THE
OIJDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LXI No. 15 NOME, ALASKA, WEDNESDAY, FEBRUARY 4, 1959 Per Copy—15c
Eisenhower Warns Congress Must
iJ
Hike Taxes For Each Budget Excess
By STERLING F. GREEN
WASHINGTON, UP> — President
Eisenhower today called on Con
gress to provide for higher taxes
in every spending bill which
would unbalance his 77-billion
dollar budget.
Eisenhower told a news confer
ence he is sure the public does not
want tax increases, deficit spend
ing and cheapened dollars — and
would stand against excessive
spending if the cost thus was made
clear in spending bills.
In obvious warning that he
plans through appeals to the pub
lic to beat down — if he can —
every high-spending proposal that
Congress brings, Eisenhower said
grimly: he means this and he will
say it often.
His attack was aimed chiefly at
a pending three-billion-dollar
housing bill and at Democratic
proposals for federal airport
spending.
The housing measure is $1,500,
000 above Eisenhower’s budget
request, and the Democratic air
port aid proposal is 575 million
dollars by comparison with 200
million asked by the President.
Eisenhower touched on these
other matters in the course of the
news conference:
Integration—He applauded Vir
ginia officials and citizens for this
week’s reopening of public schols
in Norfolk and Arlington Counties,
with Negro and white children
studying together for the first
time in the state’s history.
Missiles — The claims by Soviet
Defense Minister R. Y. Malinov
sky that the West lacks the missile
might to cope with new Soviet
weapons of pinpoint accuracy
sound very much like propaganda,
Eisenhower said.
Taxes — In his opinion, taxes
now are as high as they can be
kept for an indefinite period, Eis
enhower said. He added that he
feels the American people would
resist higher taxes unless a clear
emergency arose to make them
see that a sacrifice was neces
sary.
McElroy Says U. S.
Would Use Nuclear
Might in Any War
WASHINGTON, UP) — A plain
warning to the Chinese Commu
nists that the United States would
use atomic weapons in any future
Korea-style war was sounded to
day by Secretary of Defense Mc
Elroy.
McElroy said it would be
“against our national interest if
any inference were given the Chi
nese Communists that we would
fight the Chinese Communists
without general war weapons.”
The House Armed Services
Committee, before which McElroy
was testifying, got into the sub
ject by pressing the secretary for
assurances that the United States
is remaining prepared to fight lim
ited, as well as general, wars.
McElroy said conventional
forces suitable for limited con
flicts are being maintained, but
he went on to say that a conflict
on the scale of the Korean war
would not be considered today as
a limited war.
Reminded that U. S. forces in
Korea operated under orders not
to use nuclear weapons, McElroy
said:
“It was limited as to weapons,
but I think there is some doubt
as to whether it would be so lim
ited today.”
Gruening Proposal
\\ ill Aid Tourist
Housing Problem
WASHINGTON, UP) — The Sen
ate Banking Committee has ac
cepted an amendment proposed by
Alaska’s senators to ease the new
state’s tourist housing problems.
The amendment would permit
the use by transients of housing
built under government mortgage
insurance.
Senator Gruening, who offered
the amendment for himself and
Senator Bartlett, said it would
open an estimated 400 to 600 hous
ing units for tourists in Alaska.
Applicable only to Alaska, the
provision would be effective for
only three years.
Bartlett Wins Interior
Dept. Delay In Closing
Aleutian Wildlife Refuge
WASHINGTON, UP> — Any de
cision to close lands surrounding
the Aleutian Islands National
Wildlife Refuge will be withheld
pending a public hearing in An
chorage.
The assurance has been given
Senator Bartlett by Fred G. Aan
dahl, Assistant Secretary of the
Interior.
Bartlett recently protested a
| proposal of the department’s to
close the area to protect the sea
otter. He said the move would in
volve tidelands given Alaska un
der statehood.
Aandahl told Bartlett in reply
that if it is found the proposed
withdrawal cannot be made le
gally, then the department will
drop its plan.
“If it is determined to the con
trary,” he added, “then you may
be assured that the department
will hold a public hearing on the
; matter at Anchorage.”
Sixty - Five Feared Dead In Crash Of
J
Airliner Into New York’s East River
NEW YORK, UP) — A glistening
new turboprop American Airlines
plane with 73 persons aboard,
plunged into the chilling, fog
covered waters of the East River
with a shattering crash late Tues
day night. Sixty-five apparently
perished, despite rescue efforts by
harbor craft. .
