. LX No. 17 NOME, ALASKA, FRIDAY, FEBRUARY 7, 1958 _Per Copy—15^
Treasury Secty. Anderson Says Tax
Reduction Now Is Not Warranted
WASHINGTON, UP) —Secretary
of the Treasury Andersen told
Congress today a tax cut is not
warranted now as a stimulant to
snap the economy out of the cur
rent recession.
“I have heretofore stated,”
Anderson said, “that I can con
ceive of situations where tax re
ductions might appropriately be
brought into play to help the re
sumption of economic growth.
“It is our judgment that the
present condition of the economy
does not warrant such action
now . . . however, we must con
tinue to examine developments
as they progress from month to
month, with a willingness to use
this or other methods of stimu
lation if conditions should require
them.”
Anderson phrased the state
ment in testimony before the
Senate-House Economic Commit
tee at a hearing on President Ei
senhower’s recent economy mes
sage to Congress.
Eisenhower said in his news
conference on Wednesday that
tax reduction could be held as
a tool to give the economy a lift.
But he did not recommend a cut
and cautioned against “going too
far with trying to fool with our
economy.”
Anderson struck a generally
optimistic tone in his prepared
statement and gave the commit
tee this pledge:
“Neither inflation nor defla
tion will be allowed to run a
ruinous course.”
Stassen Rumored On His
Way Out As Disarmament
Adviser to The President
WASHINGTON, UP)—Harold E.
Stassen said today after talking
with President Eisenhower that
he is “continuing for now” as
Eisenhower’s special disarma
ment adviser.
Stassen said, however, he still
is considering running for gov
ernor of Pennsylvania.
He said he must soon make a
decision on whether to quit his
present job and seek the gover
norship.
The 50-year-old Stassen, re
portedly on his way out as U. S.
disarmament negotiator met with
Eisenhower about 45 minutes.
In reply to a question, he said
he would meet again with Eisen
hower — “at the President’s re
quest.”
Stassen’s talk of seeking the
Republican nomination has been
greeted by Pennsylvania GOP
i leaders with a lack of enthusiasm.
Stassen laughingly declined to
comment on a published report
which named White House chief
of staff Sherman Adams as the
source of news stories saying Ei
senhower had decided Stassen
must go.
Goateed Gunman
Grabs Girl,
Gets Gold
NEW YORK, tF) — A goateed
gunman, using a lame girl as a
hostage, held up a Bronx bank
yesterday and escaped with two
shopping bags full of $12,440 in
bills.
The bandit, a Negro, strode into
the crowded Manufacturers Trust
Co. branch at Third Avenue and
155th St., seized the lame gicl—
about 12 years old—and ordered
bank employes and customers to
obey his orders od “I’ll shoot the
kid if you don’t.”
He shoved a shopping bag into
the hands of a woman customer
and forced her to collect bank
notes at the windows of four
tellers. The bank manager him
self was compelled to put money
into another bag.
Then, taking the child, another
youngster and a woman believed
to be their mother with him, the
man left the bank and disap
peared. The mother and children
were not identified.
Police said they learned the
women and the two children
forced to accompany the bandit
were released outside the bank
and boarded a bus.
MATS to Reinvestigate
Shorter Great Circle
Route to The Orient
SEATTLE, (—The commander
of the Military Air Transport
Service’s 1705th Air Transport
Group at McChord Air Force
Base, Tacoma, said yesterday the
use of the North Pacific route for
troop and cargo movement to the
Far East is being reinvestigated.
Col. Robert E. Booth, speaking
before the Seattle Chamber of
Commerce’s Aviation Division,
said the North Pacific route is
one-third shorter than the Cen
tral Pacific route now in use.
Travis AFB, Calif., now is the
West Coast’s aerial port of em
barkation for the Orient.
The Chamber’s Aviation Divi
sion also received a letter from
the Northwest Alaska Chamber of
Commerce protesting a petition
by Pan American Airways to
suspend once-weekly service be
tween Fairbanks and Nome.
