m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVII No. 50 NOME, ALASKA, WEDNESDAY, APRIL 27. 1955 Per1 Copy—15^
Federal Court Order Restrains
Terri. Treasurer Transferring
$2 Million To Depleted ESC Fundi
JUNEAU, (vP — District Judge«
George W. Folta issued, a tem
porary restraining order Monday
preventing Territorial Treasurer
Hugh J. Wade from transferring
$2 million from the territorial
general fund to the depleted Un
employment Benefit fund.
Judge Folta made the ruling
before taking under advisement
a suit heard Monday in which
Frank Shelton, Ketchikan city
assessor, seeks a preliminary in
junction against the fund trans
fer.
Shelton contends the territor
ial Organic Act and territorial
law were not heeded in passage
of the huge loan bill by the
special session of the 22nd terri
torial legislature.
Half of the $2 million had al
ready been drawn before Shelton
filed suit in Ketchikan 10 days
ago against the transfer.
The $2 million was expected to
tide the unemployment fund over
and permit it to be replenished
under a new contributions form
ula contained in the ESC bill also
passed at the special session.
Ketchikan attorney Charles
Cloudy represented Shelton and
Asst. Atty. Gen. Henry J. Cama
rot represented the territory.
Believe Two U.S.
Envoys wiH Advise
Holding Islands
TAIPEH, Formosa, UP)—T w o
top-level U.S. envoys left today
on the long trip from Scholar’s
Forest to the White House to re
port on their military-diplomatic
emergency mission to Formosa.
Adm. Arthur W. Radford, chair
man of the Joint Chiefs of Staff,
and Walter S. Robertson, assis
tant secretary of state, maintained
the same tight-lipped silence that
marked their three days at Presi
dent Chiang Kai-Shek’s suburban
retreat.
An American official said they
had come to strengthen—not to
weaken—Far East defenses. The
official, who refused to be iden
tified, said this information was
'TOO percent accurate.”
The impression was strong that
the two visitors had not advised
the Nationalists to abandon Que
moy and the Matsus.
An official dispatch today said
the Communists shelled one of
the Matsu islands yesterday. Two
shells from the mainland landed
on Peikantang, seven miles from
the mainland. Only Kaotening
Island is nearer the Red coast,
four miles from the shore. Peik
antang is ZVz sqare miles in area.
It had never before been shelled.
Young Lawyer Consoled
DALLAS, Tex UP>—Atty. Dennis
Gerald Brewer had just passed
his bar examinations and was
sworn in yesterday as an attorney
by Criminal District Judge Wil
liam McCraw.
McCraw immediately appoint
ed Brewer to represent ex-con
vice Clarence Williams, 43.
Williams, on a plea of guilty,
was given 10 years in prison for
stealing a concrete mixer.
Recalling his own first case,
Judge McCraw consoled young
Brewer. “My first client was
hanged,” he said.
►
Big Budget
NEW YORK, (tf*—New York
City’s Board of Estimate yester
day adopted a city budget which
is the largest in the city’s history.
It is exceeded in the United
States only by the federal budget.
The city’s budget for the 1955
56 fiscal year is $1,782,335,683.
Conrad Hilton’s Hotel
Empire Said to Violate
Clayton Antitrust Law
WASHINGTON, UR—Atty. Gen.
Brownell today filed suit to whit
tle down the size of the Conrad
Hilton hotel empire.
The action under the antitrust
laws was brought against the
world’s largest hotel owner in
federal district court here.
It specifically charged the Hil
ton Hotels Corp. with violating
the antimerger section of the
Clayton Antitrust Law when it
acquired the Statler hotel chain
late last year.
The suit also named as a de
fendant the Statler Hotels Dela
ware Corp., newly organized to
hold some of the acquired Statler
properties.
The attorney general asked the
court to order Hilton to dispose of
some hotel properties in New
York City, Washington D.C., St.
Louis and Los Angeles.
The complaint alleged that pri
or to Hilton’s acquisition of the
Statler hotels between August
and November, 1954, these two
chains were in direct competition
in these cities.
It said they also competed gen
erally throughout the nation for
routine hotel business and for na
tional and regional conventions.
