THE NOME UGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING CO.
NOME, ALASKA
Telephone Main 125 S1.50 PER MONTH
P.O. Box 618 $16.00 A YEAR
E. P. BOUCHER . Managing Editor
CLINTON GRAY . Production Manager
Entered as second class matter October 14, 1943, at the
post office at Nome, Alaska, under Act of March 3, 1879.
Subscribers not receiving their paper by 5:30 p.m. call
Main 125 for special delivery. After 5:30 call Black 102.
Industrial Tax Incentive Act Applied
To Assist Growth of Sitka Pulp Mill
JUNEAU, UP — Alaska’s aging
but still largely unused Indus
trial Tax Incentive Act was ex
tended yesterday to the Alaska
1.umber and Pulp Co. of its mill at
Sitka.
The company was granted a 10
year certificate exempting it from
*11 Alaska-levied taxes except
those collected on motor fuels.
Approval for the tax exemp
tion came 10 months after the
company applied for benefits of-!
'ered by the industrial incentive
act passed in the waning days of
die 1957 Territorial Legislature.
It was the second certificate1
granted by the Territorial Board
of Administration, which acted
unanimously after months of dis
cussions on the company’s peti
io’"*.
The tax exemptions, with an
estimated value of about two
million dollars to the company
over the 10-year span, will not
became effective until probably
in early 1960.
Alaska Lumber and Pulp Co.,
located near Sitka, is expected to
be ready to begin production in
late December of next year.
The tax relief benefits will be
come effective when production
at the 50-million-dollar mill has
averaged 500 tons a day for 60
days, or after total production
Nixon Predicts
41948 Victory
In Reverse’
TOS ANGELES, UP) — The Re
publican Party is surging toward
an upset victory at the polls in
November, says Vice President
Nixon.
Nixon told 2,000 GOP campaign
workers Wednesday night that the
biggest political shocker since
Harry Truman’s unexpected vic
tory in 1948 is in the making.
“This is 1948 in reverse,” he
said. “The Democrats think
they’ve they’ve got it made.
They’ve been reading the polls—
and believing them. They’re play
ing it safe.
“Well, we’re playing it hard.
We’re playing to win, and we’re
going to win.”
Earlier, in San Francisco, Nixon
told a press conference that to
win, the Republicans could not
let Democratic criticism of Ad
ministration policies go unan
swered.
“I think one reason the Repub
lican Party is in trouble is that
it has allowed criticism to go by
without making effective reply,”
he said.
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has reached 25,000 tons.
The Sitka pulp mill certificate
extends relief from Alaska In
come tax, and state property tax
that might be levied during the
period, a state sales tax, should
one later be imposed, and other
licenses andf fees.
The only • exceptions are taxes
collectable from the company for
all motor fuel uses. The board es
timated the company will pay
about $7,000 a year in motor fuel
levies.
Tax benefits will stop auto
matically if the company’s annual
ret income exceeds eight per cent
of its capital investment in prop
erty, plant and equipment.
AI Anderson, director of the
Alaska Resource Development
Board, estimated a $4,000,000 an
nual net income by the company
would hit the cutoff point of the
tax aid program.
The tax incentive act, aimed at
inducing new industry to locate
in Alaska, allows the Board of
Administration to grant exemp
tion from all state and local taxes
for as long- as a decade.
The first tax exemption certi
ficate awarded by the board went
last year to the Pacific Northern
Lumber Co. of Portland, Ore., for
a sawmill operation at Wrangell.
However, the company has not
begun production and its 10-year
tax benefits have not been
applied.
Uncontrolled Oil
Fire In Gulf
NEW ORLEANS, UPi — Explo
sions, followed by fire, demolished
a multi-million dollar offshore
oil prodution platform, killed one
crewman and sent 21 others to
hospitals Wednesday night.
Seven others were unaccounted
for in an inferno in the Gulf of
Mexico, 60 miles south of New
Orleans. Five, possibly all six,
oil wells clustered under the plat
form, burned uncontrolled.
The workmen were hurled or
jumped from the platform, 50 feet
above the 50-fo0t-deep water.
Survivors were picked up by sur
face craft and taken to a nearby
undamaged platform where they
were picked up by helicopters
and brought to hospitals.
There was no official explana
tion for the blast.
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Bomb Explodes,
Killing Bearer
At Wichita Airport
'WICHITA, Kan., UP) — A make
shift bomb exploded in the lobby
of Wichita’s multimillion-dollar
Municipal Airport today, killing
its bearer.
Police Chief Eugene Pond said,
the blast victim was Forest Don
McCustion, Tulsa, Okla.
The man’s right hand had been
blown off at the wrist, and the
body mangled by the force of the
blast.
No other casualties were re
ported immediately. Dozens of
windows were shattered but
there was no fire.
Mrs. Joann Embree, clerk for
a car rental firm, witnessed the
blast and said she narrowly es
caped picking up the bomb a few
seconds before it exploded.
Mrs. Embree said McCustion ap
proached her counter and asked
for change for a quarter.
“I gave him the change and
watched him make a brief tele
phone call,” she said.
After the phone call, McCustion
came back to the car rental desk
and asked Mrs. Embree where he
could find the lost-and-found de
partment.
Mrs. Embree gave him direc
tions, and he placed a brown
paper-wrapped package and a
leather brief case on the counter.
She said she reached out to
take the package and actually
touched it- when McCustion said,
“no,” and grabbed the brief case
and package, then walked away.
Mrs. Embree said he had walked
about 40 feet when the bomb ex
ploded.
Pond said every available man
was immediately placed on the
case. The FBI also was at the
scene.
TRAGIC HAWAIIAN
AIR OPERATION
HONOLULU, UH — Two Air
Force jet fighter planes ran low
on fuel over the Pacific Tuesday
and the pilot of one died when
he bailed out 90 miles northeast
of here.
Two Marine helicopter crew
men were killed when their chop
per blew up in the rescue opera
tion.
Six Supersonic, Swept-Wing
FI 01 Voodoos were ferrying to
Honolulu ’ from McClellan AFB,.
Calif., where a spokesman said
they had refuelled Tuesday
morning after a hop from Lang
planes were sent out. Due to air
turbulence, the Air Force said,
connections could not be made for
the aerial refueling and the pilot
ejected in what appeared to be
a normal bail-out.
But he was found dead, float
ing in his inflated life jacket, by
ley AFB, Va. One of them ra
dioed he was running out of fuel.
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