Ed Swofford, PAA’s Pacific
Northwest and Alaska director,
said sufficient service between
Fairbanks and Nome was being
provided by Wien Alaska Air
lines, which has six flights a
week between the two cities.
-7
Stromboli and Etna
Become Active
MESSINA, Sicily, UfV-Two of
Italy’s most active volcanos,
Stromboli and Etna, are erupting
but there was no immediate
threat to farms and villages
around them.
Stromboli on a Mediterranean
island north of this Sicilian port,
went into action yesterday after
almost two years of rest. It sent
a small stream of lava hissing
down one slope toward the sea.
Etna, a 10,700-foot volcano on
Sicily, north of Messina, has been
in a state of intermittent activity
for more than four months.
First ICBM Unit
To be Operational
By December, 1959
WASHINGTON, lJD —Secretary
of the Air James H. Douglas said
today the first operational U.S.
unit armed with an Intercontin
ental Ballistic Missile (ICBM) will
be at its post by Dec. 1959.
Douglas told the House Armed
Services Committee the missile is
the Air Force Atlas, which is de
signed a carry an atomic or hy
drogen warhead 5,550 miles.
Douglas’ testimonf, partially
made public in prepared form,
provided official confirmation of
reports the Air Force is approach
ing the point of declaring the At
las as a battle-ready weapon.
While Douglas did not say
where the Atlas unit will be sta
tioned, it was considered certain
to be the new ICBM base near
Cheyenne, Wyo.
The Atlas has been flight test
ed four times from the Cape
Canaveral Missile Center, Doug
las said, and the “last two, of lim
ited range, were completely suc
cessful.”
British Congratulate U.S.
On Satellite In Orbit
LONDON, » - The British
Assn, for the Advancement of
Science today hailed the Ameri
can earth satellite as a brilliant
achievement.
In a message of congratulations
to the National Academy of Sci
ences in Washington, the associ
ation also said:
“The launching has put into
an orbit around the earth a new
instrument for the scientific in
vestigation of extra - terrestrial
phenomena which will assuredly
lead to the acquisition of knowl
edge of inestimable human sig
nificance.”
Administration Wants Statehood For
Alaska, Hawaii Considered Together
By FRANK W. VAILLE
WASHINGTON, UP) — Alaskan j
statehood advocates put out cau
tious feelers today to assay the
effects of an appeal by Senate
Republican leader Knowland for
prompt action on statehood for
Hawaii as well as for Alaska.
Knowland coupled his state
ment yesterday that if assurances
aren’t given that the Hawaii bill
will be taken up in the Senate
immediately after the Alaska bill,
a move undoubtedly will be made
to combine the two.
Some Alaskans promptly inter
preted this as a move to scuttle
the Alaska bill, which is general
ly conceded this year to be in a
stronger position than the Hawaii
measure.
Secretary of the Interior Sea
ton was ill at his home and un
available for comment. One of
his aides who is familiar with the
statehood picture said he regards
Knowland’s appeal as “simply a
request for fair play.”
This official recalled Knowland
scheduled both the Alaska and
Hawaii bills for separate action
in 1954 when the Republicans
controlled the Senate. He brought
up first the Hawaii bill, which
already had been passed by the
House. The Alaska bill was tied
to it through an amendment of
fered by a Democrat. The joint
bill then died in the House.
“Hawaii would be a state today
if that amendment had not been
offered,” the Seaton aide said.
“All Senator Knowland’s asking
for now is assurance that it will
be considered.”
Delegate Bartlett continued to
decline comment on Knowland’s
statement pending a check to de
termine whether it may delay
Senate action on the Alaska bill.
Until Knowland had his say, it
had appeared the Senate would
act soon on the Alaska bill.
WASHINGTON, UF> — Senate
Republican leader Knowland said
Thursday the administration con
siders it inadvisable for Congress
to take up Alaska statehood leg
islation without considering Ha
waii statehood also.
