Si NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS _
VOL. LV NO. 155 NOME, ALASKA, WEDNESDAY, DECEMBER 30,~1953 Per Copy—15^
Serious Slump Is
Foreseen, If Not In
1934 Then Later
WASHINGTON, UP)-—A serious
slump in demand for such durable
items as autos, appliances and
machinery will come in a few
years ‘“whether or not we have
one in 1954,” the American Ec
onomic Assn, was told today.
Albert GailoTd Hart, Columbia
University economist and former
treasury consulant, made the pre
diction and said the government
should move to hold any reces
sion within moderate bounds.
“What should worry us is not
the possibility o'f a recession —
which is normal — but the fact
that we have so little in reserve
to deal with one,” Hart said.
Meanwhile, Dr. William J. Fell
ner of Yale University told the
economists’ annual meeting that
measures developed to cope with
depressions will lead to a smooth
er pattern of up-and-down econ
omic cycles than the country ex
perienced before World War II.
Dr. Fellner said inflationary
pressures are created by “the
greater political influence of per
sons belonging in the relatively
low income groups” and by the
ability of “relatively overproduc
ing” industries to obtain govern
ment subsidies.
He cautioned that the govern
ment might go too far in warding
off deflation and might attempt to
prevent “even moderate fluctua
tions in employment.”
Hart suggested that the “ob
vious remedy” for recession is
taxcutting to give people more
money to spend.
Jury Indicts Four Youths
For Beating Legless Vet
LOS ANGELES, Ub — The
county grand jury has indicted
four youths on charges of beat
inga legless war veteran Christ
mas Day.
Charged with two counts of
robbery and assault Tuesday were
Santiago Luna Gonzales, 20, Nor
walk; Edmund Luevano, 18, Bell;
Aristo Mejia, 18, East Los An
geles; and Joe Lopez Rosales, 17,
Los Angeles.
They are accused of slugging
Charles J. Baker 23, of Hawaiian
Gardens, who lost both legs and
his fingers in Korea.
He said the gang attacked him
as he was on his way home from
a holiday party beat him, tore one
of his artificial legs almost com
pletely loose from body fasten
ings, and stole his watch and
wallet.
No Indication That Korean
Political Conference Be
Resumed Before Jan. 22
LONDON, UP) — The Foreign
Office expressed hope Wednesday
that negotiations to set up a Kor
ean political conference would be
resumed before Jan. 22 but warn
ed there was no indication at
present of such a development.
The talks at Panmunjom were
broken off Dec. 12 when U.S.
envoy Arthur Dean walked out
demanding that North Korea and
Chinese Communists retract ac
cusations against the United
States.
Whale Meat Described
As Delicious, Nutritious
LOS ANGELES, UB — The fu
ture of America’s whaling indus
try lies in convincing the public
that whale steak is as tasty as.
beefsteak, the Western Society of
Naturalists was told at Los An
geles today.
Whale meat, sliced about an
inch thick and fried quickly in
butter is “nutritious, juicy, soft
and high in protein,” Dr. Ray
mond M. Gilmore, a U.S. Fish
and Wildlife Service biologist,
said.
Whale meat is already being
imported into eastern markets
from Norway and Iceland and
being sold for 83 cents a pound,
he added.
Creating a market for meat is
the industry’s only hope, he said,
because vegetable oils have ruin
ed the market for whale oil.
—
Frobisher Co. Plans
$25 Million Project
In Northern B. C.
VICTORIA, UP) — Work may
start next year on a proposed
$25,000,000 hydro-electric project
in northern British Columbia, E.
G. Rowebottom, deputy minister
of trade and industry for B. C.,
said Tuesday.
The hydro development would
be the first step in a $2,000,000,
000 metallurgical-chemical devel
opment planned in northern B.C.,
and the Yukon by Ventures, Ltd.,
parent body of the world - wide
Frobisher organization.
Mr. Rowebottom said Ventures,
Ltd., still had to complete water
rights agreements with the pro
vincial and federal governments
before completing plans for the
project. Talks between the com
pany, which has completed a sur
vey of the area, and B.C., officials
are expected to get underway in
January.