Atomic Civil Defense
Test Postponed
| SURVIVAL CITY, Nev., UP>—
The Atomic Energy Commission
at the last moment Wednesday
postponed the big atomic civil de
fense test because of unfavorable
weather conditions.
The announcement was made
to hundreds of observers and
newsmen gathered at an observa
tion point near this model com
munity, braced to receive atomic
fury.
House Group OKs First
Compulsory Provision
In Reserve History
WASHINGTON UP)—The House
Armed Services Committee today
approved 31-5 a new stiffened
military reserve program but left
out authority for the Pentagon to
draft youths into the reserves.
Chairman Vinson (D-Ga) said
no attempt was made to put into
the bill authority, requested by
the Pentagon, to use the draft if
necessary to get men for a new
six-month training program.
The bill contains the first com
pulsory provision in reserve his
tory—a proviso that reservists
who fail to keep up prescribed
training can be recalled for max
imum of 45 days’ active service.
Without a roll call vote, the
committee also approved an
amendment by Vinson authoriz
ing the President to recall a max
imum of one million reservists,
without congressional approval,
in a presidentially-declared emer
gency.
CHENA ICE MOVED
3:32 P.M. YESTERDAY
The ice moved on the Chena
River at 3:32 p.m. yesterday.
Of 9,000 guesses only one was
correct, officials said.
The Chena breakup usually
precedes by only a few days
the ice movement at Nenana,
on the Tanana. Just about all
Alaskans "guess" on that one.
The one correct guesser of
the 3:32 time was James B.
Murphy, 59, a janitor in the
Fairbanks Elks lodge.
Murphy had 20 guesses on
the breakup.
At Nenana, it was reported
the Tanana breakup might be
as long as a week or two away
because "it is still winter at
Nenana" and there is no water
on ihe ice or cracks or holes
near ihe liming pylon. The Che
na is a tributary of the Tanana.
News Conference
Highlights
WASHINGTON, (jP—Eisenhow
er’s news conference today was
the first in a month and it dealt
with a broad range of topics:
Government Information—Eis
enhower declared he is unalter
ably opposed to publication of
any technical military secrets
merely because, as he phrased it,
one or the other federal depart
ment desires to be first with the
announcement of the data.
He can see no reason, Eisen
hower added, for having to make
public information about a U.S.
airplane which is able to fly
straight up. The Navy has devel
oped such a vertical takeoff craft.
The President’s remarks were
in reply to a request for comment
on the Defense Department’s new
information policy, which has
done much to dry up military
news.
Eisenhower apparently had in
mind reports that the armed ser
vices have vied with each other,
in some instances, as to which
could be first with an announce
ment of development of new de
vices.
Economic Prospects—The Pres
ident said the Federal Reserve
Board decision to increase stock
market margin requirements to
70 from 60 percent is, as he put it,
more of a red flag of warning,
than any specific concern about
the situation on the part of the
government.
Immigration—Eisenhower r e
plied with a crisp no when asked
whether he is satisfied with oper
ation of the law dealing with ad
mittance of refugees to this coun
try. His reply was just as crisply
yes to another question whether
he would support changes in the
law.
Alaska Legislators
Would Be Eligible For
Convention Delegates
WASHINGTON, OP)—Members
of the Alaska Legislature would
be eligible to seek election as a
delegate to this fall’s constitu
tional convention under tdrms of
a bill approved^ by the House In
sular Affairs Committee Tuesday.
The convention, to be held in
November, has been called to
draft a proposed constitution for
use in event of statehood.
Present law forbids legislators
from seeking any office created
by a legislature of which they
were a member.
Eisenhower Discloses He's Been
Exchanging Letters With Zhukov,
Feels Peace Prospects Improving
Salvager for Aleutians
Say No Japanese Labor
Force To Be Imported
ANCHORAGE, UP)—A spokes
man for a Chicago concern that
bid successfully on extensive sal
vage work of abandoned govern
ment supplies and equipment in
the Aleutians said today about 50
Americans would be employed
this summer.
He was James A. Wooten, part
ner in Bankers Life Casualty,
Chicago Insurance firm. He is al
so a former president of Alaska
Airlines.
He said published reports that
a large force of Japanese laborers
were due in Alaska next week to
work on the project were com
pletely wrong.
