NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVI No. 34 NOME, ALASKA, FRIDAY, MARCH 19, 1954 Per Copy—15?
House Passes Tax
Revision Without
Income Tax Cuts
WASHINGTON, (#> — President
Eisenhower chalked up a big vic
tory in House passage yesterday
of a major tax revision bill with
out a personal income tax cut he
opposed, but an even tougher
fight was shaping up in the Sen
ate today.
With party lines holding un
usually firm, .the House beat down
210 - 204 a Democratic move to
slash income taxes $2,400,000,000
a year by raising the personal ex
emption for each taxpayer and
dependent from $600 to' $700.
The whole tax issue is certain
to be aired at length in the com
ing campaign for control of Con
gress. There were sharply vary
ing appraisals of yesterday’s House
action.
Rep. Kirwan of Ohio, chairman
of the Democratic Congressional
Campaign Committee, said that as
a result he has raised from 45 to
60 his estimate of anticipated
Democratic gains in the House in
November. His Republican coun
terpart, Rep. Richard M. Simpson
of Pennsylvania, replied that the
tax action will bring votes to the
GOP. He predicted Republican
gains of 25 House seats.
After rejecting the exemption
boost, the House passed by a 339
80 vote the 875-page tax revision
bill to which the Democrats tried
to attach the reduction in income
levies.
This measure would rewrite the
entire tax code for the first time
in 70 years. It covers such a broad
range of subjects that Senate floor
consideration of it may not come
for two or three months.
Fairbanks Republicans
Petition McKay Remove
Ghiglione As ARC Head
FAIRBANKS, UP)—The Fourth
Division Republican Club Wed
nesday night petitioned Secretary
of Interior McKay to remove A. F.
Ghiglione as head of the Alaska
Road Commission.
The petition charged that Ghig
lione was a “one-man dictator in
his policies” and accused him of
overloading payrolls and ineffi
cient administration.
The group endorsed Bruce
Thomas for the position and rec
ommended the commission's head
office be moved to Fairbanks.
Ghiglione Says Fairbanks
Truckers Behind Petition
For His Ouster From ARC
JUNEAU, UP) — A. F. Ghiglione,
head of the Alaska Road Commis
sion, says irate truckers in the
Fairbanks area probably are be
hind the petition to Interior Sec
retary McKay asking Ghiglione’s
removal.
The petitions were sent to Mc
Kay by Fourth Division Republi
can clubs. They charged the com
mission chairman with being dic
tatorial and a poor administrator.
Ghiglione said the charge pro
bably resulted from the closing of
interior Alaska highways to heavy
trucks, effective April 1 and con
tinuing until danger of damage
to thawing roads is past.
The order calls for a 50 per cent
reduction in truck tonnages during
the thawing period. “We’ve got
millions of dollars worth of pav
ing up there and we’ve got to pro
tect it,” Ghiglione said.
The Juneau Chamber of Com
merce has voted to support Ghig
lione in the dispute.
Secretary Wilson Says:
No Communist Infiltration Armed
Forces Exposed By Investigations
Were Unknown to Defense Officials
WASHINGTON, (A — Secretary*
of Defense Wilson denied yester
day the Army is “coddling Com
munists,” and declared he has
doctors and dentists who have
ence” in Secretary of the Army
Stevens.
Wilson, under questioning by
Sen. Kefauver said too that no
cases of Communist or subversive
infiltration in the armed forces
had been exposed by any con
gressional commitee that had not
been previously known to defense
officials.
By indirection, this disputed
contention by Sen. McCarthy that
his Investigations subcommittee
had dug out subversives unknown
to authorities.
Senators raised the questions of
“coddling” and other words and
phrases McCarthy has used while
Wilson was before them on an
other matter.
The primary reason for his ap
pearance before the committee
was to discuss proposed changes
in the doctors draft law.
The defense secretary said the
armed services have 51 drafted
“absolute and complete confid
»
been denied commissions—20 be
cause of “very questionable loy
alty.”