The project would be used to
supply power for a metallurgical
plant near the head of Taku Inlet
some 750 airline miles northwest
of Vancouver.
Steward On Belgian Liner
Falls Through Open Door
PARIS, UP)—The door of a Bel
gian Sabena Airlines plane swung
open shortly after the takeoff
from Le Bourget Airport today
and'the powerful draft dragged a
steward through the door to his
death.
The steward, whose name was
not announced, fell somewhere
near Chantilly, 20 miles north of
Paris. The body has not yet been
found.
A similiar accident occurred
over Long Island in February,
1950, when John Harris, a ste
ward, tried to close an accident
ally opened door on a Pan Am
erican Airways plane.
Ava Down With The Flu
ROME, UP)—Actress Ava Gard
ner, bedded by the flu shortly
after resuming housekeeping with
husband Frank Sinatra, was re
ported “feeling much better” to
day.
Friday's edition of the Nugget
will be published and circulated
Thursday evening in observ
ance of New Year's Day.
South Opposes
Plan to Relieve
Unemployment
WASHINGTON, UP)—An Eisen
hower administration plan for
funneling more government de
fense work into areas of large
unemployment ran into a barrage
of heavy criticism from southern
Democrats today, foreshadowing
verbal fireworks when Congress
meets next week.
Sen. Maybank (D-SC) accused
President Eisenhower of turning
his back on his campaign pro
mises. Sens. Sparkman (D-Ala)
and Hill (D-Ala) said the program,
set forth again yesterday at the
Little White House at Augusta,
Ga., violated pledges made by
the GOP leadership in the Senate
last July.
And Sparkman declared it is
not true, as presidential press
secretary James C. Hagerty said,
“This is the first time a national
administration has tried to do
something” about chronic region
al unemployment.
Sparkman said the Truman ad
ministration had a “positive and
definite program” for putting de
fense contracts into areas of labor
surplus.
In Augusta, Hagerty declined
to-'comment further when asked
about an official policy of the
Truman administration, put into
effect in 1952, to award defense
contracts to other than the low
bidders ' in an effort to counter
unemployment in some areas.
In its Essentials, the policy is
similar to that of the Truman ad
ministration, abandoned last Aug
ust, to give preference in the
award of defense contracts to
areas where there is considerable
unemployment.
Most criticism of it in the past
has come from southerners who
argued that it would rob their
textile mills, for example, of gov
ernment business which would be
steered to New England.
Barbara Hutton About
To Take 5th Hubby,
Playboy Porfirio Rubirosa
NEW YORK, (#>—Wealthy Bar
bara Hutton and international
playboy Porfirio Rubirosa “will
definitely be married,” a Domin
ican diplomat said today.
Miss Hutton rested in bed
meanwhile at the Hotel Pierre,
mum on just when she would
take Rubirosa as her fifth hus
band.
Preparations for the ceremony
were understood to be underway
at the Dominican consulate in
Rockefeller Center.
Rubirosa, former husband c/i
one of the nation’s other “rich
est girls,” Doris Duke, was keep
ing quiet. He was reported to
have breakfasted at a friend’s
apartment in a cutaway suit that
would be appropriate for a wed
ding.
Rubirosa came to New York
yesterday amid reports from Las
Vegas that he was on the re
bound from a rebuff by actress
Zsa Zsa Gabor, playing a night
club engagement in the Nevada
city.
Sitka Educator Named
Superintendent Of
Pioneer Home
JUNEAU, UR—Leslie Yaw, for
mer president of a Sitka junior
college, today was chosen by Gov.
Heintzleman to be superintendent
of the Alaska Pioneer’s Home at
Sitka, effective Jan. 1.
Yaw replaces William Knight
who resigned. He has been a
member of the board of trustees
since May 28. He came to Alaska
in 1923 as coach and teacher at
Sheldon Jackson J.C., rising to
president in 1944.
The new superintendent is a
former Sitka councilman and
member of the public utilities
board. Since 1950 he has been on
the Presbyterian Church Board of
Missions and is a past moderator
of the Church in Alaska.
Tankers Collide In Fog
Killing At Least 4 of Crew
WILMINGTON, Del., ffl-Two
tankers crashed in the fog-bound
Delaware River early today, kill
ing at least four crewmen.