Earlier, Territorial Labor Com
missioner Henry Benson, com
menting at Juneau on published
reports, described any importa
tion of alien labor into the terri
tory as an “absolute outrage
against the people of Alaska.”
When the government recently
announced the sale of the surplus
material, Gov. Heintzleman wired
the Chicago firm asking Alaska
resident labor be used as much as
possible.
Steelworkers’ Union
Intends to Seek Pay Hikes
For 600,000 Workers
PITTSBURGH, MV-CIO Uni
ted Steelworkers today notified
96 basic steel producing compan
ies that it intends to seek unspec
ified pay boosts for 600,000 mem
bers employed in the basic steel
industry.
David J. McDonald, presi
dent of the 1,250,000 member
union, said the notices were
mailed out yesterday. Under the
1954 contract, steel companies
are required to begin negotiations
within 30 days after the notice is
received.
The contract also provides the
union is permitted to strike in
support of its position if no agree
ment is received by June 30.
Victory For Ike'
Seen In Approval
Foreign Trade Bill
WASHINGTON, W—-President
Eisenhower was credited with a
substantial victory today in Sen
ate Finance Committee approval
of his foreign trade bill without
major changes, but it still faces a
tough floor battle.
The committee approved the
bill late yesterday on the 13-2
vote. Sens. Kerr, Democrat, and
Malone, Republican, were the
only dissenters.
Chairman Byrd (D-Va) hailed
this virtual unanimity as a sign
that the bill could be put through
the Senate without any damaging
amendments.
Nevertheless, sponsors of the
administration-opposed amend
ments rejected in the committee
laid plans to carry the battle to
the floor. This was particularly
true of senators who seek relief
from import competition for spe
cific commodities. One powerful
lineup favors a sharp cutback on
oil shipments into this country.
WASHINGTON, W—President
Eisenhower disclosed today he
had been in private correspon
dence with Soviet Defense Min
ister Zhukov within the past
three weeks. He said the corres
pondence holds out some slim
hope of betterment in United
States-Soviet relations.
Eisenhower told of the corres
pondence at a news conference,
and said he has a feeling world
peace prospects are on the up
swing.
As to Red China, the President
said the United States is willing
to confer alone with the Commu
nists regarding a Formosa area
cease-fire but not on matters af
fecting Nationalist China.
In saying he feels peace pros
pects are improving, Eisenhower
said it is also possible, however,
to balance every encouraging de
velopment—such as the willing
ness of Russia to agree on an
Austrian peace treaty—with an
adverse development, such as the
Red Chinese air buildup in the
vicinity of Formosa.
He said at this time he sees no
reason for a meeting between
himself and the British, French
and Russian heads of state as a
result of the Austrian treaty ne
gotiations. But he said such a
meeting is always possible.
Secretary of State Dulles, Brit
ish Foreign Secretary Harold
MacMillan and French Foreign
Minister Antoine Piriay have l
scheduled a meeting May 1 in
Paris to discuss a meeting with
the Russians.
Eisenhower declined to give de
tails of his correspondence with
Marshal Zhukov until the Soviet
government official gives the
word.
Eisenhower and Zhukov became
well acquainted during occupa
tion days in Berlin immediately
after the defeat of Germany in
World War II. At that time, Zhu
kov once made- plans—never car
ried through—to visit the United
States.
At a news conference last Feb
ruary, Eisenhower was asked
whether he might now extend a
new invitation to the Russians.
The President called it an idea
worth considering.
Today, in the talk about Eisen
hower’s correspondence with
Zhukov, the President was asked
specifically about a published re
port that he asked Zhukov to
intervene to seek the release of
American airmen imprisoned by
Red China.
The President replied he was
not at liberty to discuss the con
tents of the correspondence ex
change. He added that he would
not want to be a party to possibly
jeopardizing any world better
ment that might flow from the
exchange.
WOMAN LEGISLATOR
CLAIMS TWO FIRSTS
RALEIGH, N.C. Mrs. Thel
ma Fisher, who yesterday was
sworn in as a state legislator,
claimed two “firsts.”
She is the first woman in North
Carolina to succeed her husband
as a member of the General As
sembly and the first woman to
represent the Republican Party
in that body.