Wilson said the remaining 31
were refused commissions because
in some respects other than ser
ious loyalty doubts they failed to
qualify as officers.
“Twenty out of the 15,000 doc
tors we have drafted is not a con
siderable number,” Wilson.
“I don’t want anyone to get the
idea we have many disloyal doc
tors in the army,” Wilson added.
Average Temperature For
Feb. Lowest Ever Recorded
The average monthly tempera
ture of -8.7 was the lowest ever
recorded for February at Nome,
the Weather Bureau reports.
The next lowest was -7.6 in Feb
ruary, 1907.
Total precipitation was also
much below normal at Nome. Last
month was the seventh consecu
tive month with below normal
precipitation, with a total defi
ciency of -6.27 inches below nor
mal.
To Investigate
H-Bomb Blast For
Avoidable Errors
WASHINGTON, UP) — Rep. W.
Sterling Cole (R-NY) said today a
congressional investigation will be
pushed to determine whether
avoidable errors were made during
the monster hydrogen blast in the
Pacific March 1.
Cole said the Senate - House
Atomic Energy Committee, which
he heads, has begun questioning
Atomic Energy Commission of
ficials in closed sessions.
Two committee members, Reps.
Price and Van Zandt, yesterday
called for a full-scale probe to
learn why the 315 persons sub
jected to unexpected radiation
exposure were allow'ed close
enough to the blast to be en
dangered.
The blast, reportedly three or
four times greater than expected,
spilled nuclear dust well beyond
the hazard zone which had been
drawn.
Twenty - three Japanese fisher
men, 80 miles away and outside
the hazard zone, were badly burn
ed. Price said the fact they got that
close to the blast indicated a So
viet submarine could have pierced
the security zone and witnessed
the blast.
McCarthy: ‘ Don't Give
A Tinker's Dam" If They
Don't Like His Policy
CHICAGO, UP) — Sen. McCarthy
yesterday challenged critics of his
Red - hunting methods — from
President Eisenhower down — to
name any Communists they have
exposed.
The controversial chairman of
the Senate Investigations sub
committee, cheered on by a St.
Patrick’s Day dinner gathering
Wednesday night, pledged a no
quarter fight to dig out “Commun
ist traitors.”
In the face of indirect criticism
from Eisenhower and other top
leaders of his party, McCarthy
bluntly said he didn’t give “a tink
er’s dam” if people in either the
Republican or Democratic party—
no matter how high or how low
— were “unhappy” about his
methods.
“This fight is going on as long
as I am in the United States Sen
ate,” he said, touching off a burst
of applause.
Arrested On Narcotics Charge
FAIRBANKS, —Donna Green,
22, also known as Donna Harring
ton, was held here on $10,000 bail
Thursday on a charge of posses
sion and control of narcotics.
She was arrested Saturday eve
ning as she stepped from a plant*
from Anchorage.
Snow Removal Costs Juneau $8532
JUNEAU, UP) — Southeastern
Alaska’s “first snow of spring” last
week was a pain in the pocketbook
to this capital city.
City officials report the cost of
removing the heavy unseasonal
snow from the sloping streets was
$8,532. About 50,000 cubic yards of
snow was dumped into Gastineau
Channel.
Enemies of Statehood Offer Lure of
Federal Tax Exemption if Territories
Will Accept Commonwealth Status
-.-^
Challenge of $5
School Tax Costs
Juneau Man $25
JUNEAU, W) — Richard T.
Irby’s bne-man challenge of the
constitutionality of Alaska’s $5 a
head school tax law cost him $25
in court yesterday.
The Alaska Native Service per
sonnel officer paid the fine in
U.S. Commissioner’s court under
the criminal clause of the act,
which provides for penalties up to
$100 fine and/or up to 90 days
in jail for refusal, neglect or fail
ure to pay.
Irby’s fine came after he had
relented his original adamant
stand and had paid $7.50 for his
1952 tax (including 50 per cent
penalty for delinquency) and $5
for 1953.