The plane’s pilot, using instru
ments because of the murky wea
ther conditions, was feeling his
way toward a runway at LaGuar
dia Airport on a nonstop flight
from Chicago.
But for some undetermined rea
son, the big four-engine turbo
prop craft smashed into the water
and burst apart half a mile from
the shore end of the runway.
Some of the passengers and
crew were flung from, or floated
out of, the wreckage before it
sank to the. river bottom 30 to 36
feet below.
A tugboat chugging along a few
hundred feet away cut loose two
barges it was towing here from
Connecticut and raced to the crash
site. Crewmen leaped into the wa
ter or used boat hooks to pull
j out the eight persons known to
: have survived. One was an 8
year-old boy.
All through the night and into
a doleful gray, rainy dawn, a
huge array of boats searched the
river for bodies. By midmorning
only 19 had been recovered, leav
ing 46 still missing.
Swirling river currents, plus
rain and wind up to 40 miles an
hour, hampered the search for
other bodies, and gave rise to
fears that some of them might be
swept miles out into Long Island
Sound.
' The site of the crash was marked
by a few floating pieces of the
$1,700,000 Lockheed Electra air
liner — a type put into service
only a few weeks ago.
Among the missing plane pas
sengers presumed dead was Beau
lah Zachary, producer of the Kuk
la, Fran and Ollie television pro
gram.
The new airliners were designed
to combine jet power with the ad
vantage of the propeller. The en
gines operate on the turbine prin
ciple.
Arctic Club Names
Okleasik to Race
At Fur Rendezvous
Isaac Okleasik of Teller has
been chosen to represent Seward
Peninsula in the dog races being
held in Anchorage during the Fur
Rendezvous.
Isaac was the winner of last
year’s Cape Nome Derby, and is
an experienced dog musher.
He is sponsored by the Arctic
Club, which is paying his expenses
in Anchorage. Transportation of
the team is being provided by
Alaska Airlines, which is
also sending local manager
Del Kampman, to assist Okleasik
during his stay in the city.
Alaska Airlines is also paying
the way of an assistant for Ok
sealik, who has not yet been
named by the sponsors.
Okleasik will be using 13 dogs,
which he is driving down from
Teller. After the Anchorage race
j he will participate in the Fair
banks Winter Carnival dog races,
j The Arctic Club has announced
that the winner of the annual
Cape Nome race will in the fu
ture be the contestant from this
area in the Anchorage and Fair
banks races.
j U. S. Military Truck
I Convoy Held In East Berlin
HELMSTADT, West Germany,
UP) — An American and a Soviet
army officer conferred at this
frontier post today in an apparent
effort to settle the dispute that
has stranded an American mili
tary convoy inside satellite East
Germany for two days.
The unidentified Soviet officer
| and an interpreter walked across
the West German border for a
10-minute conference with the
U. S. military police captain in
charge of the American border
checkpoint.
The Soviet officer then returned
to the Soviet post opposite at Mar
ienbern. The American, who de
clined to give his name to news
men, drove to a nearby head
quarters to report.
The four-truck convoy re
mained parked at Marienborn,
within sight of the free West.
Solons’ Pay Bill On Governor’s Desk;
House Considers Liquor Sales Measure
JUNEAU, —A pay bill which
would give Alaska’s first state
legislators a $3,000 annual salary
plus $40 a day expenses for 62
days, was on its way to the desk
of Acting Governor Hugh Wade'
today.
The Governor said after the i
Senate passed it by an 11-9 vote j
yesterday that he would not de
lay in reaching a decision on it,
although he has 10 days in which
to act. If he does not, it will be
come law without his signature.
Legislative leaders, however,
regarded it unlikely Wade would
veto it as the lawmakers have
been in session since January 26
without any pay. In the Senate
debate, four amendments which
would have lowered the pay scale
were quickly voted down.
In another development yester
day, a bill was introduced in the
House which would put the new
state in the wholesale liquor busi
ness. Representative Earl Hill
strand, Anchorage Democrat,
chairman of the House Finance
Committee, and its sponsor, said
he was personally against the pro
posal but that he was introducing
it to “get it out of committee and
get some discussion.”