Knowland said he has long
favored statehood for both terri
tories, and that is the position of
the Eisenhower administration.
He said he had informed Sen.
Johnson of Texas, the Senate
Democratic leader, that a general
survey of opinion has disclosed a
feeling that Hawaii statehood
should be called up for Senate
consideration immediately fol
lowing action on the Alaska bill.
Knowland said he told Johnson
that if such assurance could not
be given, undoubtedly an amend
ment would be offered to attach
the Hawaii statehood bill to the
Alaska bill.
Alaska Delegation
“Appalled” At Sen.
Knowland’s Suggestion
WASHINGTON, UP) — Alaska
“Rep.” Ralph Rivers said yester
day he was “appalled” at a Re
publican threat to attempt to add
Hawaii to the Alaska statehood
bill, unless assurances are given
that consideration of a Hawaiian
bill will follow action on the
Alaska bill.
Rivers declared “shotgun mar
riages” of the two bills had
failed in the past.
Sen. Knowland, Senate Repub
lican leader, said the administra
tion considers it inadvisable to
take up Alaska without consider
ing Hawaii.
“This move of Sen. Knowland’s
after a White House conference
at which the statehood bills were
discussed,” Rivers said, “seems
likely to be a fatal blow to Al- »
aska’s statehood chances at this
session unless Secretary Seaton,
who is a power in this adminis
tration, and some of our other
friends, can get the administra
tion to reverse this decision, or
unless such a motion is defeated
on the floor of the Senate.”
Alaska “Sen.” William Egan
said the new development “com
plicates the situation in an area
in which we believe substantial
agreement had been reached.”
Brrr—It’s Cold Out There
(By The Associated Press)
A cold wave rolled across the
Midwest today and headed into
the east.
Temperatures plunged to -20 at
International Falls, Minn., -9 at
Bismark, N.D., -4 at Minneapolis
and St. Paul, -3 at Des Moines,
-2 at Green Bay, Wis., and -1 at
Omaha, Neb., and Moline, 111.
The mercury slipped to 7 above
in Chicago but shrank to zero in
some northwestern suburbs. St.
Louis had 10 above and Kansas
City 12 above.
Freezing drizzle, snow and sleet
formed a slippery surface on
roads and streets in an area that
extended from the Tennessee and
Ohio valleys across Pennsylvania
to Long Island and southern Con
necticut.
President of American Motors Corp.
Suggests Congress Split Ford Motors
And G. M. Into Smaller Companies
WASHINGTON, M—The presi
dent of American Motors Corp.
today urged Congress to break up
General Motors and Ford into
smaller companies and split the
bargaining forces of the United
Auto Workers.
Otherwise the spring auto wage
bargaining may send “another
blockbuster chain reaction wage
price spiral across industrial Am
erica,” said George Romney. His
testimony was prepared for a
Senate anti-trust subcommittee
studying auto industry price pol
icies.
Romney, whose company is one
of two comparatively small in
dependent producers surviving,
declared “economic power in the
automobile industry should be
limited and divided.”
To curb what he called “union
monopolies,” he proposed the
power to bargain with big firms
in any basic industry be lodged
with unions “exclusively repre
senting the employes of a single
employer.”
Romney suggested any com
pany which approaches a domin
ant place in a basic industry be
compelled to split itself.
The break-up point, he suggest
ed, should come when a firm ex
ceeds 35 per cent of the total
sales in its industry.
Actually, he explained, only
General Motors and Ford would
be affected at this time.
And a dispersal of the UAW’s
bargaining power, he argued,
would lift the auto producers
from “underdog” status and re
store them to equality at the wage
bargaining table.
Already, Romney contended,
the -lag in auto sales and the in
flux of small foreign cars have
provided evidence that a con
tinued auto wage - price spiral
“will price American car manu
facturers out of the . . . markets.”