BE NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS_
VOL. LIX No. 7 NOME, ALASKA, WEDNESDAY, JANUARY 16, 1957 Per Copy—15*
Eisenhower Budget Calls for Boost
Of $2 Billion in Military Spending
To Deter or Defeat Aggression
By WILLIAM O. VARN
WASHINGTON, UP)—President
Eisenhower today proposed to
Congress a fight-if-we-must budg
et' for next year, calling for a
boost of more than $2 billion in.
military spending and a fecord
peacetime outlay of $71,800,000,
000 in federal funds.
Eisenhower said his budget for
the fiscal year 1958 was balanced
and provided for a surplus for
the third straight year.
But once again he came out
against any tax cuts, except for
possible relief for small business
involving “minimum loss of rev
enue.”
In obvious reference to step
ping up spending for defense, the
President said two of the major
guidelines he used in drafting the
financial blueprint were designed
to assure:
Indian Chief Refuses
Invitation to Eisenhower
Inaugural Day Parade
GOWANDA, N. Y., UPi—Presi
dent Cornelius Seneca of the Sen
eca Indian Nation has refused to
march in next Monday’s inaug
ural day parade.
•He rejected an invitation yes
terday, in protest of what he
called the government’s violation
of his nation’s treaty rights.
He said he must appear in
court Monday to appeal a federal
district judge’s order granting the
government access to part of his
nation’s Allegany reservation in
the southwestern New York area.
He will base his appeal on a
1794 treaty.
Seneca said he would consider
his appearance at the inatigural
a breach of diplomatic etiquette.
He said relations between his na
tion and President Eisenhower’s
are considerably strained.
"Peace, Justice, Freedom'
“Peace, justice and freedom for
our own and other peoples; and
“Powerful armed forces to de
ter and, if need be, to defeat ag
gression.”
. “I am convinced,” he said,
“that the defense program and
funds for their support as rec
ommended in .this budget provide
a wide and reasonable degree of
protection for the nation.”
$45.3 Billion for Security
The budget message estimated
that $45,300,000,000, or 63 percent
of the entire federal outlay, will
be for national security programs.
These include $38,031,000,000
for the armed forces of this coun
try, $4,363,000,000 for economic
and military foreign aid, and
lesser amounts for atomic energy
research and development, stock
piling of strategic goods, home
civil defense and TJ.S. Information
Agency (USIA).
$73 Billion in Revenue
As an offset to his over-all high
spending plans, Eisenhower fore
cast continuance of the country’s
booming prosperity, with the
government collecting a record
$73,600,000,000 in revenue in the
new fiscal year.
Such income, he said, will per
mit the administration to ring up
a surplus of $1,800,000,000 to be
applied toward reduction of the
massive national debt.
As a result, he said, it should
not be necessary to ask again this
year for an increase in the per
manent $275 billion debt limit,
now temporarily raised to $278
billion.
Emphasizing his opposition to
tax reduction at this time, he said
such a surplus can be achieved
only if present tax rates are kept
in force and the nation continues
to have a high level of business
activity with increasing national
income.
NWA Alaska Chamber News
Nome Chamber Will Take Immediate Action to
Get Meeting of Road Board on Summer Program
By RUTH McLEAN
A critical situation needing im
mediate action was brought to the
attention of the NWA Chamber
.of Commerce at its regular lunch
eon meeting yesterday.
Dewey Goodrich reported that
to date no meeting of the Board
of Road Commissioners has ibeen
called to handle appropriations
for Alaska road 'building in the
1957 summer season. After the
change-over from the Alaska
Road Commission to the Bureau
of Public Roads, the first step
seems to be the recognition of the
Board of Road Commissioners by
the Secretary of Commerce.
The Nome Chamber is alerting
the Alaska Chamber of Commerce
and will endorse Mr. Goodrich’s
communications in the matter.
Immediate action is necessary in
order that the summer work can
be started at the earliest possible
date.
East Wing for City
While in Juneau, Russell R.
Hermann secured information of
interest to the people in this com
munity. He inquired into the pos
sibility of the city obtaining the
east wing of the present Federal
Building and was advised that
the General Services Administra
tion in Washington, D.C., should
be contacted.
There is a good possibility that
the city can acquire the structure,
as it has been the policy to turn
such buildings over to municipal
ities, when requested. Moving
the heating system to the usable
portion of the building would be
the major expense in transform-1
ing it to community use.
Sports Fishing
Mr. Hermann also talked to the
Fish and Wildlife Service officials
and learned that they are very
much interested in preserving the
sport fishing in Salmon Lake, and
some of the lakeshore land will
be set aside for public use. They
are following the new roads in
the territory aind will prevent in
dividuals from taking over all
lake property.
Chamber Secretary Jim von
der Heydt read a lengthy commu
nication from Delegate Bartlett,
received in answer to the Cham
ber’s telegram protesting the par
tition of Alaska in statehood. The
information in the letter will be
studied and discussed thoroughly
at later meetings.
Armory Needs Backing
Capt. Bob Ellis of the: Alaska
National Guard announ<;ed that
there will be a representative in
(Continued an Page Tluree)
Eisenhower Asks Congress
To Grant Alaska Statehood
By FRANK VAILLE
WASHINGTON, UP>—President
Eisenhower asked Congress today
to grant statehood to Alaska.
