THE
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
62nd Year No. 17 NOME, ALASKA, FRIDAY, FEBRUARY 10, 1961 Per Copy 15*
Kennedy Urges Congress to Approve
Health Insurance Program for the Aged
By Marvin L. Arrowsmith
WASHINGTON UP) — President
Kennedy Thursday urged Con
gress to approve a controversial
Health Insurance Program for
14.2 million Americans 65 or old
er. It would be financed by an
increase in Social Security taxes.
In a special message to Con
gress dealing with the “harsh
consequences” and sometimes
crushing cost of ill health, Ken
nedy also recommended more fed
eral spending to provide separate
ly for:
An increase in community health
services and facilities such as
nursing homes, nursing aid and
expansion of hospital research
and development; training of more
doctors and dentists through fed
eral scholarships; a broader health
care program for children and
youth; more vocational rehabili
tation training of the disabled;
and expansion of medical re
search.
The Health Insurance Program
Kennedy proposed for the aged—
similar in principle to the one he
tried unsuccessfully to put
through Congress last year as a
member of the Senate — would
apply to 13.7 million over 65 who
are under the Social Security
Program, and to about 500,000
under the Railroad Retirement
Pension Program, administration
officials said.
Propose Increase in Taxes
They said further the proposed
increase in Social Seucrity taxes,
including bigger levies under the
Railroad Program, would pay out
about $1.1 billion in health insur
ance benefits in 1963, the first full
year of operation.
As for the other health meas
ures Kennedy recommended, the
officials stressed that no firm
cost estimates are yet available.
But they calculate at this time
that these program will require
about $56 million in new appro
priations for the fiscal year start
ing July 1, and that about $21
million of this actually would be
spent in those 12 months.
For the next fiscal year, be
ginning July 1, 1962, appropria
tions are figured at about $177
million and actual spending at
about $55 million.
Some of the programs Kennedy
advocated are on a 10-year basis,
and the administration estimates
the cost would continue to mount
through the first four years, and
then perhaps level off.
Kennedy did not go into any
detail regarding price tags in his
Alaska Bar Association
Admits 13 New Members
ANCHORAGE UP) — Alaska Bar
Assn. President Clifford J. Groh
announced yesterday that 13 per
sons, six of them of Anchorage,
have successfully passed the 1961
bar examination given last month.
The 13 have been certified to
the Alaska Supreme Court. The
date of their formal admission
to the bar will be announced in a
few days, Groh said.
The successful Anchorage can
didates are Harland W. Davis,
Joseph Josephson, John Roderick,
Martin Roth, Helen Davis Simp
son, and Eugene F. Wiles.
Other successful candidates:
Avrum R. Gross, Daniel R.
Walsh, James N. Wunnamaker,
and Elton Engstrom, all of Ju
neau, and George F. Vogt, Thom
as J. Balone and William Bert
Emmal, all of Fairbanks.
message. He has promised, how
ever, that he will suggest ways
of raising additional revenue in
the case of all new spending pro
grams which — of and by them
selves — would knock out of bal
ance the budget he inherited from
the Eisenhower regime for the
fiscal year commencing July 1.
Discussing health insurance for
the aged, Kennedy told Congress:
“This program would be fi
nanced by an increase in the So
cial Security contributions of one
quarter of one per cent each on
employers and employes, and by
an increase in the maximum earn
ings based from $4,800 a year to
$5,000 which would amply cover
the cost of all insurance benefits
provided. The system would be
self-supporting and would not
place any burden on the general
revenues.”
This means that — apart from
tax increases already scheduled
over the next several years in
the existing Social Security Pro
gram — the tax would go from
the current 3 per cent to 314 per
cent. This would be paid by both
workers and employers on the
first $5,000 of wages, instead of
the first $4,800 as at present.
Payment of Health Insurance
benefits would start July 1, 1962.
So it also means that in the case
of workers earning at least $5,000
their tax increase for 1962 would
be $6. In 1963 the increase would
total $18.50. The hike would be
smaller in 1962 because for that
year the tax would continue at 3
per cent, the present rate, but
would continue at 3 per cent, the
! present rate, but would be on the
j first $5,000 of wages. The next
i year the tax rate would jump to
314 per cent.
Boy Scout Banquet Will
Be Held Saturday Night
The Boy Scout banquet for par
ticipating sponsors and parents
and leaders of Boy Scouts in the
community which is scheduled for
the Seaview Room on Saturday
evening at 7:00 will be headed by
the chairman of the district com
mittee, Conrad Potter with Spen
cer Strand’s Boy Scout Troop No.