There was also considerable flag
waving and humorous debate in
the House when the question arose
whether Alaska’s new 6lue and
gold banner should appear on the
Legislature’s new stationery.
Finally Representative Harold
Hanson, Cordova, quipped:
“Let’s lower the colors and call
for the question.”
The flag won out, and will ap
pear on the letterheads.
As finally passed by the Senate,
the legislative pay bill was in the
same form as adopted by the
House Monday on a 30-10 vote.
The 62-day provision for expenses
is an estimated time the Legis
lature will meet, including a two
day overtime session.
Those opposed were: The two
Senate Republicans, Coghill and
Weise, and seven Democrats, Mc
Nealy, McNees, Smith, Logan,
Metcalf, Nolan and Irene Ryan.
$330,000 for Legislative Expenses
The bill appropriates $330,000
for legislative expenses, of which
$180,000 is for the payment of the
$3,000 annual salaries in equal
monthly installments, and $148,000
is to cover the $4 per diem pay
ments for 62 days. An additional
$1,200 is for the $600 added sal
ary for the House speaker and
Senate president.
No provision is made for travel
pay to and from Juneau.
Under terms of the wholesale
liquor business bill, a state liquor
control board would have exclu
sive jurisdiction over the whole
saling of all alcoholic beverages,
with the exception of beer and
malt spirits. A $15,000-a-year di
rector would be hired and ware
house facilities rented, leased or
purchased.
Not in Retail Business
The state, however, would not
be in the retail liquor business.
Distribution for retail sales would
be handled by bonded agents, des
ignated by the board. The agents
would operate “at small outlets
on a commission or concession
basis.”
Revenue from the state whole- •
saling would go into the general
fund. The board would be respon
sible for the payment of all ex
cise taxes on liquor it sold.
For the wholesaling of beer, a
minimum fee of $100 would be re
quired for malt licenses. Depend
ing on a beer wholesaler’s volume
of business, the license fee would
scale up to $5,000 a year. The top
license levy would be on beer
wholesalers doing annual business
in excess of $400,000.
Hawaii Statehood Bill
Goes To Rules Committee
WASHINGTON, UP>—'The House
Interior Committee today ap
proved a bill to make Hawaii the
50th State.
Representative Leo M. O’Brien
said the 25-4 vote reflected over
whelming Congressional sentiment
in favor of admitting Hawaii this
year.
The bill goes to the House Rules
Committee, after a one-week de
lay for filing of formal reports.
It is up to the rules group to
schedule House action.
O’Brien said he believes there
is an excellent chance the rules
committee will clear the legisla
tion for House consideration, al-,
though it did not act on Alaska
statehood last year.
The bill that brought Alaska
into the union was taken up in the
face of rules committee inaction.
Alexandria, Va., Schools
Ordered to Admit Negros
ALEXANDRIA, Va., iff) — Fed
eral Judge Albert V. Bryan today
ordered Alexandria to admit nine
Negro children to white schools
next Tuesday.
The order by the U. S. District
Court overturned the school
board’s refusal to assign the nine
children to the schools. The schools
are Hammond High School and
the new William Ramsay and
Ficklin Elementary Schools with
a total enrollment of 2,305 white
pupils.
j Former U. S. Envoy Says
i Moscow Is Committed To
Harsh Berlin Policy
WASHINGTON, UP) — George F.
Kennan, former Ambassador to
Moscow, voiced belief today So
viet leaders are prepared to play
close to the edge of war to gain
their objectives in Berlin.
“I do not think the Soviet lead
ers want war over Berlin,” he
told a Senate subcommittee.
But, he said, in current efforts
to force Western troop withdrawals
and a free Berlin, Soviet leaders
are prepared for reasons not fully
apparent, “to play particularly
close to the edge.”
“They have committed them
selves extensively,” Kennan con
tinued, “and it would not be wise
for the Western governments to
take the matter too lightly.”
Nose Cone Separation Test
Success Told by Air Force
WASHINGTON, UP) — The Air
Force said an Atlas missile fired
from Cape Canaveral, Fla., today
“completed its test flight success
fully.”
A brief statement said the
flight was “of les than intercon
tinental ballistic missile distance.”
Officials here gave no precise
distance but it was understood
that the missile flew to its planned
distance of about 3,400 miles.
The Atlas, of the “B” series
type, was being tested for separa
tion of the nose cone rather than
for full I CBM distance of 6,300
miles, it was learned.