Egan’s $59 Million Budget Proposal
Received a Generally Cool Reception
JUNEAU (#) — Gov. Egan’s
whopping $59 million budget pro
posal for the coming fiscal year
received a generally cool recep
tion in both political camps.
Expressions of approval from
some key Democrats — particu
larly in the House — apparently
were coupled by a feeling of re
lief that the money requests
“could have been worse.”
Major objections to the budget
revolved around the governor’s
requested boost in the state
income tax from 14 to 16 per
cent of the federal income tax.
Lawmakers also were critical
of Egan’s suggestion to use most
federal transitional grants which
will be available to the state in
order to balance the fiscal 1962
budget.
Rep. Jim Binkley (R-Fairbanks)
quipped:
“That was a very interesting
federal budget. Now I’d like to
see the state budget.”
Demos Against Sales Tax
Senate Majority Leader R. J.
McNealy said he felt there should
have been some liaison between
the Legislature and the Gover
nor’s Office before the budget was
offered.
“Frankly, I’m on the spot as
Majority Leader,” McNealy said.
“The Democrats are pledged
against a sales tax and some of
the Democratic senators have
come out strongly against an in
crease in the income tax.”
House Minority Leader Bruce
Kendall said that as far as he is
concerned, the budget will have
to remain within existing rev
enues “or we will be respon
sible for the bankruptcy of this
baby, infant state.”
“The state’s present rate of
development despite low taxes
and very limited regulation has
been painfully slow during the
past 20 years,” Kendall added.
“What would happen if we — the
Legislature — now double the
taxes and increase the regula
tions?
Well Considered Program
“It is my measured, reasoned
opinion that our resource develop
ment for the world market places
would stop.”
Speaker of the House Warren
Taylor termed the governor’s pro
gram “a well considered program
for effective state government. It
encompassed necessary capital
improvements and essential serv
ices to the people of the state.
Rep. Frank Chapados, Chair
man of the House Finance Com
mittee, said that as compared with
last year’s spending program, the
budget hadn’t been expanded as
much as might have been ex
pected.
“However, all members of the
Finance Committee will attempt
to eliminate as much unnecessary
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expense as possible,” Chapados
added.
Sen. Brad Phillips: “The size of
the budget was a jolt. The main
disturbing point to me was the
use of so many general obliga
tion bonds without any indication
of where the funds to pay for
them is going to come.”
Broaden. Not Pyramid Tax Base
Sen. John McNees, “the total
budget figure was about what I
had expected, but I don’t believe
the income tax increase is the
way in which wg should get ad
ditional revenue. We should
broaden our tax base, not pyra
mid it.”
Rep. Walter Kubley, “the gov
ernor’s $59 million budget re
port is absolutely fantastic. Our
‘we will eat beans’ plea for state
hood has turned into a caviar
diet — but who is going to pick
up the bill?”
Rep. Mark Jensen, “I’m sure an
economic study would show the
state cannot afford such a budget.
I’m afraid we are closing the door
to venture capital we desperate
ly need.”
Sen. A1 Owen, “a very realistic
budget. The question is whether
there are enough Liberal Demo
crats and Republicans to pass it.”
’59 Tax Returns Will
Be a Helpful Guide
Federal income taxpayers
should find it helpful to use their
1959 returns as a guide in pre
paring their 1960 forms, Director
Lewis J. Conrad of the U. S. In
ternal Revenue Service advised
today.
“There is little change in the
forms normally used by most tax
payers except for a few points of
clarification and generally im
proved typography,” Mr. Con
rad said.
“Taxpayers referring to last
year’s return, while working with
the 1960 forms and instruction
booklets, should be able to come
up with the right answers with
out too much difficulty. They can
probably do a better job than
they think.
“Where new circumstances have
developed and present new prob
lems, we’re happy to help and j
a telephone call will probably j
clear up the trouble. It usually!
isn’t necessary to visit our offices,
although help is of course avail
able there to those who have
special and complex problems,”
he added.
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Two Proposed Bills
Would Repeal Mining Tax
And Pay a $5.00 Bonus
JUNEAU W) — Companion bills
to aid the state’s distressed gold
mining industry were introduced
in the Senate by a group of Dem
ocratic and Republican law
makers.
One of the measures would re
peal all mining taxes now im
posed by the state. The taxes are
graduated between 3 and 7 per
cent.
The second bill would establish
a state bonus of $5 a fine ounce
for all gold newly mined in Alas
ka.
Sen. George McNabb, one of the
sponsors, said the two bills would
restore Alaska gold mining “to
the important position it once
held.”
Another sponsor, Sen. AI Owen,
said the two measures would
“put many of our people to work
in areas where state welfare is i
the only present economy.”
Other sponsors were Sens. Eben
Hopson, Lester Bronson and How
ard Bradshaw.
RUSSIAN ROCKET SONG
THREATENS THE U. S.
BERLIN GP — A Russian sol
diers’ song threatening to send
Red rockets across the Atlantic
has appeared in Comunist East
Germany’s official military
monthly.