663 presenting an interesting pro
gram.
An Explorer Scout and a Boy
Scout are being selected to pre
sent the colors and three Cub
Scouts are being chosen to lead
the pledge of allegiance.
Invocation will be by Rev. R.
Amundsen and the benediction by
Spencer Strand.
Awards for adults who have
given distinguished service to
scouting here will be made by
Jim Blanning and John Maake
stad and honor guest will be Ira
Hill, Scout Executive of the new
Midnight Sun District of which
Nome is a member.
Sponsors or Boy Scouts in Nome
at this time are Rotary Club,
Nome Covenant Church, St.
Joseph’s Catholic Church and the
Community Methodist Church.
The Weather
Increasing cloudiness with oc
casional snow and gusty easterly
winds. Low tonight -10, high to
morrow 5 to 10. In the last 24
hours: A high of 9, low of -13.
Sunrise at 8:16 a. m., sunset at
4:18 p. m.
Temperatures a year ago today:
High of 11. low of -1. Extremes
on this date since 1907: high of
36 in 1933, low of -35 in 1930.
House Approves
Common-Law
Marriage in Alaska
JUNEAU ($*> — The State House
of Representatives today approved
a bill which would recognize
common-law marriages in cases
of survivors benefits under the
Workmen’s Compensation Act.
The bill, introduced by Rep.
John Hellenthal passed by a vote
of 24 to 16 after an hour-long de
bate.
The legislation, if enacted,
would mark the first formal
recognition of common law mar
riages in Alaska law.
The bill broadens the terms
“widow” and “widower” under
workmen’s compensation survi
vors benefits to include “persons
otherwise qualified who accord
ing to the standards of common
law” would be the common law
wife or husband of the decedent.
Hellenthal emphasized that the
bill would apply to single men
and would have no effect on mar
riages.
Battling the bill, Rep. Dora
Sweeney declared the bill “would
set a precedent for the recogni
tion of common law marriages.”
“I can’t see protecting single
men who are openly violating the
law in living with a woman who
is not his wife,” she told the
House.
Describes Bill as "Realistic"
Rep. Forbes Baker also opposed
the measure saying it would
“open up a field of happy hunt
ing” for single men. However Rep.
Segundo Llorente, a Catholic
priest, described the bill as “real
istic.”
“This would take care of wom
en and children in a situation
which shouldn’t have happened —
but did happen,” he said.
“If a man is violating the law
— he should be prosecuted during
his lifetime.”
Rep. William Erwin said that
the bill would protect survivors
who discover only after the death
of their spouse that, through some
legal technicality, their marriage
is not lawful.
He also pointed out that some
of the natives of Alaska have
lived for centuries under their
own moral standards which do
not necessarily fit in with our
laws.
“These people are not to blame
and entitled to these workmen’s
compensation insurance benefits.”
Rep. Harold Strandberg said
that he felt the lawmakers were
getting pretty emotional about a
matter which actually was trying
only to recognize special cases of
survivors’ need under the act.
“I doubt very much that when
people get involved in a situation
such as common-law marriages,
that they are considering the terms
of the Workmen’s Compensation
Act,” he said.
20.3% OF ALASKAN WORKERS
WERE IDLE LAST WEEK
JUNEAU UP> — The State De
partment of Labor said Thursday
that 20.3 per cent of the 31,209
Alaskan workers covered by the
insured Unemployment Program
were idle last week.
The rate compared with 19.4
per cent during the week ending
Jan. 28 and with 19.2 per cent
for the same week a year ago.
Labor Commissioner Gil John
son said decreases in new unem
ployment were noted in Anchor
age, Fairbanks, Ketchikan and
Juneau, while Sitka and Peters
burg held steady.
Troopers Glide
Through the Air
Down Into Nome
Everyone who had transporta
tion was out yesterday to watch
the paratroopers of the 7th Special
Airborne Forces make their jump,
j As the air was clear and the
| sun high they were easily seen
not only from the road but from
town.
Prior to the spectacular event
hundreds of leaflets were seen
floating through the air which
were imprinted “They are Com
ing to Nome” watch for these
patches, Airborne 7th Special
Forces Group
A near tragedy was averted by
the quick actions of two of the
paratroopers when a crew mem
ber who opened the door, lost
the door which landed over Bering
Sea. As he was falling out the
door he was caught by his com
panions and suffered head lacera
tions. He was taken to the MMM
Hospital where his bruises were
treated, but no stitches were
necessary, reported one of the
officers. Sgt. Phil Townsend wore
a parachute but in his dazed
condition from the bump on his
head probably would not have
been able to open his chute.
