m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LXI No. 60 NOME, ALASKA, WEDNESDAY, MAY 20, 1959_Per Copy—15^
Board of Education
Elects Robert
Baldwin President
JUNEAU, UPt — Robert Baldwin
• of Nome has been elected presi
dent of the State Board of Edu
cation, and Hunt Gruening of Ju
neau named vice president.
The two members of the new
- board, both serving terms that ex
pire next January 31, are expected
to be re-appointed by Governor
Egan early next year.
The board, which opened its
first meeting here Monday, said
it probably would be late this
week before it acts on nomina
tions for appointment of the new
Commissioner of Education.
The appointment, to be made
by Governor Egan, probably will
not be announced until late June.
The Governor left Tuesday for
Seattle, where he will undergo
his fourth operation since De
cember.
Before leaving, Egan designated
his executive assistant, Burke
Riley, to become Secretary of
State in the event of a vacancy
existing in that office.
Alaska’s elected Secretary, Hugh
Wade, became acting Governor
again after Egan’s departure.
The Governor made no other
major appointments before he
left, but said he expected to fill
three department head positions
before July 1, which date starts
the new fiscal year.
Governor Egan, due back in
Juneau in mid-June, did not name
three agency posts to be filled
next. Six of the 12 cabinet posts
in the new state government still
are vacant.
There will be no immediate
consideration, likewise, of per
sons for appointment to state
court judgeships.
The State Judicial Council
wound up a two-day meeting at
Juneau yesterday after announc
ing it was taking no action for
the time being toward nominating
candidates for appointment as
supreme court justices and su
perior court judges.
The council, including Roy
Walker of Nome, said such nomi
nations would not be submitted to
Governor Egan until time for the
courts to be activated. There is a
January 3, 1962, deadline on put
ting new courts into operation, but
provisions have been made to in
stitute the courts earlier, if nec
essary.
The council’s first meeting, at
which Dr. William Whitehead of
Juneau was elected chairman, ap
proved a series of four judicial
studies ordered by the First State
Legislature.
High School Student Dies
At Club Initiation
YAKIMA, UP) — The initiation
ceremony for a suburban high
school club, being carried out in
the water of a small pond east
of town, turned into tragedy
yesteday when one of the 16 ini
tiates died.
Henry Sherwood, a 16-year-old
sophomore, and 15 other youths
dressed in garments made from
burlap sacks, were being paddled
by members* of the club, a letter
man’s organization, in the water
when Sherwood sank beneath the
surface.
His absence went unnoticed for
several minutes. When his com
panions realized he was missing,
they searched and found his body.
Wien Complains Alaska
Airlines’ New Rates Are
‘Unfair, Uneconomic’
WASHINGTON, UP) — Wien
Alaska Airlines has complained
to the Civil Aeronautics Board
that Alaska Airlines has intro
duced uneconomic and unfair
charter rates in Alaska.
The complaint listed charter
rates for passengers, for cargo and
for ferry flights, for each category
of Alaska Airlines aircraft—DC-6,
DC-4 and C46-C.
It said the passenger and cargo
charter rates formerly in. effect
were $2.75 and $2.65 a mile, re
spectively, for DC-6 airplanes.
For DC-4s both rates were $1.75
a mile, and for C-46s, $1.50.
Wien said Alaska Airlines’ new
rates, now in effect, are $2.50 and
$2.40 for DC-6s, $1.75 a mile for
DC-4s, and $1.25 a mile for C46s.
C.A.B. Guarantees
Wien Loan for 2
Turboprop Planes
WASHINGTON, UP) — The Civil
Aeronautics, Board agreed yester
day to guarantee a $1,305,270 bank
loan for Wien Alaska Airlines.
Wien will use the loan to buy
two Fairchild F-27 turboprop air
liners and spare parts, costing a
total of $1,450,300.
The Bank of New York, as agent
for itself and for Teachers Life
Insurance & Annuity Association
of America, applied for the guar
anty.
The C.A.B., in authorizing its
secretary to execute the guaranty
agreement, noted the 6 per cent
intereest rate was higher than it
had approved for any other air
line loan.
“However, the fact that it op
erates in northern Alaska, and the
prevalence of high interest rates
in Alaska, make it necessary for
Wien to pay this rate,” the C.A.B.
said.
