m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS_
VOL. LXII No. 12 NOME, ALASKA, WEDNESDAY, JANUARY 27, 1960_Per Copy 151
Egan Proposes
Record $46 Million
Budget For 1961
JUNEAU, UP)—A 46 million dol
lar state spending program for
the 1961 fiscal year was pro
posed by Gov. Egan in an appro
priation bill submitted to the
legislature today.
Along with the budget the gov
ernor handed the lawmakers leg
islation calling for a 2-cents a
gallon increase in automobile
gasoline taxes and a 1-cent a
gallon boost in marine fuel taxes.
The appropriation request was
the most comprehensive budget
request ever drawn in Alaska’s
history. As such, it is virtually
impossible to compare it with re
quests of previous appropriations.
But the total package was a
record—made so by the inclusion
of big federal transitional grants
and proposed state expenditures
designed to meet expanded state
needs.
For the 1961 fiscal year, the
governor’s bill called for appro
priation of:
General fund expenditures of
36 Vi million dollars.
Federal transitional grant ex
penditures of nearly $6 million.
Expenditures from special re
serves of more than $3Vi million,
with the bulk of this amount from
the state highway fund.
The governor estimated a sur
plus of $3 Vi million in the state
treasury on June 30, 1962, com
pared with an expected surplus of
nearly $9 million at the end of
the current^ fiscal year.
All told, the state will admin
ister during the 1901 period a fin
ancial bundle of $103 million,
which includes a variety of fed
eral projects handled by the state
and never before totaled in the
state budget.
The biggest share of the entire
package is a $48 million highway
program, including state match
ing money covered in the appro
priation bill of $1 Vi million from
the highway fund and $4 million
in transitional money.
ALAKA STEAM SHIPPING
MASTER RETIRES IN SEATTLE
SEATTLE, U!) — W. Raymond
Nichols, 65, shipping master for
the Alaska Steamship Co., and a
veteran of 42 years with the line,
will retire Sunday.
Nichols joined the company on
January 10, 1918.
He will spend much of his time
working around his home and the
yard. He and his wife have two
daughters and six grandchildren.
Fast Hydrofoil Boat
May Get 1961 Trial Run
From Seattle to Ketchikan
WASHINGTON, 0ft — The hy
drofoil vessel which Dynamic De
velopments, Inc., is to build under
a contract with the Maritime Ad
ministration, may make test voy
ages between Seattle and Ketchi
kan next year, Rep. Thomas Pelly
(R-Wash) said today.
It previously was announced
the ship would be in Seattle dur
ing the Century 21 Exposition.
The vessel, which is expected
to travel at 60 to 80 knots, would
be able to make the trip from
Seattle to Ketchikan during the
daylight hours of a summer day.
' The ship will accommodate 100
passengers in reclining seats.
Judge Hedge Nomination
May Be Acted on Monday
WASHINGTON, (*) — The Sen
ate Judiciary Committee may act
Monday on President Eisenhow
er’s nomination of Judge Walter
Hodge to be Federal District
Judge in Alaska.
The appointment of Hodge, now
a judge of the Alaska Supreme
Court, was considered by a sub
committee Monday. A subcom
mittee aide said today the group
may act in time for the full com
mittee to consider the nomina
tion at its next meeting, tenta
tively set for Monday.
No opposition to the nomina
tion has developed.
‘Dinner With Ike’ Opens
Campaign in Los Angeles
WASHINGTON, (*) — President
Eisenhower flew west today to
lead (Republicans in a nationwide
kickoff for the 1960 GOP cam
paign.
His big military jet transport
took off from Andrews Air Force
Base for Los Angeles with a brief
stop scheduled in Denver.
In Los Angeles Eisenhower will
speak at a party fund-raising
dinner. His address will be piped,
in both sound and picture, to
more than 80 such rallies being
held simultaneously coast to coast.
The Republican National Com
mittee is calling the cross-country
political tub-thumping “Dinner
With Ike.”
In addition to Eisenhower, the
private telecast will feature the
main speakers at seven other
dinners.
They include Vice President
Nixon, at Chicago; Governor
Rockefeller of New York in Wash
ington, and Sen. Morton of Ken
tucky, Republican National Chair
man, in New York.
At Denver, Mrs. Eisenhower
will leave the party to spend a
few days at the home of her ail
ing mother, Mrs. John S. Doud.