Those who probably saved his
life were Sgt. Williams and
M/Sgt. Nault.
The big drop planned for Sat
urday morning has been delayed
until Sunday and the definite time
has not been announced hut it
is expected to be around noon. At
that time between 45 and 60 men
are expected to make the drop
and assault the “enemy” and try
to take a “missile site” at the
old hanger at Satellite Field. The
“enemy” will he the Alaska Na
tional Guard.
Again, those observing the ex
ercise are requested to stay on
the road and out of the way of
the “invading” troops.
Van Service Will Start
Today Via Seattle to
Juneau and Ketchikan
SEATTLE UP) — Through van
service from Seattle to Juneau
and Ketchikan will be started
with the sailing today of the
motorship Susitna, the Alaska
Steampship Co. announced.
The line said it had acquired
two trailer tractors, 14 trailers
and 30 vans for the service to
Southeastern Alaska. It is similar
to that which has been provided
for some time to Anchorage and
Fairbanks.
R. C. Rose, traffic manager,
said the new service “will be
ideal for handling frozen fish
southbound . . . moving directly
from fish packer to consignee in
Seattle without rehandling.”
MARILYN MONROE TERMED
AS "HIGHLY DISTURBED"
NEW YORK UP) — Screen star
Marilyn Monroe, a patient in
New York hospital’s Payne Whit
ney Clinic, was described by the
hospital as in satisfactory con
dition. Another source said she
was “highly disturbed.”
The World-Telegram & Sun,
saying it had learned that the
blonde beauty was “highly dis
turbed,” said Miss Monroe be
came so distraught Wednesday
she was moved to a floor on which
the clinic treats its most dis
turbed patients.
A hospital spokesman said Miss
Monroe entered the hospital last
Sunday but would give no details.
Lawmakers Are
Somewhat Behind
In Their Work
JUNEAU ft — State lawmakers
neared the one-third mark of
their 60-day target today with a
score of only three bills passed out
of 195 introduced thus far in the
1961 legislative session.
Leaders in both parties began
to prod.
House Speaker Warren Taylor
warned the House yesterday that
“we are running quite a bit be
hind in our work.”
“Other than the passage of a
few immaterial bills, nothing has
been accomplished.”
Bills which have cleared both
Houses and await the signature of
Gov. William A. Egan would:
1. Transfer the registration and
tax collections on corporations
from the Department of Revenue
to the Department of Commerce.
2. Authorize the Department of
Public Safety to set medical and
driving proficiency standards for
school bus drivers; and
3. Transfer a $2,000 line item
in the Legislature’s appropria
tion from unused salary funds to
help pay for the lawmakers’ sta
tionary.
But major committees admitted
ly were moving cautiously in con
sideration of major pieces of legis
lation, such as Gov. Egan’s $59
million budget, the $23 million
general obligation Marine High
way bond issue; boroughs, unem
ployment compensation, legisla
tive pay and taxes.
Joint sessions of the Senate and
I House Finance Committees have
been scheduled daily for briefings
by departmental heads regarding
their budget needs.
New tax measures will be con
sidered only after committee
agreement is reached on the
budget.
A total of seven bills calling
for cuts in the current legisla
tive pay of $40 per diem while in
session and the annual salary of
$3,000 have been introduced in
both chambers.
Most committees with contro
versial measures under considera
tion have scheduled public hear
ings, starting tonight with an air
ing of the borough bill drawn up
by the Administration and the
Legislative Council after a year's
research.
Another public hearing is sched
uled on the proposed Ferry and
Highway bond issue Monday
night.
Another public hearing is set
for Saturday, Feb. 18, at l p. m.
in the Superior Court Chamber
on a bill which would boost the
state minimum wage to $1.75.
Russians State that
New Sputnik Has
Accomplished Its Mission
MOSCOW ft — A leading So
viet scientist reported today that
the Soviet Union’s giant new
Sputnik had successfully accom
plished its missions and would
soon fall into the earth’s atmos
phere and burn out.
L. Sedov, a member of the So
viet Academy of Sciences, also
said the seven-ton satellite car
ried neither a man nor any ex
perimental animals.
Sedov said the two main goals
in launching the satellite were
to get an object that big into or
bit and, once there, to keep it in
its planned orbit with exacting
precision.
I