The board noted Wien also was
borrowing substantial funds for
working capital from the Small
Business Administration.
Observing that when contem
plated financing is completed,
Wien will have a debt-to-equity
ratio of about 79 to 21, the C.A.B.
added:
“Despite the resulting unfavor
able financing structure, we are
approving the guaranty of the
loans primarily because of the im
portance to the national defense
of bringing modern air lift to
northern Alaska, and because the
purchased equipment will provide
the opportunity for Wien to raise
a significant amount of equity.
The airline estimated that the
F-27, built by Fairchild Airplane
& Engine Corp., Hagerstown, Md.,
will improve the company’s fi
nancial position. The C.A.B. agreed
that the new planes should im
prove service by virtue of greater
cruising speed, superior provisions
for handling cargo, cabin press
urization and improve cabin
heating.
INDIANA POLICEMAN KILLS
14-YEAR-OLD FUGITIVE
INDIANAPOLIS, UPi — A 14
year-old boy was shot to death by
a policeman early today while
fleeing from Christamere House, a
social service center.
The dead boy was identifd as
Orville Grandstaff, Indianapolis.
Patrolman Robert B. Potter said
he was investigating a burglary
report when the boy j limped out
of a window and ran down an
alley, ignoring two orders to stop.
Gala Festivities To
Spark Saturday
Terminal Opening
Del Kampmann, station man
ager for Alaska Airlines, an
nounced this morning that the
dedication ceremony for the Nome
Airport Terminal will be held
Saturday afternoon at 1:30.
The terminal will open at 8 a.m.
on Saturday morning, and courte
sy flights will be made in the
pressurized DC-6C from 9 a.m.
until noon.
The Nome School Band will start
playing at noon, during which
time refreshments will be served.
At 1:30, a squadron of F-102
jets will fly over the airport, and
this will be followed by the dedi
cation ceremony, scheduled for
1:40 p.m.
A presentation will be made to
the City of Nome through its may
or by the president of the Alaska
Airlines, Charles Willis.
The “Golden Nugget” plane
will remain overnight. Among the
passengers departing on Sunday
will be Agnes Crosby, Mr. and
Mrs. Wm. Angell, and Bennie Mae
Norland.
-:
Rivers Asks Congress
To Declare War On
Dogfish Shark Predators
WASHINGTON, tPI — A bounty
program on dogfish shark — $15
a ton on carcasses and 15 cents
a pound for livers — was pro
posed yesterday by Representative
Ralph Rivers.
He said payments provided in
his bill would be in addition to
anything a fisherman might re
ceive for his catch from other
sources.
In recent years, since develop
ment of artificial sources for vita
min C, the dogfish sharks have
multiplied to the point where they
have become a nuisance to fisher
men operating in the waters off
the Pacific Northwest and South
east Alaska.
The sharks’ livers previously
had been an important source of
Ike Decorates
Dulles With Medal
Of Freedom Award
WASHINGTON, UP) — President
Eisenhower has conferred the
Medal of Freedom on John Fos
ter Dulles. It is the nation’s high
est award to civilians.
The former Secdetary of State,
critically ill with cancer and pneu
monia complications, received the
medal Tuesday at Walter Reed
Medical Center. It was presented
to him on behalf of the President
by Mrs. Dulles.
In a “Dear Foster,” note ac
companying the medal, Eisen
hower wrote:
“It is an honor and a privilege
to award you this Medal of Free
dom. Inadequate though it is to
express my gratitude and the
gratitude of the nation you have
served so well, it does stand as a
small token of the affection and
esteem that the people of Amrica
and of the world hold for you and
your tireless efforts on behalf of
freedom.”
The President signed the note
with his initials — “D. E.”
Pain relieving drugs are keeping
Dulles generally comfortable as
he clings to life. He sleeps much
of the time in his hospital room.
Labor Department Official
Offers Help for Knotty
Alaska ESC Problems
WASHINGTON, UP) — A Depart
ment of Labor official has agreed
to go to Alaska ths summer to
consult with state officals on its
employment security compensa
tion program.
The offer was made by Robert
C. Goodwin, director of the de
partment’s Bureau of Employ
ment Security, during a meeting
with Senator Boh Bartlett.
The senator said Goodwin ad
vised that he was well acquainted
with the ESC bill vetoed by Alas
ka’s Governor Egan and with the
need for legislative action to meet
the long-standing problems.