The President will spend the
night at 'Los Angeles, and Thurs
day morning will travel to the
Palm Springs desert resort area
for a long weekend of golf and
rest.
$498,000 Loan Approved
By REA to Kotzebue
Special to the Nome Nugget
WASHINGTON — The Rural
Electrification Administration to
day approved a loan of $498,000
to the Kotzebue Electric Asso
ciation, of which John Cross is
president.
The loan, which is to be made
to the association, is principally
to bring generating capacity to a
higher level, necessitated by com
munity growth.
Two new 450-kilowatt genera
tor units will be installed, and one
mile of new distribution line, add
ing 31 new rural consumers, is to
be constructed. The new line will
permit the association to serve
the new Alaska Native Health
Service Hospital.
TRUCK CARRYING ARMY
PROJECTILES COLLIDES
WITH FARM VEHICLE
SUNNYSIDE, Wash., UFI — A
freight truck loaded with 18,000
pounds of explosive projectiles
smashed into the rear of a farm
truck Tuesday, but didn’t ex
plode. The 8-inch Army projec
tiles were not armed with deton
ators.
The State Patrol said all three
men in the trucks escaped injury.
City Council
Sets New Light
And Power Rates
New power and light rates will
go into effect here on March 1.
having been set at the special
rate hearing Monday evening, fol
lowing the regular Council meet
ing. Both power and light rates
will be the same with the first
100 kilowatts, billed at 10 cents,
and the second 100 at 9 cents.
From 201 to 400 kilowatts the
rate is 8 cents, and for all over
400, 7 cents.
This was a compromise between
the report of the special commit
tee appointed to investigate the
fairness of the present rates, and
a more conservative figure of
fered by many present. The com
mittee, composed of Councilman
Allen Doyle, Les Keller of the
Utility Board, and Charles West,
recommended the lowest rate of
6 cents.
The minimum rate has been
set for $3, winter or summer. It
was hoped to put the new sched
ule into effect by February 1, but
the law requires a ten-day wait
ing period before the rates can
become effective.
Wilke Rejoins Council
Former Councilman Roscoe Wil
kie was appointed to take over
the vacancy on the City Council
created by the resignation of Ver
na Mickelson. Jim Blanning was
appointed to the School Board, to
replace 'Helen Fagerstrom, who
recently resigned.
Jail Contract Signed
A contract was signed Monday
evening by the City, to take over
the care of federal prisoners, and
the City now awaits action by
the State to handle state pris
oners and to operate the Federal
Jail facility in the Federal Build
ing. In preparation for the move
of the City Police Department,
permission was granted to install
a relay in the new Federal Build
ing so that the fire siren could
be blown from there.
It is not clear yet just how the
City Fire Department is to op
erate, and a meeting of the Vol
unteer Fire Department has been
called for this evening to discuss
th matter. ,
A study is to be made by the
School Board to consider an offer
of the old Federal Building for
use as a High School, stated
Mayor Anderson.
House Bill Would Restrict
Governor’s Switching
Of Department Funds
JUNEAU, un — A bill designed
to end the Governor’s power to
transfer appropriations was in
troduced in Alaska’s House yes
terday.
It differed from one introduced
in the Senate the day before and
scheduled for floor action today.
The Senate version specifically
reserves to the Governor the
power to transfer funds within
departments.
The last Legislature gave the
Chief Executive the authority to
transfer funds from one depart
ment to another. The power was
granted on grounds it was diffi
cult at that time to predict the
needs of the new state govern
ment.
The House bill, restoring tra
ditional legislative control ov»
appropriations, was introduced by
Rep. James Fisher of Anchorage.
Governor’s ‘State of Alaska’ Address
Stirs Mixed Comment In Legislature
JUNEAU, UPt — Republicans,
and Democrats alike — with some
exceptions — joined yesterday in
praise of Governor Egan’s first
State of Alaska speech.
The Governor, sick in Seattle
during the state’s first legislative
session a year ago, made his in
augural “State of the State”
speech yesterday, a 50-minute
outline of the activities of his ad
ministration during the first year
of statehood.
While most legislators asked for
comment by the Associated Press
were high in their praise of Egan’s
report, some lawmakers expressed
disappointment he did not advance
specific proposals on major issues.
The Governor plans to made ad
ministrative recommendations in
later messages to the Legislature.
He was to present his budget pro
posals for fiscal 1961 today.