It was his strongest declaration
yet for making the northern ter
ritory a state. Last year he said
only that he hoped that Congress
would make “progress toward
statehood for Alaska in this 01956)
session.”
Today’s request came in his
annual budget message to Con
gress, in which he also asked for
statehood for Hawaii.
Conditions Attached
The Presides! attached condi
tions in his Alaskan proposal. He
said statehood legislation should
contain safeguards for -.he con
Pieces of Metal
All That Is Left
Of $2 Million B-47
HOMESTER, Fla., UPV-An Air
Force board inspected today the
pieces of metal strewn over a
cotton field that were all that re
mained of a $2 million bomber.
The six-engine B-47 Stratojet
crashed with its cockpit in flames
yesterday, killing the four offi
cers aboard it.
The plane blew to bits when it
hit the soft ground. Nothing re
sembling a plane was left; the
field was littered with scraps of
metal.
One of the four men killed ap
parently tried to hike to his par
achute but the plane was only 200
feet high and he hit the ground
before the chute could open.
The four men, all married,
were the parents of 10 children.
The B-47 was attached to Home
stead AFB here and had gone up
on a training flight.
duct of defense activities there.
His budget proposed $24,714,550
for federal activities, outside of
military operations, in Alaska in
the years starting July 1, 1957.
After recommending “home
rule” legislation for the District
of Columbia, the President de
clared:
“I also recommend the enact
ment of legislation admitting Ha
waii into the Union as a state,
and that, subject to area limita
tions and other safeguards for the
conduct of defense activities so
vitally necessary to our national
security, statehood also be con
ferred upon Alaska.”
First Affirmative Declaration
Alaskans in the nation’s capital
were quick to commend the state
ment. However, they indicated
concern over the nature of the as
yet unoutlined conditions.
And Alaska’s voteless delegate
ACS Employees Are
Healthiest Working
Under Civil Service
SEATTLE, UR—United States
Civil Service Commission’s most
healthy employes have just been
located.
They work for the Alaska Com
munication System—in the Seat
tle area.
Col. Carl H. Hatch, ACS com
manding officer, cited 8 of ACS’
civilian employes yesterday for
accumulating more than 1,000
■hours sick leave each. That means
that each of the 28 has worked
for civil service for more than 10
years without any time out to be
sick.
to Congress, E. L. Bartlett, said:
“Granted that the wording of
the recommendation is. somewhat
vague—perhaps deliberately so—
it nevertheless represents the
first affirmative declaration of
the Eisenhower Administration
for Alaska statehood.
He said it “may be that the ad
ministration has not. reached def
inite conclusions regarding ‘area
limitations and other safeguards’,”
and that he trusts these will not
relate to “proposed boundaries
making part of Alaska a state and
leaving the remainder as a terri
tory.”
"Extremely Gratifying"
William A. Egan of Valdez, one
of two “senators” elected by Alas
kans to push statehood for the
territory, said he was “greatly
encouraged” by the recommenda
tion.
“It is extremely gratifying,” he
said, “that the references to area
limitations regarding safeguards
for the conduct of defense activi
ties in Alaska do not preclude an
arrangement whereby the admin
istration will support statehood
for the entire geographic area
now constituting Alaska.”
The territory’s other “senator,”
former Gov. Ernest Gruening, de
scribed the President’s qualifica
tions concerning defense as being
“somewhat indefenite.”
Alaska's Strategic Position
“But it is our conviction that
every vital defense consideration
can be adequately taken care; of
with no impairment of the sover
eignty of what we know to be
Alaska as a state of the Union,”
(Continued on Page Five)
Adm. Radford Says Adoption of
Eisenhower’s Mid-East Proposal Will
Practically Eliminate Chance of War
WASHINGTON, UR—Adm. Ar
thur W. Radford says Congress’
passage of the Eisenhower Mid
dle East resolution would “prac
tically eliminate the chances of
war” in that area.
The chairman of the Joint
Chiefs of Staff testified Jan. 8 at
a closed session of the House For
eign Affairs Committee. His tes
timony, made public today after
censoring for security, made these
other points:
1. The United States has a “def
inite” military superiority over
Russia, probably even somewhat
greater than that of a year ago.
2. The United States now has
the capability of moving men and
material effectively and quickly
into the Middle East in case it
has to help put out a “brushfire”
war.
3. He doubts small wars would
break out at the same time in dif
ferent parts of the world. The
Eisenhower resolution does not
anticipate that America would
have to fight a limited war in the
Middle East, but it would make
such a war less likely.
The released testimony also
discloses administration figures
showing that, as of a week ago
today, $417 million is still unused
out of already voted foreign aid
funds. This included $236,400,000
marked “not firmly programmed”
and $180,500,000 tabbed “reserved
for programs under active con
sideration.”
President Eisenhower has asked
authority to use up to $200 mil
lion of existing foreign aid money
for the Middle East without re
strictions now in the law. Anoth
er $200 million a year is asked
for the same purpose during the
next two years.
His resolution would also in
clude congressional authorization
for use of American armed forces
in the Middle East in event of
overt armed aggression there by
the Communists.