City Boiler Blaze
Reaches N.C. Cat Shop,
Injures Martin Backstrom
The Nome Fire Department an
swered its third fire alarm in two
days at noon today, when the city
boiler, which was thawing gas
pipes in front of the Northern
Commercial Co. garage, ignited
from gas fumes, according to spec
tators. Martin Backstrom, who
was in the boiler house, was badly
burned on his face and hands. The
front of the N. C. Cat Shop was
damaged, with some interior dam
age, estimated at about $3,000,
stated the manager, Steve An
dersen,
vitamin C.
Governor Egan
Faces Fourth -
Major Operation
SEATTLE, UP) — Alaska’s Gov
ernor William Egan arrived here
Tuesday night for his fourth major
operation since December.
The 44-year-old Democrat is
scheduled to undergo surgery Fri
day to clear up a gallstone condi
tion with which he was stricken
January 3. Egan was rushed here
from Juneau January 19 for an
emergency operation. He was
given only a 50-50 chance to sur
vive, and was not able to assume
his gubernatorial duties until
April 14.
The Governor, who was accom
panied by his wife, said he hopes
to leave the hospital June 2 and
return to Juneau about 10 days
later.
ANCHORAGE WILL RECEIVE
FEDERAL FUNDS FOR
HOSPITAL CONSTRUCTION
WASHINGTON, UP) — A $900,000;
federal contribution toward new
construction at Providence Hos
pital in Anchorage, was approved
today by the Department of
Health, Education and Welfare.
Senator Bartlett said the con
struction is expected to cost
$4,348,315, and will include an
88-bed hospital, a 37-bed nursing
home and a new diagnostic and
treatment center.
PROPOSED AGENDA
ALASKA STATE CHAMBER BOARD MEETING
Federal Court Room — Nome, Alaska
THURSDAY, MAY 21
9:00 a.m. to Noon
Arrival and Certification of Credentials
12 Noon—N.W.A. C. of C. Luncheon at North Star Dining Room
1:00 p.m.—Convene at Grand Jury Room in Federal Building
Approve an Agenda
1:30 p.m.—Report on Sitka Annual Meeting — President and
Sitka Chamber
1:45 p.m.—Report by President on U. S. Chamber, PNTA and
other meetings
2:15 p.m.—Film—Everybody Knows — 15 minutes — Court Room •
2:40 p.m.—Discussion of Congressional Program
3:30 p.m.—Break
3:45 p.m.—Membership and Paid Manager Discussion
5:30 p.m.—Adjourn
FRIDAY, MAY 22
8:30 a.m.—Continuation of Membership and Paid Manager
Discussion
9:30 a.m.—Discussion of Alaska Visitors Association
10:30 a.m.—Break
10:45 a.m.—Film — It’s Everybody’s Business — 22 minutes —
Court Room
11:15 a.m.—Discussion of Educational Program for Private
Enterprise
12:00 Noon—Lunch
1:00 p.m.—Department of Commerce Presentation on Income
- Study in Alaska, Wm. H. Flood, Dept, of Commerce.
2:00 p.m.—Film—A Matter of Choice — 24 minutes — Court
Room
2:40 p.m. Alaska Legislative Program
3:30 p.m.—Break
3:45 p.m.—Continue Alaska Legislative Program
5:00 p.m.—Adjourn
7:30 p.m.—No Host Smorgasbord, Multipurpose Room in Nome
School
8:30 p.m.—Showing of Atomic Energy Films — Both dinner and
Films open to Public.
SATURDAY, MAY 23
8:30 a.m.—'Discussion of Road Conference
9:15 a.m.—Consideration of Establishment of State Chamber
Policy Declaration
10:30 a.m.—Break
10:45 a.m.—Chamber Political Action Program
12:30 Noon—Lunch
1:30 p.m.—Airport Terminal Dedication — Nome Airport
3:30 p.m.—Standing and Special Committee Consideration
4:15 pan.—U. S. Chamber Membership
4:30 p.m.—Resignation of 1st Vice President
5:00 pm.—Resolution Committee Report
5:45 p.m.—Announcements and Acknowledgements
6:00 p.m.—Adjourn — (Cocktail party for visitors and invitees)
Unless otherwise ruled by the Board, the regular business sessions
will be open to the public.