Sen. A1 Owen, chairman of the
Senate Finance Committee, said
Egan’s State of Alaska speech left
no'question about the leadership
of Alaska.
Another Democrat, House
Speaker Peter Kalamarides of An
chorage, said Egan’s report was
an “excellent rqsume” of the first
year of statehood.
Sen. John Coghill (R-Nenanah
Minority Leader in the upper
chamber, said he had hoped to
hear some detailed recommenda
tions from Egan concerning local
government problems.
Coghill and Rep. Don Harris
(R-McGrath) both, termed it a
“good, comprehensive report of
the Executive Department’s . ac
complishments.”
Rep. Bruce Kendall (R-Valdez),
House Minority Leader, expressed
keen disappointment in Egan’s
speech.
“It was a schoolmaster-type
speech, toq long, technical and
detailed with a noticeable avoid
ance of social, or economic con
troversial issues that must be
faced,” Kendall said.
Kendall listed the four major
issues of the session as employ
ment security, borough iqatters,
liquor control legislation and
budgetary matters.
“He did make it crystal clear
that he still favors the strong
executive concept of government.
He wants more power by statute
for the' department of budget, a
definite encroachment on the
powers of the Legislature.”
DeGaulle’s Algiers
Chief Pleads for
End to Rioting
PARIS, (#> — President Charles
De Gaulle's chief representative
in Algeria pleaded with insur
gent Frenchmen today to lay
down their arms and end a gen
eral strike against the policy of
self-determination for Algeria.
Delegate General Paul DeLouv
rier deplOTed the four-day upris
ing in a broadcast over army
controlled Radio Algiers.
Even as he spoke, the thous
ands of armed insurgents were
strengthening their shoulder-high
barricades in the streets of Al
giers.
DeLouvrier said no one in Al
giers wishes secession or a gov
ernment crisis.
“Certainly I understand the mo
tives of those who, with the cour
age of despair, have entrenched
themselves to bear witness for
French Algria,” he said. “I know
that these motives are shared by
most people here. Metropolitan
France must know this.”
This was the first official ad
mission that rioting Sunday in
Algiers, in which 26 persons died
and about 150 were injured, was
a reflection of widespread senti
ment and not the action of a rel
atively few French rightists.
There was no sign of a solu
tion to the situation which
posed the gravest threat to De
Gaulle since the Algerian upris
ing of May, 1958 doomed the
Fourth French Republic and
vaulted him to power.
The 'barricaded insurgents —
fearful that De Gaulle’s moderate
self-determination policy would
lead to eventual independence for
Algiers — demanded that the
largely Moslem land remain
French.
From his palace, De Gaulle re
affirmed his policy and called on
the insurgents to lay down their
arms.
As the deadlock persisted, un
rest in other Algerian cities was
growing.
Murder of 4 In N.J.
Surgeon’s Home
Mystifies Police
NORTH BRUNSWICK, N. J., UP)
— A red and black taxicab, used
as the getaway car by the slayer
of four persons in a doctor’s home,
was found nearly 25 miles away
in Elizabeth early today.
Newark and Elizabeth police
immediately swarmed about the
area looking for a man fitting the
description of the slayer. A
police alarm had said he was
about 35.
His victims were three women
and a man, found in the large
white mansion of Dr. Francis
Clarke, prominent surgeon. All
had been shot through the left
temple.
The slayer’s identity and his
motive remained a mystery.
The trussed-up victims .of the
multiple shooting included the
doctor’s invalid wife, two women
servants, and a stranger to the
home, a Newark cab driver.
They were found by Mrs.
Clarke’s daughter, Cornelia Cha
pin, 26, who had left the home
earlier on a shopping trip.
“I don’t think I had any ene
mies who would go to that ex
treme,” said Dr. Clarke, head
surgeon at St. Peter’s Hospital in
New Brunswick.
Clarke was operating when
police tried to reach him. His
colleagues let him finish before
telling him “something was wrong
at home.”
BILL OFFERED BY RIVERS
WOULD ALLOW AIR
TRANSPORT OF ALASKA MAIL
WASHINGTON, UP — Rep.
Ralph Rivers introduced a bill
yesterday that would authorize
air transport of all classes of mail
between Alaska and the other
states.
Such movement of mail to and
from Alaska has been tried on an
experimental “space available”
basis from time to time, Rivers
said.