“The March of the Soviet Rock
et Soldiers” was published in Ger
man translation in the Armee
Rundschau <Army Review). The
last verse reads:
“And wherever the gentlemen
of the Atlantic may hide, they
will still be within our reach. Red
rockets will bring the answer to
their blow, even across the pond."
In Europe “The Pond” is often
I used to refer to the Atlantic.
OPTIMISTIC ABOUT RELEASE
OF U-2 PILOT POWERS
FROM A RUSSIAN PRISON
ROANOKE, Va. (JP> — The father
of U2 spy pilot Francis Gary
Powers said he was “quite opti
mistic” that his son “will be re
leased from a Russian prison
soon.”
“My boy,” said Oliver Powers,
“thinks he’ll be released soon. So
do I, but I haven’t talked to any
Russian authorities since last
summer in Moscow.”
Oliver Powers, a shoemaker in
the rural southwest Virginia com
munity of Norton, was asked
about his imprisoned son in view
of the release of two other Amer
ican fliers by the Russians.
IN THE SUPERIOR COURT
OF THE STATE OF ALASKA
SECOND JUDICIAL DISTRICT
No. 60-48-P
NOTICE TO CREDITORS
IN THE MATTER OF THE ESTATE
OF
ERNEST G. BALL, deceased.
NOTICE IS HEREBY GIVEN that
William Hoogendorn of Nome, Alaska,
has been duly appointed Administrator
of the Estate of Ernest G. Ball, deceased.
All persons having claims against said
estate shall present them, in proper
legal form, with vouchers attached, to
the said Administrator at Nome, Alas
ka. within a period of six (8) months
from the date of this notice.
DATED this 5th day of January, 1961.
WILLIAM HOOGENDORN,
Administrator
Virgil D. Vochoska,
Attorney for Administrator.
Publish Jan. 6, 13, 20. 27, 1961.
Office! Res.
Black 76 A Main 76
Call...
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Mrs Graham P. Stewart, Jr.,
2303 '-’ant. Cook Blvd., Anchor
a^r. has been appointed Alaska
Shale Chairman of the Ninth An
nual Republican Women’s Con
ference, to be held March 5, 6,
and 7, 1961, at the Sheraton Park
Hotel in Washington, D. C.
At this conference, Republican
women from all 50 states meet
annually in a concentrated effort
to keep them advised on cam
paign techniques and for clari
fication of the issues. The group
will be addressed by outstanding
Republican leaders from the Con
gress, as well as by party officials.
All interested Republican women
in Alaska are urged to attend.
Mrs. Stewart had this to say
in Anchorage: “Last year’s con
ference was attended by 3,000
women from all over our country
who were able to return to their
various areas with the informa
tion and inspiration which play
ed a most important part in the
results of our very close contest
in 1960. Literature received from
Washington indicates an extreme
ly high degree of enthusiasm for
this year’s conference, with the
goal being to begin preparations
right now for 1962.”
Reservations, warns Mrs. Stew
art, must be in Washington by
February 22, and interested
women should contact her at her
Anchorage address for further
information in regard to meet
ings, functions and fees. Mrs.
Stewart will make all necessary
Washington arrangements for
those who wish to participate.
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KENNEDY COOL AND
CONFIDENT AT FIRST
NEWS CONFERENCE
By Marvin L. Arrowsmith
WASHINGTON UP) — President
Kennedy announced with dra
matic impact Wednesday night
that the Soviet Union has freed
two crewmen of a U. S. recon
naissance plane the Soviets shot
down over the Arctic waters last
July 1.
Kennedy calmly made the elec
trifying disclosure at his first
news conference as President. He
also announced he was continuing
the ban on U. S. espionage flights
over Soviet territory.
Kennedy hailed release of the
airmen as amounting to removal
of “a serious obstacle to improve
ment of Soviet-American rela
tions.”
Kennedy said in response to
questions that this country made
no concessions to the Kremlin to
win release of the fliers — Capt.
j Freeman B. Olmstead of Elimra,
! N. Y., and Capt. John R. Mc
! Kone of Topeka, Kan.
At his news conference, broad
cast nationwide on live television
I and radio, Kennedy was not asked
j whether the United States or the
! Soviet Union had taken the initia
I tive toward release of the fliers
whose downed plane was an Air
Force RB47. And the President
did not reply directly to a ques
tion on whether the release re
sulted from some action he took.
After the conference there were
conflicting versions.
Kennedy, wearing a dark blue
j pin-striped suit, was a completely
unruffled master of the situation
during the entire 36Vi>-minutes of
his first meeting with newsmen
since he tor c office last Friday.
Cool ana confident, the 43
year-old President volunteered
the announcement near the start!
! of the conference regarding free
1 ing of the fliers. That news top
| ped everything else by a clear
I margin as the questions and
! answers ranged over a wide field.
Safety note: U. S. mail trucks
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75 per cent since they’ve been
painted red, white and blue. Why
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I dots? It might save them, too.
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