The tankers, Atlantic Dealer
and Atlantic Engineer collided as
they sought safe anchorage in the
fog - shrouded river, setting off
fires on both vessels.
The fires apparently caused
little damage and both the At
lantic Refining Co. tankers await
ed favorable tides to proceed un
der their own steam to Phila
delphia.
Eleven of the 41 crewmen of
the 1,600 - ton tanker Atlantic
Dealer were thrown into the river
and five still are listed as miss
ing.
Federal Grand Jury To
Report on Findings On
Ketchikan Vice Conditions
KETCHIKAN, UR—The Federal
grand jury that stirred up a
couple of explosive blasts here
two weeks ago reconvened Mon
day to wind up its inquiry into
Ketchikan vice conditions.
District Judge George Folta has
asked the jury to submit its re
port to him next Monday. He is
expected to come here from Ju
neau to receive it.
Police Capt. Erland McKinley is
under arrest on a charge from the
grand jury that he interfered with
a witness, and U.S. District Atty.
P. J. Gilmore Jr., was relieved of
his duties with the jury after the
jury complained that he had not
taken any action against the al
leged interference.
J. Earl Cooper Files His
Candidacy For Senate
ANCHORAGE, UR — J. Earl
Cooper and Norman F. Shaw be
came the first two persons to file
their candidacy for the 1954 terri
torial legislature elections.
Both are Democrats and both
intend to run for a Senate seat.
Now practicing law here, Coop
er has been serving as district
judge in the Second Division at
Nome.
Shaw, a civil engineer by pro
fession, is in the transportation
and construction business. This
will be his first try for any politi
cal office.
Feudin’ Continues
Between Juneau
And Anchorage
ANCHORAGE, UP) —The shoot
ing continued Tuesday in the Re
publican feudin’ between Anchor
age and Juneau.
Walter J. Hickel, president of
the Anchorage Republican Club,
fired back at Sen. Elton Engstrom,
the territorial Republican chair
man, of Juneau.
Engstrom, a day earlier, con
tended the Anchorage Republican
group had been “dictatorial” in
the way it sought a meeting with
Governor Heintzleman in An
chorage.
Hickel commented:
“We have no quarrel with Sen.
Engstrom. As far as being dic
tatorial, as per the senator’s quote
we are only asking for a little
representation for 50,000 people.
After all, Juneau with just 7,000
or 8,000 people should be satisfied
with both top territorial posi
tions.”
The references were to the gov
ernorship and the secretaryship
of Alaska. The latter post is filled
by Waino Hendrickson, former
Juneau mayor and legislator. Both
positions are filled by federal ap
pointment.
Ramon Magsaysay Takes
Office and Pledges An
Honest Constructive Govt.
MANILA, UP) — Peppy Ramon
Magsaysay, a 46-year-old black
smith’s son, pledged an “honest,
efficient and constructive govern
ment” today before a cheering
throng that saw him sworn in
as the third president of this 7
year-old republic.
“For this young and vigorous
nation of ours, nothing is really
impossible,” the staunch former
defense secretary declared in his
inaugural address.
After solemnly taking the oath
of office, Magsaysay outlined a
seven point program aimed at
raising living conditions, strength
ening internal security and wiping
out the Communist-directed Huk
rebel movement.
He called for strong ties with
the United States and declared
that relations with friendly Asian
nations must be tightened to meet
common problems.
“But,” he warned “to the lead
ers of the Communist conspiracy
who would deliver this country
and its people to a foreign power,
this I say:
“I shall use all the forces at
my command to the end that the
sovereign authority of the gov
ernment shall be respected and
maintained. There can be no
compromise with disloyalty.”
The new president, who rode
his fame as Huk-busting defense
secretary into the highest office
in the land, urged Communist
rebels “who have been misled
by the lies of the Kremlin” to
surrender.
Spellman Visits With Rhee
CHINHAE, Korea, UP)—Francis
Cardinal Spellman, Catholic arch
bishop of New York, visited brief
ly Wednesday with South Korean
President Syngman Rhee at th i
aged leader’s holiday retreat here.