Irby now is out $37.50 for $10
of tax and the tax commissioner’s
records show the 1954 tax has not
been paid. It was due Jan. 1 but
the law allows until Dec. 31 for
payment. Irby wouldn’t say what
he would do about that one.
Rumors Say Aleutian
Mail Contract Will Be
Given To Air Line
SEATTLE, UP) — Alarmed over
rumors that the $200,000 a year
Aleutian mail contract may go to'
an air line, Seattle maritime in
terests called on the state’s con
gressional delegation Thursday for
“immediate” help.
The mayor’s Maritime Advisory
Committee, representing water
front employers and unions, held
a special meeting in the office of
Mayor Allan Pomeroy. Spokesmen
said transfer of the mail contract
from ship to air service would
cause “hardships” to Aleutian
residents and put the ship line
out of business.
Berger Transportation Co., op
erates the small motor vessel Gar
land, and holds the present con
tract which expires June 30.
E. J. Townsend, general man
ager for the Berger Co., said:
“The fact is that no air line
could possibly serve the area ade
quately. There are 25 ports to
serve, but only two landing strips
in the entire area.”
University Regents
Petition Congress For
Immediate Statehood
FAIRBANKS, UPC-The Univer
sity of Alaska Board of Regents,
in special session here, Wednesday
called for immediate statehood for
Alaska in petitions to President
Eisenhower and Congress.
The board said statehood would
be a means of “fulfilment of our
educational responsibility in fur
therance of national welfare and
in answer to the human longing
of our citizenry for political equals
ity.”
M. J. Walsh of Nome is the Sec
ond Division member of the Board
of Regents.
WASHINGTON, UP) — The ene
mies of statehood for Alaska and
Hawaii are holding out the lure
of federal tax exemption if the
two will accept the status of com
monwealth.
The inducement was offered
yesterday by Sen. Monroney (D
Okla) as a substitute for the state
hood bills now before the Senate.
He said his plan was designed
to compensate for the loss of vot
ing representation in Congress as
the only thing missing from the
full state status which they seek
so eagerly . . .”
Delegate Farrington (R-Hawaii>
promptly labeled the common
wealth proposal a “phony” . . .
calculated to divert attention from
the main issue” and unacceptable
to island residents. If the common
wealth plan is accepted, he said,
Hawaii will ask a refund of $1,
600,000,000 in federal taxes it has
paid under territorial status.
The preamble declares it to be
the desire of Congress to “estab
lish a policy for the future for
overseas or non-contiguous areas
consistent with our ideas and prin
ciples as to the maximum degree
of self-government.”
Majority leader Knowland (R
Calif) called it “a bargain base
ment type of proposal” and urged
its sponsors to test it with an
early vote.
The only right of present states
that would be lacking, Monroney
said, is voting representation in
Congress — particularly the Sen
ate.
The Oklahoma senator indicated
he would not oppose—should the
commonwealth plan work out suc
cessfully — giving the offshore
areas representation in the House
in proportion to their populations.
Giving the areas two senators
each, however, would give each
Hawaii citizen 33 times the voting
strength of a New York citizen,
and in Alaska “would magnify this
over - representation by four,” he
said.
As to tax relief, the common
wealth amendment proposes the
same treatment for Hawaii and
Alaska as is now accorded Puerto
Rico—exemption from federal in
come taxes and retention of all
federal tax collections in the terri
tory for local use.
As territories, Hawaii and Al
aska are now subject to all fed
eral taxes. In the 1952 fisca^year,
Hawaii paid $135,995,730 and Al
aska $44,349,260 in taxes to the
federal treasury.
ANCHORAGE, LD—A delegation
is being organized here to fly to
Washington in behalf of statehood
for Alaska.
Barrie M. White Jr., president of
Operation Statehood, which is or
ganizing the flight, said the trip
will be made at what looks like
“the most opportune time.”
He said that “those planning to
make the flight should be' ready
to leave on a few days’ notice.”
More than a dozen reservations
are reported as a starter.
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